1. Economic Indicators

• The Government of the State of Kuwait announced that its revenues at the end of fiscal year 2008-09 reached KD 21.328 billion (US$ 78.91 billion), 66.7 percent more than the budgeted figure of KD 12.70 billion (US$ 46.99 billion) for the entire fiscal year. Out of this, oil constituted KD 19.878 (US$ 73.548 billion) and non-oil revenue of KD 1.254 billion (US$ 4.63 billion). Oil revenue constitutes around 95 percent of the total revenues. The price for Kuwaiti crude oil was US$ 59.13 per barrel on May 29. It averaged more than US$ 55 during the month.
• The exchange rate of the Kuwaiti Dinar to the dollar in the beginning of the month of May stood at 291.20 fils. The dollar depreciated to trade at 289.80 fils against the Kuwaiti Dinar in the middle of May 2009 and was 287.90 fils to a dollar on May 27.
• The inflation rate in the month of January 2009, the latest published figure, was 6.8% - a sharp decrease from 9.02% in the month of December 2008. The cost of beverages and tobacco recorded an increase of 13.4% followed by housing services at 7.5%, education & medical care at 7.2% and food which saw a moderate rise of 6.2%.
  

  While the inflation averaged 5.5% in 2007, it had almost doubled to 10.6% in 2008.

• According to the data published by The Central Bank of Kuwait (CBK), Kuwait had the slowest population growth this decade. After growing by 4% from 2001 to 2003 the growth accelerated to more than 6% during 2004 to 2006. It was 3,441,800 in 2008 compared with 3,399,600 in 2007.
• CBK further reduced its benchmark discount rate by 50 basis point from 3.50 percent to 3 percent on May 14. It had last reduced the discount rate by 25 basis point to 3.50 percent on April 14. The move aims at reducing cost of funding and increasing liquidity.

2. Major investments within and outside the country / related agreements signed/ other economic developments

I Petroleum/Petro-chemicals

• Kuwait's crude oil shipments to China in the month of April reached 224,000 barrels per day, an increase of 22.7% compared with 177,000 barrels per day in the month of March. Thus China's crude oil imports increased to around 5.7% in the month of May compared with around 4.6% in the previous month.
• Gulf Petroleum Investment Company (GPI) declared a loss of KD 5.4 million (US$ 19.98 million) for 2008 compared with its profit of KD 6.5 million (US$ 24.05 million) in the year 2007.

II Telecom

• Wataniya Telecom, a local telecom service provider announced a net profit of KD 15.3 million (KD 56.61 million) in the first quarter of 2009.

III Stock Exchange

• Out of a total of 176 listed companies on the Kuwait Stock Exchange (KSE), the profits of 158 listed companies, i.e. excluding the foreign companies, local companies that have been suspended from trading by KSE and companies that follow a different fiscal year; were KD 59.97 million (US$ 206.89 million) in the first quarter compared with the profits of these companies in the corresponding period in 2008 i.e. KD 986.19 million (US$ 34.02 billion).
• The market remained cautious in the first half of the month awaiting results of elections for the General Assembly held on May 16. The index was at 7629 points on May 14. However, the result of the elections and further cut in discount rate by CBK boosted sentiments. The index closed at 7715 points on May 20 and continued its surge closing at 7859.3 points on the May 24. On the last day of the month, the index was at 8150 points and market capitalization was KD 34.7 million (US$ 1119.71 million), a rise of 10.7% compared with that in the previous month.

IV Banking, Finance and Investment

• Global Investment House, a local investment bank has announced a loss of KD 69.5 million (US$ 2397.75 million) in the first quarter of 2009.
• Gulf Bank, a local bank declared a profit of KD 10.6 million (US$ 36.57 million) in the first quarter of 2009. It was the only bank that had to be financially supported by the Government in view of the losses incurred by it due to its dealings in derivatives.
• Kuwait Projects Company (KIPCO), a local investment company announced a profit of KD 9.2 million (US$ 31.74 million) in the first quarter of 2009 compared with its profit of KD 30 million (US$ 103.50 million) in the corresponding period in 2008, a decrease of 69.3%.
• Ahli United Bank (AUB), a local Bank, declared a profit of KD 85.9 million (US$ 296.35 million) in the first quarter of 2009.
• Burgan Bank announced a profit of KD 16 million (US$ 55.20 million) in the first quarter of 2009.
• BKME, a local bank declared a profit of KD 10.2 million (US$ 35.19 million) in the first quarter of 2009.

V Airlines

• Jazeera Airways, a local airline reported a profit of KD 445 million (US$ 15.35 million), a rise of 40.3% compared with its profits of KD 34.7 million (US$ 119.71 million) for 2007.
• Aviation Lease and Finance Company (ALAFCO) has posted a profit of KD 1.75 million (US$ 5.55 million) in the first quarter of 2009, a drop of 15.5% compared with its profit of KD 2.07 million (US$ 7.65 million) in the corresponding period in 2008.

