ECONOMICAL AND FINANCIAL STRUCTURE OF KUWAIT

The financial structure

Kuwaiti economy depends and is closely connected with the economies of the whole world in terms of operations and exports. In addition, the economy here is very strong. For example, despite the worldwide recession in 1991-1992, the Kuwaiti Central Bank recorded a 100% increase, and the prices of various commodities during this period remained relatively stable. The commodity price index, which rose 84.9 percent shortly after the invasion, rose only 0.7 percent in 1992, a level that many economies could not achieve even under normal conditions.

Currency

The unit of currency is Kuwaiti dinar (KD). It is divided into 1,000 fils, and 1,000 fils equal one dinar. Kuwaiti currency includes two categories: banknotes and coins. Six advantages of banknotes: KD20, KD10, KD5, KD1, KD0.500 and KD0.250. Advantages of coins: 100 Phil,

50 Phil, 20 Phil, 10 Phil, 5 Phil, and 1 Phil. One obvious indicator of the return of faith in the Kuwaiti economy was the reintroduction of the Kuwaiti dinar into the Gulf currency system after temporary cessation of nearly three years. The currency authorities of the Gulf Cooperation Council have ceased to conduct transactions in dinars, once the most powerful currency in the Arab world, after the Iraqi invasion. The reintroduction of the currency means that the Kuwaiti dinar has regained its strength, and the economy has more or less recovered. The budget for 1993-1994. also confirmed this view, as did a 25 percent deficit reduction in the previous year.

Private sector

Trade is one of the main activities of the private sector. However, most of the private sector is involved in servicing the oil sector and the government through contracts for the supply of materials and services. To somehow isolate the economy from hoping only for the oil sector, accounting for about 40 percent of gross domestic product (GDP), the government provides an industrial incentive, such as rent in the industrial sector at nominal rates, protectionist tariffs, and shares, free infrastructure facilities (access roads) roads, etc.), almost free electricity, capital investments and long-term “soft” loans from the Industrial Bank of Kuwait. Agriculture: Sulaibia and Wafra have extensive private farms, but agricultural products cover only 1 percent of Kuwait's food needs. PAAFR represents land at a nominal annual rent of 500 fil per donum (a measure of an area), interest-free loans, technical assistance, subsidizing animals and feed, seeds, fertilizers, and other materials at low prices. A government-funded organization for parks and green spaces along Kuwait’s Landscaping Roads is presenting work and maintenance contracts for local agricultural companies. Vast private farms are located in Sulaibia and Wafra, but agricultural products cover only 1 percent of Kuwait's food needs. PAAFR represents land at a nominal annual rent of 500 fil per donum (a measure of the area), interest-free loans, technical assistance, subsidizing animals and feed, seeds, fertilizers, and other materials at low prices. A government-funded organization for parks and green spaces along Kuwait’s Landscaping Roads is presenting work and maintenance contracts for local agricultural companies. Vast private farms are located in Sulaibia and Wafra, but agricultural products cover only 1 percent of Kuwait's food needs. PAAFR represents land at a nominal annual rent of 500 fil per donum (a measure of the area), interest-free loans, technical assistance, subsidizing animals and feed, seeds, fertilizers, and other materials at low prices. A government-funded organization for parks and green spaces along Kuwait’s Landscaping Roads is presenting work and maintenance contracts for local agricultural companies. nonetheless, agricultural products cover only 1 percent of Kuwait's food needs. PAAFR represents land at a nominal annual rent of 500 fil per donum (a measure of the area), interest-free loans, technical assistance, subsidizing animals and feed, seeds, fertilizers, and other materials at low prices. A government-funded organization for parks and green spaces along Kuwait’s Landscaping Roads is presenting work and maintenance contracts for local agricultural companies. nonetheless, agricultural products cover only 1 percent of Kuwait's food needs. PAAFR represents land at a nominal annual rent of 500 fil per donum (a measure of the area), interest-free loans, technical assistance, subsidizing animals and feed, seeds, fertilizers, and other materials at low prices. A government-funded organization for parks and green spaces along Kuwait’s Landscaping Roads is presenting work and maintenance contracts for local agricultural companies. subsidizing animals and feed, seeds, fertilizers, and other materials at low prices. A government-funded organization for parks and green spaces along Kuwait’s Landscaping Roads is presenting work and maintenance contracts for local agricultural companies. subsidizing animals and feed, seeds, fertilizers, and other materials at low prices. A government-funded organization for parks and green spaces along Kuwait’s Landscaping Roads is presenting work and maintenance contracts for local agricultural companies.

