What to do with $38 billion?

Kuwait's Budget surplus surges to $38 billion!!



With record oil prices, this is not a surprise. Kuwait's budget was based on a $21/barrel price for oil. Kuwaiti exports have actually averaged $58/barrel. Sitting on 10% of the world's proven oil reserves, This nation of just under 1 million people is no stranger to wealth.

But historically, whenever gulf states find themselves with money to burn (which is often) they choose to spend a big chunk of it on arms purchases.
Given Kuwait's special relationship with the US, we can anticipate Kuwait will spend $10 billion or so on American weapons.

What would Kuwait buy?

Predictions, anyone?

It's a quite interesting question. Usually when Gulf States goes arms shopping they buy only the very best available, and with unrest next door and 'nuke rattling' over the Gulf I think your rigth in assuming they will buy something nice.

Armour is always popular in the desert, best guess Abrams, Bradleys or Leclercs. Self-propelled artillery might also be considered. However, to counter the armour of the enemy, Longbows might also be an option, and to counter the enemy choppers fighter planes are always nice, F-16's of some very late block would be a good guess I think.

I don't think the navy will get that much, perhaps a patrol craft or two, or maybe a small missile corvette?

Other guesses? (I know, I went quite a bit over budget... )

With a $38 billion surplus, and $100 billion slush fund to boot, I don't think you can go over budget.

How about invest it to diversify your economy for the day oil runs dry. Most of these oil rich countries will be in trouble when their oil is gone.

IDonT said:

How about invest it to diversify your economy for the day oil runs dry. Most of these oil rich countries will be in trouble when their oil is gone.

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Well said. Kuwait should re-invest their windfall, not blow it on something that they may well not need anyway. Perhaps invest a little in AAW platforms.

Prior to the first Gulf War, the Kuwaitis were known as "the Arabs who knew how to make money", versus the Saudis were known as "the Arabs who only knew how to spend money". Kuwaitis back then had a rep for being financially savvy and made many good investments, so that the government budget was not as heavily dependent on petro as Saudis.

$38 billion sounds like a lot, but money is hard to make and easy to spend. If I were the Kuwatis, I'd prolly invest it and have Uncle Sam provide security for me. =/

adeptitus said:

Prior to the first Gulf War, the Kuwaitis were known as "the Arabs who knew how to make money", versus the Saudis were known as "the Arabs who only knew how to spend money". Kuwaitis back then had a rep for being financially savvy and made many good investments, so that the government budget was not as heavily dependent on petro as Saudis.

$38 billion sounds like a lot, but money is hard to make and easy to spend. If I were the Kuwatis, I'd prolly invest it and have Uncle Sam provide security for me. =/

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There are quite a few problems of having Uncle Sam providing security for your country. The Kuwaitis would be better off like the Saudis if they started to buy from the Europeans or even the Russians or the Chinese.

yeah they buy plz-45 howitzer from china after plz-45 win against us and european competitor.they get cheaper stuff.gud decision by kuwaitis.
maybe they think after gulf war 1 how easily iraqis beat them

Prior to the first Gulf War, the Kuwaitis were known as "the Arabs who knew how to make money", versus the Saudis were known as "the Arabs who only knew how to spend money". Kuwaitis back then had a rep for being financially savvy and made many good investments, so that the government budget was not as heavily dependent on petro as Saudis

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The recent oil boom has led to a greater emphasis on diversifying their economies. The oil price crash of 1998 is still fresh in their minds of the GCC countries. A large number of economist have seen that most of the money has been spent in longer term projects such as banking, tourism and aquiring other important assets.

More investment is been going into countries such as the far east esp china. lesser money is being invested in mature markets of the United States and Europe. BUT diversfying from the complete dependence on oil willm prob take at least 30 years, even then oil would be still important for economy.

I wonder if the attempted blocking of the aquisation of US ports by the Dubai company, (which is unlikely but we have to see). Could cause the UAE and other Mid east to diversy arms esp UAE who has an order of around 80 f -16s worth billions and other large deals. We have wait and see again.

I am wondering do the majority of Armericans oppose this deal?. Out of this controversy the US public have found out the Chinese operate some important companies. Its ringing alarm bells in the US
But seriously i am wondeing how will this percieved Anti Arab and Muslim feeling gonna effect US relations with mid east.

Baibar of Jalat said:

I am wondering do the majority of Armericans oppose this deal?. Out of this controversy the US public have found out the Chinese operate some important companies. Its ringing alarm bells in the US
But seriously i am wondeing how will this percieved Anti Arab and Muslim feeling gonna effect US relations with mid east.

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Here's an article with some numbers:


Since the pending deal was announced, bi-partisan criticism has grown louder and stronger. (Also see Liberal US Politics Guide Deborah White's blog - "Bipartisan Howls as White House Quietly Outsources US Port Operations to United Arab Emirates.") And a majority of the American public is significantly opposed. For example, a WSJ Poll asked, ”Should the US allow a Dubai company to manage American ports?” The responses as tallied on Tuesday evening broke down as follows: 66% No - 34% Yes.

Those opposed to the deal cite a threat to national security. They argue that the UAE was a finance center for the 9/11 terror attacks, and therefore cannot be trusted to secure U.S. ports.