Economy of Kuwait

Kuwait has a petroleum-based economy that is classified as emerging and high-income. By various per-capita measures of economic output, Kuwait is one of the wealthiest countries in the world. Kuwait advocates since it's independence for a state-led capitalist economy system.

In 1934, the Emir of Kuwait granted an oil concession to the Kuwait Oil Co. (KOC), jointly owned by the Anglo-Persian Oil Company (later British Petroleum Company) and Gulf Oil Corporation In 1976, the Kuwaiti Government nationalized KOC.

The Kuwait Petroleum Corporation (KPC), an integrated international oil company, is the parent company of the government's operations in the petroleum sector, and includes Kuwait Oil Company, which produced oil and gas; Kuwait National Petroleum Co., refining and domestic sales; Petrochemical Industries Co., producing ammonia and urea; Kuwait Foreign Petroleum Exploration Co., with several concessions in developing countries; Kuwait Oil Tanker Co.; and Santa Fe International Corp. The latter, purchased outright in 1982, gives KPC a worldwide presence in the petroleum industry.

KPC also has purchased from Gulf Oil Co. refineries and associated service stations in the Benelux nations and Scandinavia, as well as storage facilities and a network of service stations in Italy. In 1987, KPC bought a 19% share in British Petroleum, which was later reduced to 10%. KPC markets its products in Europe under the brand Q8 and is interested in the markets of the United States and Japan.

Kuwait has about 94 billion barrels (14.9 km³) of recoverable oil reserves. Estimated capacity, before the war, was about 2.4 million barrels per day (380×10^³ m³/d). During the Iraqi occupation, Kuwait's oil-producing capacity was reduced to practically nothing. However, tremendous recovery and improvements have been made since. Oil production was 1.5 million barrels per day (240×10^³ m³/d) by the end of 1992, and pre-war capacity was restored in 1993. Kuwait's production capacity is estimated to be 2.5 million barrels per day (400×10^³ m³/d). Kuwait plans to increase its capacity to 3.5 million barrels per day (560×10^³ m³/d) by 2005.

As part of Kuwait Vision 2035, Kuwait aims to position itself as a global hub for the petrochemical industry. Al Zour Refinery is the largest refinery in the Middle East. Al Zour Refinery is a Kuwait-China cooperation project under the Belt and Road Initiative.

As part of Kuwait Vision 2035, Kuwait inaugurated its largest renewable energy park, Shagaya Renewable Energy Park, which includes concentrated solar power, solar photovoltaic, and wind power plants. The park consists of four phases with a target capacity of 4,000 MW. It is set to be one of the largest renewable energy parks in the world.

Steel manufacturing is Kuwait's second biggest industry. United Steel Industrial Company (KWT Steel) is Kuwait's main steel manufacturing company, the company caters to all of Kuwait's domestic market demands (particularly construction). Kuwait is self-sufficient in steel.