In his statement a few days ago, Finance Minister Dr. Yaqoub Al-Rifai emphasized the importance of “collecting fees from citizens.” This is the right of the state. If the previous governments failed to collect arrears, it is not the fault of the citizens. However, the extraordinary circumstances the country has been facing since the COVID-19 pandemic must be taken into account. Since 2020, many owners of industrial and agricultural plots, as well as ordinary citizens, have suffered difficult circumstances.
Everyone knows this caused financial hardship, especially since they have obligations to banks, their employees and operational expenses. This puts pressure on them and leads to delays in payments, particularly rent for plots and holdings, and the resulting fines are added to their burdens. Rights are like a sword hanging over the necks of citizens, investors, service providers, industrialists and others—no one denies or tries to escape from this reality.
Nevertheless, when the state exerts pressure on them by suspending licenses, closing factories, confiscating land or even halting services, it increases their burdens and pushes them to delay payments, especially since there is no directive from the Central Bank of Kuwait for commercial banks to be lenient in dealing with the borrowers. Meanwhile, in neighboring countries, particularly the other Gulf states, there are many facilities for investors and usufruct rights holders, because the goals are continuity and encouraging people to spend by facilitating their business operations.
Unfortunately, the opposite has been happening in Kuwait since that ill-fated pandemic. The current war even exacerbated the difficulties and reduced commercial, industrial and agricultural activities, which prompted many business owners to reconsider and scale back their operations instead of expanding them. The current regional circumstances necessitate encouragement.
Furthermore, some decisions have been made that put a heavy burden on investors, including the prohibition on selling plots or usufruct rights, even though their owners have built and invested significant sums in them for 30, 40 or 50 years. This undoubtedly limits investment.
Your Excellency, Minister of Finance, Dr. Yaqoub Al-Rifai, as you know, a sound financial cycle, especially in exceptional circumstances, involves encouraging increased production to achieve strategic benefits. As a seasoned expert with extensive experience in finance and academia, you are fully aware that in dire circumstances, countries strive to alleviate the burdens of citizens to ensure social stability, which is the cornerstone of the resilience of societies and nations. The most important principle in exceptional circumstances is ensuring the availability of cash in the hands of the people and halting decisions that exacerbate commercial and industrial anxiety. Instead, we should provide facilities to help people overcome this difficult period with minimal harm.
For example, this necessitates requesting commercial banks to suspend loan repayments and facilitate borrowing. Otherwise, it will only lead to more trouble. What does the bank or the state gain from seizing equipment or closing factories? Realistically, nothing. In fact, it results in losses. Nonetheless, if there is easier access to credit, borrowers will increase their loan repayments and develop their industries, businesses, or agricultural holdings once the situation stabilizes.
No one in Kuwait is calling for the cancellation of fees, dues owed to the state, or loans. But given the current circumstances, which have persisted since 2020 when the country was under lockdown for 163 days during the COVID-19 pandemic, and now in the midst of war, the Cabinet must reconsider its decisions. These difficult circumstances should be transformed into opportunities for development, making Kuwait more resilient in facing challenges, whatever they may be. The role of governments is to pave the way for the future, not to retreat into isolation. Also, from us to His Excellency Minister of Commerce and Industry Osama Khaled Abdullah Boodai, regarding his responsibilities: The motto of the people of Kuwait is, “Moderation is the best.”
