KUWAIT, May 25 (KUNA) -- Kuwaiti businessmen agreed here Tuesday that their country urgently needs laws that encourages investment in order to give a push to the economy to keep up with the economic mobility at regional and world levels.
The economists -- who made these remarks in a forum titled "Economy and Investment, Reality and Challenges", held today at the Gulf University for Science and Technology -- added that the private sector could contribute to development if it was given full play.
The proposed privatization law is development of a thought that goes back to more than 20 years aiming at giving access to the private sector to make use of public utilities and state bodies, former Minister of Commerce and Industry Hesham Al-Otaibi said, adding that privatization is a global principle and notion and not a local concept.
Although history points out that privatization in Kuwait depended on the expertise of foreign countries, it lacked two essential things on motivating the private sector: first all privatization programs rely on reducing taxes as an incentive of corporations though the Kuwaiti body of laws do not comprise taxes law; and second the privileges granted by state to the labor unions of various institutions which do not exist in Kuwait as well.
He also believed that the foreign investor law is negative and should be revised, "especially as we urgently need foreign investors who look for privileges and opportunities," calling for the abolition of taxes and giving investors full exemptions and support.
Meanwhile, CEO of Global Investment House Company Bader Al-Sumait said that privatization is one of the spinoffs of the agreement between the government and the national assembly in what will bring benefits to public and private sectors under the development plan.
Further, he called for issuing a number of laws that keep up with privatization, especially as this will be an opportunity that transforms Kuwait from an oil-return dependent economy to productive economy motivated by the private sector.
He also said that both of privatization and development must run in parallel lines along with dismissing the politicization of laws under the political changes that might lead to shortcomings.
He concluded by saying that privatization will boost positive participation in the development plan, "though the existence of opportunities-squandering laws will impede the achievement of such goal." - Kuna