The financial sector assumes an important role in Kuwait, particularly because of the openness of the economy and the absence of major restrictions on dealing in foreign exchange, outflow of remittances and movement of private capital. Thus, many of the international monetary fluctuations are transmitted to the local economy through the financial sector. In addition, the rising importance of the financial sector is reflected in the eight-fold increase in its contribution to GDP over the years 1970/1–1975/6. In spite of the rapid increase in oil exports, the proportional share of this sector increased from about 2 per cent in the early seventies to 5 per cent in more recent years.
KeywordsReal Estate Foreign Exchange Banking System Commercial Bank Money Supply
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