Kuwait Plans $9.9B Bond Sale

Kuwait, like other GCC countries, is facing budget deficits due to low oil prices. The country plans to address this through international and local bond sales, following the example of Qatar, Abu Dhabi, and Saudi Arabia. Despite the oil slump, Kuwait is in a better position than many Gulf countries due to its low deficit and significant savings. The government is implementing economic reforms, including cutting subsidies and controlling public spending. There is high demand expected for Kuwait's bonds, similar to other strong economies in the region, although Brexit may impact issuance timing.

What is the primary method Kuwait is using to address its budget deficit?

• Cutting foreign aid

• Raising taxes

• Increasing oil production

• International and local bond sales

How does Kuwait's economic situation compare to other Gulf countries?

• Kuwait has a higher deficit and less savings

• Kuwait has a lower deficit and more savings

• Kuwait's situation is similar to other Gulf countries

• Kuwait is not affected by oil prices

Which of the following is NOT a reform Kuwait is implementing?

• Cutting subsidies

• Controlling public wage bill

• Merging government departments

• Increasing oil prices

What is the expected demand for Kuwait's bonds?

• Moderate demand similar to other countries

• High demand, expected to be oversubscribed

• No demand due to high risk

• Low demand due to economic instability

What external factor might delay bond issuances?

• Increased government spending

• Brexit

• Rising oil prices

• New trade agreements