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Article: The new seventh sister. (Kuwait's economic development) (includes related article)
- Article from:
- The Economist (US)
- Article date:
- March 26, 1988
CopyrightCOPYRIGHT 1988 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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KUWAIT is an emirate turning multinational enterprise. Always OPEC'S most sophisticated member, it chose not to squander its oil wealth on no-hope public works at home but to invest it overseas. In 1987 Kuwait's foreign-investment portfolio yielded an estimated $6.3 billion of income; oil exports yielded $5.4 billion. Until the mid-1980s, this investment was fairly passive. Now it is becoming active. To boost its oil income, Kuwait is integrating its oil business with foreign downstream assets (refining and marketing). That secures a market for Kuwait's oil, which accounts for over 80% of total export revenues. The most conspicuous asset is now its 22% stake in British ...