Kuwait is a small country located along the Arabian Gulf and nestled between Iraq and Saudi Arabia.
I’m sure you’ve heard the saying, “good things come in small packages” – this may be a great representation of Kuwait and it’s economic health.
With a total population of just over four million people, the per capita GDP had been steadily increasing over the years – prior to the Covid-19 pandemic arising and throwing the whole world into an absolute tailspin!
Read on to learn about why Kuwait is one of the richest countries in the world … regardless of the recent Covid-19 challenges!
1. Expensive Currency
2020 was a year of economic and social challenges for countries all across the world – and currency strengths fluctuated.
Despite all of these challenges, Kuwait’s currency (the Kuwaiti Dinar – KWD), was the strongest currency in the world out of over 180 currencies recognized by the United Nations. You cannot say this was a “fluke” because believe it or not … the Kuwaiti Dinar has been the strongest currency for the past six YEARS.1
As of October 19, 2020 you would need 3.27 United States dollars to have just one Kuwaiti Dinar!
To put this into perspective for you, you would need approximately 1.5 KWD to buy a regular sized cappuccino.
2. Oil & Petroleum Rich Backbone
Did you know that despite Kuwait’s small geographical presence, it was the “10th-largest producer of petroleum and other liquids in 2015?”2
Over 80% of the country’s revenue comes from their petroleum industry – with such a high concentration you can understand how such a small country can have such a big presence on the global oil production stage!
Although the world has watched oil prices reach almost record lows over the past year due in most part to Covid-19 related travel restrictions across the globe, Kuwait’s wealth in the petroleum industry is deeply rooted. Since the discovery of oil in the Burgan field of Kuwait on February 22, 19383, the country paved it’s way to being a household name when it came to the oil industry.
With a history and economy built on the backbone of innovations within the industry, you can understand why you may see a plethora of exotic cars scattered throughout the country – more on this later!
3. Low Crime Rates
Typically, there is a strong correlation between the wealth of an area and their corresponding crime rates.
It’s not a coincidence that the crime in Kuwait follows suit. Reportedly, petty theft and/or mugging is extremely rare in the country.
It is always recommended that you respect the Kuwait’s local traditions and customs.
4. Public Transportation
Although there is no tram way in Kuwait – you will find a vast public transit situation when it comes to city buses, taxis, and car rental services.
Car rental services are by far the most popular alternative to getting around in Kuwait. In any other country, you may find a nice Honda Civic, Chevy Sonic, or even the “convenient” Toyota Camry … in Kuwait, you will find yourself in a completely different world!
Maserati’s, Bentley’s, Ferrari’s … you name it! Car rental companies in Kuwait have some of the most luxurious options in the world – you will definitely be getting around IN STYLE!
5. Banking & Investment Services Industry Leads the Way
When the oil industry’s performance took a bit of a back seat in 2020, it allowed for other Kuwaiti industries to really shine.
There’s no surprise that when such a wealthy country needs to pivot from their oil backbone, they show up with a lucrative banking and investment services industry.
Two companies that ranked in the top five companies of 2020 was the National Bank of Kuwait and the Kuwait Finance House.4
If you are looking for way to jump start a career in a stable and possibly lucrative industry, you can check out the “Careers” page at the National Bank of Kuwait’s home page: Click here to visit NBK’s career opportunities!
6. Exotic Cars Playground!
Kuwait is one of the largest importers of new American made automobiles – this includes the luxurious sports cars every one dreams of owning.
The trend for owning “out of this world” vehicles has only been perpetuated by the fact that Kuwait has some of the lowest cost fuel in the world.
You will find highly rated exotic car rental companies sprinkled all though out Kuwait – make sure you explore Al-Zayani Automotive if you want to have the full Kuwaiti experience. You can check them out here: Al-Zayani Automotive.
7. Vast Educational Opportunities
Whitney Houston may have said it best, “the children are our future, teach them well and let them lead the way!”
Kuwait is making progress towards providing equal educational opportunities across the country. For example, The Ministry of Education in Kuwait is pushing the opening of more special needs institutions.
The country is also revamping their education systems along with the rest of the world by pushing for the use of information technology to pave the way for a more accommodating e-learning curriculum5. A virtual learning alternative will surely make education more available to the masses across the country.
Kuwait’s investments in their country’s educational system is laying a foundation for many years of wealth to come!
8. The Greater Economy
As you may be experiencing in your own home country, most countries are feeling the economic pressures from the Covid-19 pandemic. With the consideration of declining oil prices in 2020, Kuwait is no exception.
However, with the lockdown restriction partially lifting in the third quarter of 2020 – Kuwait saw a slight recovery in economic activity.
According to Focus Economics, you can keep your eye out for a forecasted 2.7% growth in 2021 and a 3.6% GDP growth in 2022.6
You can see most countries are pivoting after a historical year in 2020 and are diversifying their revenue streams for the future – Kuwait included!
References:
1.“Kuwaiti Dinar – The Strongest Currency in The World Till Date.” Highestcurrency.com, 29 Oct. 2020, highestcurrency.com/kuwaiti-dinar-the-strongest-currency-in-the-world/.
2.Country Analysis Brief: Kuwait , U.S. Energy Information Administration, 6 Nov. 2016, www.eia.gov/international/content/analysis/countries_long/Kuwait/kuwait.pdf.
3.“Information Center Kuwait Oil History.” Responsive Slide Menus, www.kpc.com.kw/InformationCenter/Pages/Kuwait-Oil-History.aspx.
4. “Kuwait Top Companies by Market Cap as on 2020.” Value.Today, www.value.today/headquarters/kuwait.
5. “Kuwait e-Learning.” International Trade Administration | Trade.gov, www.trade.gov/market-intelligence/kuwait-e-learning.
6.FocusEconomics. “Kuwait Economy – GDP, Inflation, CPI and Interest Rate.” FocusEconomics | Economic Forecasts from the World’s Leading Economists, 10 Jan. 2015, www.focus-economics.com/countries/kuwait.
Latest News
The Public Authority for Communications and Information Technology decided to reduce the fixed home internet subscriptions, both wired and wireless, fees by 40%. The authority aims to improve the...
Content-Creator is becoming a career nowadays. If you look around on social media, you find a lot of people who we call influencers. These influencers don't do it for free, as you know. On...
Are you contemplating taking a trip to Kuwait? Maybe you're wondering why Kuwait's location is troubling. While they are a beautiful city in the desert, there is political unrest in the surrounding...
Kuwait is your culinary dream come true. With year-round sunshine, Kuwait’s finest restaurants offer everything from stunning views of Kuwait Bay to quaint outdoor dining experiences. The...