Kuwait 2nd among Gulf for middle-class families

Kuwait has been ranked second in the Gulf after Saudi Arabia in terms of the number of middle-income families, Al-Rai daily reported citing the British “Oxford Economics Institution for Economic Studies” report.

The report stated that the number of middle-class families is an important local market potential. Informed sources revealed that the reform of the business sector is a fundamental pillar of the foreign direct investment strategy in the Gulf countries, adding that much of the focus in the Gulf countries and the Middle East has been on improving the business environment and reducing the regulatory burden. Kuwait ranked last in the Gulf region in implementing policies capable of improving the business environment and facilitating the implementation of business activities.

In its report titled “The Middle East and North Africa: UAE and Qatar – the Most Attractive for Foreign Direct Investments”, the institution stated that the potential for the export market in most parts of the Middle East depends on development of the leadership positions in the emerging digital and advanced technology sectors.

The report explained that the oil and gas sector will continue to attract Foreign Direct Investment (FDI), as evidenced by the rise of FDIs in the UAE in 2020. However, the region needs to attract investment across broader sectors. The goal of special economic zones and public investment is to generate a positive cycle of economic diversification and increase direct foreign investment.

There has been a decline in foreign direct investment in Kuwait such that it has been placed in last position within the Gulf region in terms of attractiveness of foreign direct investment.

Public-private partnership (PPP) projects can help support infrastructural investments across the region. Tighter spending budgets and widening infrastructure investment gaps are creating conditions for PPP mechanisms across the region. Dubai and Kuwait are likely to be prominent markets at present in the region, with public-private partnership programs for roads and other infrastructure, but there is scope for other countries to also benefit from the public-private partnership.