Standing tall on the likes of economic development in various sectors, Kuwaiti economy has been much more than the huge oil and gas industry it harbors. While, the entire gulf deals with an oil-price slump, the Kuwaiti economy seems burgeoning in terms of revenue, reason being soaring capital amounts from global investors. Be it a buoyant real estate sector, or a banking sector enjoying high asset growth, Kuwait has numerous plans to come up as one of the most promising Gulf nations during 2016.
However, one sector that seems to be gaining eyeballs from around the world is the growing manufacturing sector. The section below talks in the same regard and proliferates over facts that’ll make you crystal clear regarding the case.
The Burgeoning Manufacturing Sector
Having a crucial role to play in Kuwait’s GDP, the manufacturing sphere contributes over 6% in towards the same. More than anything, the growth in the sector has been driving a further demand for various manufactured goods in the country. However, there are sub-sectors like Coke, petroleum products, nuclear fuel, food and beverages that have been facing an increased demand with passing time since the last two years.
The sector might be significantly smaller when compared to the humungous manufacturing industry in Saudi Arabia, but the next five years are considered quite crucial with plans to expand the total industrial asset in the country, chances of strong asset growth in the manufacturing arena seem strong as well. A large share of this growth can be attributed to the high and positive MVA that has been growing after the end of global recession a few years ago. Adding to the same, a vast number of global corporations have found a potentially healthy market in the country to sell goods and drive huge revenues. Supported by huge capital investments, it has significantly added to the non-oil growth, hence reducing the country’s dependence on its dwindling oil and gas sector.
Diversification the Key to Growth
Surely a high MVA is causing huge developmental strategies on the non-oil front, but is it the only key to future growth in this sphere?
Well, the answer lies in the dwindling oil and gas industry of the country. The regime has been quite persistent in its efforts to expand the economy and diversify to reduce its dependence on oil prices during the coming years. A sector that stood at a gross value of KD3.17 billion in 2013 itself has immense to give to professionals across the globe, in terms of high incomes and jobs across different roles.
As mentioned, the regime seems quite specific over expanding the sector further. Having generated an ample capital base from foreign investments, it is also looking forward to re-start its international trade ties with countries like Iran, hence boosting its commercial relations in the Middle East.
Working in compliance with the Kuwait Vision 2035, a number of economic and social reforms are set to transform the country into a center of for finance and trade. This would ultimately improve the infrastructural health of the country, hence enabling a higher rate of production in the sector. Further, increasing the private sector involvement in the arena would only push the growth to bigger numbers, hence making the entire strategy comprehensive to stick to.
Author Bio: Anshuman Kukreti is a professional writer and a keen follower of the global job market. An engineer by qualification and an artist at heart, he writes on various topics related to employment across the Gulf. Reach him @LinkedIn, Twitter and Google+.