Executing economic reforms, speeding up legislations and providing foreign investors with more investments opportunities to enter the market will contribute in turning Kuwait into a regional financial and commercial center.
“Especially since Kuwait enjoys strong economy supported by accumulated oil surpluses,” said Director of Research Department at Al Themar Economic Consultants Establishment, Nazeh Abdulaziz.
Abdulaziz confirmed that mega projects such as Boubyan Port and Silk City will strengthen Kuwaits economy and increase channels of income. He further explained that reconstructing Iraq can provide Kuwaiti companies with great opportunities due to proximity and traditional relations between the two countries.
Commenting on the global financial crisis Abdulaziz said that investment companies were affected by the impact of the crisis because they had followed the American hedge funds. He explained that the hedge funds went in a fast race resulting in exaggerated loans, “while many professional writers had warned about the coming financial crisis but no one had listened,” he said.
He added that everyone thought that the American economy will not recover, but this is incorrect as it is one of the strongest economies in the world.
Explaining the reasons that led to the financial crisis, Abdulaziz stated that the market got saturated with products and customers were encouraged to purchase anything they wanted without paying any cash, consequently when the bubble of mortgage was exploded, owners wanted to sell their properties but no one was interested to buy. “I believe we have passed the worst days of the crisis and soon oil prices to rise up due to high demand, and investors trust in the market has increased.”
Regarding the reconstruction projects Iraq and how Kuwait can avail the opportunity, Abdulaziz said that Kuwait still has a chance to enter the Iraqi market due to its high population, constant growth and need for goods and services. However, he pointed out that Kuwaiti business owners rather wait before launching towards this huge market, and they will get back to this market once the security situation improves.
“Only then Kuwaiti commercial activities will get into action similar to Turkish companies in the north of Iraq, Jordan in the west and soon from the south, where goods will pour into Iraq from Kuwait. At the time being Dubai is taking the role of Kuwait, especially since it is capable of providing Iraqi consumers with readymade and stored goods only waiting to be shipped away,” he said.