Oil sector

A huge contribution to the Kuwaiti economy, and of course, to the economy of the entire region, was the revival of the oil sector. According to a newsletter issued by the Organization

of Petroleum Exporting Countries (OPEC), the revival of the Kuwaiti oil industry in 1992 boosted the GDP of Arab oil exporters by more than 4 percent. OPEC's total revenue increased due to a sharp increase in Kuwaiti oil products. Thanks to the stabilization and well-functioning work of this vital sector of the economy, as well as through the development of industrial and economic strategies, Kuwait has returned to the path of prosperity, leading the region to new horizons of progress.

Fisheries

Kuwait's fish stocks are the country's second most important natural resource, and the work of the local fishing industry is well established. Kuwait has approximately 700 licensed

commercial fishing vessels. But only one company has the authority to catch shrimp in order to maintain the renewal of the stock. About 50 percent of the fish sold in Kuwait is locally produced. Given the current request for marine food and the limited territorial waters of Kuwait, it was estimated that local fish supply could be increased by only 60 percent of the total request without the risk of local stocks disappearing.

Investment activity

Investment activity is reflected in financial transactions and operations performed within the framework of the State General Reserve Fund and Future Generation Reserves. Responsibility for the management and development of state investment funds lies with the Public Investment Management, which is engaged in supporting national income as well as increasing the ability of the state to develop and grow the national economy and providing services for the national welfare of citizens. Economic cooperation Economic cooperation is one of the main features of Kuwaiti economic activity, through which the state implements its internal economic policy and encourages coordination and cooperation with Arab, regional and international economic organizations and forums in order to observe the interests of both the Arab and Kuwaiti people. The year 1986 witnessed many achievements within the structure of the Economic Council of the Gulf countries, reflecting the positive role played by Kuwait and other member states of the Council in the approval and achievement of the main goals included in the Single Economic Agreement. Among the most important decisions, achievements in the field of single economic activity: allowing investors in the Council countries to receive loans from banks and industrial development funds of any member state, giving priority to government procurement of domestic origin and the participation and cooperation of the Council countries with Arab, regional and international organizations. At the Arab level, during the meetings of the Economic and Social Councils and the Council of the Arab Economic Community, the State of Kuwait has focused on highlighting the importance of joint Arab companies and the need to support such companies to guarantee food security. At the level of the Islamic Conference, Kuwait participated in conference sessions and in economic discussions. This led to an agreement between member states on a long-term financing system introduced by the Islamic Development Bank to promote trade exchanges between Islamic states. At the level of economic organizations and international financial institutions such as the International Monetary Fund (IMF), Kuwait has participated in discussions on world economic issues, problems, and solutions. Regarding the debt problem of the Third World, Kuwait supported development projects in the Third World through a series of initiatives, the most important of which are the Southern Committee, the Southern Bank and the adoption of a priority system. At the level of bilateral relations, Kuwait has strengthened bilateral economic ties with various countries through the abolition of double taxation. Other agreements between Kuwait and other countries were provided to encourage investment and to assist economic delegations visiting Kuwait to identify investment opportunities in alignment with the Public Investment Authority in order to support and develop Kuwaiti domestic and foreign investments. The Kuwait Fund for Arab Economic Development plays a vital role in Arab economic cooperation and integration. CFAER operations abroad represent a unique model in the context of fruitful cooperation at the international level. Kuwait International Exhibition Company Kuwait International Exhibition Company is a joint property of the State of Kuwait and the Kuwait Investment Company. The company began operating in 1979 after the completion of the exhibition halls at the International Exhibition Center in Mishref, whose area is 500,000 square meters. There are three fully-equipped arenas there: International Arena (total area: 10.125 sq.m); National Arena (total area: 6,400 sq.m) and Special Arena (total area: 1,200 sq.m). The Company's operations are based on the planned strategy for preparing and observing international and local exhibitions. It establishes special relationships with local and regional authorities, Oil industry Black Gold As a member of OPEC, Kuwait controls about 10 percent of the world's proven oil reserves and produces a little less than 2 million barrels of crude oil per day. At present, it is expected to increase its production capacity equal to 2.5 million barrels per day by 1 million barrels per day by 2005. It is estimated that its reserves of 96.5 billion barrels will last more than 100 years. The Central Bank estimated the country's gas reserves in 1997 at 52.4 trillion cubic feet, or 1.1 percent of the world's proven reserves. This figure, however, does not include Kuwait's share of operations in the border area of ​​the Neutral Territory, which it shares with Saudi Arabia. Foreign concessionaires dominated the Kuwaiti oil industry until 1973 when production reached a maximum of 3.3 million barrels per day at low prices. In 1977, the industry was nationalized, after which a policy began to take effect to protect and reduce production at high prices. In 1981, production declining to 1.25 million barrels per day rose to 2 million barrels per day in 1990. after which a policy began to take effect to protect and reduce production at high prices. In 1981, production declining to 1.25 million barrels per day rose to 2 million barrels per day in 1990. after which a policy began to take effect to protect and reduce production at high prices. In 1981, production declining to 1.25 million barrels per day rose to 2 million barrels per day in 1990.