POLITICAL Kuwait’s government and ruling family will remain stable. There is no major political unrest currently within the country. However, the National Assembly (parliament) may very well enjoy increased confidence through 2013. In terms of international relations things remain steady, although, a significant risk does lie in the dispute between Kuwait’s ally, the US, and its neighbor, Iran. GCC relations will strengthen over the coming 12 months, especially if a single GCC currency is passed. Kuwait recently elected four women as MP’s, showing the government’s dedication to progress. The Kuwaiti government has always strived to be a trend setter among its Gulf counterparts, and received much attention after this significant move. The four new MP’s all hold PhD’s and are all well reputed within their respective professions. Until this point the Kuwaiti government was the subject of a fair amount of criticism from its regional neighbors, however the election of the female MP’s has indicated a much needed shift of the government from the influence of tribal ties to individual and group ability and qualifications. Economical According to the EIU, the proactive monetary policy of Kuwait’s Central Bank is largely responsible for protecting the country against the harshest outcomes of the global recession. Kuwait managed to achieve its tenth consecutive surplus (for the fiscal year) as a result of the high oil prices of early 2008/09. Over the next 12 months Kuwait will most likely pursue an expansionary fiscal policy, deriving funds for infrastructure and redistribution of wealth from its oil revenue. The main basis for Kuwait’s economic growth over the coming years may very well be from its oil sector. Kuwait is expected to enjoy a fiscal surplus on an average of 5% of GDP between 2010 and 2013. Real GDP growth may decline, compared to recent years, as oil output is slowly increasing due to OPEC cuts and lower levels of production. However, new energy projects should commence between 2009 and 2013. The current account surplus may slightly decline, but only in 2009. The rest of the forecasted period should show a significant surplus in the current account. Kuwait’s consumer price inflation is expected to drop by approximately 7% to just 3% by 2013. The flow of foreign direct investment should increase between 2009 and 2013, yet a chance still remains that most developments will be funded by domestic sources. It is expected that foreign investment into Kuwait will increase over the next five years; however the majority of funding of new projects is expected to come from domestic sources. Kuwait’s oil and gas sector will still remain closed, for the most part, to foreign investors.