Embassy of India



Embassy of India

Kuwait

*****

No. KUW/COM/201/1/2016 10 February 2016

MONTHLY ECONOMIC & COMMERCIAL REPORT FOR JANUARY 2016

POLITICAL DEVELOPMENTS

The month witnessed, Kuwait celebrated the 10th anniversary of the accession of H.H. Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah as the Amir of Kuwait. Although the Kuwaiti Ministry of Interior announced “partial amnesty” for all residency violators either to legalize their status or pay their fines and leave the country, without denying them a chance to come back, provided illegal expats voluntarily come forward; it actually turned out to be just reiteration of their existing policy.

The Finance Minister reportedly advised various Ministries and Departments to formulate their 2016-17 budgets at indicative oil prices of US$ 25 per barrel; and requested to cut expenses and performance bonuses, cancel annual increments and promotions.  Speaker of the National Assembly Mr. Marzouq Al-Ghanim stated that the Government had assured him that it would not take any unilateral decision in the matter and stressed that any measures to reduce subsidies to support the Budget would not harm low income people. Meanwhile, the Minister of Commerce and Industry Yousuf Al-Ali reviewed his Ministry’s plan with the Ministerial Economic Committee to control prices if subsidies were lifted and fuel prices are increased. He said that strict measures would be taken to prevent any unjustified price increases and that special inspection teams would be deployed in various markets and outlets to monitor prices.

On 18 January, KPC Board conducted reshuffle of key posts in oil sector, where, Hashim Sayed Hashim was appointed as Managing Director of KPC, Jamal Abdulaziz Jaafar was appointed as CEO of the Kuwait Oil Company, Mohammad Abdulatif Al-Farhoud and Abdulnasser Yusuf Al-Fluij were appointed as CEOs of the Petrochemical Industries Company (PIC) and the Kuwait Gulf Oil Company (KGOC) respectively. The KPC also appointed members of the boards of directors in all the KPC affiliated companies for the coming three years. On 25 January, Ministry of Commerce and Industry approved a proposal that compels foreign companies who are contracted or awarded tenders with the government to employ Kuwaiti graduates. On 5 January, it was reported that expats aged above 50 will be forced to retire from public sector jobs under a new measure announced to reduce the number of foreign workers in government establishments from 1 March 2016.

On the external front, while Presidents of Tunisia and Mexico and Foreign Minister of Iraq visited Kuwait, Kuwaiti First Dy.PM & Foreign Minister visited Saudi Arabia & Qatar and Parliamentary Speaker visited Egypt, Lebanon and Iraq. On 5 January, the Foreign Ministry recalled Kuwait's Ambassador to Iran on the backdrop of the storming, torching and sabotage activities carried out by a group of demonstrators on the Saudi Embassy in Tehran and its Consulate in Mashhad.

On the bilateral front, a NORKA delegation comprising Shri K.C. Joseph, Minister for Non-Residents Keralites’ Affairs, Smt. Rani George, Secretary, NORKA and Shri. R. S. Kannan CEO, NORKA visited Kuwait on 21 January and interacted with the members of Indian community in the Embassy auditorium and discussed the issue of recruitment of Indian nurses. Earlier, on the same day, Ambassador, along with Smt. Rani George, Secretary NORKA met Dr. Jamal Al-Harbi, Asst. Undersecretary in the Ministry of Health (MoH), Kuwait. During the meeting, the Kuwaiti authorities informed that about 1000 nurses would be required during 2016 and a MoH delegation would visit India very soon to finalize modalities of recruitment of nurses for work in Kuwait. The Embassy celebrated the 14th Pravasi Bharatiya Divas (PBD) on 9 January in its Embassy auditorium with the participation of about 300 members of the Indian community and the 67th Republic Day of India on 26 January with participation of about 3,000 Indian nationals.

I. ECONOMIC INDICATORS

1. Inflation: According to the Kuwait Central Statistical Bureau, the inflation rate in Kuwait during the year 2015 was 3.3% compared to 3.0% in the year 2014.

