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IMF sees Kuwait using all oil savings by 2017

Kuwait will have exhausted all its oil savings by 2017 if it keeps on spending money at the current rate, the International Monetary Fund said in a report published on Tuesday.

The IMF, which held a regular consultation with the OPEC member state in the last two weeks of April, said Kuwait would not be able to save oil receipts into its future generations fund.

Not sure what all that means or how it will affect us directly but according to my Magic 8 Ball, the outlook doesn’t seem good. [Link]

59 replies on “IMF sees Kuwait using all oil savings by 2017”

Go to hell JT! With a surplus of 40 Billion KD a year, you think that is what is draining Kuwait’s savings? If you a are a real man, why don’t you post your name, and we’ll see if you are really afraid of “you know who.” BTW, the 50 Million you are talking about doesn’t go to “you know who’s” bank account. He spends them on stipends for the ruling family members.

Please, 50 Million KD is NOTHING compared to what many Kuwaiti high ranking officials embezzle! Please think before speaking next time!

I second that also, you are a complete idiot,
Money is money and that amount is alot so I suggest you to be silent because your embarrassing yourself.

It’s idiotic brainless people like you that contribute to 90% of Kuwait’s problems.

Plus, I bet you probably gain from that figure.

JT you are not an idiot – you are brave enough to speak the truth. I understand what you are implying.

Appreciate it man 😉 I really think there are alot of un-answered questions that we should bring up and discuss honestly.

Here we go again. Benihana’s case will be nothing compared to this.

Good luck Mark! 🙂 Just remember, the most you can get out of this is more followers. Unless you’re Kuwaiti, then you can be a hero and get into Parliament.

@MYK More hot air……you’re soooo helpless in a flourishing GCC where you a fading distant lost desert kingdom stuck in the sand. Oh hail moron!

I don’t think anyone is surprised by this report, just look around and there is no movement on key develop projects that need to immediately go forward, nor has there been any improvement in the investment climate and promoted sustainable and inclusive growth. What is suspect about the whole thing is that didn’t anyone in this government have any foresight to understand what was needed in this nation to move it forward or was the whole thing a stalled charade to appease the streets with no intention of implementation. The solution, the development plan must go forward ASAP and without the consent of this Parliament, but in a separate committee in the government, the committee that I will call ‘Kuwait Forward’.

This country has gone to shit since after the Gulf War. Corruption, Greed and Ignorance is rampant, no development what so ever. When people started pointing the finger at the government what do they do, they increase everyones salary, no developments, no proper infrastructure. The cost of living has become so high that our generation cannot sustain this kind of life style. Its 2012 and 95% GDP of Kuwait is based on oil. Where is the progress?

I like what you wrote “id” I agree 100%. But I have something to add after your comment. Lets all think about Manufacturing Products in the Region, why not ? America, Europe & the West in General are brilliant at this Industry “Product Design & Manufacturing” & most importantly the Asian Region “China, Japan, Korea, Thailand are leading in Manufacturing while America designs & engineer products amazingly.I’ve always shall encourage such an idea of opening up Local Industries to Manufacture Products in the Middle Eastern Region. Clothing, Materials,Steel, Technology, Automotive, Etc… We are Futures only hope I suggest we all get together and build our economy with other meaningful things than Oil itself. The current Parliament Members are all not well aware of such importance, Lets say they were? Well I am not seeing any responsive action taken yet! Kuwait is our only Land & Hope Please work with Loyalty for the country that gave us so much… Please think about giving back not only taking FROM IT. “Give & Take” thats the true meaning of life, not ONLY TAKING. I have so much to write and say but I’ll leave the rest to you readers/visitors to fill in the blanks of what Kuwait NEEDS.

I agree with the above commenter, id.

Kuwait’s current path is completely unsustainable.
– The cost of living is skyrocketing [the cost of land/houses north of the Sixth Ring Road is upwards of 200000 KD, far more than many young people, who form the bulk of the current generation and overall population, can afford]
– Our government representatives are too busy bickering over segregation and why neo-Islamicism is the right way to go rather than focusing money and effort into key infrastructure [i.e. development, transport, hospitals, schools]
– The actual government is nowhere to be found to put people and the overall country on the right track
– The general Kuwaiti populace has no wish to work; rather, we seek more money and pay raises for doing as little work as we can

What we need is a REALITY CHECK. No other country in the world dishes out like Kuwait does, yet almost nobody has any wish to give back. Those Kuwaitis and expats who are concerned about the well-being and longevity of Kuwait are suppressed by an overall mentality of “who-the-****-cares-I-just-want-more-money”, thereby crushing their spirits into a state of introverted catatonia. No. Body. Cares. Any. More.

