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Professor Ruth Baldrige Ashley Horton Kuwaiti Business and Electricity Market 2014 February 9th, 2014 Introduction This report is an overview of Kuwait and will discuss potential opportunities for

Siemens with Kuwaits energy market and needs. The intention is to introduce wind and steam turbines to the Persian Gulf as an alternative power supply source. This report will cover Kuwaits background, cultural etiquette, business, and economy in relation to the supply sources for Kuwaits domestic power needs. Background Population Kuwaits population in 2013 was approximately 3.2 million with 85% being Muslim (Coleman, p. 119). Economy Kuwait Oil & Gas Company (2009) reported Kuwaits economy as experiencing steady growth due to government programs benefiting education and social welfare. While Kuwait struggles with the demands for domestic electricity, the existing energy and oil industries create financial security (pp. 1-83). Kuwait could benefit from contractors, like Siemens, that work to meet their domestic demands and further enhance their economy.

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Major Corporations Marcopolis (2012) top ten corporations in Kuwait revolve around petroleum, insurance, and banking (para. 2-3). Among those businesses listed is Kuwait Petroleum Corporation, ranked number 2, followed by Kuwait Investment Authority. While there is major competition in the petroleum industry, there is minimal competition within the business of green energy sources. Etiquette There are two major things to be aware of when conducting business in Kuwait 1) Expect strict separation between genders and a difference in gender roles during business meetings. 2) The majority of Kuwait is Muslim and its important to respect the religious holidays and traditions while engaging in personal or professional matters. Successful businesswomen are expected follow the strictest business guidelines. Inability to adhere could result in failed business relations. A first meeting must consist of an Arab counterpart. He must initiate an introduction to a Kuwaiti businessman. Its custom to grasp hands/wrists, place the left hand on the right shoulder of the other man and kiss on the cheek. An Arab man may hold your hand in friendship when walking and Arab men will stand in close proximity while speaking. Backing away is considered rude and will translate as untrustworthy.

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Women cannot initiate handshakes or greetings unless the Arab businessman extends his hand. Women not related to the businessmen are not allowed to mingle with them, exchange kisses, and are expected to be accompanied by a relative to show appropriateness. Anticipate an exchange of courtesies to last months before the Kuwait Company agrees to do business. This could include formal meals and multiple visits to each others country. Hospitality is a Hallmark of Muslim tradition (Kuwait Country Review, 2010, p. 83). A host may invite their guests to dinner in their home and it is customary to take a gift. Fine items such as crystal and china are advised for business guests (Kuwait Country Review, 2010, p. 83). Expect to remove shoes at the door and place the soles together. The soles are not to be pointed at anyone and it is offensive to show the bottom of your feet or shoes to anyone. Avoid giving thumbs up as it is an extremely foul gesture and do not point (Kuwait Country Review, 2010, p. 83). While in the businessmans company, do not talk about women or politics as they are sensitive topics. Kuwaiti history, culture, modern achievements and even sports are suitable topics. Do not gawk or gesture effusively at something in ones home as a Kuwaiti will feel obligated to give it as a gift. If a Kuwaiti offers a gift, you must accept it or it will be seen as disrespectful (Kuwait Country Review, p. 84). Business Conduct and Etiquette Private Kuwaiti businesses operate six days a week from Saturday to Thursday. Friday is considered a holy day, therefore businesses close at one in the afternoon on Thursdays and

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meetings should not be arranged on a Thursday or Friday. Appointments with managers are generally held after 9 P.M. or 6 P.M. in the summer months. It is ill advised to arrange advanced business meetings in Kuwait during the summer as most residents leave the country. It is better to invite the company partners to visit the United States during these months as a chance to exchange courtesies and treat them to a holiday (Kuwait Country Review, 2013, p. 85). Kuwaiti Business and Economy According to the (MEW) Ministry of Electricity and Water (2012) , Kuwait has long struggled to meet rising domestic demand for electricitya lack of power-producing capacity has frequently led to black-and-brown outs during the summer months, when demand peaks (p. 15). While more recent reports from the Middle East Economic Digest (2013) reveals Kuwait has received multiple bids for electricity contracts, all of the bids are related to the use and development of existing petroleum and natural gas resources (p. 14) The MEW is responsible for the construction of new power plants in the emirate (MEED, 2012, p. 15). The MEW had hoped to award a series of new power schemes using independent water and power project (IWPP) model... however over a series of months and the input of preferred bidders, the Kuwaiti parliament voted to cancel the project. (MEED, 2012, p. 15) Bids have been submitted to the Kuwait government and MEW to act on the building a thermal power plant, but (to date) no bid has been approved for turbine produced, clean, electricity. This market is open to Siemens to build and develop electricity solutions for Kuwait.

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References Coleman, D. (2013). People. Kuwait Country Review, 119-120. Country Intelligence: Report. Kuwait. (2013). Kuwait Country Monitor, 1-21. Etiquette. (2010). Kuwait Country Review, 82-85. Kuwait Oil & Gas Report Q1 2009. (2009). Kuwait Oil & Gas Report, 1-83. Kuwait receives bids for electricity contracts. (2013). MEED: Middle East Economic Digest, 57(13), 14. Ministry of Electricity and Water. (2012). MEED: Middle East Economic Digest, 66. Top 10 Companies in Kuwait: Most Important Companies in Kuwait. (2012, February 13). Marcopolis. Retrieved from http://www.marcopolis.net/kuwait-companies.htm

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