KUWAIT CITY, Oct 12, (KUNA): Secretary General of the Union of Investment Companies Dr Ramadan Al-Sharrah said on Monday overall private sector’s investments in the State development projects amounted to KD 3.5 billion in 2015. In a statement, Al-Sharrah said the new corporate law aims at boosting direct foreign investments, also noting in this respect that the business sector provides up to 27-30 percent jobs of the private employment sector — the second non-oil contributor to the gross domestic product (GDP).
Moreover, investment companies have played a leading role in overhauling the domestic financial markets; by supplying the investors with valuable information, alter-native financing tools, in addition to providing greater opportunities to diversify entrepreneurs’ assets with many products and funds. Number of investment companies registered at the Central Bank of Kuwait and the Capital Markets Authority reached 95.
Total managed assets by the CBK-registered companies reached KD 10.5 billion, along with capitals of investment companies, estimated at KD 4.5 billion. Regular accounts of these companies amounted to some KD 19.6 billion, while liabilities, KD 10.5 billion. Al-Sharrah expressed his belief that moralistic, social and environmental rules that regulate work of these companies should be re-examined in view of the global financial crisis, noting that their task should not be restricted to rapid profits and should be developed to contribute to sustainable development.
Elaborating, he said financial allocations earmarked for the national economic ventures amounted to some KD five billion (2015-2016), adding that the development plans aim at lifting the private sector’s non-oil stake in the GDP by 56.5 percent. Increasing contribution of the private sector in the GDP can be attained via allocating more land to launch industrial projects, small and medium enterprises, preparing a proper business ennvironment and updating relevant legislations for sake of hasting the private initiatives and boosting competition.