‘Kuwait’s competitiveness hinges on economic diversity’

25/03/2025

‘Kuwait’s competitiveness hinges on economic diversity’

KUWAIT CITY, March 25: Many economists pointed out that the speech of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah on the occasion of the last 10 days of Ramadan touched on the root cause of the problem on the economic front, as he stressed the need to diversify sources of income and promote rationalization. They told the newspaper that the era under the leadership of His Highness the Amir is truly an era of economic prosperity; as the country is currently moving toward relying on alternative sources of oil, such as tourism, agriculture and industry. They called for the implementation of the political leadership’s directives on diversifying sources of income, so the economy does not remain subject to a single-income commodity. Former Minister of Housing and former member of the Supreme Planning Council Yahya Al-Sumait said the speech of HH the Amir regarding diversifying sources of income is in line with the serious efforts adopted by the new reform era, led by His Highness, to build a new Kuwait that reduces dependence on a single income commodity.

He stated “This will ensure that the economy no longer relies solely on oil, especially since the price of oil is vulnerable to international political and financial fluctuations. What if the price of oil drops to $10 a barrel? How will the State pay salaries and fulfill its obligations?” He indicated that Kuwait is in dire need of translating His Highness the Amir’s speech into real diversification of the sources of income. He revealed that the Supreme Planning Council has studies on reducing dependence on oil and relying on other resources. He called for reviewing these studies, especially since they set 50 percent dependence on oil. At the same time, he called for adopting a tax policy -- without calling it fees -- to contribute to the national income; while stressing the importance of focusing on industry and all other aspects that strengthen the economy.

Economic expert Mohammed Ramadan said the international organizations have confirmed that Kuwait is moving toward this goal, albeit at a modest pace. “Therefore, we hope that these efforts to diversify sources of income will expand. The government is also seeking to reduce costs by abolishing some allowances and the issue of revoking citizenship will help reduce costs, as the State is no longer obligated to provide housing and other services to those whose citizenship is canceled,” he added. He believes it is difficult for the economy to grow by relying on industry, as it requires a large workforce; hence, the economy must rely on trade by opening wider areas for import and export, while expanding banking and other services.

Economic expert Abdulaziz Al-Enezi pointed out that the speech of His Highness the Amir touched the hearts of the Kuwaiti people. He said His Highness’ words regarding the need to rely on alternative sources of oil have become a necessity to boost the national economy, especially since Kuwait, under the leadership of His Highness the Amir, is experiencing a strong era characterized by the need to strive for economic renaissance in various developmental fields. “This is especially true since diversifying sources of income creates numerous job opportunities for graduates,” he asserted. He expressed his satisfaction over the current trend toward various economic sectors, such as tourism and industrial cities, as well as rationalizing spending by eliminating waste. He stated that diversifying sources of income has numerous benefits, as it expands the economic base and somewhat reduces the national economy’s focus on the oil economy.

“It also promotes innovation and the use of technology in various sectors, leading to increased productivity,” he added. He said one of the most important steps toward economic reform is implementing e-government to eliminate bureaucracy. He thinks this will lead to a prosperous and diversified economy, diversify sources of income, and reduce the State’s primary dependence on oil export revenues. He added that in the coming period, Kuwait will be among the leading economic countries. “Kuwait will return to being the Pearl of the Gulf, as it was in the past when it was the center of attention in the 1960s, 1970s and 1980s. Under the new reform era, Kuwait will enter the competitive race with neighboring countries within the next few years,” he stressed. Economic expert Salah Al-Jimaz said His Highness the Amir’s statement on diversifying sources of income is important because Kuwait needs to actively implement diversification to provide multiple alternatives that reduce pressure on oil, which accounts for a very large percentage of income. He underscored the importance of relying on smart sources and the need to restructure some sectors.

He added the government’s current approach to curb waste by reducing unjustified privileges for some is aimed at helping the country build a strong and resilient economy. He proposed reviving some sectors that contribute to diversifying sources of income, such as real estate and services. He noted that the State’s current efforts to diversify the food sector through agricultural expansion and air services are contributing to and strengthening the national economy. He suggested the creation of an environment that stimulates and encourages industry in Kuwait, particularly new industries like the medical industry and others.

By Najeh Bilal
Al-Seyassah/Arab Times Staff