Kuwait - Exportinfo.org Country Report

Kuwait

Overview:

The Kuwaiti economy is primarily driven by oil production.

The relationship between the U.S. (Kuwait's 2nd largest trading partner) and Kuwait remains strong.

Kuwait's GNP per capita is among the highest in the world.

Opportunities:

Advertising

Air-conditioning & Refrigeration

Automotive Parts & Service Equipment

Computer & Peripherals

Corn Oil

Frozen/Chilled Beef

Hospital Management Services

Medical Equipment

Medical Insurance Services

Pharmaceuticals

Pollution Control Equipment

Poultry Meat

Rubber Tires for Cars

Safety & Security Equipment

Marketing Tips:

U.S. firms have high market share in many sectors.

American technology is well perceived in Kuwait.

The government of Kuwait encourages joint ventures between foreign and Kuwaiti firms.

U.S. fast food franchises are in high demand but require a local sponsor.

The people of Kuwait are highly receptive to U.S. novelties and have a fairly high per capita income at $12,500.

It's possible that Kuwait may impose high tariffs on imports to protect infant industries.

Imports may be subject to restrictive standards that can make marketing goods difficult.

Establishing a foreign firm in Kuwait may be difficult because of high corporate taxes imposed on non-Kuwaiti owned businesses.

The corporate tax rate may reach up to 55% on gross profit.

Marketing in Kuwait should focus on high-quality, reasonably-priced novelty products.

Business Culture:

Kuwaiti businesspeople commonly use English to facilitate trade with foreign firms.

Kuwaiti businesspeople are hospitable and may invite foreign guests to visit their weekend cottage.

Business in Kuwait often slows during the summer with many local managers on vacation.

Meetings usually start after 9am during most of the year but after 6pm in the summer.

The typical business week runs Saturday to Thursday.

Do's

Even during the hot summer months, dress modestly.
Women should dress conservatively with clothing that does not reveal the shape of their body.
Punctuality for meetings is highly advised.

Don'ts

Do not bring or serve pork or alcohol.
Avoid the “thumbs-up” gesture.
Do not show the bottom of your feet.
Do not point your finger at someone.

Economic Outlook:

Real GDP growth is expected to fall from 4.1% in 2000 to 2.2% in 2001 with an expected rise in 2002 to 3.1%.

Inflation is modest with an expected rise from 3.0% in 2000 to 3.7% in 2001 and 4.0% in 2002.

In 2000, the KD currency is expected to weaken slightly against the U.S. dollar to KD 0.307:U.S. $1. However, the KD will appreciate in 2001 and 2002 to KD 0.305:U.S. $1 and KD 0.303:U.S. $1, respectively.

Legal Environment:

Religion: