KUWAIT CITY, Jan 13: A local consultative center monitored a number of obstacles and challenges that hinder the contribution of private sector to GDP due to poor decision making and lack of opportunity for local companies in implementing their productive and operational investment initiatives to enhance contribution of private sector to economic growth, reports Al- Nahar daily.
The center identified 10 weak points that form obstacles to private sector contribution to GDP, coinciding with the implementation of annual development plans and Kuwait Economic Vision 2035 in the coming period.
The points are: failure of the government to continue establishing major joint stock companies, non-availability of industrial chambers independent of the commerce, poor financing and support of small and medium enterprises (SME), failure to implement and execute privatization program for the sectors, and slow procedure of amending legislation and regulations that impede the growth of the private sector.
It also includes; lack of policy guidance to restructure public resources, failure to apply adequate quota exceeding 30 percent to support and commercialize the national product within the procurement of government sector and contracting, slow opening of the market for foreign investments, poor focus on transformation manufacturing, retail, technical, tourism, maritime transport and airports, and, adding the rate of investment expenditure to the general government expenses.
The daily quoting a source affirmed the annual development plan aims to increase the contribution of private sector in the GDP from 26.4 percent to 41.9 percent by 2020. It will be done by developing land and sea transport projects, and extending the longest network of main roads through bridge projects, chief among them Sheikh Al-Jaber Bridge. He indicated the navigation channel of Shuwaikh Port and development of the international airport will accomplish the involvement of private sector in development.