I worry too much about this country, but if the government doesn’t care and they’re the ones who are supposed to look after us/the people are too lazy or blasé to care… Well then, 2017 might just be the end of our road.

RIP Kuwait: 1961-2017.

You’d be lucky to find a decent house south of the 6th RR that costs less than 250,000KD.

Houses in Sabah Alsalem (jus 400m2) are going for over 300,000KD.

That’s because the Kuwait government has failed to regulate the real estate market and has let a market fictiously inflate to obsurd levels that are not even logical. I so feel sorry for young couples who see their ‘kingdom’ crumbling as they try to raise children in a nation that they love, but a nation that they see that is totally mismanaged. Let’s be realistic here, Kuwait is a VERY small country and if this government can’t even figure out how to landscape it, you’re in very big trouble. But this is a democrazy, so use your voice – it is a democratic right in a true democracy.

We made a visit to Jolliebee(Filipino fast food joint near the Sheraton) and the owner just happened to be there and he was telling us of how hard it is to find space that is affordable. He told us that the current location cost him KD1500/per sqm. Now that is crazy for as old of a building it is located in! I can’t imagine how much it would have cost him had he put it in one of the newer buildings around the corner.

Regarding expats being indifferent. That might be true, expats are here to earn money. The difference is that expats (usually) have to work for the money and aren’t guaranteed easy government jobs. Most expats would find themselves in trouble if their output wasn’t up to par.

Furthermore, the incentives for expats to go out of their way to make a difference is simply non-existent. I would never personally risk deportation for voicing my opinion – for example expressing my views on a sensitive issue. Expats also are not treated fairly when it comes to matters such as traffic offenses, criminal offenses, government healthcare, etc…especially if you get into a problem with a Kuwaiti, you can forget about fair treatment from the police.

My grandparents came to Kuwait in the 1950s and I don’t have permament residence status. I’m just imported labor. And you know what I’m totally fine with that. I’m very highly educated, I do my job well, I have a respectable salary and if I ever decide to leave I’m pretty mobile in the job market. I’m happy here because my family and friends thayt I grew up with are still in Kuwait. But, I also learned from observing my parents’ and grandparents’ experience that in today’s world, especially in the Arab world, there is no justice, fairness or accountability. So I have prepared myself to be able to go anywhere (by being well educated and experienced) the minute I find that my family’s interests are better served elsewhere.

Thus, in a country where my family has been living for 60 years, where I can’t even get a permanent residence, my obligation to this country is limited to respecting the law and customs, and doing my job well. But it is simply not in my interest, or within my rights, to do anything more.

Let me just say I’m stating the reality of this situation. This country is for Kuwaitis and they are entitled to run it however they choose. I am not judging them and wish them all the best. So I’m not saying this to be disrespectful, I’m just saying this to point out to you that expats have no obligation, or rights, to go out of their way to do more than respect the law and do their jobs well.

you know, I am not kuwaiti, I am bahraini, so I respect kuwaitis opinion, and its their country, they can do what they want with it, as long as it doesn’t bother or hurt me.
why?
because, kuwait is not my country, but i still care about it as if its my own, I lived in it most of my life.
The kuwaitis decide what they want, if they want to live a lazy life, let them be, in the end of time, they will be screwed, and blame each other and point fingers, so let them do whatever they want, unprogress, wasta, and corruption, would leave the country in ruins, and it will make people sick.
So, its not my concern on how I should decide how kuwait should be, but Kuwaitis should wake up, and learn from others instead of saying
If you dont like KUWAIT…..LEAVE!!!!

I get that alot, so nothing new, so basically I giving up, its not new. But I wish them luck.

I’m not sure I u caught a survey conducted by the Arab Times sometime back where they polled about 4000 Kuwaitis and a slight majority said that they weren’t concerned about the budget pressures and economic problems. If this poll is a fairly representative sample, its a scary indicator that suggests that there is a big chunk of people who are simply indifferent to the economic situation – presumably because they value short-run consumption and decadence over long-run sustainability.

So ya, not a very promising poll.

