07/10/2024
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07/10/2024
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KUWAIT CITY, Oct 7: Dr. Sadiq Al-Bassam, an economic expert and head of the Accounting Department at Kuwait University, has emphasized on the urgent need for Kuwait to diversify its sources of income, warning that the national economy remains dangerously reliant on oil, which still constitutes over 80 percent of state revenues. In a statement to Al-Seyassah daily, Dr. Al-Bassam posed the critical question: “Is it reasonable for oil to continue as the primary driver of our economy indefinitely?” He advocated for a renewed focus on privatization, urging the government to reassess its approach and invite international companies to invest in Kuwait and stressed that while privatization would introduce new revenue streams, it is essential to safeguard the rights of workers in affected agencies and departments.
According to Dr Al-Bassam, the government should divest itself from activities that are not part of its core functions, allowing private entities to manage these sectors while the state retains oversight. This approach would ensure profitability without imposing undue financial burdens on citizens. Privatization, he argued, would strengthen Kuwait’s financial and investment standing, generating revenues for the state and relieving the government of managing non-essential facilities. Dr. Al-Bassam further highlighted the need to address issues plaguing the private sector, calling for an expansion in heavy and medium industries rather than focusing solely on small-scale ventures.
Given Kuwait’s strategic location, Al-Bassam noted, the country has significant potential to become a hub for exporting industrial products. As a specialist in accounting, Dr. Al-Bassam offered insights into Kuwait’s financial structure, explaining that the general budget encompasses the state’s revenues and expenditures for a specific fiscal year, sometimes resulting in a deficit that is covered through reserves or borrowing. However, he cautioned that the broader financial situation includes other crucial factors, such as the trade balance, sovereign wealth funds, public debt, and the balance of payments.
By Najeh Bilal
Al-Seyassah/Arab Times Staff
