Kuwait ranks as 10th largest economy in the Middle East

Kuwait has been ranked as the tenth largest economy in the Middle East and North Africa region, according to a report by the Middle East Economy. The report includes a list of the ten largest economies in the world based on gross domestic product (GDP), with Kuwait expected to reach $159.7 billion in GDP in 2023. The International Monetary Fund data reveals that Turkey holds the top spot with a GDP of $1.15 trillion.

Kuwait is known for being one of the wealthiest nations globally, largely due to its abundant oil resources. The country’s oil reserves, coupled with a tax exemption system, have contributed to the Kuwaiti dinar becoming the world’s most valuable currency, valued at $3.25. This serves as evidence of the country’s economic stability.

Kuwait’s economic resilience is further supported by its large foreign assets managed by the Kuwait Investment Authority, the sovereign wealth fund. While the country continues to work towards economic diversification and structural reforms, its strong financial position provides a solid foundation. The Middle East and North Africa region is home to several major global economic powers, boasting some of the oldest and largest oil-producing countries. This enhances the region’s position and dominance on the global stage.

Regarding the economic prospects for the region, the report highlights an anticipated improvement in 2024. Despite a slowdown in economic growth in 2023, attributed to oil production cuts, high inflation rates, and a tight financial environment, the region is expected to rebound. The International Monetary Fund predicts that Middle East countries could experience economic growth of 3.4% in 2024.

The Institute of Chartered Accountants in England and Wales shares this optimism, forecasting the region to grow by 3.2%. This growth rate surpasses the estimated global GDP growth of 2.1%. Non-energy sectors, particularly in Saudi Arabia and the UAE, are expected to drive the region’s progress. Gross domestic product, or GDP, is a measure of the total value of final goods and services produced within a country during a specific period. It is commonly used to evaluate economic growth by summing consumer spending, government spending, investment, and net exports (exports minus imports).

The list of the top ten economies in the Middle East and North Africa region by GDP includes Turkey at $1.15 trillion, followed by Saudi Arabia ($1.07 trillion), UAE ($509.18 billion), Egypt ($398.4 billion), Iran ($366.44 billion), Iraq ($254.99 billion), Qatar ($235.5 billion), Algeria ($224.11 billion), and Kuwait ($159.7 billion).

The Middle East and North Africa region boasts countries with significant economic capabilities, primarily driven by oil production. As the region aims to reduce dependence on oil, it is entering a new era of growth. Leading the way are countries like Turkey, Saudi Arabia, and others featured on the list of the largest economies in the region. Saudi Arabia has the advantage over Turkey in terms of per capita GDP. Although Turkey holds the top spot in terms of overall GDP, Saudi Arabia surpasses it in terms of per capita GDP.

Saudi Arabia’s per capita GDP amounts to $32.59 thousand, significantly higher than Turkey’s $13.38 thousand. Qatar has one of the highest per capita GDP rates globally with $81.97 thousand, as per the International Monetary Fund data. This rate surpasses that of the United States, which is $80.41 thousand

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