2. Budget: On 20 January, the Kuwaiti Finance Minister reportedly advised various Ministries and Departments to formulate their 2016-17 budgets at indicative oil prices of US$ 25 per barrel; and requested to cut expenses, cancel annual increments, promotions, success & excellent performance bonuses. Meanwhile, MP Faisal Al-Kandari warned that economic disaster is inevitable if the price of oil falls below US$ 20 per barrel. Separately, on 28 January, Kuwaiti Finance Minister said Kuwait projected a record budget deficit for the fiscal year starting April 1, 2016 on the sliding price of oil. The shortfall for the 2016-17 fiscal year is estimated at KD 11.5 billion (US$38 billion) due to a sharp decline in oil revenues. Spending was estimated at KD 18.9 billion, just 1.6% lower than in the current year. Revenues were projected at KD 7.4 billion (US$ 24.3. billion), of which oil income is estimated at KD 5.8 billion (US$19.1 billion) or just 78% of the revenues compared to about 95% in previous years.

3. Company Violators: On 30 January the Public Authority for Manpower’s inspection teams traced 60 more fake companies, which took the total number of fake companies exposed in past seven months to 270. Kuwaiti Minister of Social Affairs and Labour Ms. Hind Al-Sabeeh reportedly said that the companies would not be allowed to operate unless they legalize their labor status within two months after suspension.

4. Subsidies: The study conducted by Ernst & Young on rationalizing government subsidies on energy and goods was discussed by the Cabinet on 5 January. The citizens have been categorized in three brackets viz. the rich, people with medium income and people with limited income. Subsidies will continue for citizens with limited income who earn KD 1,000 a month or less and this will be done through the smart ID.

5. Taxation: It was reported on 4 January that the Kuwaiti Government was getting ready to approve a proposed law to impose a 10% tax on national companies, and a similar percentage on individuals who do business but they would not be taxed for the first KD 50,000 (US$ 164,000) made each year. The draft law, prepared by the Finance Ministry with technical help from the International Monetary Fund (IMF), exempts oil companies, NGOs and other government authorities, and sets restrictions to prevent tax evasion, such as not exempting profits that are carried over to the reserves, or registering them as spendable allocations or future losses, yet it keeps the door open to create more specific rules for bank allocations and insurance companies’ risks. The draft tax law bans tax exemption on salaries, wages or allowances or other compensations paid or due to be paid to a related person to avoid leaking profits away from taxes in the form of bogus salaries.

6. VAT: On 15 January, according to a local media report GCC countries will introduce VAT in 2018, at a rate between 3% and 5%. Committees and task forces have been set up to study the impact of the imposition of VAT and the percentages to be charged. Younis Al-Khouri, Under Secretary at the UAE Finance Ministry reportedly said, each country will also need to put a domestic tax law structure in place before the GCC-wide implementation, and he also added that healthcare and education will be exempt from tax, along with 94 food items.

7. Trade: On 13 January 2016 National Bank of Kuwait (NBK) stated that Kuwait’s trade surplus narrowed in 3Q15 on the back of lower oil revenues. Kuwait Export Crude (KEC) fell from an average of USD 58 per barrel in 2Q15 to USD 47 per barrel in 3Q15. As a result of the lower oil price, oil export receipts have declined by 48% (y/y). The report expects oil revenues to come lower in the coming quarters as downward pressures on oil prices persist. KEC averaged USD 38 per barrel in 4Q15.

8. Overseas treatment program: According to a report, spending on overseas treatment programme rose from KD 245 million (USD 806 million) in 2014 to KD 441 million (USD 1.45 billion) in 2015. Kuwait’s Finance Ministry and the Cabinet held discussion on the subject and suggested utilizing such funds in building hospitals of high international standards, thus ending the treatment overseas programme.

On 27 January, Dr Afrah Al-Sarraf, Director of Capital Health Region reportedly said that the Ministry of Health (MoH) is planning to employ qualified expatriates to work in several medical specialties across the country so that they can treat patients in the public and private hospitals in Kuwait thereby reducing the number of patients sponsored on overseas medical treatment. Dr. Al-Sarraf noted the plans include the establishment of world class hospitals in the country where the Health Ministry will sign cooperative and coordinating contracts with some reputable medical universities worldwide to treat patients here in Kuwait.

9. Illiteracy: A recent educational statistics indicated on 18 January that Kuwait has 1,34,089 illiterates, both nationals and expatriates together comprising 69,719 male and 64,370 female of which 25,814 citizens are illiterate and about 90 percent of them are women, while 108,275 expatriates represented by 67,086 male and 41,207 female are illiterate. Meanwhile, the percentage of illiteracy among the total population of 4,091,993 is 3.28% while illiteracy among expatriates is 3.84% and Kuwaitis 2.02%.

