IRANIAN leaders may decide to buy the largest share of Kuwait Airways in case the government decides to privatize the corporation. They can also do the same with Zain and Kuwait petroleum companies. This is possible especially at a time when the sale of 46 percent of Zain shares continues to draw reactions not related to the bidding itself but the future owner. Some people may find this unbelievable but it is possible due to the advent of the so-called globalization of investments. This is manifested in how the Kuwaiti government saves money in foreign banks, leaving the domestic banks with nothing, hence, their inability to meet loan obligations due to some policies of the Central Bank.
The truth was revealed when we talked about the Zain deal and stressed the need for Kuwait to maintain ownership of the largest share in telecommunication companies through funds and government establishments. Under these circumstances, we can use public money for profitable investments or invest in Zain while trying to collect a huge amount to pay bank loans in accordance with the demand of the Central Bank. Recent reactions indicate the people’s appreciation of our recommendation to use public funds for profitable activities. This is also necessary to maintain the Kuwaiti identity of Zain, rather than allowing it to become an Indian, Iranian, Pakistani or Iraqi company.
Some people think making too much noise about the Zain issue is the key to opening doors for foreign investors with the intention of taking over the telecommunication company. This could expose us, in one way or the other, especially in terms of protecting the privacy of customers. The Lebanese experience in allowing Hezbollah to control the telecommunication companies is enough for us to reconsider our decision. It is logical for us to ponder on the loss we might incur due to our carelessness over this issue. We should know who buys and controls Zain or any other Kuwaiti company. Our loss will not be limited to exposing our secrets but also losing one of our strategic investments in several countries.
Kuwaitis are proud and delighted whenever they see the Zain logo in other countries, wishing for further expansion in operations, income and plans. What scares us the most — with due respect to Arab, Indian, Pakistani or Iraqi investors — is the likelihood of our secrets being leaked and the buyer being favor of concealed financiers. In this way, the buyer would implement plans of the latter against the country. Some people may say money and business are no longer controlled by conspiracy, such that the likelihood of a known buyer being sponsored by a hidden entity is nil. In this case, we will definitely reject the buyer’s ownership of the company due to the grave threat he poses to the nation. If we have not yet seen this scenario, we should not disregard the probability of its emergence at any point in time.
A major question now comes in — What prevents Iranian money from reaching the Indian or Malaysian allies? Does Iran lack the ability to invest in an Indian company even if it is government-owned inasmuch as the purpose is against the GCC nations? I believe this is possible. We are concerned because we are against such propositions. It is our national duty to warn against an imminent danger, even if it occurs after several decades.
Can we bequeath the agony for our children due to wrong investments in strategic companies, which sustain people through telephone services? Can we justify the action by attributing it to the globalization of capital? Some people fussed about our previous statement, thinking we were against the privatization policy, which we wholly support by word and action. We regard this as a misunderstanding of the issue. We did not ask for cancellation of the sale of Zain shares to local investors. We are not against the right of shareholders to sell their shares. We only oppose the sale of lucrative companies to foreigners while we are looking for the best way to invest public funds. We also support the privatization of Kuwait Airways, but we want to limit government participation in its management due to huge deficit records. We want private hands to transform the company from a liability to asset. We expect those who will receive Zain shares from the government to invest in Kuwait Airways during the privatization process.
There is no gainsaying that the government agencies with huge financial muscles can buy shares from several other airlines, apart from Kuwait Airways, because our national carrier cannot raise the Kuwaiti flag, which is owned by Indian, Iranian, Iraqi or Pakistani investors. One day we will be surprised to find our companies, which are an integral part of our investment history and we nurtured through thick and thin, have gone into the hands of those who have been trying to ambush us. These people will feed fat on us while Kuwait Investment Authority (KIA) continues to invest abroad with high prices and relatively low profits. Questions trail the sale of some companies, including Wataniya Communications, to foreign investors.
We want to clarify the difference between the Arabian Gulf and the so-called Persian Gulf. The former are our brothers, our extension and strategic protectors, so there is no point comparing Wataniya deal with that of Zain, since we have not seen foreign investors in the former, while the latter remains an Indian fund in the open but the actual source is still ambiguous. KIA and other public financial agencies should realize that Zain is better than real estate properties worth billions in Japan, US and UK, with low profits due to high taxes we pay from the investments.
Another thing is that Kuwait has a high stake in other communication companies without any complaints from the concerned countries because our nature and objectives are different from other investors. We only invest for the sake of investment without dabbling into internal politics, yet others base it on purely political interest, which is the source of our worry. I hope the picture is clear while the ball is in the government’s court.
In other words, do not bequeath any Kuwaiti company, which plays a strategic role in our daily activities, to any Iranian agent to manage from Kuwait.
“Oh God be my witness so I can deliver the message.”
Email: ahmed@aljarallah.com
By Ahmed Al-Jarallah
Editor-in-Chief, the Arab Times