Kuwait’s economy is based largely on oil production. Oil and petroleum accounted for almost 50% of the gross domestic product (GDP) 95% of export revenues, and 80% of government income. The country had a record surplus of KD 11.4 billion (US$33 billion) in 2007-2008.
Although historically any surplus has been used to accumulate further foreign assets, the Kuwaiti government is now seeking to increase spending on many major sectors and on foreign investment.
The positive changes to economic regulations, including the amendments to regulations governing foreign investments (FDI), continue to create positive sentiment. A number of international banks are receiving operating licences. the FDI law allows for the possibility of 100% foreign ownership and a 10 year tax exemption. Kuwaiti shareholders are not taxed, while foreign shareholders are currently taxed only 15%. There is no personal income tax in Kuwait.
Non-oil activities, including services and trade, continue to contribute to the growing GDP. Kuwait is used as a gateway to Iraq, and the increase in demand for hotel accommodation, Occupancy has averaged 60%, with some hotels reporting 100%. Property development has increased private sector investment considerably and a number of foreign companies operating in Iraq have based themselves in Kuwait, creating an increased demand for work-related services.
Kuwait's GDP ( purchasing power parity ) :$ 130.1 billion
Kuwait exports oil and refined products, as well as a number of by-products (including fertilizer). The country’s main export partners are Japan, South Korea, USA, Taiwan and Singapore. Imports include construction materials, clothing, and vehicles and parts, with the main import partners being the USA, Japan, Germany, China, UK, Saudi Arabia, Italy and France. Kuwait’s climate prevents large-scale agriculture practices.