Quotes: US 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

 






  MENA News Headlines
 Jul 24 2014 - Kuwait- His Highness the Crown Prince receives senior officialsKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah received, at Seif Palace on Wednesday, former National Assembly Speaker Jassem ...

 Jul 24 2014 - Kuwait oil up 87 cents to USD 105.65 pbKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The price of Kuwaiti crude oil went up 87 cents to USD 105.65 per barrel (pb) on Tuesday against USD 104.78 pb the day before, the Kuwait Petroleum Corporation ...

 Jul 24 2014 - Kuwait invests USD 17 bln in environmental fuel projectKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Kuwait is investing over USD 17 billion (KD 4.6 billion) to develop oil refineries as part of the "environmental fuel" project to be launched in 2018.The project, ...

 Jul 24 2014 - Saudi PIF to establish new companiesMENAFN
(MENAFN) Saudi Arabia's Public Investment Fund (PIF) plans to invest in establishing new companies of several sectors, mainly housing, petrochemicals, and technology as part of its plan to expand ...

 Jul 24 2014 - Kuwait- Al-Ghanim urges parliaments to work together on stopping Israeli aggressionKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Arab Inter-Parliamentary Union (AIPU) chief Marzouq Al-Ghanim called on international parliaments, particularly those from Security Council permanent member ...

 Jul 24 2014 - Kuwait- His Highness the PM receives "Journey of Hope" membersKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah received at Seif Palace Wednesday Head of the "Journey of Hope", Advisor at the ...

 Jul 24 2014 - Kuwait- His Highness The Amir receives several Islamic scholars, ministerKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah received the Minister of Information and State Minister for Youth Sheikh Salman Sabah Salem ...

 Jul 24 2014 - Kuwait invests 17 bln in environmental fuel projectArab Times
(MENAFN - Arab Times) WAIT CITY July 23 (KUNA): Kuwait is investing over $17 billion (KD 4.6 billion) to develop oil refineries as part of the 'environmental fuel' project to be launched in 2018. The ...

 Jul 24 2014 - No dream job: Khartoum's walking department storeArab News
(MENAFN - Arab News) The Sudanese man with an armful of battery-powered wall clocks pushes one through the taxi's open window. His head follows.'For you a good price" he tells the passenger. 'How ...

 Jul 24 2014 - Saudi- Al-Athr showcases abstract and geometry inspired works of artArab News
(MENAFN - Arab News) Jeddah's Al-Athr Gallery is hosting the abstract and geometry inspired work of 40 local and international artists until Oct. 10.The gallery opened its door in 2009 and has ...

more...


 






Google

Live Currency Rates

 
 

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help