Kuwait plans to allow GCC citizens to own Real Estate
Kuwait : 22-Aug-2004
Kuwait plans to allow Gulf Co-operation Council (GCC) citizens to own Kuwaiti real estate and allow non-Kuwaitis to buy shares in local companies. The government has decided to adopt the comprehensive banks' concept that will help speed privatisation and help formulate the necessary legislation to restructure capital and facilitate investments. Incorporating modern technology into public and private financial institutions will be the core of this long-term strategy. In a related development, a high-powered panel of speakers at a symposium said that although privatisation of the economy will help ease burden on the government, it might create more unemployment and allow certain sections of society to hold monopolies.
Many private companies such as Kuwait Airways, Kuwait Flour Mills, the Kuwait Public Transportation Company and a number of power firms were bought by the government in the second half of the last century when oil revenues enriched state coffers. It was now time they were privatised, while ensuring that labour is protected and rates and prices kept under control. The privatisation of power companies will help lower consumption and reduce embezzlement of public funds. Three major areas of weaknesses have been pointed out - the state budget, the imbalance in Kuwait labour market, which is based on an original imbalance in population, and the marginalisation of the private sector. The steady population growth in Kuwait makes necessary a two-fold increase in oil output, the construction of new residential areas and increased power and water supplies.