10. Ranking: Based on a research into global food bills taking into account the local cost of grocery staples compared with local wages, published by MoveHub, using data from Numbeo, Kuwait is the third cheapest country in the world for grocery shopping, with Qatar, the UAE and Saudi Arabi also in the top six.

11. Transparency: On 27 January, as per the report of Transparency International, Kuwait was ranked at 55th position in the Corruption Perceptions Index 2015 compared to 67th in 2014.

12. KIA: On 18 January, the Head of Kuwaiti National Assembly’s Public Funds Protection Committee claimed that the Kuwait Investment Authority (KIA) has refused to cooperate with its investigation into the allegedly suspicious sale of one of its assets. The Committee had a discussion regarding the issue of selling a real estate services company by KIA in a suspicious way that “serves the relatives of the KIA director” and the director refused to provide the Committee with documents of that sale and also refused to provide the documents to the Audit Bureau.

13. SWF: On 24 January, the Kuwaiti government announced its plan to establish a new Sovereign Wealth Fund (SWF) of about US$ 100 billion to manage State properties and investments in different vital projects in the country.

14. Exchange rates: The exchange rates between Kuwaiti Dinar and Indian Rupee/$ during January 2016 were as follows:

|Date |KD/Rs.1000 |$1000= KD |

|January 1 |4.590 |304.10 |

|January 15 |4.480 |304.00 |

|January 30 |4.480 |303.80 |

15. Crude Oil: Kuwait Crude Oil Prices during January 2016.

|Date |Per barrel |

| |(US$) |

| January 6 |$26.44 |

| January 7 |$24.12 |

| January 13 |$22.64 |

|January 14 |$21.70 |

|January 15 |$21.60 |

|January 18 |$20.22 |

|January 19 |$ 20.28 |

|January 22 |$ 21.91 |

|January 23 |$19.50 |

16. Stock Exchange: The price index of KSE fluctuated as follows during January 2016:

|Date |Price Index |

|January 4 |5568.30 |

|January 7 |5475.15 |

|January 10 |5418.53 |

|January 14 |5265.94 |

|January 19 |5084.21 |

|January 22 |5624.68 |

|January 28 |5015.68 |

|January 31 |5067.17 |

II. MAJOR INVESTMENTS WITHIN AND OUTSIDE THE COUNTRY/ RELATED AGREEMENTS SIGNED / OTHER ECONOMIC DEVELOPMENTS

Banking, Finance and Investment

1. Burgan Bank: Kuwait’s third largest lender by assets, Burgan Bank on 11 January announced that it has picked NBK Capital and KIPCO Asset Management Co. (KAMCO) as the lead managers for the issue of KD100 million (US$ 329.4 million). The dinar-denominated bond issue follows a US $350 million loan secured by Burgan in December 2015 from a number of International Banks. The bank obtained regulatory approval to issue a band worth no more than KD100 million in December 2015.

2. Boubyan Bank: On 20 January, Kuwait's Boubyan Bank had received regulatory approval to issue a capital-boosting sukuk worth US$ 250 million. The lender received approval from the Central Bank of Kuwait to issue Basel-III compliant Islamic bond that will enhance its Tier 1, or core, capital. The bank will take a final decision on the sukuk and its timing after receiving all other approvals.

3. CBK: On 30 January, Commercial Bank of Kuwait announced an operating profit of KD 99 million (USD 325 million) for the year 2015. The net profit for the bank was KD 46.2 million (USD 152 million) with earnings per share of 32.7 fils.

4. Gulf Bank: On 28 January, Gulf Bank announced an operating profit before provisions of KD 108 million (USD 355 million) for the year ended, 31 December 2015 and a net profit of KD 39 million (USD 128 million), which is 10% more than 2014.

5. Industrial Bank of Kuwait: On 5 January 2016, a specialized study carried out by the Industrial Bank of Kuwait, recommended the following nine procedures that will reduce the negative impact of lower oil prices on Kuwaiti economy:

• Reforming the government’s expenditure,

• Reforming the tax system

• Improving the efficiency of government spending on state’s projects, as well as

• salary and wage adjustments

• Reforming the subsidy system,

• Focus on the labor market reforms,

• Reduce the dependence on oil

• Supporting the industrial sector in Kuwait, as well as

• Creating the right incentives to develop the role of the private sector.

