Introduction to KUWAIT Kuwait is the world s 10th largest producer of oil. Total oil production, which is equivalent to half the country s GDP, was estimated at 2.9 million barrels per day in 2016. Oil revenues account for more than 80% of fiscal revenues and more than 90% of export revenues. Economic growth depends on oil production and on private consumption, which benefits from generous redistribution of oil revenues. The economy is poorly diversified and progress in this respect is likely to remain poor in the medium term given political constraints. Macroeconomic balances are solid with large and recurrent current account and fiscal surpluses. External and public debt is low, and the sovereign wealth fund is estimated to be equivalent to almost x2 GDP. As a consequence, the current period of depressed oil prices is easily manageable. The KWD, which is linked to a basket of currencies (in which the USD is largely overweighed), benefits from this sound financial position. There is, however, a risk of an asset bubble given large petrodollar inflows and inadequate financial sector regulation. Summary BNP Paribas presence BNP Paribas has been present in Kuwait since 2005, the first foreign bank to open in the country. The bank offers both domestic and cross-border cash and liquidity management solutions, and international trade finance services, to corporations headquartered in Kuwait that are expanding overseas, and multinational corporations with a presence in Kuwait. Working with BNP Paribas Companies doing business with BNP Paribas in Kuwait are attracted to the bank's strong credit rating, the depth of its domestic and cross-border cash, liquidity management and international trade solutions, and access to BNP Paribas' extensive global network. The bank offers a range of solutions specifically designed to meet the needs of corporations operating in Kuwait including cash collection and delivery services. Currency Currency Kuwaiti Dinar (KWD) Bank accounts Resident / non-resident status Any shareholding, holding or limited liability registered in Kuwait is considered to be a Kuwaiti company. Any such company must have its head office in Kuwait.
Bank accounts for resident entities Within Kuwait Outside Kuwait Local Currency Not available Foreign Currency Permitted without restriction, fully convertible Bank accounts for non-resident entities Within Kuwait Outside Kuwait Local Currency Not available Foreign Currency Not applicable Payments & Collections Credit transfers Credit transfers are used by companies to pay salaries and suppliers, and to make pension payments and treasury payments. All credit transfers are settled in real time via KASSIP. Cross-border transfers can be made via SWIFT and settled through correspondent banks abroad. Direct debits Direct debits are used for regular payments, such as utility bills. Direct debits are settled on a three-day cycle via KASSIP. Liquidity management Domestic: notional pooling Domestic notional cash pools are available in Kuwait but can be expensive to operate because of regulatory restrictions.
Domestic: cash concentration Domestic cash concentration structures are available. Resident and non-resident bank accounts can participate in the same cash concentration structure. Cross-border notional pooling Cross border notional cash pools are not widely available. Cross-border cash concentration Cross-border cash concentration structures are permitted but not widely available. International trade General trade rules As a member of the Gulf Cooperation Council (GCC), Kuwait has entered into a customs union with all GCC member states. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. As a member of the Greater Arab Free Trade Area (GAFTA), Kuwait has eliminated most trade tariffs with GAFTA member states. GAFTA comprises Algeria, Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen. Imports / exports Food Construction materials Vehicles and parts Clothing Primary Import sources China (13.2%) USA (9.6%) Saudi Arabia (7.7%) Japan (6.5%) Germany (5.1%) France (4.3%) India (4.3%) Exports Oil and refined products Fertilisers Export markets South Korea (14.8%) China (12.3%) Japan (10.6%) India (9.8%) USA (7.7%) Pakistan (6.0%) Singapore (4.4%) Imports Import / export volumes 2012 2013 2014 2015 2016
- goods USD m 119,643 115,745 104,795 55,335 46,679 - services USD m 8,837 6,180 6,268 6,056 5,526 - goods USD m 24,241 25,576 27,385 27,343 26,106 - services USD m 21,097 21,004 23,787 23,796 26,238 45.454 39.901 33.183 7.527 NA Exports Imports Current account as % GDP Source: IMF, International Financial Statistics and State of Kuwait Central Statistical Bureau, July 2017. Market data updated as of 01-08-2017