Opinions are divided in Kuwait regarding the economic impact of the recent crisis between the government's legislative and executive branches.

Some experts say the ongoing domestic political conflict will have a limited impact on the economy because of Kuwait's dependence on oil revenues, while others believe it has a direct effect.

Ali al-Mousa, the minister of planning and former deputy governor of the Central Bank, told Al-Shorfa that despite the heated political situation in Kuwait, the economy is stable because oil revenues provide a consistent income source.

"So the state's income was not affected and also did not stop," he said.

"The Kuwaiti economy is one of the strongest in the region, and this was confirmed when it overcame the global recession that hurt many countries in the Gulf region, notably Dubai, but the economy in Kuwait was unaffected," he said.

Al-Mousa said the only decline in the Kuwaiti economy was recorded in terms of foreign investment from countries like Egypt, Syria and Yemen that are undergoing major political transitions.

However, he said the domestic economy is witnessing some volatility. "The domestic economy which is based on the real estate and currency market, is volatile but not really low," he said.

The number of real estate transactions during the first week of October dropped 33% from 245 to 164 compared with the previous week, according to the Department of Real Estate Registration and Authentication at the Ministry of Justice.

The decline coincided with the start of the political crisis in Kuwait.

Oil is Kuwait's primary source of income

Majed al-Ali, an economist, said if the government continues to increase employee salaries whenever it is pressured, the practice will have a negative effect on the state's general revenues.

"The previous government's approval of salary increases by 28% after it had been 22% will affect many other economic sectors in the state," al-Ali said. "Any crisis between the legislative and executive branches in the state will have a direct impact on the economy, and this is what is happening in Kuwait."

He said Kuwait needs to maintain oil prices above $100 per barrel "because it is the primary source of income and allows it to maintain economic stability, even in the darkest of crises".

Jassem al-Saadoun, CEO of Shell International, told Al-Shorfa, "The political impact on the Kuwaiti economy is not notable as long as the price of oil is above $100 because this keeps Kuwait's revenue stable and reduces the government's concerns about the country being exposed to economic crisis because of political events."

Kuwait's total crude oil production was 2.9 million barrels per day during September, the highest level since it peaked in September 2008 at 2.85 million barrels, according to the Oxford Business Group for Media and Publishing.

Al-Saadoun said he believes the real danger to the economy lies in the risks to European and Arab nations.

"If these countries are exposed to a new crisis that is similar to what happened [during the Great Depression] -- something that is expected to occur in the near future -- that will expose Kuwait to economic peril because many investors keep their major financial assets in European banks that may be vulnerable to bankruptcy, as happened in 2008 and led to an economic decline in many countries," he said.

"There is a substantial risk of a global recession having a major impact on Kuwait if it occurs, and this is what we hope to overcome in future development plans."