Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait- GDP growth forecast at 5 pct in 2014 oil sector to expand 4%  Join our daily free Newsletter

MENAFN - Arab Times - 13/04/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab Times) We maintain our real GDP forecast for Kuwait at 5.0% in 2014 (2013: 4.5%). Growth will be supported by resilient oil production, which forms the bulk of exports, on-going recovery in the non-oil sector, strong public and private investment in infrastructure projects and increasing foreign direct investment (FDI). Further growth is underpinned by the expansion of fiscal policy in the form of contributions and debt relief programmes introduced by the government, which will boost private consumption going forward.





Kuwait's oil sector is expected to continue increasing, albeit at a slower rate by 4.0% in 2014 (2013: 4.4%) as a result of a gradual decline in oil production. For non-oil sector, growth is likely to rebound to 5.2% in 2014 from 4.6% reported for 2013; on the back of further recovery in the manufacturing, construction and real estate sectors following strong government capital expenditure budget allocation for FY2013/14. Examples of government expenditure budget allocation include spending approximately 50% of the Development Plan's budget by March 2014 on more than 1200 economic projects to reining in on spending on subsidies and welfare programmes.

Our in house projection is much higher than the IMF's conservative forecasts of 2.6%



Production

In February 2014, Kuwait's oil production remained at 2.90mln barrels per day, similar to December 2013's output - the fourth straight month of below 3.0mln output since September 2014. Kuwait's current production capacity is 3.3mln bpd and aims to increase it to 3.5mln bpd by 2015.

The slight drop in Kuwait's oil production is in line with the slowdown in recent OPEC's oil output and other member countries. OPEC crude production dropped to the lowest level in more than two years in December 2013, and has maintained the same output For the months that followed





OPEC is expected to produce at below the group's agreed ceiling of 30mln barrels a day in the second quarter of 2014, at 29.6mln barrels a day, according to OPEC's Monthly Oil Market Report. This is a decrease of 0.3mln barrels a day from December 2013.

Kuwait's efforts to develop its heavy oil capacity are part of the country's plan to increase overall crude oil output to 4mln barrels per day by 2020 from current production of approximately 3.0mln barrels per day. Kuwait has approved bids worth a total of 12bln for major upgrades at two oil refineries, in a sign it is moving ahead with large infrastructure projects. The Clean Fuels Project is a specification upgrade and expansion of Kuwait's largest refineries as part of its economic development plan





Drilling for oil and gas deposits outside North America has hit the highest level in three decades, led by big exploration and production programs in the Middle East and Africa. More than 1,300 drilling rigs have been operating on average over the last six months, the greatest number since 1983. The boom is being led by the Middle East, where the number of rigs operating has tripled since 1999. More than 400 onshore and offshore rigs were drilling in the Middle East in December and January, the greatest number since the 1970s. Saudi Arabia also has more than 90 rigs, up from fewer than 20 in 1999. In recent years, observers have focused on the development of unconventional shale reservoirs and technically challenging frontier resources in ultra-deep water off the coasts of South America and Africa as well as in tough environments such as Central Asia and the Arctic.



Meanwhile, the price of Kuwait Export Crude (KEC) declined slightly to 103.1 per barrel as at March 14, 2014 in line with other global oil prices. This compares to a slightly higher price of 106.33 as at 03 March 2014. US crude stood at 101.45 after being unchanged at 97.5 per barrel a month earlier. We predict that the price of KEC will trade in a range of 100 - 104 per barrel in 2014 on expectation of balanced global oil demand and supply

 


Arab Times




  MENA News Headlines
 Dec 27 2014 - Qatar A team clinches 16th GCC Volleyball Championship titleThe Peninsula
(MENAFN - The Peninsula) The winning Qatar A team's players pose for a group photo along with the officials after defeating Bahrain A team in the final of 16th GCC Beach Volleyball Championship at ...

 Dec 27 2014 - Bahrain- Anti-govt protestThe Peninsula
(MENAFN - The Peninsula) Shia protesters in Bahrain hold up national flag as they take part in an anti-government demonstration in the village of Jannusan, west of capital Manama, yesterday. The ...

 Dec 27 2014 - Jordan denies IS shot down its warplaneThe Peninsula
(MENAFN - The Peninsula) Jordan's military yesterday denied claims by the Islamic State group to have shot down one of its warplanes which crashed in Syria, after the pilot was captured by the ...

 Dec 27 2014 - Yemen- Protest in Sana'aThe Peninsula
(MENAFN - The Peninsula) People demonstrate against the deployment of armed militia of the Shia Houthi movement in Sana'a yesterday. ...

 Dec 27 2014 - Qatar- Gold loses sheen, to end 2014 on flat noteThe Peninsula
(MENAFN - The Peninsula) Gold has lost its sheen this year and is all set to end 2014 on a flat note, leaving investors disappointed. Prices are hovering around the same level seen at the beginning ...

 Dec 27 2014 - Qatar to host 19th meeting of GCC Environment MinistersThe Peninsula
(MENAFN - The Peninsula) Qatar has taken part in the 18th session of GCC ministers in charge of the environment in Kuwait.The Minister of Environment H E Ahmed Amer Mohamed Al Humaidi led Qatar's ...

 Dec 27 2014 - Qatar- Ministry discovers illegal winter camp in Al ShamalThe Peninsula
(MENAFN - The Peninsula) The Environment Protection Department at the Ministry of Environment has discovered a winter camp in Al Shamal which was established without permission, Arraya has reported, ...

 Dec 27 2014 - Qatar- Vegetables become cheaper despite growing demandThe Peninsula
(MENAFN - The Peninsula) Demand for fresh vegetables and fruits sold at the central market is going up, thanks to the rising population, but a welcome development has been that compared to last year ...

 Dec 26 2014 - Russia hopes to host Syria talks in JanuaryThe Peninsula
(MENAFN - The Peninsula)  -Russia plans to host delegations from the Syrian opposition in late January, possibly followed by a visit by regime representatives that could bring the two sides together ...

 Dec 26 2014 - Lebanon's Hezbollah detains 'Israeli spy' in its ranksThe Peninsula
(MENAFN - The Peninsula)  Lebanon's Hezbollah has detained a senior party official it accused of spying for Israel and "sabotaging security operations" abroad, a source close to the movement said on ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help