Banking Special: Kuwait Faces Long And Winding Recovery » Gulf Business

Kuwait’s investment environment remains in many ways moribund. Although the Kuwait Stock Exchange Index recorded increases during the middle part of 2012, the index did not move far from where it began the year. There remains little strong evidence that the weak market conditions of previous years have changed. In some of the troubled Kuwaiti companies, debt restructurings have been agreed but for these situations, solid performance over the medium-term will have to be demonstrated to convince the markets that the companies concerned are truly on the road to recovery.

In Kuwait, it is the governmental sector that leads the domestic economy and this relies heavily on the level and nature of domestic government investment.

Unfortunately, a protracted political standoff between the government and sections of the parliament led first to the blocking of government expenditure and eventually the resignation of the government and new elections. Unless the government is seen to have resolved these obstacles, private sector investment is likely to be lacklustre and market confidence subdued.
Banking Special: Kuwait Faces Long And Winding Recovery » Gulf Business