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

 


Arab Times




  MENA News Headlines
 Sep 16 2014 - Kuwait Stock Exchange Indices Close in GreenQatar News Agency
(MENAFN - QNA) Main indexes of the Kuwaiti bourse were in the green zone upon closing Tuesday with the weighted, the price, and the KSX 15 up by 1.1, 28.6, and 2.64 points respectively. Number ...

 Sep 16 2014 - Diplomatic Adviser to the King of Belgium Meets Qatar's AmbassadorQatar News Agency
(MENAFN - QNA) Diplomatic Adviser to the king of Belgium Pierre Cartuyvels met HE Qatar's Ambassador to the Kingdom of Belgium, Sheikh Ali bin Jassim Al-Thani. During the meeting, they discussed ...

 Sep 16 2014 - Real Estate Transactions Worth over QR684 Million Last WeekQatar News Agency
(MENAFN - QNA) Real estate transactions between September 7 and 11 for the real estate sales contracts registered at the Ministry of justice are worth QR684,139,324, the real estate registration ...

 Sep 16 2014 - Qatar University to Host Workshop for Young BoffinsQatar News Agency
(MENAFN - QNA) Qatar University's Al Bairaq programme will engage aspiring young scientists from high schools in workshops on nanotechnology and other scientific topics, the university said ...

 Sep 16 2014 - Qatar Expresses Concern over Expansion of Nuclear Power Reactors EstablishmentQatar News Agency
(MENAFN - QNA) The State of Qatar has stressed that the obsession with safety and security of potential nuclear accidents preoccupies the international community because of the long -term and ...

 Sep 16 2014 - Four Elements of Islamic State Killed in IraqQatar News Agency
(MENAFN - QNA) Baghdad Operations Command announced the killing of four elements from the Islamic State group (ISIS) northwest of Baghdad. The spokesman for the command, Brigadier Saad Maan told ...

 Sep 16 2014 - Elements of Islamic State Killed in IraqQatar News Agency
(MENAFN - QNA) Baghdad Operations Command announced the killing of four elements from the Islamic State group (ISIS) northwest of Baghdad. The spokesman for the command, Brigadier Saad Maan told ...

 Sep 16 2014 - Phase one to begin Dubai USD2.7b Parks projectMENAFN
(MENAFN) Dubai Parks & Resorts, a Meraas Holding company announced it has made significant progress on phase one of its multi-billion dollar entertainment and leisure destination in the emirate, ...

 Sep 16 2014 - Investcorp acquire USD250m US property propertiesMENAFN
(MENAFN) Bahrain's Investcorp, an alternative investment manager, announced it had acquired a portfolio of office and industrial property assets in three cities in the United States for around USD250 ...

 Sep 16 2014 - Dubai's RTA to invest USD544m in 2 projectsMENAFN
(MENAFN) Dubai's RTA announced it is planning to invest in the construction of two new road projects in the Creek area of the city in order to ease traffic congestion, Arabian Business reported.The ...

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

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