VI Real Estate

• A total of 386 sales transactions valued at KD 89.4 million (US$ 308.43 million) were registered in the month of March 2009. While the sale volumes rose by 11.6%, the number of transaction rose by 18.4% compared with the previous month of February 2009. The decrease was mostly registered in the commercial sector with sales falling by 56.7% month-on-month.
• The Public Authority for Housing Welfare (PAHW) signed a contract worth KD 12.12 million (US$ 41.81 million) with China's Sinohydro Corporation for infrastructure development of the upcoming new Sabah Al-Ahmad City.
• The National Real Estate Company declared a profit of KD 18.2 million (US$ 67.34 million) for the year 2008.

VII Logistics

• Agility, Kuwaiti logistics provider signed a deal with Chevron Australia Pty worth US$ 196 million for providing supply and transportation services for a gas field - 'Goirgon Project' in Australia.

VIII New Companies

• Kuwait has formally announced setting up of the following new companies:
  1. "Joint Group Rocks Company", a closed share-holding company with a capital of KD 1.5 million (US$ 5.17 million). The company deals in import of gravel and management of plants in related industries. The company may also manage other companies seeking tenders and organizing exhibitions on their behalf.
  2. "Al-Madar Real Estate Company", is a closed share-holding company with a capital of KD 1 million (US$ 3.45 million). The company will deal in trade and development of land.
  3. Kuwait formally announced setting up of a new 'Naqd' company with a capital of KD 1.6 million (US$ 5.52 million). The company deals in trading shares of local and foreign companies, managing these companies and also providing them loan.

3 India's investment interests/ related events

• Ambassador Shri Ajai Malhotra inaugurated a property exhibition organized by HDFC, Indian housing finance company - 'Indian Homes Fair' - from May 8-9 in which twenty-three builders from India took part notable being Hiranandani, Vakil Housing, ATS Greens, Kalpataru, Ansal API and Ansal Housing.
• Kerala Builders Forum (KBF) organized a property exhibition - 'Kerala Property Expo' - from May 26-27, 2009 in which around twenty builders took part to showcase projects in various cities of Kerala.
• Ambassador Shri Ajai Malhotra inaugurated a Mango Festival at the Lulu Hypermarket on May 27, 2009. More than 100 varieties of mangoes from around the world, predominantly Indian were displayed.
• India participated in the “Travel World Expo” from May 26-30. The Indian pavilion was inaugurated by Ambassador Shri Ajai Malhotra and Kuwait Under Secretary for Commerce & Industry Shri Rashid Tabatabae. More than 40 companies, government and private organizations participated in the event.

4 Major trading agreements proposed/finalized. Impact of these on trade:

• Kuwait Fund for Arab Economic Development (KFAED) announced funding worth KD 6.8 million (US$ 23.46 million) for an environment protection and development project in the Xinjiang region of China.
• It also extended a KD 7 million (US$ 25.9 million) loan to Djibouti for development of water facilities in that country.

5 International/multilateral activities

• His Highness The Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah paid a four-day visit to China from May 10-13, 2009. The two sides signed agreements in the fields of energy, finance, telecommunication, transportation and education.
• A new Cabinet was appointed by the Amir Sheikh Sabah after the elections to the Assembly on May 16. He re-appointed the caretaker PM Sheikh Nasser as PM alongwith 15 other ministers on May 29. Mr. Ahmad Rashed Al-Haroun was appointed Minister of Commerce and Industry. He was Director General of Kuwait Chamber of Commerce & Industry (KCCI) before appointed as the Minister.

6 Correspondence on 8 trade enquiries from India and 7 trade enquires from Kuwait, as per details, at Annexure 'A' were received and processed by this Mission.

7 Kuwait's trade exchange with major countries may be seen at Annexure 'B'.

8 Kuwait's five major items of imports and exports with India and with other countries may be seen at Annexure 'C'.

9 A list of useful websites is at Annexure 'D'.

10 Details of forthcoming trade exhibitions, to be held in the forthcoming months of 2009, in Kuwait are at Annexure 'E'.

This issues with the approval of the Ambassador.

