Experts: Kuwaiti gov't 5-year-plan qualitative leap for economy 

(MENAFN - Kuwait News Agency (KUNA)) Two economists on Monday reaffirmed that the five-year plan set by the Kuwaiti government represents a "qualitative leap" for the Kuwaiti economy, opening new horizons for it.

No developmental plan can be unanimously agreed upon by society's various sectors, it only needed a majority approval, the economists pointed out during a session of Kuwait Financial Forum, which will be concluded later today.

Having a government plan, is by itself, a significant issue, especially in a state-run economy like Kuwait, as the plan of the government includes spending some USD 59 billion on projects, with USD 10 billion of which is the private sector's, former Kuwaiti minister of planning and administrative development Ali Al-Moussa said.

He added that a "social willpower" was also needed to execute the plan and transform it into a tangible reality, noting that cooperation between the state's legislative and executive branches was also needed, as the plan encompasses 23 economic laws that needs ratification.

Al-Moussa said that unexploited investment opportunities in Kuwait makes it a perfect candidate to be of the most active economies in the region, especially that Kuwait has the experience, assets and location on its side.

On his part, Director of the World Bank (WB) in Kuwait Radhwan Shaaban said that investment rate in Kuwait is lower than its peers in the region, which created the dire need to beef it up, and this is where the five-year plan kicks in.

Saying that Kuwait was well-off and in no need for foreign investments is simply "wrong", Shaaban pointed out, adding that flow of outside investments is a sign of a sound economic environment for any country.

If Kuwait aspires to turn into a regional and international financial and commercial hub, it should exert more efforts to improve its investment-encouraging environment, he noted.

Meanwhile a group of Kuwaiti businessmen, in a seminar held within the forum's activities, underlined importance of the financial stability bill in contributing to support investments firms in facing the global economic downturn and rebuild confidence in the local market.

Investment firms are seen as crucial gateways to the global economic crisis, as they table many options to find solutions for it, Manaf Al-Hajri, General Manager of Kuwait Financial Center (MARKAZ) said, pointing out that investment firms needed a rather small capital to establish.

On his part, board member of investment companies' union Abdullah Al-Gabandi said giving investment firms more space to maneuver helps in decreasing the state's independence on oil revenues, as it also would greatly contribute in fulfilling His Highness the Amir's aspiration to turn the country into a financial and commercial center.

Meanwhile, CEO of Al-Watani Investment Company Salah Al-Fulaij said the existence of some 100 investment firms in Kuwait is attributed to the relatively small amount of capital they need in order to be established.

The financial stability bill is "good", Al-Fulaij noted, yet it could not protect all companies, but only the well-established, serious and arbitration-abiding ones.