The study called for improving the efficiency of the capital expenditure to boost stronger growth in non-oil economy besides diversification of the state income. The Industrial Bank’s study said that the impact of the declines in government revenues in Kuwait is less compared to other GCC countries, because Kuwait uses a flexible exchange rate denominated in a basket of other currencies, which reduce the negative impact of lower oil prices on the budget.

6. KFH: On 28 January, Kuwait Finance House (KFH) reported a net profit of KD 145.8 million (USD 479 million) for the fiscal year 2015 compared to KD 126.5 million (416 million) for the year 2014, thus marking an increase by 15.3 percent over last year.

7. NBK: On 21 January, National Bank of Kuwait (NBK) reported net profit of KD 282.2 million (US$ 929.7 million) for the year ending December 31, 2015 compared with KD 261.8 million (US$ 862.6 million) for the same period in 2014, growing 7.8 percent year on year. During the year-end 2015, total assets reached KD 23.6 billion (US$ 77.8 billion) up 8.3 percent compared to year-end 2014, while total shareholder’s equity increased by 3.8 percent to KD 2.6 billion (US$ 8.6 billion).

8. Warba Bank: On 4 January 2016 Kuwait’s, Warba Bank acquired equipment leasing portfolio run by U.S. financial investor ATEL Capital. As part of the transaction, the Bank had initially invested US $8.2 million in a diversified portfolio of Operating leases comprising of high-quality low-tech low-obsolescence mission-critical equipment leased to investment grade corporations in United States. ATEL Capital is a San Francisco-based financial services company that sponsors public and private alternative investment programs for individual and institutional investors.

9. World Bank: On 11 January 2016 Kuwaiti Minister of Finance and the World Bank had signed an agreement on the legal arrangements of technical cooperation program in the field of technical consultations and assistance based on developing the public sector, strengthening the role of the private sector, human development and building capacities and assessing indices of financial management systems, practices and measures, in line with the relevant world criteria. It also seeks to promote performance of public finances and boost governance in the country.

Oil, Gas and Petrochemicals

1. Oil Sector reshuffle: On 18 January 2016, KPC Board conducted reshuffle of key posts in Oil Sector, where, Hashim Sayed Hashim was appointed as Managing Director of KPC, Jamal Abdulaziz Jaafar was appointed as CEO of the Kuwait Oil Company, Mohammad Abdulatif Al-Farhoud and Abdulnasser Yusuf Al-Fluij were appointed as CEOs of the Petrochemical Industries Company (PIC) and the Kuwait Gulf Oil Company (KGOC), respectively. KPC also appointed members of the boards of directors in all the KPC affiliated companies for the coming three years.

2. KPC: Nizar Al-Adasani, CEO of Kuwait Petroleum Corporation (KPC) reportedly said that the KPC is expected to invest about US$ 100 billion over the coming five years to strengthen its crude oil production and had signed an MOU with K-Sure and KOEXIM, the Korean Credit Agencies worth US$ 11 billion to finance the upstream, downstream, petrochemical and transportation projects of KPC and its subsidiaries. Earlier, on January 19, KPC had announced plans to arrange a $10 billion loan to expand refineries to make cleaner-burning fuels. He added that Kuwait plans to expand its crude-production capacity to 4 million barrels a day by 2020.

3. PIC: On 19 January, Kuwait's Petrochemicals Industries Co (PIC) agreed to buy a 25% share in a petrochemical joint venture (JV) between South Korea’s SK Gas and Saudi Advanced Petrochemical Co. PIC has paid US$ 100mn for a stake in the 600,000 tonnes per year propane dehydrogenation (PDH) plant currently under construction in South Korea. The company called SK Advanced will be operated as a three-party venture, with SK Gas retaining a 45% stake, Saudi Advanced’s AGIC holding 30% and PIC owning 25%.Saudi Advanced had previously invested US$ 135mn for a 35% stake, but said in a statement on the Saudi stock exchange that its subsidiary AGIC had agreed to sell a 5% stake for US$ 4.3mn, reducing its holding to 30%. The impact of the sale will be reflected in the first quarter results of Saudi Advanced. 

