NO economy can thrive in the presence of outdated bureaucratic complexities and a lack of proper planning. Therefore, one of the first steps the Cabinet must take, particularly the ministers responsible for planning, the Minister of Finance, the Minister of Commerce and Industry, and the State Minister for Municipality Affairs, is to recognize the current opportunity to start working on revitalizing several sectors that can contribute to the development of the national economy. We direct our message today to these ministers with the hope that they will read carefully and respond, especially now that ministerial positions have become stable. Unlike in past years, when initiatives were wasted and plans ignored due to ministers’ fears of losing their positions, the situation has changed. In the past, ministers could be described as “anxious, as if the wind were beneath them,” with pressure surrounding them from all sides.
Today, we hope the ministerial vision is clear. We urge everyone in the Council of Ministers to disregard the rumors circulating on social media about withdrawing industrial or agricultural plots. These rumors, aimed at testing the pulse or increasing anxiety among industrialists, traders, and farmers, are the work of short-sighted individuals and negatively impact performance, leading to reduced production and damaging the economy. It is inconceivable that any wise person would allow the influence of envious social media activists to control government decisions.
On the contrary, industrial, commercial, and agricultural facilities represent valuable commercial assets that should be encouraged. They need additional incentives, along with revisions to the usufruct law to ensure development and stability. Let us take Shuwaikh Industrial Area as an example. Most of the facilities there were established over fifty years ago and continue to experience active commercial activity. This area needs to become more stable and transform into a major market, similar to the Mubarakiya Market, due to its proximity to residential areas. To enhance stability and functionality, beneficiaries should be allowed to own the plots, either industrial, agricultural, or commercial. This would help achieve three goals - firstly, securing industrial and agricultural incentives for self-sufficiency, secondly, ensuring long-term stability, and thirdly, boosting exports and reducing reliance on imports, on which Kuwait currently depends for around 90 percent of its needs. It is well-known that the value of a plot is determined by the value of the facility built on it and the production it generates. When the owner of an establishment owns the plot, they are more likely to invest their efforts into developing it. However, if usufruct fees continue to rise, the owner may seek a cheaper plot in more remote areas, increasing costs, which in turn negatively impacts consumers and contributes to higher inflation.
This situation calls for an upgrade to the relevant laws to ensure that targeted areas are subject to beautification and smart planning. Many of these areas in Kuwait are neglected, either due to outdated legislation or because of the complexities and inconsistency with which inspectors, who hold judicial authority, enforce regulations. In some cases, establishments are shut down over minor violations or even personal issues with the inspector responsible for issuing the citation. Countries that aim to develop their economies offer various incentives to industrialists and traders. These countries reject the mentality of envy, hatred, and intentional obstruction of projects. Some even provide plots for free or exempt project owners from fees for a few years. Some other countries offer plots for ownership at affordable prices, with taxes only being imposed on the beneficiary’s net gains after a certain period. Many also facilitate partnerships between the public and private sectors. Unfortunately, this approach is non-existent in Kuwait, as previous overlaps in powers between successive governments and the National Assembly, coupled with political blackmail, have led to deep-rooted issues in the national economy.
These problems have only grown more complex over time and can only be overcome through innovative, out-of-the-box solutions. In Kuwait, we hear daily about new decisions that further complicate the challenges faced by the private sector, and restrict project owners, particularly concerning usufruct, which has become a major issue for investors. No project can thrive under the constant presence of a sword hanging over the investor’s neck in terms of the uncertainty of an annual or biennial contract renewal. How can investors be expected to work in such conditions? It is very easy to create an enemy, but very difficult to get rid of one. The concerned ministers must rise to the responsibility of fulfilling the vision of the new era of leadership. They should focus on winning everyone over, which is not difficult, instead of creating enemies. In conclusion, they should start working, and then later impose taxes. We do not need them to lead by offering blessings with one hand and then bringing harm to the other. The government must realize that economic prosperity and engaging the people in business activities is the way to achieve national security, stability, and unity
