KUWAIT: In a distinguished step that falls within the efforts of the Union of Investment Companies (UIC) helping to improve the financial markets in Kuwait, it organized an economic seminar entitled "Energy outlook amid macroeconomic and geopolitical uncertainties, impact on Gulf producers", on Monday which tackled the current economic conditions and future expectations of the oil and gas markets and their repercussions on the global economy. UIC hosted experts from Bloomberg to present their outlook on the global economic situation in the field of energy.

Fadwa Darwish, Secretary-General of UIC, welcomed the guests, who were executive managers, top economic analysts, asset and fund managers from investment companies and financial institutions. She indicated that the global economy is in a precarious position due to ongoing trade tensions slowing economic growth in key markets, and increasing geopolitical risks. Other potential risk factors include the interconnectedness of global supply chains, rising debt levels, and oil and gas prices. Despite these challenges, there are reasons for optimism with the release of some economic indicators, also measures taken by central banks to support growth and improve financial stability, and technological advancements fueling innovation and productivity gains.

Ultimately, the future of the global economy will depend on the compatibility of government policies with private sector investment decisions, and the evolving nature of international trade and finance.  Salih Yilmaz, a Bloomberg Senior analyst who specializes in energy, delivered the seminar. He touched on a number of topics related to the global economic outlook, the most notable of which were: economic optimism at the start of 2023, the reopening of the Chinese economy faster than anticipated, and controlling inflation in the United States. Also, he discussed the challenges brought on by the economic recession and the strong demand that has emerged as the global economy starts to revive, as well as the World Bank's prediction for 1.7 percent worldwide growth.

KUWAIT: The UIC hosts a seminar entitled “Energy outlook amid macroeconomic and geopolitical uncertainties, impact on Gulf producers” on Monday.

Yilmaz stated that there is still uncertainty around the supply and demand for oil, which leaves room for significant price swings. Moreover, he noted that as one of the world's major producers of oil and gas, Russia's political and military situation has a significant impact on energy consumption and pricing worldwide. In addition, the challenging circumstances facing the OPEC + organization which is struggling to increase production with changes in supply even though the OPEC + countries have not reached full production capacity. Yilmaz hinted also that the strong dollar position played a role in setting a ceiling for oil prices.

The oil exporting nations, including the State of Kuwait, benefit from the present oil prices. However, global inventories are still relatively low with unstable supply of oil.  On the other hand, Yilmaz noted that traditionally oil prices decline in the years that follow recessions, often by as much as 30 percent, but it's possible that this won't happen given the present situation.

At the end of the seminar, participants shared their views regarding the global economic situation and how it may reflect on the Kuwaiti economy and were able to access the latest economic and financial information through the Bloomberg Terminal. The Union of Investment Companies thanks all those who attended the seminar and highlights the importance of participating and organizing valuable seminars that contribute to Kuwait's economic success and the implementation of Kuwait Vision 2035.