Kuwait's GDP reaches $177 billion
Kuwait's GDP last year, reachedUSD 177 billion, Saudi Arabia USD 642 billion, the UAE USD 376 billion, Qatar USD 200 billion, Oman USD 81 billion and Bahrain USD 27 billion. GCC states’ economies grew by 5.5 percent, in 2012, whereas the overall GDP of the Council member states reached USD 1.48 trillion, the report said, also noting that the GCC states’ daily crude oil output stood at 16.1 million barrels. The GCC countries’ net current account reached USD 378 billion, Gulf and foreign assets rose to USD 2.2 trillion.
Their exports of services and commodities amounted to USD 850 billion while imports stood at USD 578 billion. Majority of the GCC states depend on oil as a source of income. The countries of the bloc have been seeking to diversify sources of income and broadening affiliate industries such as petrochemicals. The GCC, founded in the early 80s, comprises Kuwait, Saudi Arabia, Bahrain, Qatar, the UAE and Oman. Meanwhile, the Kuwait Stock Exchange is showing action within a limited horizon in August, supported by announcements of first half profit by leading companies, and there is minor shifting of positions among a few small shares. In interviews with KUNA, economic experts said small and medium shares are directing the market at present amid absence of big players and due to the customary summer holiday lull. Traders tend to prefer to wait for the more active periods with the start of September. One expert, Ali Al-Nemesh, said a review of market action recently shows good action in terms of value, especially after Ramadan and the Eid holiday and in view of the state of affairs in some Arab countries. Al-Nemesh added traders are currently reacting to first half profit announcements, which showed noticeable growth from last year. He said September would also bring much change in main indices, most specifically value, which could reach a daily KD 40 million.
This is particularly probable since operational companies have announced good figures, which in turn gives them an opportunity for a hike in share price. Meanwhile, expert Mohammad Al-Naqi pointed out that in addition to the Ramadan and Eid and summer lull, the market was affected by the political situation. He predicted the market would rally and boom now with the return of parliament and the new younger spirit in parliament. The new parliament is expected to speed up review and decision on many bills that would bolster the economy, which is hoped to restore investors trust with the cooperation of the executive authority. Focusing on absence of blue chips from the action, Nayef Al-Enizi for his part said that the market is in a period of stability that still requires some caution and reserve. The market must avoid too much risk and the traps of speculation, particularly with both leading shares and banks shares absent from the scene, more or less. “What we are seeing now is shuffling of positions among smaller companies. This requires us to come up with incentives and measures to sustain the tempo of the action, so as to protect the capital of investors who focused on the stock market for lack of satisfactory opportunities in other sectors,” he noted. — KUNA