Developing Kuwait into a Regional Logistics Hub

Kuwait Supply Chain & Logistics Conference

December 14, 2011

– Potential and opportunity

– Kuwait a regional logistics hub

– Considerations to be addressed

What I Will Cover Today

– Ambitious goals for economic growth, development and diversification

– $104.9 billion allocated for its development plan

– $23 billion of which is earmarked for transport infrastructure

– Improvements in infrastructure, transportation and the utility sector are essential

– Kuwait's population is expected to reach 5.4 million by 2030

Kuwait: Ambitious Plans, Great Potential

Factors underwriting Kuwait’s growing significance as a regional focal point for logistics:

– Current logistics scenario

– Proximity to Iraq

– Planned infrastructure development

Kuwait: Major Advantages

– Extensive port network

– Road links with the GCC

– Airfreight services connecting Kuwait to the globe

Kuwait: Logistics Overview

– Kuwait has become a focal point for activity into Iraq

– Iraq is now attracting considerable attention, both globally and regionally

– Unique phase of reconstruction and modernization, with massive foreign direct investment

– Boubyan Island – corridor for goods from across the world into Iraq

– Opportunity for sharing experience, and mutual economic benefit

– Opportunity for public and private sector

– Huge opportunity; developing the infrastructure of Kuwait is critical to realizing the potential role that we can play in the future development of Iraq

Kuwait: Potential to Grow with Iraq

Two things to turn Kuwait’s potential into reality:

1. Use earmarked investments of more than $23 billion and move ahead on planned transport infrastructure projects without delay

2. Economic diversification

Making Kuwait a Logistics Hub for the Region

– Saudi Arabia, UAE, Bahrain, Qatar – making good progress in improving infrastructure

– Airport development: our neighbors are leaving us behind

– Kuwait continues to lag behind its neighbors in the GCC

– To address this, the following infrastructure projects have been announced:– Road: KWD 3 billion (USD $10.6 billion) to be invested in infrastructure in the next five

years– Airport: Two new airports – Ports: effort to boost the efficiency– Rail: trans-gulf railway project

– These developments will go some way to position Kuwait as a leading logistics market in the region

Kuwait: Infrastructure Development

– Growth in the logistics sector central to Kuwait’s long-term plans

– Currently the non-oil economy relies heavily on real-estate and banking

– Continued investment in infrastructure development combined with Kuwait’s strategic location will put the country in a good position to capitalize on the regions growing logistics market

Economic Diversification

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