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Saturday , December 7 2019

‘Kuwaitis lack financial culture’

KUWAIT CITY, Dec 12: Contrary to what is said that Kuwaitis are good traders, several facts over the past years have proved the weakness of the financial culture of a large segment of the citizens and that the gap is large among the class of traders who have the inherited abilities and skills which are recognized but this segment is driven by the desire to make quick profits even if the risks are high, reports Al-Qabas daily.

One of the most recent crises in Kuwait was a result of this uncontrollable ambition, without regard to the simplest investment criteria and this is the issue of real estate fraud which caused losses to citizens worth billion dinars according to official estimates.

Citizens also lost billions of dinars in the Kuwait Stock Exchange and the savings and investments of thousands of citizens evaporated in the paper companies they subscribed without looking at the background of their owners or exploring the sources of revenue, as well as those who lost billions in random speculation, thus the market value of the stock market fell from about 64 billion dinars to just about 25 billion.

KAMCO’s Chief Executive Officer Faisal Sarkhoh said the high value of property in Kuwait and the decline in the performance of the stock exchange are the two most attractive channels for small investors’ funds, and this made them look for alternatives. He pointed out that the traps are many, whether through real estate or digital currencies and Time Share (unregulated in Kuwait) or the employment of funds in certain sectors with irrational returns. He called on the state to improve its regulatory tools, activate its role and play its awareness role, while emphasizing that investment is a specialization.

Those wishing to invest must use the specialists or follow the necessary measures to ensure the safety of their investment decision. The Ministry of Commerce and Industry has referred up to 200 new-old “complaints to the Public Prosecutor’s Office concerning the so-called real estate fraud”. The sources pointed out that all cases referred to belong to two real estate companies only, one owned and operated by a well-known businesswoman

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