4. Khafji oil field: According to an official source, Kuwait and Saudi Arabia have agreed in principle to resume production at jointly operated Khafji oil field in Neutral Zone during the last quarter of this year. The agreement aims at resuming production in the field, but with a lesser capacity of around 100,000 barrels per day, 50,000 bpd for each side, which complies with the Saudi environmental laws as far as burning the gas and emissions are concerned.

Power

1. Kuwait Ministry of Electricity and Water on 13 January 2016 said it intends to present the tender for the Nuwaiseeb Power and Water Purification Station Project in April 2016. The ministry completed the structural plan of the project land expected to produce 3000 megawatt in its first stage out of 6000 MW, the total production capacity of the project, by the municipality.

2. Renewable Energy: On 18 January 2016, Kuwaiti Minister of State for Cabinet Affairs and Acting Minister of Electricity and Water Sheikh Mohammad Al-Abdullah Al-Sabah said Kuwait is keen on looking into latest renewable energy technologies. Kuwait had partially started measures in shifting to renewable energy, especially in the field of solar energy and hydro-electric, which would improve the quality of the environment and save in energy cost.

Telecommunication

1. It was reported on 22 January, the Board of Directors of Kuwait operator Viva said that the price of the takeover offer from Saudi Telecom Company was not fair. STC already owned 26 percent of Viva and had launched an offer to buy the rest of the company. Viva's shares are trading around the bid price of KD 1 (USD 3.29). STC said in a statement that it would proceed with its offer and did not intend to change the offer price. 

2. On 24 January, Kuwait’s Viva, the third telecom operator in Kuwait, announced its financial results at the end of the year 2015, with net profits of KD 43 million (USD 141 million), a 6 percent increase compared to 2014.

Construction

1. Upcoming Projects: On 19 January, the Kuwaiti Prime Minister briefed the Amir about the plan of developing the islands of Boubyan, Failaka, Warba, Miskan and Awha in Kuwait, to turn Kuwait into a cultural and economic center while also boosting development in the country. Kuwait awarded projects worth a record US$ 32 billion last year and plans to raise the figure in 2016 despite a sharp decline in oil revenues. The awards include a US$ 13 billion contract to build a new refinery, US$ 4.3 billion for the airport expansion. In the year 2016 contracts worth US$55 billion are expected to be signed that include a US$ 3.3 billion liquefied natural gas import terminal, a US$ 7 billion petro-chemicals project and a natural gas development project worth US$ 5.7 billion. And, also in a plan to tender a large number of projects in the power, health and housing projects in 2016.

Real Estate

1. On 14 January 2016 a recent economic report stated that Kuwait’s total real estate sales down by 29.3 percent in 2015 to KD 3.43 billion (US$ 11.2 billion), compared KD 4.86 billion (US$ 15.9 billion) in 2014.

Health

1. It was reported on 3 January that the morning Out Patient Departments (OPDs) at various public hospitals would be for citizens only.

2. On 17 January 2016 an official source informed that Kuwaiti Ministry of Health (MOH) is considering a proposal to have an international administration run the new Jaber Hospital in South Surra and subject it to a governmental body like the investment authority. MOH expects to gradually launch the hospital by mid-2017 and it will be reserved entirely for Kuwaitis.

Transportation

1. On 16 January 2016 Kuwait Airways operated its last flight between New York City and London, as it decided last month to drop the route after about 35 years of service rather than transport Israeli citizens between the two cities. The decision does not apply to the airline’s three weekly non-stop flights between Kennedy International Airport in New York and Kuwait City. Those flights are not affected because Israelis are not allowed to visit Kuwait and are not granted visas.

2. Kuwait Airways announced that it will equip its new planes with modern medical services, including connecting the plane with a medical system that enables the pilot to follow the health condition of any ill passenger with a medical center in Phoenix, Arizona.

3. Kuwait's Agility, the largest logistics firm in the Gulf, has signed an agreement on 17 January for a US$ 235 million loan with five banks. The facility, structured as a revolving credit facility, has a term of three years and was provided by National Bank of Abu Dhabi, HSBC, Natixis, Santander and Standard Chartered. The Company is focusing on diversifying its business across emerging markets as low oil prices risk delaying some projects in the Middle East.

III. MAJOR ECONOMIC & COMMERCIAL DEVELOPMENTS WITH OTHER COUNTRIES, INCLUDING TRADING AGREEMENTS PROPOSED/ FINALIZED

INDIA-BILATERAL

1. PBD 2016: PBD: On 9 January 2016 Indian Embassy in Kuwait conducted “Pravasi Bharatiya Divas” at its auditorium. As part of the paradigm shift in the format of the annual Pravasi Bharatiya Divas (PBD), this year the PBD was conducted at the embassy with the participation of over 300 members of our community.

