Market Analysis of Kuwait for New business setup.

1. INTERNATIONAL MARKETING OF
KUWAIT WITH SPECIAL REFERENCE
TO McD
1. Mohit Bhat 5. Shivani
Pandey
2. Karan Gujral 6. Vivek

2. 1 2 3 4KUWAIT - ‫دولة‬‫الكويت‬ 5 6
Population - 2.9 million
Area -17,818 sq km (6,880 sq miles)
Major language - Arabic
Major religion - Islam
Life expectancy - 74 years (men), 76 years
(women)
Currency - Kuwaiti Dinar (KWD)

3. 2 31 4Kuwait-BOP 5 6
 Preliminary data of the State of Kuwait’s BOP of 2014
show continuing yet declining surpluses in the external
balances.
 The Current Account realized a surplus of KWD 15140
million (30.4% of nominal 2013 GDP) during 2014
against KWD 20210 million during 2013 (40.5% of
nominal 2013 GDP).
 The decline in the current account surplus reflects
mainly the decrease in the value of oil exports which in
addition to the rise in merchandise imports led to a
drop in the surplus of the Balance on Goods .
 Developments in the Financial Account of the State of
Kuwait’s BOP during 2014www.marketresearchreports.com/countries/kuwait

4. 1 32 4Kuwait-BOT 5 6
 Kuwait recorded a trade surplus of 1,836.10 KWD
million in the third quarter of 2015, down from an
upwardly revised 5,353.90 KWD million a year earlier,
as low oil prices reduced export revenues.
 In the June quarter of 2015, the country posted a
downwardly revised 2,386.90 KWD million trade
surplus
 Balance Of Trade in Kuwait fell to 1836.1 KWD Million
in Q3 2015 from 2386.9 KWD Million in Q2 2015.
Kuwait Imports went down to 2334.7 KWD Million in
Q3 2015 from 2441.6 KWD Million in Q2 2015.
 Main imports are: machinery, mechanical appliances,
electrical equipment and electronics, etc
http://www.tradingeconomics.com/kuwait/balance-of-trade/forecast

5. 1 42 3 Kuwait-PEST Analysis 5 6
POLITICAL ENVIRONMENT
 Kuwait is the eighth richest country in the world
per-capita.
 To maintain the GDP growth, Kuwait is
significantly expanding the non-hydrocarbon
sector by spending in excess of $110 billion by
2015.
 $77 billion from this will be spent by the
government on infrastructure investment and the
manufacturing sector.
 Kuwait National Assembly, which consists of 50
members to be elected from 5 districts, 10 from
each.
 The function of the Assembly is to create laws to
be approved by the Emir.
ECONOMICAL ENVIRONMENT
 Kuwait's economy is likely to grow at a much
faster rate than the global GDP over the next five
years and reach an estimated $201.3 billion.
 Oil and Natural Gas contributes approximately
59% to the total GDP of the country.
 Kuwait is also emphasizing on increasing their
spending on R&D for developing new
technologies for different industries.
 The government has planned to spend huge sums
on infrastructure.
 The country has positive current account balance,
strong fiscal and trade surplus with lower
unemployment.
SOCIAL ENVIRONMENT
 2.7million people living in the country, including
1.3 million of non-Kuwaiti citizens and additional
900,000 temporary workers.
 The country is highly attractive for immigrants
because of welfare economy and high salaries.
 Most of the immigrants are coming from South-
East Asia and India.
 There are more than half million Indians living in
Kuwait making 21% of total population.
TECHNOLOGICAL ENVIRONMENT
 Kuwait almost doesn’t produce any high-
technological solutions and there are no
renewable energy sources in use currently.
 In terms of education and scientific literacy, the
adult literacy rate in 2008 was 93.9%.
 As of June 2005 Kuwait allocates 13% of all
public expenditure to education.
 Kuwait has one of the largest shipping industries
in the Persian Gulf region.

6. 521 3 Future Trends in Kuwait4 6
 The economy is highly dependent on the hydrocarbon sector
for the country's export revenues.
 Industrial sector is the fastest growing sector of the Kuwait
economy which makes significant contribution to GDP.
 Development of international airport, rail, road, and other
infrastructure projects along with housing and real estate, and
health and sanitation.
 Mining and quarrying, financial services, and retail and
manufacturing are the leading industries in the economy.
Source http://www.tradingeconomics.com/kuwait/balance-of-trade/forecast

7. 621 3 McD in Kuwait4 5
 Operating in Kuwait since 1994, McDonald’s has grown to where it today boasts
more than 68 restaurants and over 2,300 employees , geographically located to
service customers across the country.
 All McDonald’s restaurants in Kuwait are 100% locally owned and operated.
 Al Maousherji Catering Company, the owner and operator of McDonald’s
restaurants in Kuwait is proud to serve Kuwait some of its favourite food since
June 15, 1994.
 McDonald’s is testing its latest product, the Create Your Taste burger, in five
countries including Kuwait
 The launch of the CYT (Create Your Taste) platform, McDonald’s Kuwait is giving a
taste of premium gourmet customization with the comfort of speed.
http://www.mcdonaldsarabia.com/kuwait/en/contact_us.html
http://gulfnewsjournal.com/stories/510544757-mcdonald-s-uses-kuwait-as-test-market-
for-gourmet-burger-strategy
Source