Kuwait profile

Demography and Health

Kuwait’s population stands at about 4.97 million in 2024, placing it roughly in the mid-range among oil economies in the Gulf region. The country has a high proportion of foreign residents, contributing to a total population that is not solely native Kuwaiti citizens but a large expatriate workforce. Net migration in 2024 is recorded at 61,624 people, underscoring Kuwait’s reliance on mobility for labor and economic activity. The crude birth rate in 2023 is 10.3 births per 1,000 people, while the crude death rate is 1.53 deaths per 1,000 people, indicating a relatively favorable population age structure driven by health and living standards rather than rapid demographic expansion. Life expectancy at birth is a strong 83.2 years (2023), one of the higher figures globally, reflecting effective health services and sanitation. The health system appears well-funded relative to many peers, with current health expenditure at 4.27% of GDP (2022) and domestic general government health expenditure per capita, PPP, at about 2,107 international US dollars (2022). This supports a healthcare system that, for residents and citizens, delivers high outcomes in life expectancy and broad access, even as expenditure per capita remains modest by some wealthy countries. Under-5 mortality stands at 8.8 per 1,000 live births (2023), a figure that signals ongoing child health gains but also highlights areas for continued improvement in maternal and child health services. Kuwait’s nutrition indicators are positive, with prevalence of undernourishment at 2.5% of the population (2022). Internet access is near universal, with 99.7% of the population online in 2023, facilitating health information dissemination and telemedicine possibilities. These patterns collectively suggest a health and demographic profile characterized by high life expectancy, strong public funding for health, and a labor-driven population dynamic driven by migration.

Economy

Kuwait exhibits the hallmark features of a high-income, oil-based economy with a substantial per-capita income. The nominal GDP per capita in 2024 is about $32,214, and the GDP per capita at purchasing power parity (PPP) stands higher at roughly $51,636, illustrating considerable household purchasing power and a standard of living well above the global average. The country’s export profile is dominated by hydrocarbons, with exports of goods and services equaling 60.4% of GDP in 2022, and imports at 30.5% of GDP, signaling a strong current account position tied to energy revenues. The current account balance stands at about 29.1% of GDP in 2024, indicative of a substantial surplus largely driven by oil. The country’s external position benefits from substantial oil earnings, which also underpin domestic public spending, wealth generation, and social services. Foreign direct investment (FDI), net inflows as a share of GDP, are modest at 0.384% in 2024, signaling a level of openness but also potential room to attract more long-term capital, technology transfer, and diversification into non-oil sectors. The economy shows a relatively broad service and industrial footprint, with high-technology exports valued at roughly $54.3 million in 2023, ranking 91st, indicating that while there is some capacity in advanced sectors, Kuwait remains disproportionately oriented toward energy-intensive activities rather than high-technology manufacturing and export of sophisticated products. Inflation is steady at 2.9% in 2024, a sign of moderate price pressures. The long-term challenge remains balancing oil-led revenue with the need for diversification, improved productivity, and resilience to oil price cycles, especially as global energy transition dynamics unfold.

Trade and Investment

Trade dynamics in Kuwait reflect a classic energy-led openness with strong export capacity and a substantial current account surplus. Exports of goods and services as a share of GDP are high at 60.4% (2022), underscoring the country’s reliance on hydrocarbons and related services. Imports account for about 30.5% of GDP (2022), enabling domestic consumption and some domestic production via imported inputs. The large current account surplus (29.1% of GDP in 2024) reinforces fiscal room for investment, social spending, and strategic reserves, but it also points to vulnerability to oil price fluctuations and external demand shifts. Foreign direct investment net inflows remain modest, reflecting a conservative investment climate or structural barriers to capital inflows despite favorable macro indicators. Kuwait’s per-capita wealth and governance context support a robust market for certain forms of investment, including urban development, infrastructure, and services, but the data suggest that further steps toward diversification—such as promoting private sector-led innovation, non-oil manufacturing, and value-added services—could broaden the economy’s resilience. The country’s logistics and governance environment can play a enabling role: a high share of high-technology exports is not yet dominant, and R&D expenditure remains around 0.098% of GDP (2023), indicating considerable headroom to build a more diversified, knowledge-based economy. The combination of a strong current account, high household purchasing power, and strategic investment in human capital could lay the groundwork for a more diversified, innovation-driven economy over the medium term.

