Kuwaitis can benefit from new Gulf situation THE Kuwaiti government has always insisted that one of its future aims is to transform the country into a regional economical and financial center. In order to do so, its started inviting foreign investors, international corporations and well-known financial institutions to invest in Kuwait local market. In fact, true to its word, the government has recently lowered the tax required from foreign companies from 50 to only 15 percent. In addition, with the launching of the Gulf Common Market in January 2008, Kuwait, like the rest of the Gulf States, is due to undergo what amounts to a fundamental economic transition. Signing up for the common market should mean that all Gulf states’ citizens can now move freely between the six Gulf states to seek employment, education, deal in local stock markets or buy and sell properties, etc.
This imminent economical transition will certainly take its toll on ordinary Kuwaiti citizens and may complicate their economical and financial situation further if we do not deal with it properly! One, for example, can relate the current popular demands for writing off loans, the repeated calls for raising salaries and numerous other financial flaws to this period of economic transition. The government has to take this serious issue into consideration and deal rationally with the expected ramifications of this economic change by pointing out the positive consequences of transforming Kuwait into a regional financial center.
Better than leaving ordinary citizens to cope with the new economic realities on their own, the government should illustrate with facts, figures, intensive media coverage and if need requires, studies and statistics, to explain to its citizens that they can in fact benefit from the new situation. For example, transforming the local market through allowing the establishment of international businesses should provide more opportunities for investing money, expanding our local exchange, the establishment of new high profit funds, reduction of taxes, the availability of new commodities, and the providing of numerous solutions to individuals’ daily needs, etc.
In addition, with the launching of the Gulf Common Market, Kuwaiti individual investors can have more choices when it comes to investing their money. Kuwaiti citizens for example can invest in the promising Saudi Exchange, buy very easily properties in the Emirates, and enjoy educational and health services in all Gulf states on an equal footing with those countries’ nationals. In other words, our new economic realities should provide interested Kuwaiti individuals and businesses with numerous opportunities to try new enterprises here in Kuwait or next door! Coping with economical transitions of any nature, especially those affecting the lives of ordinary individuals, needs time. They need time to digest this new reality, they need time to understand what it can offer them, and they certainly will need more time to adjust to its prospects and challenges.
Khaledaljenfawi@yahoo.com
By Dr Khaled Aljenfawi
Arab Press
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