Direction of International trade of Kuwait

Saurabh Kamalkumar Chhadi MBA-I E24

saurabh.chhadi4@gmail.com

Kuwait is one of the most trade-oriented economies in the world. As a base for exporting,Kuwait
has many advantages Kuwait is a small, petroleum-based economy. The Kuwaiti dinar is the
highest-valued unit of currency in the world. Non-petroleum industries include financial
services. According to the World Bank, Kuwait is the fourth richest country in the world per
capita. Kuwait is the second richest GCC country per capita (after Qatar)..

Imports in Kuwait increased to 2807 KWD Million in the third quarter of 2018 from 2712 KWD
Million in the second quarter of 2018. Imports in Kuwait averaged 1320.33 KWD Million from 1993
until 2018, reaching an all time high of 2807 KWD Million in the third quarter of 2018 and a record low
of 440 KWD Million in the third quarter of 1994.

Average Average

IMPORTS Annual Annual

EXPORTS
YEAR Growth Rate Growth Rate
(In Million$) (In Million$)
of Imports of Exports
2017 33729.7 9.12% 52521.7 7.39%

2016 30997.5 -0.12% 43937.5 -1.13%

2015 32126.8 -14% 56768.6 -13.49%

2014 31710.3 2.26% 102924 -0.21%

2013 29891.2 - 111276 -

Compounded
Annual
Growth Rate -0.85% -1.73%
Source: Bloomberg Inc.
Source: Bloomberg Inc.

Major items exported from India to Kuwait covered a broad range including food
items, cereals, textiles, garments, electrical and engineering equipment, pressure vessel reactors,
industrial valves, machinery and mechanical appliances, ceramic products, cars, trucks, buses,
tyres, metal products, iron and steel, etc. kuwait imports more than 12 % and 10 % of its goods and
services from united states and china respectively. And exports almost 26 % of the total exports to
these two countries .The Kuwait imports mainly machinery, mechanical appliances, electrical
equipment and electronics (24 percent of total imports); transport equipment (14 percent); base
metals and articles thereof (12 percent); chemicals and related products (9 percent) and vegetables
(6 percent). The imports and exports of kuwait have not changed a lot since the year 2013. There
was a growth of 2.26% in imports in 2014 but the exports decreased by 0.21% in the same year.
There was a significant decrease in imports and exports in the year 2015 as they decreased by 14%
and 13.49% respectively. 2016 saw a further decline in both imports and exports but the change
was not too significant. In the year 2017 the trade of Kuwait increased as the imports went from
85512.9 million in 2016 to 93314 million which is a 9.12% increase. Similarly, the exports
increased by 7.39% in the same year. The Compounded Annual Growth Rate of imports for the
years 2013, 2014, 2015, 2016 and 2017 was -0.85% and the CAGR of exports for the same period
was -1.73%.

Tickers Used :- ECTR<Go> Trade Flows, ECWS<Go> World Economic Statistics, F11<Go>
Currency