|
 |
| Kuwait Business |
 |
|
Economy
Kuwait’s substantial wealth is the result of Kuwait's vast oil deposits, estimated at 100 billion barrels (9 % of the world’s total known reserves). With production of over 2 million barrels daily, oil now accounts for about half of total output, 90 % of export income and 3 quarters of government revenue.
The economy has long since recovered from the extensive and systematic looting conducted by Iraqi troops during the occupation of 1990 to 1991. This was estimated to have cost Kuwait US $170 billion, and the degree of the reconstruction was reflected in the fact that Kuwait was obliged to liquidate a large proportion of its overseas investment portfolio.
These holdings, which are managed by the Kuwait Investment Office, are used partly to meet the country’s running costs (free education and social services) and partly lodged in the Fund for Future Generations. During the 1990's, Kuwait, not surprisingly, invested large sums in building up a military device.
There has been some diversification of the economy, supported and funded by the government. Heavy industrial projects have been eschewed in favour of light manufacturing businesses such as paper and cement production. There is also a small fishing industry and some agriculture.
The government has scheduled a privatisation programme both as a means to raise revenue and as an instrument of economic policy. A free trade zone has also been recognized. Kuwait is an associate of OPEC and of the Gulf Co-operation Council.
The recurrence of OPEC as a major influence appears to have activated some disputes inside the Kuwaiti government over oil production and pricing policy. Japan, The Netherlands and Italy are the major markets for Kuwaiti oil. The principal exporters to Kuwait are Japan, the United States of America, Germany and the United Kingdom.
Business
Men are expected to wear ties and suits for business and formal social occasions.
English is largely spoken in business circles, although a few words or phrases of Arabic are always well appreciated. Visiting cards are broadly used. Several big hotels have translation and bilingual secretarial services.
The government office hours are from Saturday to Wednesday 7.00 am to 1.00 pm (winter), 7.30 am to 1.30 pm (summer).
The general office hours are from Saturday to Wednesday from 7.30 am to 12.30 pm and 4.00 pm to 7.00 pm.
Commercial Information
The following associations can offer advice:
Kuwait Chamber of Commerce and Industry
Address: PO Box 775, Safat 13008, Kuwait City
Telephone: 805 580 ext. 555
Facsimile: 246 0693
Email address: kcci@kcci.org.kw
Website address: www.kcci.org.kw |
|
|
|
