Kuwait ’35 vision tangible strides, clear reforms to build contemporary economy
Supporting and developing the national productive economic sectors are now one of government priorities to achieve an economy based on diversity, sustainability and modernity in 2035. This is part of a structural and economic reform plan, which has been drawn up in accordance with the ‘Kuwait 2035’ vision. Kuwait’s budget for 2035 will be different than the current ones as the oil revenues in that budget will be limited compared with the revenues collected from productive economic sectors like industry, technology, tourism, services, banking and investment, in addition to the activation of knowledge-based economy, and small and medium-sized enterprises (SMEs).
For this purpose, several specialized bodies and authorities have been established, they include the Public Private Partnership Authority, the Direct Investment Promotion Authority (KDIPA), the Capital Markets Authority (CMA), and the National Fund For Small And Medium-Sized Enterprise Development.
Through these authorities a sustainable and diversified economy will be achieved which is known as the economy whose pillars are based on empowering the private sector, increasing SMEs and attracting foreign investments so as to provide government with effective and stable financial sectors.
The pillar of sustainable and diversified economy affects directly citizens so the State of Kuwait has paid much attention to it after His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah had called for paying further attention for economic development.
During the inauguration of the first session of the National Assembly’s 15th legislative term, His Highness the Amir stressed that the country is facing a great decrease in the State’s revenues, which hinder its march, due to the collapse of oil prices all over the world. His Highness the Amir said this caused a large deficit in the state budget, calling for taking effective measures to address and mitigate the deficit’s effects.
His Highness the Amir reiterated that it is an inevitable option to reduce general spending through carefully-studied measures to address imbalances in the public budget, stop waste in national resources, direct them towards the right purpose, and at the same time to alleviate burdens on low-income class and take into account social justice.” It is part of a comprehensive program of an economic reform, which give a vital role to the private sector, His Highness the Amir noted.
Therefore, achieving the country’s sustainable and diversified economy is an imperative matter amid such challenges to guarantee the provision of diversifying sources of national income and not depending on the oil as a main source of income, as it is unstable due to many external effective factors.
The diversification of national economy is a shared goal to the parliament, government and the private sector.However, this faces some challenges, mainly the decrease of either foreign or national investments that affected the country’s status. Therefore, there is a pressing need to get a clear investment map to investors in the country that provides competitive chances and legislations necessarily required to offer an appropriate environment.
To overcome these challenges, which hinder the achievement of goals of a sustainable and diversified economy, five programs have been set and each one includes several projects in accordance with specific criteria. They are: creating business environment for the private sector, diversifying production base, developing national tourism, knowledge economy and the country’s financial and economic reform.
Creating a business environment aims to overcome obstacles facing the private sector, and work on speeding up its contributions to GDP and creating new jobs for citizens. Diversifying production and increasing investment rates seek to raise contribution to non-oil sectors in GDP and reduce dependence on oil to diversify sources of income.
Two bodies take part in this program, including Kuwait Petroleum Corporation (KPC), which provides some key projects like environmental fuel and integrated refining complex. Due to the importance of tourist sector as a main source of diversifying national income, there is a special program for this sector that pays much attention to develop national tourism, which targets encouragement of investment in different activities across the country and the optimal use of tourist services and utilities.
The Ministry of Information contributes to this program through carrying out the marketing campaign. The knowledge economy program aims to encourage relevant industries, marketing them, build capacities and promote skills required to carry out scientific research programs, including the establishment of a global oil research center.
Kuwait University and the Kuwait Institute for Scientific Research are carrying out these goals through some projects. The fifth program seeks to increase the efficiency and effectiveness of the public sector through rationalizing spending and increasing investment efficiency by selecting projects with high development impacts, and increasing public revenues through developing tax system, reviewing and rationalizing the current subsidies, and restructuring them.
Through achieving the goals, programs and projects of the sustainable and diversified economy, citizens will find development effects through providing new jobs, increasing GDP, improving services and supporting financial stability.
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