I agree. Sometimes you have to hit rock bottom to realise that you MUST change or go the way of the dodo. You can only help the non-willing so much…

The Kuwaiti youth should just say ‘Enough’. Someone needs to take the reigns of power in this country and implement the development plan. It never occurred to this government that you would need a new airport in 2012? Or that with a growing population, you would need a transport system in 2012? Or that we need to develop our people so that they will be prepared to meet a modern day society? Where are the fishermen who will teach our people to fish? The planes are empty with incoming executives ready to spearhead these projects that are waiting on the books. The foreign investment laws need to be addressed, the business office spaces in Kuwait City abound and our stock market is baseless. Where are our leaders – preparing for the next grilling whilst the country’s books aren’t balanced and the country is teetering on a tightrope of despair – 2017 is just around the corner. We need someone to step up to the plate and take the reigns and move our country forward and if our elders don’t do it then we the youth shall because this is our future that you are denying us. Implement the development plan so that we can move forward as a country. Self-serving leadership is no longer acceptable – the bar as been raised around you.

This is the price of having a Parliament full of members that know anything about economics, or fiscal policies.

Its about spending exceeding earnings, however oil prices are unpredictable and could increase much more than expected. So this article is meaningless unless unless the author is a time-traveler from the fututre. And as for oil reserves its going to be there for not less than 150 years ahead. Enjoy.

If you take inflation into account, oil’s price in real terms actually peaked in 1979 at the time of the Iranian revolution. Don’t let a high price deceive you, inflation must be considered.

Other factors that need considering are population growth. Population growth in the Middle East is very high compared to the rest of the word. That means u have roughly the same wealth being divided by more people and in Kuwait that means more money going to government jobs, national labour support payments, child benefit payments, marriage incentive payments, etc…

The only way to outpace inflation and population growth is for oil production to grow at a faster pace for the next few years – which might not be feasible.

I would also add that diversifying the economy would be a good idea but diversification has been discussed for the past 30 years or so, with no major progress. So I don’t personally see a reason for it to become a reality all of a sudden, but we can always hope.

If you read the whole article, they’re saying that Kuwait has had budget surpluses and they won’t anymore, not that the country is suddenly going bankrupt

Its a matter of time before we go down the drain! Right now we are on a path of self destruction!

They aren’t making the tough decisions to get these projects in line and get the people in line! Corruption has been rampant more the last 5 years then the 15 years before that! And nothing is being done about it.

I still have hope for this country but things are looking bleak…

alah ya7futh deeratna!

development in the direction of more brainlessness and superficiality…indeed!

This is the perfect example of what the over-whlemning majority Kuwait’s are interested nowadays… food and things they can buy.

Even blogs… they’re online food advertisements… I don’t see any opinionated or personal writing going on. I desperately miss the blogging days of 2004. Those were the times that I had hope Kuwaiti youth could change things. Now, I go online and just mourn.

If they smart allow expats to invest in properties and promote permanent resident format if not citizenship and see the change!

Reading Is Fundamental. The article doesn’t say Kuwait will run out of oil. It simply states that government spending at the current rate will outpace and deplete oil production revenue savings. Kuwait failed to diversify it’s economy and therefore is at risk of being unable to sustain fiscal sustainability. The fact you can continue to pump oil out of the ground has nothing to do with the fact spending will surpass revenue savings in a few short years. Consumer based economies are much better suited for the long term. The goose laying golden eggs mentality has brought on a false sense of financial security. It’s worse than you think.

If I understood you right, that means there will be more money going out, than money coming in? So savings in figures will always be negative?

The surplus is going to run out because of the population explosion along with wage increases , and crazy projects like the bridge to nowhere.

The problem isn’t population explosion, the problem is the population exploded 20 years ago and all those kids are going to need jobs soon. The universities already have to turn away people because they’re full, now watch what will happen with jobs 4 years from now.

That’s already happening right now. I know of people who graduated with business degrees and are just sitting around doing nothing. They got good grades and are qualified, but the jobs are just full or whenever theres an opening someone wastas themself into the job and then when they’re at the job they have a friend sign in and sign out for them everyday and nothing gets done. THe people who are qualified and want to work can’t get the jobs while the kids with wasta get the jobs and don’t do jack.

Look, let’s not pretend that it wasn’t only a matter of time since day one. Like I always say, if it doesn’t happen in your lifetime, it’ll happen in your kids’ lifetime. Either way, you’re responsible.

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