Kuwait is politically and socially one of the most liberal Gulf States. With its stable government and educated population and obviously the strong appeal to business, Kuwait stands out as outstanding nation among its neighbours in the Persian Gulf. There has always been a strong link between Kuwait and the sea, and it is this link which has shaped the distinctive character of today’s Kuwaitis and had constituted the main source of income in ancient times.
Although today the picture is very different with urban expansion and rapid modernisation, the link with the sea is still a cherished memory of the past for the Kuwaitis. The 290-km coast can be divided into two main parts: one extending along the Arabian Gulf and the other around the Kuwaiti Bay and Khor Subiya. Most of the former area is characterised by sandy beaches, while the second area, 70 km in length, is characterised by mudflats, especially in the shallow northern area in the Bay of Kuwait where the maximum wave height is 16 cm opposite Kuwait city. Kuwait has been successful in implementing the first phase of its economic and financial reforms in 2017, which were set to balance and develop the economy of the country. Kuwait’s banking sector has done much to boost the local economy, helping the country to diversify and lessen the impact of the current low-oil-price environment. The economy of Kuwait grew by 2.33 percent last year and expected to grow 4.06 percent in 2019 according to the World Economic Outlook released by the International Monetary Fund.
A robust and highly regulated banking sector has helped a great deal to support Kuwait’s economy, which has been severely affected by the declining price of oil. Without a solid banking sector, the Kuwaiti economy would likely struggle to negotiate the pitfalls that have so characterised its past. Now, a burgeoning banking sector is supporting not just economic, but social developments in an economy that has been stymied by a new low-oil-price environment. Within a banking sector boasting a number of prominent institutions that serve a range of needs, one bank has risen to prominence on the Islamic banking front – Kuwait International Bank (KIB). Last year Kuwait planned to cut expat numbers by 1.5 million over the next seven years will impact economic growth. Like its oil producing peers, Kuwait is trying to build a more diversified economy but is also willing to favour its national workforce. Kuwait’s economy, like much of the Middle East, is heavily reliant on oil exports. It is home to 6 percent of the world’s crude-oil reserves, or more than 100 billion barrels. Kuwait has the highest percentage of GDP tied to oil among OPEC nations. Ninety-two percent of export revenue and 90 percent of the government income is reliant on oil. The private sector is expected to grow between 3.5 percent and 4 percent between till 2021. But the lack of diversification in its economy makes it hard for corporations to find employees and bridge the wide gap between private (36 percent) and public (74 percent) employees. Kuwaiti nationals are guaranteed public-sector employment as part of the oil wealth distribution, while most private-sector employees are migrant workers. The relationship between Pakistan and Kuwait are brotherly and long-lasting, based on shared history, traditions and common culture. Both have always enjoyed their bilateral, friendly, trade and cultural ties with enormous respect of their commonality and cultural traditions. These bilateral relations can be seen both at the official level as well as between the people of both nations. Time has proved that both countries have stood for each other in their most difficult and testing times. Pakistan was among the first countries that sent troops to Kuwait during the Iraqi invasion in 1990. Nine Pakistani soldiers were martyred during mine clearing operations. Kuwait also responded well to Pakistan and has been the first among countries that have ever extended generous help to Pakistan in difficult times. The Kuwait government donated generously to Pakistan during the deadly earthquake in 2005 and at the time of devastating floods in 2010. Kuwait has contributed almost $25 million to floods-affected people in Pakistan.
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