Kuwait

Last updated: December 18, 2019

Kuwait is located on the northwest coast of the Arabian Gulf and is about the size of Saxony. The country borders Saudi Arabia to the south and Iraq to the north. It has a population of around 4.1 million, most of whom live in the greater Kuwait City metropolitan area. Around 70 percent of the population are foreigners.

Kuwait is a monarchy with strong parliamentary participation. Thanks to a comparatively lively and diverse culture of debate, it is one of the most liberal Arab countries. HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah has been the head of state since 2006. Kuwait is a member of the UN and the Arab League, the Gulf Cooperation Council and other regional and international organizations.

Due to its oil wealth, Kuwait is very financially strong. Kuwait has the world’s sixth largest proven oil reserves just after Iraq. It ranks ninth among the world’s most important oil-producing countries. However, like other major oil-producing countries, the lower oil price is causing problems for Kuwait, although the revenues from oil exports still accounted for around 68 percent of the state budget in 2016, according to the Central Statistical Bureau. Germany mainly imports (petro) chemical products from Kuwait. German exports mainly consist of machines, motor vehicles and motor vehicle parts, chemical products and electrical engineering.

In January 2017, the government presented the major project New Kuwait , with which the country aims to set new economic priorities and to become the trade and financial center in the region by 2035. The development plan currently focuses on the areas of infrastructure and tourism, the construction of a subway and a railway line, and the expansion of airports and power plants.

In the Doing Business 2020 study carried out by the World Bank  –  which is supposed to measure the business climate and corporate regulation – an extremely positive development was noted. Improvements have been achieved above all in setting up companies and in reducing bureaucratic obstacles.