Business Opportunity in Kuwait
Business Opportunity in Kuwait
A Country with Immense Potential and Huge Possibilities
Kuwait is officially known as the State of Kuwait, an Arab country in Western Asia. It has a population of 4.1 million people as of 2014. Kuwait City is the capital and the largest city of Kuwait. Kuwait is a founding member of the Gulf Cooperation Council (GCC) and the Organization of Petroleum Exporting Countries (OPEC). It has the world’s 5th largest oil reserves of about 104 billion barrels.
Kuwait has the second most free economy in the Middle East. In terms of per capita income, it is the 4th richest country in the world. The Kuwaiti Dinar (KWD) is the highest-valued currency unit in the world. Petroleum and petroleum-products make up around 80% of government income and 95% of export revenues. The Kuwait Stock Exchange is the 2nd largest stock exchange in the Arab world. A significant rise in entrepreneurship and small business start-ups has been observed in the last five years (2010-2014). Lots of Kuwaiti entrepreneurs are using the Instagram-based business model due to its growing popularity. Kuwait is the largest foreign investor in the Arab world and has directed investments to Europe, United States, and Asia Pacific.
So, why is Kuwait a potential country for business?
Kuwait is located in a notable strategic location in the North West corner of the Arabian Gulf, sharing borders with Iraq and Saudi Arabia. It gives Kuwait the chance of accessing dynamic markets in various directions, including East Asia, Commonwealth of Independent States, Turkey, and into Eastern and Central Europe.
Substantial government resources
Due to the Government’s strong financial state, it has the ability to support large scale projects.
Open market economy
Kuwait follows the trend to practice a relatively liberal trade with open markets for foreign trade and flexible policies.
Kuwait is cost competitive in terms of fuel, electricity, water, land and labor.
Adequate ICT infrastructure
In Kuwait, the number of internet users is 3,022,010. Internet penetration is 92.50%, mobile penetration in the country is said to be 100% and smart phone penetration is 69% and rising. Software development and IT businesses have spread out in a wide range, reflecting the scenario of quick technology adoption and development of ICT infrastructure.
Enabling 100% foreign ownership in businesses
The Kuwait Government is making intensive efforts to facilitate foreign investment in the country by encouraging 100% foreign ownership in 14 open economic sectors.
Huge Business Opportunities in Kuwait
Recently, Kuwait has embarked towards the future with a vision of transforming it into a leading financial and commercial center. Potential business opportunities in various sectors are open and available for the foreign and local investors. The key sectors include: infrastructure development, chemical manufacturing, environmental services, education and training, healthcare, integrated housing projects and urban development, banking, financial services, insurance, transport, tourism, IT and software development.
Kuwait is also a key market for those looking to target the gulf region with their Online Business efforts. With an active internet population, it has become a very tech savvy country in the past 5 years. This makes it an extremely profitable market for those interested in Internet Marketing in the Middle East. Web development is becoming gradually more vital for customer-centric businesses in Kuwait. 87% of internet users are on social media networks and actively interact on Facebook, Twitter and Instragram on a daily basis.
Numerous lucrative business opportunities are available in Kuwait.
Written by Khurshid Sharmin
Writer at Advance IT Institute