Maximizing GDP ... this is not how camels are watered

15/02/2026

Ahmed Al Jarallah

15/02/2026

Ahmed Al Jarallah

Maximizing GDP ... this is not how camels are watered

We return again to agricultural and industrial holdings to emphasize that solutions are possible if there is a serious vision for increasing national income. Agricultural and industrial holdings are among the most important avenues of a productive economy that can contribute to the state budget and help bridge the deficit. If the goal of distributing farms to citizens is to enhance food security and strive for self-sufficiency, then a second goal should be to enable the owners of these holdings to earn a living from their income and prevent further losses to public funds.

Therefore, those who have utilized small plots to support their production at no cost to the state should not be penalized as if they have committed a major crime. On the contrary, they should be supported for their innovation, as they have simply reduced the burden on public funds. Moreover, if taxes were applied to these projects, the beneficiaries would likely pay them willingly and happily. For example, last week I visited a farm that its owner had transformed into a bird sanctuary, housing birds of every species and equipped with facilities for a restaurant and café.

The farm was visited by members of the diplomatic corps in Kuwait, as well as citizens and residents. The owner bears all costs personally because he is prohibited from establishing a café, restaurant, or any other business. There are dozens of similar cases where farms have been subject to decisions restricting their activities, and owners have been threatened with severe penalties if they attempt to launch projects that would increase their income. In fact, these are the very people who drive the local economy.

These pressures are compounded by the annual rent that owners of agricultural or industrial holdings must pay on schedule. If circumstances force them to delay payments, they face hefty fines that could threaten the viability of their projects, even if they have benefited from the holdings for 30 or 50 years. Such pressures can drive some beneficiaries into bankruptcy, whereas in most countries, land used for productive projects becomes the property of the investor. Why not transfer ownership of all industrial and service holdings in Shuwaikh and elsewhere to the beneficiaries, instead of requiring them to pay annual rent? Taxes could be applied to the goods produced by these holdings, which would encourage trade and stimulate consumer spending.

It is well known that countries do not adopt measures that hinder the work of individuals and institutions; instead, they support and assist them in reducing the burden on the state. In such countries, business owners are not restricted or subjected to daily inspections, and judicial powers are exercised only within the bounds of the law, not as a tool to retaliate against investors.

Oversight in these countries is conducted solely for the benefit of all, and investors are not weighed down by excessive costs. Budget deficits are not solved by reducing salaries, arbitrarily increasing fees, or making impulsive decisions. Such measures drive investors and business owners out of the market, leading to a contraction of the local economy. On the contrary, budget deficits are addressed and national output is maximized by encouraging productive and industrial projects, reducing the food import bill, and establishing modern factories, medical facilities, and educational institutions. These initiatives stimulate production, after which the state can impose fair taxes, as is done in other countries.