Annexure 'A'
Trade Enquiries from Kuwait during the month of May 2009

S.No.	NAME AND ADDRESS	Items
1.	Mr. Mohammed al Mukhaizeem, Kuwait Tel : 22455862 / 22964843 Fax : 22413920	Import of Camels
2.	Boodai Trading Company Ltd., P.O. Box 42371 - Shuaikh, Tel : 24843986 / 24841314 Fax : 24818294 / 24848368 E-mail :btcom@boodai.com	Gas cutting, welding apparatus and its accessories, journey man kitetc.
3.	Qatami International Trading & Contracting Co.., P.O. Box 619 - Safat, 13007- Safat, Kuwait Tel. No. : 4832370 / 4832371 mail : qataminternational@hotmail.com	Fire fighting & fire Alarm Equipments and accessories
4.	Refrigeration Industries and Storage Co., P.O. Box 22261 - Safat 13083 - Safat, Kuwait Tel. : 1833380 E-mail : selbeltagy@ricoolex.com	Refrigeration component
5.	Ward Al Rabea General Trading & Contg. Co., Block - D, Industrial Area No. 3, Shuwaikh Kuwait Tel. : 24913320 / 24923320 E-mail : rabea@qualitynet.net	Pulses, Rice
6.	Areej International Gen. Trad. & Contg. Co., P.O. Box 20574 - Safat, 13066 - Safat, Kuwait Tel. : 24336086 Fax : 24336085	Suppliers and dealers of Mobile Crane
7.	Concord Group Co., 35940 - Shaab, Kuwait Tel : 24331300 Fax :24341600	Fabric

Trade Enquiries from India during the month of May 2009

S.No.	NAME AND ADDRESS	Items
1.	Liberty Whiteware Ltd., E-mail : jasvinder@libertyshoes.com	Bathroom products / ceramic sanitary ware
2.	Corporate International, CG-18, Hauz Khas Apartments, New Delhi - 110 016 Tel : 0091-11-26533325 Fax : 0091-11-16533324 E-mail : corint@vsnl.net	Foodstuff, Biscuits, Confectionery
3.	M/s Sonic Biochem Extraction Limited, 38, Patel Nagar, Indore - 452001 E-mail: spandit@matlani.com	Soya products
4.	M/s Aji International, 234, Cuddalore Road, Ariankuppam, Puducherry - 7 E-mail : suganya_jai1981@yahoo.com	Cashew nuts, spices, herbal products, wooden furniture etc
5.	Mr. K.N.Suresh Babu M/s Suresh 'N' Suresh Exports Pvt Ltd., Chennai E-mail : sureshkothuri@yahoo.com	Natural Stone
6.	Mr. Janmejay Maurya, Manager (Marketing & Product Devp.) E. Hill & Company Ltd., Khamaria Bhadohi - 221306 E-mail : development@hillscarpets.com	Hand made carpets/ rugs
7.	Mr. Tapas Chakrobarty, Export Manager, Skipper Steels Ltd., 3A, London Street, Kolkata - 700 017 Tel : +91-33-22892327 Fax : +91-33-22895733 E-mail : tapas.chakrabarty@bansalgroup.co.in	Steel Pipe
8.	M/s Atlas Sales Corporation, C 12, Focal Point, Jalandhar E-mail : contact@indembkwt.org	Scaffoldings

Annexure 'B'

i) Trade Exchange with Major Countries

(All figures in US$ thousands)

Sl. No.	Country	Total Trade 2005	Total Trade 2006	Percentage Variation
1.	USA	2,180,679	2,012,945	-7.69
2.	China	1,340,272	1,647,851	22.95
3.	Saudi Arabia	1,611,653	1,633,472	1.35
4.	Japan	1,245,183	1,362,228	9.39
5.	Germany	1,793,681	1,271,066	-29.13
6.	UAE	1,108,727	1,200,346	8.26
7.	India	962,506	1,017,163	5.68
8.	Italy	692,133	769,470	11.17
9.	South Korea	381,458	724,007	89.80
10.	UK	768,493	638,564	-16.90

PS- The latest figures published by Kuwaiti authorities are for the year 2006.

ii) Principal imports and exports with other countries - based on figures for 2006

a)	EXPORTING COUNTRIES TO KUWAIT	US$ (Million)*
1.	United States of America	1868
2.	China	1535
3.	Japan	1327
4.	Saudi Arabia	1318
5.	Germany	1254
6.	UAE	967
7.	South Korea	806
8.	India	805
b)	IMPORTING COUNTRIES FROM KUWAIT
1.	UAE	331
2.	Saudi Arabia	314
3.	India	294
4.	Indonesia	177

* - (@ KD1 = US$ 3.45 approx.)
PS- The latest figures available from Kuwaiti authorities/Kuwait Chamber of Commerce & Industry (excluding POL) are for the year 2006.

