Majid Osman
Kuwait: In Kuwait, the value of projects awarded fell by 12.5% ($12 million) in July 2022, reaching a total of $84 million for projects awarded that month. In June, he was awarded projects worth $96 million, according to a report published by MEED Projects.
Kuwait ranked fourth in the GCC and sixth regionally, according to the report, while Qatar topped the list with $1.1 billion in July, followed by Saudi Arabia with $934 million. The United Arab Emirates signed her $819 million worth of contract in July, putting her in the top three deals.
In an interview with the Kuwait Times, independent economic researcher Maysam Al-Shafs explored the reasons behind the reduction in rewards for Kuwait’s projects and its possible impact on the national economy. Analyzed. He pointed out that the main reason for this decline is related to the political situation and controversy in the Diet.
“Political stalemate in parliament is a major reason for delays in awarding projects. “It would have been better than a political struggle over the nomenclature formality issue,” he argued. Whoever says things, show him them,” he said.
“The lack of major infrastructure projects in the country can also lead to a flight of investment from international companies and the country. If neighboring countries start certain important projects, naturally these investors will Go to those countries and Kuwait loses the competition.Remember, Kuwait had some important projects envisioned, while other GCC countries began to implement them. They ended up in withdrawals,” Shakhs pointed out.
“The declining proportion of awards is a setback for future projects, modernization programs and development plans. Major infrastructure projects are needed to keep up with global markets in the race to transform Kuwait into a financial and commercial hub.” is,” he said.
Gulf experience
“The experience in the Gulf is the best proof. When Qatar announced it would host the World Cup, the country launched several ambitious projects with specific blueprints, such as logistics, stadiums and other related infrastructure projects. As a result, the proportion of contracted orders in the country has increased significantly.Infrastructural developments, as in the case of the United Arab Emirates (Dubai Expo) and Saudi Arabia, have led to major international events today. We can now host,” Shakhs explained.
“When we talk about losing competition to our neighbors, we also need to consider the potential future losses the country will incur in its efforts to transform itself into a commercial and financial center. and delays in planning and executing them will slow down the transformation process.
Disagreeing with opinions televised in some quarters that a reduction in Kuwait’s project fees could help the government reduce its budget deficit, he said this was a negative idea. For example, if capital expenditures have decreased while the salary percentage has increased by 1-2%, that is negative financial management, not positive change,” he said.
“Thus, the process of implementing Kuwait’s major infrastructure projects and transforming the country into a financial and commercial center is a key issue that depends heavily on capital investment. The issue of capital expenditure allocation is the responsibility of parliamentarians It starts with the legislation that is, and ends with the government that is the implementer of the project,” he concludes.
