The concern about how a State can domestically invest its sovereign wealth, particularly if the national economy and size are seemingly too small to absorb vast capital, is easily addressed from several perspectives. The real strength of a country is not determined by its physical size. Instead, it is measured by the quality of its strategic plans and projects, as well as the effective allocation of its funds. For instance, some countries smaller than Kuwait have robust economies. Others have successfully utilized development projects to generate significant revenue, because they have a clear and well-defined economic vision. Kuwait has the potential to become a global hub.
This vision can be realized by establishing 50 to 100 diverse universities, attracting international students, provided they can operate with minimal regulatory hurdles. Furthermore, there is a huge room for growth in medical tourism. Kuwait should aim for 30 to 50 specialized international hospitals, along with the necessary hotels to accommodate these visitors and others. Another crucial, low-space-intensive sector is technology and software. Various countries are heavily investing in this area, which Kuwait must also prioritize. Finally, the industrial sector requires strong government encouragement to reduce dependency on imports—even for basic goods.
Instead of hindering industrialists, the government should ease current pressures and offer incentives to allow them to operate freely and boost local production. Kuwait has enormous potential to diversify its economy and reduce reliance on public funds, mirroring the success of other Gulf countries. The agricultural sector is a vital area for development, where there is scope for strengthening holdings to achieve self-sufficiency and revitalize exports—a practice that Kuwait historically engaged in (like exporting roses). Agricultural tourism is also a crucial source of financial return. In addition to this, the pursuit of entertainment projects can help alleviate the fiscal burden on the State, as previously discussed.
It must be reiterated that Kuwait is not in a position worse than its neighbors, as Gulf countries worked hard to build diversified economies. For example, non-oil revenues account for about 70 percent of the gross domestic product (GDP) in the United Arab Emirates (UAE) and approximately 50 percent in Saudi Arabia. The Cabinet members must consider these facts. Considering all the necessary resources are available now, they are well-equipped to launch a comprehensive development plan aimed at revitalizing the national economy and welcoming domestic and foreign investments.
This objective is achievable, as the nation’s expatriate workforce and visitors are considered important assets. Other Gulf Cooperation Council (GCC) nations demonstrated this success by opening their borders to everyone and establishing diversified economies without creating hardship for their own citizens. A crucial point is that those who constructed the towers, cities and factories in those countries did not take their creations with them. They eventually left, but the buildings and infrastructure remained. In this context, I am reminded of the late Sheikh Rashid bin Saeed Al Maktoum. In the early 1980s, when some influential figures from Dubai voiced objection to Kuwaitis purchasing land and developing properties in the Emirate, he offered a powerful perspective. His response to them was: “These people are building in Dubai; they will leave, but the buildings will remain.” The priority should be marketing opportunities wisely and proudly, not obstructing economic activity. Wisely investing a significant portion of sovereign wealth is crucial.
Transforming the North and South into dynamic economic zones will generate thousands of jobs, support domestic products, boost State revenues, and diversify income streams. It is counterproductive to be stuck in outdated methods like simply raising public fees, which is akin to wasting resources and failing to build a productive economy. For instance, when the Ministry of Health raised fees for residents, those subject to the increase inevitably raised their own prices. Ultimately, this burden falls on the government, not on companies or the general public. Countless avenues exist to increase the national product. The key is having competent leadership capable of navigating this situation.