2. NORKA: On 21 January, Shri K.C. Joseph, Minister for Non-Residents Keralites’ Affairs accompanied by Smt. Rani George, Secretary, NORKA, Shri. R.S. Kannan CEO, NORKA visited Kuwait and interacted with the members of Indian community in the Embassy auditorium on the issue of recruitment of Indian nurses for work in Kuwait. Earlier, on the same day, Ambassador, along with Smt. Rani George, Secretary NORKA met Dr. Jamal Al-Harbi, Asst. Undersecretary in the Ministry of Health (MoH), Kuwait. During the meeting, the Kuwaiti authorities informed that about 1000 nurses would be required during 2016 and a MoH delegation would visit India very soon to finalize modalities of recruitment of nurses for work in Kuwait.

3. Education Expo: Kuwait's popular community portal (IIK) organized “IIK Edu Expo 2016” on 8-9 January 2016, which was inaugurated by Indian Ambassador to Kuwait HE Sunil Jain. 

4. Technology: Kuwaiti IT major, FAPCO, announced on 11 January 2016, an exclusive partnership with global XBRL leader, IRIS Business Services Limited, Mumbai, India to offer XBRL solutions in Kuwait. FAPCO is the first Kuwait Company in the field of Software Development and IT services to become a direct member to the XBRL international organization. Following the agreement with IRIS, FAPCO will now offer iFile to regulators in Kuwait.

OTHER COUNTRIES

1. Australia: On 27 January, Richard Colbeck, Australian Senator and Minister of Tourism and International Education visited Kuwait, and met Kuwaiti Education Minister and held discussions on education, tourism and Mideast situations.

2. Egypt: On 3 January 2016, Kuwaiti National Assembly Speaker Marzouq Al-Ghanem visited Egypt and met Egyptian President Abdel Fattah Al-Sisi and discussed on the importance of strengthening cooperation between Egyptian and Kuwaiti Parliaments in the coming period. On 13 January 2016 the Kuwait Fund for Arab Economic Development (KFAED) Director General Abdulwahab Al-Bader and Egyptian Minister of International Cooperation Dr. Sahar Nasr signed a grant agreement worth US$ 20 million for improving education services and building 30 schools slated for the next year 2016. Jamal Suroor, Egyptian Minister of Manpower visited Kuwait from 27-28 January and met Kuwaiti Minister of Social Affairs and Labor Hend Al-Sabeeh, and discussed the status of the Egyptian workforce in Kuwait.

3. Georgia: On 25 January, Georgian Deputy Foreign Minister David Jalaghania visited Kuwait and met Kuwaiti Dy. Foreign Minister Khaled Suleiman Al-Jarallah and discussed strengthening bilateral cooperation and matters concerning regional and international developments. An MoU for diplomatic cooperation between the two countries was also signed during the visit.

4. Hungary: On 27 January, Laslo Sabo, Hungarian Deputy Minister of Foreign Affairs and Trade visited Kuwait and met Deputy Foreign Minister Khaled Suleiman Al-Jarallah and discussed bilateral, regional and international issues of common concern.

5. Iraq: On 6 January 2016 Iraqi Foreign Minister Ibrahim Al-Jaafari visited Kuwait and met Kuwaiti First DPM & Foreign Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah and discussed, inter alia, issues of mutual concern including the latest political and security developments in the Gulf region and beyond. Iraqi Parliament Speaker Salim Al-Jabouri visited Kuwait from 10-11 January, and met the Amir, the PM, First Deputy PM and Foreign Minister and National Assembly Speaker and. During his meeting with the Kuwaiti Parliamentary Speaker Marzouq Al-Ghanim, Al-Jabouri discussed bilateral ties and recent developments on regional and international fronts and agreed to intensify efforts to face diverse challenges in the region.

6. Jordan: On 26 January, the KFAED signed a grant agreement worth US$20 million with Jordan to support the influx of Syrian refugees and also to implement developmental projects in the healthcare and educational sectors.

