Kuwait

Kuwait lies in the north-eastern part of the Arabian Peninsula. In the south the country borders with Saudi Arabia and in the north with Iraq. It is situated on the north-western coast of the Persian Gulf.

In ancient times the state was known as “The Country of Merchants.” Today, Kuwait has one of the highest GDPs in the region, as there have been steady upward trends in the last few years.

Kuwait is the fifth richest country in the world and it has the third biggest oil supplies after Saudi Arabia and Iraq.

Kuwait’s crude oil reserves amount to 104 billion barrels (15 km³), which are estimated to be about 10 % of the world’s reserves. In the Kuwaiti constitution it is stated that all natural resources in the country and the associated with them revenues are property of the government. As Kuwait is a tax-free country, its oil industry accounts for 80% of the government proceeds.

Petroleum and petrochemicals comprise almost half of GDP and 95% of export revenues. The oil prices increase since 2003 led to a boost in Kuwait’s economy. Other major industries include shipping, cement, water desalination, construction materials, construction, and financial services.  Commercially speaking, Kuwait is very well developed, emphasizing on high import rates, as the country has low productivity.

Another beneficial sector in the economy of Kuwait is tourism – with significant contributions and an increase of public interest. The public sector has been developing rapidly in the last decade due to the creation and implementation of new government projects related to infrastructural improvement, housing and technology.

Tips for Doing Business in Kuwait

• Kuwaitis prefer to do business with those they know and trust. If you are making new contacts and just entering the market, you have to allow sufficient time for your potential partners to get to know you.
• Government officials in Kuwait work on a 6-hour day basis, so try to schedule morning appointments if you are going to meet any.
• Businessmen, on the other hand, will prefer to meet in the early evening.
• July and August are characterized by unbearable heat in Kuwait and many locals leave the country during these months. Keep it in mind when scheduling your business meetings.
• Business negotiations and decisions are made slowly in Kuwait. If you try to rush or pressure things you probably will offend your partners and hurt your business relationship.
• If you change the main negotiator on your business team, negotiations will have to start over, as the essential trust will need to be re-built.
• Business is usually done in English, but contracts will be in Arabic. You should try to keep business contracts simple.
• Education is highly respected in Kuwait. You can mention professional degrees you may hold if you find an appropriate time to do so.
• Meetings usually are not private, unless confidential matters need to be discussed. Do not be surprised if your meetings are interrupted. Problems will usually be discussed in private and face-to-face.

Cost of Living

The following table compares the costs of some basic products in Kuwait City, Kuwait and Sofia, Bulgaria.

Official Holidays in Kuwait

1 January – New Year’s Day
15 February – Moloud ( Birth of the Prophet)
25 February – National Day
26 February – Liberation Day
28 June – Al-Esra Wa Al-Meraj (Ascension of the Prophet)
31 August – Eid al-Fitr (End of Ramadan)
7 November – Eid al-Adha (Feast of the Sacrifice)
26 December – Islamic New Year