What to do with $38 billion?

Gollevainen

Colonel
VIP Professional
Registered Member
Well To my knowlidge, Kuwait is heading towards Finnish AMV wheeled IFV, wich is in my obinion, an exelent choice...inspite the cartoon-fuzz and the fact that we were a scandinavic nation...
 

DPRKUnderground

Junior Member
Kuwait will Submarines just in case Iran wants to do something funny. They have enough for at least 3! They should also buy the Al-Khalid, good for the desert.
 

Fairthought

Junior Member
The Kuwaiti $100 Billion slush fund I mentioned was set up to prepare Kuwait's economy for a post-oil exporting era. It's called the 'Future Generations Fund'. A portion of the $38 billion surplus will probably go into that, but it's not necessary as the fund already gets annual fiscal payments.

The Kuwaitis' have VERY little military manpower. Most people who live there are ineligible as they are foreign workers. The few soldiers they do have are recruited/conscripted from spoiled-rotten citizenry and are drawn to hotshot military roles such as special forces and fighter jet pilots. Ordinary infantry jobs are extremely unattractive.
 

adeptitus

Captain
VIP Professional
According to the CIA world factbook, Kuwait has 18,743 men reaching military age annually, and 737,292 men fit for military service between ages 15-49.

Prior to the first Gulf War, Kuwait had an army of about 16,000 men. After Gulf War I they were only about to reconstitute a force of about 8,000. Here's a description of the state of Kuwati army:

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Unlike other Persian Gulf states, Kuwait has a conscription system that obligates young men to serve for two years beginning at the age of eighteen. Educational deferments are granted, and university graduates serve for only one year. In practice, exemptions are liberally granted, and most young Kuwaitis are able to avoid military duty. Estimates are that only 20 to 30 percent of the prewar military ranks were filled by Kuwaiti nationals. Military and security forces had been purged of Shia personnel during the 1980s. At the outbreak of the gulf war, Palestinians filled many technical positions, supported by thousands of Pakistanis, Indians, and Filipinos in maintenance and logistic functions. Officers on detail from Britain, Pakistan, Egypt, and Jordan provided military expertise. Lower ranks in the army and security forces were occupied predominantly by bidun who had taken reasonably well to military life but were poorly prepared to absorb training in operating and servicing modern equipment. In spite of reports that many bidun fought well against the Iraqis, many were expelled from the army in 1991 for alleged collaboration. Because of their removal and the removal of Palestinians and other non-Kuwaitis, the ranks of the services became seriously depleted. Few Kuwaitis volunteer for military service, and conscription is not regarded as an acceptable option. Under the circumstances, Kuwait will be hard pressed to meet its goal of a postwar armed strength of 30,000. A relaxation of the policy toward bidun was hinted at by the statement of the minister of defense that people of "unspecified nationality" may be retained after screening for loyalty and may even be given Kuwaiti citizenship. With respect to conscription, the minister of defense in July 1991 said that the system was being reviewed to make it more effective.

Seems to me that a war with Iraq, the Kuwaitis shouldn't object to conscriptions too much! Assuming 2 year draft with 80% "fit for service" ratio, that would give them a 30,000 men conscript force, plus professional soliders.
 

Baibar of Jalat

Junior Member
Origionally by Gollevainen
Well To my knowlidge, Kuwait is heading towards Finnish AMV wheeled IFV, wich is in my obinion, an exelent choice...inspite the cartoon-fuzz and the fact that we were a scandinavic nation...

In my opinion it wont be wise because they need to atleast bring a level of standization to their militay unless the IFV is really easy to maintain and it uses auto parts that could be bought commercially.


Origionally by Fairthought
The Kuwaiti $100 Billion slush fund I mentioned was set up to prepare Kuwait's economy for a post-oil exporting era. It's called the 'Future Generations Fund'. A portion of the $38 billion surplus will probably go into that, but it's not necessary as the fund already gets annual fiscal payments.

Heres an article saying how little the US is directly getting Arab money relative to 1970s oil boom. These budget surpluses in the GCC, which kuwait is a member is more likely to stay at home. The reports and websites i have been read shows a general trend amongts Arabs esp Suadis to be mature with their cash, when in comparison to the seventies they largely spent it on short term projects.

one report i read a while back from fanacial times most oil money has not been spent yet. As i stated above we have to wait and see if their divrsification is successful.

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Indianfighter

Junior Member
Kuwait is being braced by the US, for a possible future war against Iran, which is Shiite.
Shiites and Sunni Arabs have political differences and hence maintain military readiness against each other.

It is likely that with a possible future war against Iran, and with Iraq now being managed by Shiites, Kuwait is trying to modernize its armed forces.

It may have ben urged by the US to do so, as it might have been conveyed to them that US may not come to their defence repeatedly. Also that USA's forces are stretched in Iraq and Afghanistan may result in the US not being able to spare much military resources to defend Kuwait in the event of a war.
 

Red not Dead

Junior Member
VIP Professional
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.

Cough someone's been watching Syriana Cough...Nothing wrong about that one. But how to diversify your economy against the Western Triad and a rising Asia. Conclusion the Arab states are Doomed. Iran being the slight exception.
 

FreeAsia2000

Junior Member
Red not Dead said:
Cough someone's been watching Syriana Cough...Nothing wrong about that one. But how to diversify your economy against the Western Triad and a rising Asia. Conclusion the Arab states are Doomed. Iran being the slight exception.

Correct.

The Arab states are doomed because of three reasons.

1. They don't have a domestic mandate

2. They don't have world class financial markets, although this is
improving

3. They don't have an industrial base.
 
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