As Kuwait, the world’s seventh largest oil producer, revels in record oil prices in excess of $130 a barrel and record surpluses in all major economic balances, its banking sector is also enjoying booming profits but is clearly diversifying its activities, with many banks embarking on or strengthening their operations outside Kuwait.
In early May, National Bank of Kuwait reports show that the country’s budget surplus for 2007-08 (ending March 31) rose 59% to Kd11.4bn ($42.6bn) before the allocation of 10% of revenues to the Reserve Fund for Future Generations (RFFG). Oil revenues were 138% higher than forecast and 22% higher than the previous fiscal year, rising to a massive Kd17.7bn. The price of Kuwait export crude averaged $75.3 a barrel during the fiscal year and production averaged 2.48 million barrels a day, slightly exceeding the previous year’s figure and indicating that the oil bonanza will accelerate revenues even further if current conditions continue.
