Mr. Al-Anzi emphasizes the need for Kuwait to diversify its income sources.

Chair of the National Integrity Center and former Municipal Council member Hamoud Oqla Al-Anzi has stated that diversifying income sources requires a clear vision and a comprehensive reform plan aimed at developing various economic sectors, including services, petrochemicals, industry, and agriculture. In an interview, he emphasized the need to review economic legislation to foster productive markets that contribute to the national economy. Al-Anzi underscored the importance of rebuilding the relationship between the government and the private sector, advocating for increased trust and expanded opportunities for private sector participation. He called for a redesign of partnership programs to ensure they are fairer and more competitive.

Regarding his vision for diversifying income sources, Al-Anzi stated, “Diversifying income sources requires a government with a clear vision and specific action plans based on realistic studies that adopt best practices in planning and implementation. Kuwait has significant potential for economic reform, but this requires a comprehensive reform plan built on solid economic foundations. It’s crucial to revamp various sectors, as many are governed by outdated legislation that hampers the creation of productive markets. This has led to notable failures in tourism, industry, and agriculture, making it difficult for them to compete regionally or even within the Gulf.”

Al-Anzi also highlighted the need to improve decision-making processes, beginning with the Cabinet, by focusing on supporting effective governance and adhering to international best practices. He emphasized that a new methodology is necessary for evaluating the performance of government boards, as many agencies require substantial reform.

Below are highlights from the interview:

Q: Does the private sector have a role in diversifying income sources?
A: Absolutely. The private sector is crucial for diversifying income sources. However, rebuilding trust between the government and the private sector is essential, as the government currently dominates all economic sectors. Limited private sector participation stems from inequitable treatment of companies, procedural challenges, weak competition, and inadequate support for economic sectors. Partnerships should be based on fairness, as mandated by the Kuwaiti Constitution. Unfortunately, some current partnerships favor certain companies, allowing them to gain significant benefits with minimal contributions to government welfare programs, particularly in housing projects. Thus, it’s vital to redesign partnership programs for greater fairness and competitiveness.

Q: What is your vision for supporting local products and localizing handicrafts?
A: Current measures to support local products are insufficient. To enhance support, we must reorganize markets and create new regulations that enable local products to compete effectively. It’s also important to monitor state preferences for imported goods that could be produced locally. Providing incentives, such as advance purchase orders for local producers, will help establish factories to meet demand. Additionally, we must review the policies of the Public Authority for Industry (PAI) and set clear performance indicators for local factories to boost production and employment of national talent.

Q: What is your opinion on calls to impose taxes on foreign transfers to increase financial resources?
A: It is premature to impose such taxes without exploring other avenues, particularly concerning government contracts and capital projects. A portion of all government or oil project purchases should be sourced from the local market to keep spending within the country and support local suppliers. We need projects encouraging local spending to reduce reliance on foreign transfers, backed by a strong economic growth plan.

Q: What are the current challenges in the recycling industry?
A: Investment opportunities in manufacturing, particularly recycling, are limited due to a shortage of available land and restrictive licensing procedures. This results in weak competition and low recycling activity. Reforming the legislation governing the Public Authority for Industry and the Environment Public Authority is essential, alongside streamlining procedures to better support investment.

Q: How can contract farming support the agricultural sector?
A: Supporting farmers’ markets requires a comprehensive approach, including promoting contract farming between farmers and distributors. Importers should be required to purchase a percentage of their imports from the local market, contingent on buying local produce.

Q: What is the potential of the Kuwaiti tourism market?
A: Kuwait has significant potential in tourism, similar to other successful Gulf countries. With beautiful islands and strong local demand for entertainment, the tourism market can thrive if appropriate opportunities and projects are developed.

Q: What is the trend regarding increasing service fees, and how will it impact citizens?
A: While some service fees may need reconsideration, any general increase must be matched by significant improvements in service quality. Additionally, such increases should depend on economic growth that allows citizens to cope with higher living costs.