Dear Minister of Commerce, you have much to do and quickly

25/05/2025

Ahmed Al Jarallah

25/05/2025

Ahmed Al Jarallah

Dear Minister of Commerce, you have much to do and quickly

IN countries around the world, governments encourage investors and entrepreneurs by offering various facilitations aimed at enhancing economic security. In some cases, they may even overlook minor violations in the hope that this can help stimulate economic growth and boost GDP. These nations employ a range of strategies to attract and retain investment. This is the fundamental basis of a productive and resilient economy, one that reduces dependence on imported goods and food products. In contrast, Kuwait continues to rely heavily by up to 90 percent on imported commodities and on providing public sector employment, while the private sector remains largely overlooked. According to reliable reports, the reason is the absence of a clear and strategic vision for the local economy, due to a lack of sound government planning.

There is no doubt that a structural crisis exists, yet the government agencies’ response remains limited to reactive measures, such as imposing blanket bans over minor violations not only on the actual violator but also many others who are not involved. In some cases, such measures are taken based merely on rumors circulated on the X platform. Such measures only deepen the recession and stall the economic cycle. This raises a pressing question: How can Kuwait aspire to become a global commercial and financial hub while pressuring entrepreneurs and driving away investors and capital? There are many indicators of this crisis, most notably the withdrawal of agricultural and industrial plots from beneficiaries.

The revocation of agricultural plots promotes reliance on imported food at the expense of national agricultural production, which poses a serious threat to Kuwait’s food security. The withdrawal of industrial plots raises even greater concerns, as it often stems from short-sighted decisions based on unverified or malicious complaints, or from mismanagement by executive officials within the relevant institutions. In some cases, these decisions appear to serve the interests of individuals who are willing to pay more. Kuwait has struggled with an inverted administrative pyramid for decades. Kuwait continues to rely heavily on importing its most vital commodity - food.

While there have been some cautious and limited efforts in the past to boost local food production, these initiatives were often derailed by the interference of influential figures, including former MPs and even ministers, out of envy. Strategic security extends far beyond military and security capabilities. Food security forms its very foundation, closely followed by industrial security. For this reason, countries make every effort to strengthen both sectors as much as possible. Dear Minister of Commerce and Industry, you have much to do ... quickly.

On this basis, US President Donald Trump adopted a project to encourage manufacturing in the United States. He started by imposing trade tariffs on many countries, and then recently issued an executive order placing high tariffs on cell phones manufactured outside the US. Trump then urged American businesses to bring their manufacturing back home. In China, deserts have been transformed into fertile land through the use of treated water, which is recycled multiple times via advanced purification processes. This ambitious project is known as the “Great Green Wall.” Similarly, Saudi Arabia has launched similar projects for turning vast desert areas into lush, productive fields. Kuwait needs to encourage everyone. Impose heavy penalties on beneficiaries who violate regulations on agricultural plots. Actively encourage and support those who comply and strive to develop agriculture by offering additional facilities. The government should not hinder investors working on industrial plots.

They should be assisted and allowed to add additional outlets to their industries when necessary. It is time to abolish the outdated Certificate of Description, which has increasingly become a tool used to deliberately obstruct investors. As highlighted in the Al-Shall report: “If Kuwait wants to ensure sustainable stability in a turbulent world, it must reduce its reliance on oil and the future generations' reserve fund. The government must establish new foundational pillars along with the aforementioned two bases.”

The main pillars in this regard are agriculture, industry, and transforming the country into a logistics hub like Dubai, rather than persecuting farmers and industrialists or withdrawing their plots. The government should focus on developing non-oil sectors by boosting local production, developing industry, and investing in logistics, technology, and tourism, instead of insisting on viewing things from a narrow perspective. Agriculture, food security, light industry, and manufacturing form the backbone of any nation. Therefore, these sectors must be actively encouraged through numerous incentives.