7. Lebanon: On 13 January, a delegation from the KFAED signed an agreement worth US$ 30 million with Lebanon to improve public services in Lebanese communities hosting Syrian refugees. The grant is a part of a US$ 500 million commitment that Kuwait pledged during the third Syrians Donors’ Conference that was held in Kuwait on 31 March 2015 to help the Lebanese Government in improving the living conditions of Syrian refugees.

8. Mexico: On 20 January, President of Mexico, Enrique Pena Nieto and his accompanying delegation visited Kuwait and met the Amir, the Crown Prince and the Prime Minister and discussed bilateral and regional issues. Both sides signed several Agreements on cultural and technical cooperation, promoting high educational ties, aviation service and also MOUs on developing tourism, energy cooperation, healthcare and to encourage direct investments. Separately, the Amir decorated President Nieto with the Mubarak Al-Kabeer Medal in appreciation of his role in boosting bilateral relations while President Nieto decorated the Amir with the Order of the Aztec Eagle medal. On 10 January, Kuwait donated $ 100,000 to a humanitarian institution for the welfare of the displaced children in Mexico.

9. Qatar: The 4th Kuwait-Qatar Joint Committee meeting co-chaired by Kuwaiti First Deputy Premier and Foreign Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah and Qatari Foreign Minister Khaled Al-Attiyah was held in Doha on 11 January and discussed cooperation in the fields of foreign policy, defense, security, economy, commerce, investment, energy, industry, education, higher education, labor, social affairs, environment, information, youth and sports, communication, information technology, electricity and water, civil service, and administrative development. During the meeting, three Agreements, three MoUs and two Executive Programmess on air transport, culture, technical cooperation, industry, higher education and scientific research were also signed. The Agreements also called for cooperation in fields of oil and gas, petrochemicals, civil services, administrative development and media.

10. Saudi Arabia: On 24 January, Saudi Commission for Tourism and Antiques Abdullah Bin Mohammed Al Al-Sheikh visited Kuwait and met Kuwaiti Minister of Information and Minister of State of for Youth Affairs Sheikh Salman Sabah Salem Al-Hamoud Al-Sabah and discussed ways to enhance joint touristic growth in both countries.

11. Tunisia: Beji Caid Essebsi, Tunisian President visited Kuwait on 25 & 26 January and met the Amir and discussed bilateral cooperation, and signed an agreement for military cooperation.

12. Turkey: On 19 January, the Kuwait Fund for Arab Economic Development (KFAED) signed a loan agreement worth US$ 20 million with the Turkish Ministries of National Education and Health to finance projects for the welfare of Syrian refugees in Turkey.

IV. INTERNATIONAL/MULTILATERAL ACTIVITIES

1. GCC: On 13 January 2016 Kuwait and GCC member states hosted a roundtable titled ‘Effective strategies of metro and railway projects’ in which they are implementing railway projects to connect their cities and capitals with each other, which is estimated to cost US$ 15.4 billion. Nada Abu Al-Samh, a financial analyst at the GCC General Secretariat explained that the key benefits of the railway and metro projects are to expand regional network of 12,000 km, see investments of around US$ 250 billion, create significant numbers of jobs (10,000), significant investment opportunities for economic diversification, and will strengthen economic and social integration in the GCC. Samh added that the project will link all the GCC countries. The railway will start from Kuwait and pass through Saudi Arabia, Bahrain, Qatar and United Arab Emirates before ending in Oman.

2. AICF: The first Ministerial Meeting of the Arab-India Cooperation Forum (AICF) was held in Manama on 24 January which discussed regional and global issues of mutual concerns, including the Palestinian issue, developments in the Arab region and in South Asia, Security Council reforms, and nuclear disarmament. Kuwaiti Deputy FM Khaled Suleiman Al-Jarallah attended the meeting and reportedly said that the Arab group has special historical relations with India and Arab countries are working to strengthen cooperation with India in many fields, due to India’s enormous economic bloc which could strengthen economic and commercial relations with the Arab countries.

3. AIPU: Kuwait’s National Assembly Secretary General Allam Al-Kandari and President of Association of Secretary Generals of Arab Parliaments attended the 4th Annual Arab Inter-Parliamentary Union (AIPU) conference which was held in Sudan from January 7-8.

2. Kuwait’s trade with major countries may be seen at Annexure ‘B’.

3. Kuwait’s total trade with India and Kuwait’s five major items of imports and exports with India are as per Annexure ‘C’.

