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 sond 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
 Jul 30 2016 - Slip Ring Market Share, Technology and Key Players Analysis in a Research ReportMENAFN Press
(MENAFN Press) Slip Ring Market Share, Technology and Key Players Analysis in a Research Report ReportsWeb added report on "Global Slip Ring Industry 2016 Market Research Report'', the report ...

 Jul 30 2016 - Elite Pediatrician in Quebec, Rami Baz, MD, is to be Published in The Leading Physicians of the WorldMENAFN Press
(MENAFN Press) Saint-Charles-Borromée, Québec The International Association of HealthCare Professionals is pleased to welcome Rami Baz, MD, Pediatrician, to their prestigious ...

 Jul 30 2016 - GES Adds On To More Innovative Services to Its Event Services PortfolioMENAFN Press
(MENAFN Press) (July 29, 2016) GES, a prominent global Event Management Company shared about its forthcoming new-fangled services that will enhance the quality of event experienced by its clients. ...

 Jul 30 2016 - Villa for sale in Egypt or Apartment for sale in CairoMENAFN Press
(MENAFN Press) google_ad_client = "pub-7060895361757846"; /* MPR 200x200, created 7/14/10 */ google_ad_slot = "9848691929"; google_ad_width = 200; google_ad_height = 200; Cairo Egypt ...

 Jul 30 2016 - Respected Dermatologist, Ellen Burov, MD, FAAD, will Have her Outstanding Achievements Featured in The Leading Physicians of the WorldMENAFN Press
(MENAFN Press) Respected Dermatologist, Ellen Burov, MD, FAAD, will Have her Outstanding Achievements Featured in The Leading Physicians of the World Posted by admin on July 30, 2016 New York ...

 Jul 30 2016 - Jordan's public debt drops to USD35.35bnMENAFN
(MENAFN) Jordan's public debt amounted up to USD35.35bn in May this year, comprising 92.6 percent of its GDP estimated by the Finance Ministry at USD38.19bn.On the other hand, the debt of the ...

 Jul 30 2016 - Saudi's Vision 2030 to enhance digital economyMENAFN
(MENAFN) Saudi Arabia embarked on National Transformation Program 2020 and Vision 2030, to foster a digital culture and shifting more to digital economy.With a digital economy, more jobs can be made ...

 Jul 30 2016 - Dubai's Nakheel profit grows by USD402.9mnMENAFN
(MENAFN) Dubai developer Nakheel posted flat second-quarter profit increase, which reached USD402.98mn in Q2.Moreover, the firm's profit for the first six months of this year was USD0.80bn, up from ...

 Jul 30 2016 - Wisconsin Mesothelioma Victims Center Now Offers a Diagnosed Person in Wisconsin a Free Service Designed to Ensure They Are Working Directly with The Nation's Best Lawyers For Better CompensationMENAFN Press
(MENAFN Press) Wisconsin Mesothelioma Victims Center Now Offers a Diagnosed Person in Wisconsin a Free Service Designed to Ensure They Are Working Directly with The Nation's Best Lawyers For Better ...

 Jul 30 2016 - 360Heros Announces Rebrand, Unveils New Name and Company DirectionMENAFN Press
(MENAFN Press) 360Heros Announces Rebrand, Unveils New Name and Company Direction 360Heros Inc, a company specializing in 360 video technology, has announced a rebrand. A new company name, ...

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