KUWAIT CITY, Oct 15: Chair of the National Integrity Center and former Municipal Council member Hamoud Oqla Al-Anzi has affirmed that diversifying sources of income necessitates clear vision and a comprehensive reform plan aimed at developing various economic sectors of services, petrochemicals, industry, and agriculture among others. In an interview, he stressed the importance of reviewing economic legislation to create productive markets that contribute to the national economy. Al-Anzi highlighted the need to rebuild the relationship between the government and the private sector, advocating for greater trust and expanded opportunities for the private sector’s participation on a wider scale. He called for a redesign of partnership programs to make them fairer and more competitive. Regarding his vision for diversifying sources of income, Al-Anzi said, “Diversifying sources of income requires a government with a clear vision and specific action plans based on realistic studies that adopt best practices in planning and implementation. Kuwait has huge potential to reform its economy, but this necessitates a comprehensive reform plan based on solid economic foundations. It is important to reform the various economic sectors, including services, petrochemicals, industry, and agriculture, as most are governed by outdated legislation that hinders the creation of productive markets. This has led to notable failures in the tourism, industrial, and agricultural markets, making it difficult for them to compete regionally or even within the Gulf.

Moreover, we need to improve the decision-making process, starting with the Cabinet by focusing on decision-making and supporting the Cabinet and the rest of the state councils, following the best international practices. A new methodology is required to evaluate the performance of the boards of directors of government agencies and institutions, as many of these entities require huge reform.”

Below are the details of the interview:
Question: Does the private sector have a role in diversifying sources of income?
Answer: Absolutely. The private sector plays a very important role in diversifying the sources of income . However, it is important to rebuild trust between the government and the private sector, as the government currently dominates all economic sectors, either directly or indirectly. On the other hand, the limited participation of the private sector is largely due to the lack of justice in dealing with all companies in the private sector, and the existence of challenges related to procedural integrity, weak competition, and insufficient support for the economic sectors. Furthermore, the partnership between the private and public sectors should be based on justice, as stipulated in the Kuwait Constitution. Unfortunately, some existing partnerships with the private sector are unfair, allowing certain companies to gain many benefits while contributing minimally to government welfare programs. This is particularly evident in investment opportunities for housing projects, where a lot of land has been allocated for development at the state’s expense, but private investors have not provided real value to housing welfare initiatives. Therefore, it is important to redesign partnership programs to ensure they are fairer and more competitive.
Q: What is your vision for supporting local products and localizing handicrafts?
A: The current measures to support local products are quite modest, primarily due to their ineffectiveness. To enhance support, we need to reorganize the markets and set new regulations that enable local products to compete effectively. It is also essential to monitor the state’s preference for the consumption of imported goods that could be produced locally. Providing incentives for local producers, such as advance purchase orders or agreements, will facilitate the establishment of factories needed to meet these demands. It is also important to review the policies and procedures of the Public Authority for Industry (PAI). We must closely follow up all industrial usufruct agreements, monitor production, and set performance indicators for local factories. By addressing the existing challenges and setting clear targets for PAI, we can raise industrial production and boost the employment rate of national talent within local industries.

Q: What is your opinion on calls to impose taxes on foreign transfers to increase financial resources?
 A: It is premature to impose taxes on foreign transfers before exploring other avenues, particularly in relation to government contracts and capital projects. A percentage of all government or oil project purchases should be mandated to come from the local market. Measures must be taken to ensure that government spending remains within the country, thereby supporting local suppliers. Projects must be implemented to encourage individuals to spend locally and reduce foreign transfers. This requires a strong economic growth plan aimed at attracting local expenditures and decreasing reliance on foreign transfers.

Q: What are the current challenges in the recycling industry?
A: Investment opportunities in manufacturing industries are limited due to a shortage of available land and restrictive procedures by government agencies regarding the issuance of recycling licenses. This has resulted in weak competition and a low level of recycling industries. There is an urgent need to reform the legislation governing the Public Authority for Industry and the Environment Public Authority, as well as to streamline business management procedures to better support investment opportunities in the manufacturing sector.

Q: How can contract farming support the agricultural sector?
A: It is important to support farmers’ markets but good intentions alone are not enough. It is necessary to take a comprehensive approach to the local agricultural sector by promoting contract farming between farmers and agricultural product distributors. Importers of vegetables should be required to purchase a percentage of their imported quantities from the local market. This could be achieved by granting import quotas for vegetable products that are contingent upon the purchase of local produce.

Q: What is the potential of the Kuwaiti tourism market?
A: The experiences of other Gulf countries in the tourism sector have been quite successful. Kuwait too can be successful in this regard as it has many elements necessary for a thriving tourism economy. With its beautiful islands and a strong local demand for entertainment options, the tourism market in Kuwait has huge potential. However, this potential can only be realized if appropriate opportunities and projects are available.

Q: What is the trend regarding increasing service fees, and how will it impact citizens?
A: While some service fees are quite low and may need to be reconsidered, any general increase in service fees must be accompanied by a significant improvement in the quality of service. Moreover, such increases should be contingent on economic growth that enables citizens to handle additional living costs.

By Marwa Al-Bahrawi
Al-Seyassah/Arab Times Staff