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. 

The director-general of the Kuwait Direct Investment Promotion Agency tells James King how the country's opening up to foreign investment and the liberalisation of its economy is helping to alleviate the impact of the oil price crash.

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.

Banks across the Arab world continue to perform well despite the turbulent political environment, according to The Banker’s Top 100 Arab banks ranking. 

Hit hard by the global financial crisis and a stagnant domestic political scene, Kuwait is now emerging as a stable, pro-business destination with a buoyant private sector and an economy moving away from its reliance on oil, as James King discovers.

The governor of the Central Bank of Kuwait, Mohammad Al-Hashel, has every reason to look to the future with optimism, given that the country's banking sector is coping well with low oil prices, welcoming foreign entrants, bringing down its NPL ratio and helping diversify the country's economy. 

Oil prices may have dropped, but Kuwait is investing heavily in the hydrocarbons sector this year in a bid to meet an ambitious production target. James King reports.

Despite its small size, Kuwait has long been a key player within the global Islamic finance industry, and with its sharia-compliant institutions posting strong figures in 2014, this position only looks likely to strengthen.