4. A list of useful websites is at Annexure ‘D’.

5. Details of forthcoming trade exhibitions to be held in Kuwait in 2016 are at Annexure ‘E’.

(B.S. Bisht)

Attaché (Political & Commercial)

Annexure ‘B’

i) Principal import and exports with other countries

a) Top Ten Countries Exporting to Kuwait

(in million)

|COUNTRIES |2011 |2012 |2013 |

| |KD |US$ |KD |US$ |KD |US$ |

|China |1,024 |3,675 |1,007 |3,614 |1,114 |3,988 |

|U.S.A |741 |2,659 |762 |2,734 |823 |2,946 |

|United Arab Emirates |442 |1,586 |554 |1,988 |743 |2,659 |

|Japan |458 |1,643 |598 |2,146 |630 |2,255 |

|Germany |457 |1,640 |488 |1,751 |561 |2,008 |

|Saudi Arabia |398 |1,428 |401 |1,439 |399 |1,428 |

|Italy |265 |951 |362 |1,299 |344 |1,231 |

|India |412 |1,478 |364 |1,306 |332 |1,188 |

|South Korea |263 |943 |342 |1,227 |323 |1,156 |

|United Kingdom |186 |667 |235 |843 |233 |834 |

Source: Central Statistical Bureau, State of Kuwait

b) Top Destinations of Kuwait’s Non-Oil Exports

(in million)

|COUNTRIES |2011 |2012 |2013 |

| |KD |US$ |KD |

|INDIA’S EXPORT TO KUWAIT |1,061.08 |1,061.14 |1,198.91 |

|INDIA’S IMPORT FROM KUWAIT |16,588.13 |17,153.55 |13,381.97 |

|TOTAL TRADE |17,649.21 |18,214.69 |14,580.87 |

Source: Department of Commerce, M/o Commerce & Industry, GOI All figures on FOB basis.

ii) India’s trade with Kuwait

Top five items of Exports to Kuwait

|S.No |Commodity |2014-15 |

| | |Value |

| | |(in Million US$) |

|1. |CEREALS. |272.45 |

|2. |MEAT AND EDIBLE MEAT OFFAL. |104.07 |

|3. |NUCLEAR REACTORS, BOILERS, MACHINERY AND MECHANICAL APPLIANCES; PARTS THEREOF. |69.25 |

|4. |ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE|57.67 |

| |AND SOUND RECORDERS AND REPRODUCERS,AND PARTS. | |

|5. |NATURAL OR CULTURED PEARLS,PRECIOUS OR SEMIPRECIOUS STONES,PRE.METALS,CLAD WITH PRE.METAL AND ARTCLS |47.53 |

| |THEREOF;IMIT.JEWLRY;COIN. | |

Source: Department of Commerce, M/o Commerce & Industry, GOI

Top five items of Imports from Kuwait

|Sl. No |Commodity |2014-15 |

| | |Value |

| | |(in Million US$) |

|1 |MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES. |12,228.71 |

|2 |ORGANIC CHEMICALS |833.24 |

|3 |PLASTIC AND ARTICLES THEREOF. |123.66 |

|4 |IRON AND STEEL |57.12 |

|5 |ALUMINIUM AND ARTICLES THEREOF. |41.01 |

Source: Department of Commerce, M/o Commerce & Industry, GOI

Annexure ‘D’

List of useful websites on Kuwait

i) Official

1. .kw : Official website of the State of Kuwait

2. .kw : Ministry of Finance

3. .kw : Ministry of Energy

4. .kw : Ministry of Commerce & Industry

ii) Local Trade Bodies

5. .kw : Kuwait Chamber of Commerce & Industry

6. .kw : Kuwait Petroleum Corporation and its subsidiaries

iii) Banks and financial institutions

7. .kw : Central Bank of Kuwait

8. : National Bank of Kuwait

9. : Commercial Bank of Kuwait

10. .kw : Kuwait Investment Authority

iv) Media

11. .kw : Kuwait News Agency

12. : Kuwait Times

13. : Arab Times

14. : News about Kuwait, India and Indian expatriates in Kuwait.

v) About Kuwait

15. .kuwait : For research on Kuwait, etc.

16. : Kuwait International Fair Company (KIFCO)

Annexure ‘E’

Kuwait International Fair organizes fairs and exhibitions in Kuwait. The calendar of events for the year 2016 is reproduced below:

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