THE BUSINESS YEAR: KUWAIT: RESILIENCE & MANAGEMENT IN TIMES OF CRISIS

Necessity has always been the mother of invention. Time and again history has demonstrated that in times of hardship new opportunities emerge that have had a profound impact on what followed. For Kuwait, the arrival of COVID-19, as with everywhere else across the globe, has presented an unprecedented type of challenge. Kuwait’s response as a country, and its ability to rally together, has not only mitigated the worst exigencies of the virus, but poised Kuwait to be ready to thrive as the new normal is established.

This special report seeks to bring attention to the key themes that have emerged during this period, as well as shine a spotlight on the core decision makers whose experiences help contextualise Kuwait’s wider ability to navigate the pandemic.

In the face of the viral threat, Kuwait has retained its reputation as a safe haven. Agile in its response, the central bank led the way, steering Kuwait’s economy into calm waters. The stimulus package launched at the start of April proved to be vital and was recognized as such by Fitch. A reduction in liquidity and capital adequacy requirements for banks demonstrated a sense of prudency, whilst cutting risk weightings for SMEs reflects the holistic approach to Kuwait’s response. Together with the safety net cast by the central bank, Kuwait’s private sector has been the beneficiary of a significant acceleration in digitalization. The advances in digitalization could not have been possible without the necessity imposed by the arrival of COVID-19. The last few months have witnessed key financial services–from dividends to AGM meetings–being uploaded online. As a result, there has been an increase in investment opportunities in tech SMEs and digitally savvy firms as people are realizing the potential of a more digital market. In spite of the challenges presented by the pandemic, Kuwait’s private sector is poised, ready to reap the rewards that necessity has brought about.

As Kuwait turns its attention to the issues surrounding how to reopen, The Business Year offers a resource showcasing the ideas and discussions over the recent period. The substance of this report is intended to answer the questions around the lessons and themes experienced by leaders in the business community. Going a step further, The Business Year will provide content from innovators and disruptors whose reflections outline the most advantageous ways Kuwait will thrive as it reopens.