The Prospects of Diversifying Kuwait From a Single Economy

Open Access
Author:
Almonawer, Ahmad S
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Barry Ickes, Thesis Supervisor
  • Russell Paul Chuderewicz, Honors Advisor
Keywords:
  • Diversification
  • Kuwait
  • AlMonawer
  • KIA
  • SWF
  • Sovereign Wealth Fund
  • reliance on oil
  • Oil-based economies
Abstract:
In this paper, I examine the prospects of diversification in an oil-based economy. In Kuwait, the economy has proven to be highly volatile due to its dependence on oil. High revenue surplus in Kuwait’s recent history can offset the possibility of a potentially high income insecurity through diversification. The possibilities of diversification to a reliable and sustainable economy are examined in this paper as well as the benefits and risks involved. Kuwait’s Sovereign Wealth Fund is studied as a possible avenue of diversification.