With its unresolved dispute with Saudi Arabia over the so-called 'neutral zone' rumbling on, record-low oil prices and the possibility of an Organisation of the Petroleum Exporting Countries-imposed production freeze, Kuwait's oil industry is under pressure. Still, the country remains committed to investments in the sector.
Kuwait's economy has come under pressure in the past year, mainly due to falling oil prices. But, with the help of healthy sovereign reserves, the country has weathered the difficulties well, and the government remains committed to its long-term development plan.
There is a positive mood in Kuwait's banking sector, thanks in no small part to the government's healthy balance sheet and its commitment to project spending. However, the low oil price environment and cooling real estate market loom large on the horizon.
Kuwait boasts one of the most respected Islamic finance markets in the world. But ever keen to move with the times, the country is establishing a capital markets authority law designed to develop the domestic sukuk market, one of many recent boosts the industry has received.