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Economic Diversification in Kuwait Macroeconomic Implications

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  • Hassan A. Sharafuddin

Abstract

The extraction of oil remains the single dominant economic activity in Kuwait. While it has long been understood that economic diversification is needed to support a more stable economic base and a higher standard of living, this has been challenging in Kuwait and other GCC countries. The petroleum revenues of Kuwait cannot last forever, however public and private sector industry is nearly entirely dependent on this source of revenue. Various planning and projects have been undertaken as a means of achieving some measure of economic diversification. This paper undertakes an integrative review to synthesizing the measures undertaken in Kuwait towards the aim of economic diversification and evaluation of those projects, considering current evidence and frameworks. The study found that one area where the economic future needs of Kuwait and the cultural sensibility align is in small business ownership, and this in combination with the latent and undercapitalized, well-educated labor force presents many opportunities for growth, diversification, and innovation by providing for new opportunities for Kuwaiti citizens in Kuwait.

Suggested Citation

  • Hassan A. Sharafuddin, 2023. "Economic Diversification in Kuwait Macroeconomic Implications," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 16(6), pages 1-34, November.
    • Handle: RePEc:ibn:jsd123:v:16:y:2023:i:6:p:34
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    References listed on IDEAS

    as
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    2. Adeel Malik, 2016. "The Political Economy of Macroeconomic Policy in Arab Resource-Rich Economies," Working Papers 1034, Economic Research Forum, revised Aug 2016.
    3. Freire Junior, Clovis, 2017. "Economic diversification: Explaining the pattern of diversification in the global economy and its implications for fostering diversification in poorer countries," MERIT Working Papers 2017-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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