Governance and Institutions

On governance indicators, Kuwait shows a mix of strengths and persistent governance challenges. Political stability and absence of violence/terrorism stand at 0.408 (2023), ranking around 77th in global comparisons, suggesting relative stability but not top-tier assurance. Regulatory quality sits at 0.321, while the rule of law is 0.342, both indicating mid-range functioning of regulatory systems and judicial administration. Control of corruption registers at 0.207, and government effectiveness at 0.0075, signaling broader concerns about policy implementation and bureaucratic efficiency. These figures imply that while Kuwait can maintain order and deliver essential services, it faces constraints in policy predictability, transparency, and administrative effectiveness—factors important to investors and domestic businesses seeking stable, predictable governance. Defense expenditure remains a notable allocation of public resources, with military spending at about $7.76 billion in 2023 (ranked 31st globally). This level reflects security commitments and regional dynamics, and it intersects with fiscal space available for social and economic diversification. The combination of a strong public sector perimeter, reliant on oil revenues, with governance constraints suggests a need for continued reforms to improve regulatory quality, rule of law, and especially government effectiveness to maximize public investment efficiency and private sector confidence. Kuwait’s high internet penetration and solid logistics framework can support governance reforms, digital services, and better transparency if complemented by reforms aimed at improving public sector performance.

Infrastructure and Technology

Kuwait displays robust infrastructure attributes in several domains, complemented by notable opportunities and some gaps. The Logistics Performance Index score of 3.6 (2022) places Kuwait among top performers in quality trade and transport-related infrastructure, ranking 10th globally on this dimension, highlighting well-developed logistics capacity and connectivity that support import, export, and regional integration. Internet adoption is exceptionally high, with 99.7% of the population using the Internet in 2023, signaling a digital economy readiness that can empower e-government, online services, and digital entrepreneurship. Research and development expenditure as a share of GDP is 0.0976% in 2023, indicating that while investment in R&D exists, it remains low relative to global peers; this can constrain innovation-led growth and the development of domestic high-tech capabilities. On energy and environment, Kuwait’s renewable energy consumption is a minuscule 0.1% of total final energy consumption (2021), reflecting heavy reliance on hydrocarbons and limited diversification into renewables at scale. The country faces severe water stress, as indicated by the freshwater withdrawal level of 3,850 (unitless index) in 2021, ranked 1 for the highest level of water stress among peers. This underscores the essential role of desalination, water efficiency, and long-term planning for water security. In technology terms, high-technology exports amount to about $54.3 million (2023), with a ranking around 91, suggesting incremental integration into global value chains but room to grow advanced manufacturing and technology-driven industries. Overall, Kuwait has strong logistical and digital foundations but must accelerate investments in R&D, renewables, and water management to future-proof its infrastructure and technology base.

Environment and Sustainability

The environmental profile of Kuwait is shaped by resource abundance, climatic constraints, and policy challenges. Total greenhouse gas emissions per capita are high at 34.6 tons of CO2 equivalent (2023), reflecting energy-intensive activity, heavy reliance on fossil fuels, and a lifestyle associated with high domestic consumption. The country’s renewable energy share is extremely small (0.1% of total final energy consumption in 2021), indicating substantial potential for decarbonization through diversification of energy sources, efficiency gains, and deployment of cleaner technologies. Kuwait’s water security is under pressure, with the water-stress indicator indicating extreme pressures on freshwater resources, a consequence of arid climate, population demand, and industrial use. The prevalence of undernourishment is relatively low at 2.5% (2022), pointing to adequate food availability and nutrition outcomes, though this does not guarantee resilience against price shocks or supply disruptions. Kuwait’s environmental challenges call for integrated policy actions that combine energy transition, water desalination efficiency, and climate resilience while preserving the high living standards that the oil wealth has enabled. In the broader governance and investment context, aligning fiscal policy with environmental objectives and accelerating clean energy deployment will be critical for sustainable growth and long-term societal well-being.