Kuwait is one of the biggest players in the global energy market, with its proven oil reserves currently the sixth largest in the world. Although revenues from hydrocarbons account for more than 60% of GDP and 95% of exports, the country’s low production costs and sizeable fiscal reserves mean it is well positioned to cope with lower oil prices in the short term. This is clear from the government’s ongoing commitment to delivering projects outlined in the national development strategy, Kuwait Vision 2035. In the financial services sector, Kuwait continues to perform well, as a series of regulations put in place by the Central Bank of Kuwait in recent years have served to shore up the sector’s recovery from the global economic downturn.

This publication provides insight into the varied and rich experience in SOE reform in the region over the past decade, highlighting reform initiatives undertaken at national and country specific levels.

Oil production retains its key role in the economy, however plans are under way to encourage diversification away from hydrocarbons towards an economy that is more knowledge based. The political climate has been characterised of late by a number of disputes, often resulting in either the resignation of the government or the dissolution of parliament, which has contributed to the slow progress of some projects.

Kuwait accounts for approximately 6.1% of the world’s proven oil reserves, with hydrocarbons revenues comprising more than 65% of the country’s GDP and 95% of total exports in 2013. Cautious budgetary decisions have resulted in large surpluses, creating a solid base for public expenditure programmes such as the National Development Plan, which is set to diversify the economy and boost employment. Although tapering the US Federal Reserve’s quantitative easing programme is likely to affect global liquidity and play a key part in growth prospects for 2014/15, the GCC economy is still forecast to expand by 4.1% for the year, and in Kuwait, where a handful of new PPP plans and deals are slated for 2014, there are promising signs that the year could be a landmark for economic growth and expansion.

Home to the largest per capita reserves and fourth-largest total reserves of crude oil within OPEC, Kuwait’s public finances have suffered in 2016 following the rapid decline in oil prices, which drove oil revenues down from $108.6bn in 2013 to $51.8bn in 2015. Despite this Kuwait has resisted significant budgetary cutbacks: spending levels in 2016 were cut by just 1.6%, and the considerable financial buffers built up from budget surpluses in the years leading up to 2014 are expected to cushion the budget deficit. The country continues to push ahead with key public investments, with Parliament allocating $155bn to the Kuwait Development Plan 2015-20 to fund infrastructure, utilities and housing developments. The plan focuses on further integrating the private sector into areas of the economy traditionally under state control and aims to raise the non-oil sector’s GDP contribution to 64% in 2015-20, up from an average of 45.1% in 2010-13. Elsewhere promising moves are being made to cut state subsidies, with the government opting to liberalise diesel and kerosene prices and reduce subsidies on aviation fuel in January 2015, generating savings equal to 0.3% of GDP.

The first English language political history of Kuwaiti parliament, this book provides an unprecedented holistic treatment of grassroots contemporary Kuwaiti politics in English in over two decades, incorporating the country's political dynamics into broader debates about the limits of authoritarianism and the practice of democracy in the Arab world, particularly in oil-wealthy states. Author Courtney Freer uses the lens of parliamentary elections as a means of understanding the political ideologies that have dominated in Kuwait since independence. As such, it situates the dynamics of Kuwaiti politics within broader political science debates about whether democratic institutions in "hybrid regimes" are meaningful arenas for popular contestation or only serve to enhance autocratic rule. Given the varying portrayals of Kuwait as robust authoritarianism, "upgraded" authoritarianism, or a noteworthy site of democratic participation, The Resilience of Parliamentary Politics in Kuwait: Parliament, Rentierism, and Society focuses on the ideologies that have mobilized political blocs, rather than solely focusing on the institutions of political power themselves. Freer includes extensive fieldwork and the use of Arabic and English primary sources to assess and examine the institutional setting that Kuwait presents and traces the dominant ideological strands in the country, considering the comparative mobilizational potential of ascriptive identities like tribe and sect.