Kuwait – Kuwait’s Finance Ministry Undersecretary Khalifa Hamada said on Tuesday that Kuwait’s economy suffers from glaring structural errors induced by accumulations that have stalled development.
Hamada said that the government should monitor economic procedures and enhance collaboration with the private sector.
Furthermore, Hamada stressed that financial reforms are key to economic reforms.
He listed numerous factors that could help eliminate any hindrances to growth, mainly including the addition of non-oil revenues and rationalization of public spending, measures he described as the two focal points of financial reforms.
In his speech at the opening ceremony of “Euromoney 2016 Conference,” Hamada, who spoke on behalf of Deputy Prime Minister, Minister of Finance and Acting Oil Minister Anas al-Saleh, said that bureaucracy has encumbered economic production.
Moreover, Hamada noted that the flaws are also the result of irregularities in the job market, saying that the government has struggled to provide employment opportunities for nationals which created a challenge.
Hamada said that the nation’s budget heavily relies on oil revenues, which could be damaging to Kuwait’s economy. He also noted that public spending should center on efforts to maximize production capacity to ensure sustained development.
The undersecretary also pointed out that administrative and institutional reforms will increase efficiency and lure local and foreign investment.
Hamada also spoke of a series of measures taken by the Ministry of Finance pertinent to the budget for the fiscal year 2016-2017. A number of public services and products are being reviewed to ensure better prices and quality, thus contributing to boosting non-oil revenues and improving the country’s financial structure.
National Assembly Speaker Marzouq Al-Ghanim said on Tuesday that he has invited the government and MPs to a meeting next week to discuss the rise in fuel prices.
Ghanim issued a statement saying that the parliament seeks to protect citizens and ensure that they remain unaffected by the increase in fuel prices. He added that there has been a consensus over the need to hold this meeting.
“We are looking for results that protect citizens, not electoral or ideological gains,” Ghanim noted.
Chief executive of Boursa Kuwait, Khaled Abdulrazzaq al-Khaled, announced that of Thursday, Boursa Kuwait will become a private company.
He said that Kuwait’s stock exchange will introduce a limit of 20 percent for the maximum daily rise or fall of individual stocks by November which operates the exchange.
The exchange will also introduce a circuit breaker mechanism providing for brief halts in trade with every move of 5 percent, he added. The new rules will replace the current range of limits for stock movements; these limits vary depending on the level of stock prices.