A Historical Overview of Kuwait’s Economic Model and its Sustainability

Kuwait’s economic and financial system relies heavily on oil and natural gas, accounting for approximately 60% of the country’s gross domestic product. The country’s economic model is heavily dependent on oil, and as such, it is significantly exposed to oil price fluctuations. This critical letter overviews the country’s transition towards a mono-reliant economy. It highlights critical sustainability challenges that emerge due to environmental deterioration and degradation and the international community pressures to address the challenges associated with climate change and the energy transition towards renewable resources.