Mubasher: Kuwait's credit profile, which has a rating of “Aa2” with a “Stable” Outlook, reflects the country's substantial oil and gas reserves, and comparatively low government debt, Moody's Investors Service said in an annual report published last

week.

Moody’s added that the major credit challenge for Kuwait is its very high reliance on oil and accordingly volatility for its economy, exports, and government finances.

Kuwait has been developing its non-oil and private sectors at a pace slower than its regional peers, Moody’s added.

"Kuwait's credit profile would be supported by a steady diversification of government revenues and economic activity away from the oil sector," a Moody's Analyst and co-author of the report, Thaddeus Best, said.

He added, "Sustained improvements to the institutional framework, in particular government transparency and reporting standards, would also be positive."

Moody’s noted that Kuwait’s non-hydrocarbon growth has been boosted by the current five-year National Development Plan (2015-19), which provides direction for prioritising capital expenditure, encouraging private investment, and creating jobs for nationals in the private sector.

“Public and private investment are expected to sustain non-hydrocarbon growth rates of 3.5% to 4% between 2018 and 2021,” Moody’s added.