The Kuwaiti government is committed to supporting the private sector and encouraging its activities , said Sheikh Ahmad Al-Fahad Al-Sabah, the Deputy Premier for Economic Affairs and State Minister for Housing Affairs, on Thursday evening.

Speaking to reporters on the sidelines of a visit to the Al-Hamra Tower project, in the downtown Sharq area, Sheikh Ahmad said that His Highness the Amir Sheikh Sabah Al-Ahmad Al-Sabah had underscored the importance of supporting the Kuwaiti private sector through a comprehensive economic system that integrated private institutions into the state development plan. This would allow private sector institutions to execute mega-projects, he explained.

Moreover, the state minister said that the government's five-year plan included a large role to be played by the private sector, noting that despite there being some bureaucratic obstacles and outdated practices, he was optimistic concerning the upcoming period and about the success of the five-year plan.

We assure all that the positive spirit adopted by the government in 2003 to open up Kuwait to transformation into a financial and commercial center, is the same government spirit at present, and it will continue to be this way in the future," he said.

Sheikh Ahmad expressed great satisfaction at his visit to the Al-Hamra Tower project, which he described as an ambitious project that was continuing to move forward despite the global economic crisis, at a time when many investors were hesitant to take such initiatives.

He added that this was a real project that could be seen on the ground, and that such a project could rightfully request the support of the government - whether through requesting approval for building additional car parks, or logistical support - because such additions contribute to the project's success.

Al-Hamra Tower is part of the downtown city's development project, he said, noting with pride that the consulting firm and the contractor were both Kuwaiti companies, and adding that this project could be the launch pad for regional and international activities for these firms.

Khalid Al-Othman, CEO of the project's developer Al-Hamra Real Estate, told reporters that the tower would be 412 meters high when completed, adding that 90 percent of the building's structure is now in place.

He explained that the building would comprise 77 floors, all of which would be operational by early 2011. The construction costs for the building stand at KD 180 million, excluding the cost of the land on which it is being built.

All the necessary measures for insuring the building against fires, earthquakes and other emergencies and accidents have been taken, he said, noting that when completed it will include a commercial mall and a car park.

Asked about the impact of the global economic crisis on the project, Al-Othman said that like all other projects, Al-Hamra Tower's construction suffered from a shortage of liquidity, but the company was keen on continuing with it, despite these circumstances.

He noted that the crisis and the subsequent shortage in demand drove many
developers to reconsider commercial projects and halted many that were already in progress, which he said has helped to create a market balance.

Kuwaittimes