Annexure 'C'

i) Trade Between India and Kuwait

	April 2006 - March 2007	April 2007-March 2008	Percentage in Growth
India’s Export to Kuwait	Rs. 277,989.70 lakhs	Rs. 274,490.59 lakhs	(-) 1.26%
India’s Import from Kuwait	Rs. 2,711,417.49 lakhs	Rs. 3,095,993.11 lakhs	(+)14.18%
Total Trade	Rs. 2,989,407.19 lakhs	Rs. 3,370,483.70 lakhs	(+)12.92%

Source : Department of Commerce, M/o Commerce & Industry, GOI

ii) India's trade with Kuwait

Top five items of imports from Kuwait

		2006-07	2007-08
S.No	Commodity	Value in Rs. lakhs	Value in Rs. lakhs
1.	Cereals	2,602,949.78	2,929,129.68
2.	Organic Chemicals	38,704.83	64,857.09
3.	Iron and Steel	26,717.69	31,131.64
4.	Sulphur, salt, earths & stone; plastering materials, lime & cement	5,437.76	23,684.69
5	Fertilizers	8,003.47	13,831.77

Source : Department of Commerce, M/o Commerce & Industry, GOI

Top five items of exports to Kuwait

		2006-07	2007-08
S.No	Commodity	Value in Rs. lakhs	Value in Rs. lakhs
1.	Mineral fuels, Mineral Oils & products of their distillation bituminous substances & mineral waxes	33,680.69	48,310.47
2.	Iron and Steel & its products	26,350.91	32,666.35
3.	Meat & its preparations	27,291.85	27,126.38
4.	Nuclear reactors, boilers, machinery & mechanical appliances; parts thereof	22,918.06	23,287.51
5	Electrical machinery & equipment and parts thereof; sound recorders & reproducers, television image & sound recorders & reproducers and parts	9,133.58	12,310.66

Source : Department of Commerce, M/o Commerce & Industry, GOI

Annexure 'D'

List of useful websites on Kuwait

i)	Official
1.	www.kuwait.kw	Official website of the State of Kuwait
2.	www.mof.gov.kw	Ministry of Finance
3.	www.moo.gov.kw	Ministry of Energy
4.	www.moci.gov.kw	Ministry of Commerce & Industry
ii)	Local Trade Bodies
5.	www.kcci.org.kw	Kuwait Chamber of Commerce & Industry
6.	www.kpc.com.kw	Kuwait Petroleum Corporation and its subsidiaries
iii)	Banks and financial institutions
7.	www.cbk.gov.kw	Central Bank of Kuwait
8.	www.nbk.com	National Bank of Kuwait
9.	www.cbk.com	Commercial Bank of Kuwait
10.	www.kia.gov.kw	Kuwait Investment Authority
iv)	Media
11.	www.kuna.net.kw	Kuwait News Agency
12.	www.kuwaittimes.net	Kuwait Times
13.	www.arabtimesonline.com	Kuwait Times
14.	www.kuwaitsamachar.com	for news about Kuwait, India and Indian expatriates in Kuwait.
v)	About Kuwait
15.	www.arab.net.kuwait	for research on Kuwait, etc.
16.	www.eia.doe.gov/emeu/cabs	Kuwait country analysis brief
17.	www.kif.net	Kuwait International Fair Company (KIFCO)
vi)	General information
18.	www.ekwt.com	Kuwait information guide
19.	www.kuwait-info.com/index.asp	Kuwait information office

Annexure 'E'

Kuwait International Fair organizes fairs and exhibition in Kuwait. The calendar of events for the remaining months of the year 2009 is reproduced below:

Event	Date	Venue
3rd Quarter
Family Expo	11 - 20 Aug. 2009	Hall 5
Kuwait Household Exhibition	12 - 21 Aug. 2009	Hall 7
Food Exhibition	12 - 21 Aug. 2009	Hall 4
School Stationery & Clothing Exh.	26 Aug. - 4 Sept. 2009	Hall 8
Ramadan & Eid Exhibition	12 - 21 Sept. 2009	Hall 4
4th Quarter
WECEC 2009	6 - 8 Oct. 2009	Hall 8
Achievement Exhibition	12 - 16 Oct. 2009	Hall 7
Gifts Exhibition	22 - 31 Oct. 2009	Hall 4B
Carpets & Antiques Expo	22 - 31 Oct. 2009	Hall 4A
Kuwait Int'l 33rd Arabic Books Exhibition	28 Oct. - 7 Nov. 2009	Hall 5+6+7
Building & Construction Exhibition	1 - 7 Nov. 2009	Hall 8
Autumn Consumer Festival	17 - 27 Nov. 2009	Hall 4
Specialized Watches Exhibition	18 - 27 Nov. 2009	Hall 8
Autumn Perfumes Exhibition	18 - 27 Nov. 2009	Hall 5+6+7
Automobile Exhibition	13 - 19 Dec. 2009	Hall 4+5+6+7+8

PS- All the exhibitions/fairs would be held at Kuwait International Fair Grounds, Mishref