In its latest report, Al-Shall delves into Kuwait’s economic landscape, shedding light on key indicators such as GDP performance and real estate market dynamics.
The report underscores a notable shrinkage in Kuwait’s Gross Domestic Product (GDP) for the third quarter of 2023 compared to the same period in 2022. At current prices, the GDP stood at approximately 12.7 billion dinars, reflecting a decline of about 11.7%, reports Al-Qabas daily.
This contraction is attributed primarily to reduced added value in the oil sector, indicative of the nation’s lingering dependence on oil despite pledges to diversify revenue streams. Moreover, Kuwait’s decision to curtail oil production by approximately 263 thousand barrels per day in 2023, coupled with a decline in average oil prices, further impacted economic performance.
The report emphasizes the dominance of oil in Kuwait’s GDP composition, with its contribution declining from 57.6% in the third quarter of 2022 to 50.8% in the third quarter of 2023. However, this contribution remains subject to fluctuations based on global oil market dynamics, beyond the realm of local administrative control.
On a more positive note, Al-Shall highlights an uptick in liquidity within Kuwait’s real estate market in January 2024 compared to December 2023. Total contract trades surged by 37.8%, reaching approximately 263.6 million dinars.
However, this figure represents a decrease of 7.0% compared to January 2023 levels. The report provides insights into regional variations in real estate transactions, with Al-Ahmadi Governorate leading in deal numbers.
Al-Shall’s analysis extends to wage differentials, revealing significant gaps between male and female workers in both the government and private sectors. Kuwaiti male workers command higher average monthly wages compared to their female counterparts, with similar disparities observed among non-Kuwaiti workers. However, the report underscores efforts to address these disparities through national worker support initiatives.
Finally, Al-Shall reports positive growth in Boubyan Bank’s profitability indicators for the year ending December 31, 2023. Key metrics such as return on equity (ROE), return on assets (ROA), and return on capital (ROC) all exhibit robust improvement compared to the previous year, reflecting a favorable business outlook for the bank.
Overall, Al-Shall’s comprehensive analysis provides valuable insights into Kuwait’s economic landscape, encompassing both challenges and areas of resilience and growth.
