As the Kuwaiti Recession Begins… October 28, 2008
Posted by mylastresort in analysis, rumors.Tags: Collapse, economy, Finance, Future, Gulf bank of Kuwait, kuwait, Parliament
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In moments of crisis, rumors seem like facts and assumptions are distorted into realities, and as chaos wreaks havoc, irrationality unfolds to become sanity.
As the new chairman of Gulf Bank of Kuwait (GBK) attains his novel seat amidst the greatest financial disaster ever to linger over Kuwait his first words wielding a cigar in his left hand and balancing his documents in the other are: “remain calm.” A simple fact remains Qutaiba was, is, and will remain one of the wealthiest persons in the universe. (more…)
Kuwait’s future is (blank) June 18, 2008
Posted by mylastresort in analysis.Tags: analysis, Corruption, Crisis, Education, Environment, Future, investment, kuwait, Parliament, Police, politics, Security
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To those who said we have reached the bottom (and it cant get worse) I suggest we DONT wait and see who is right:
Politically incorrect policies implemented by the Parliament
One of the best examples is the politician who was accused of vote-buying in elections joins the committee on safe guarding public funds. The same parliament initiates a committee to overlook and enforce Kuwaiti customs and traditions (I have yet to meet a family who has the same customs and traditions as mine?)
Bureaucratic government policies
Government policies have proved so inefficient that a miniscule sector was created to fill the gaps. This small sector is run by friends, or acquaintances, of government sector employees who complete various tasks rapidly in return for a fixed sum.
(This example is borderline corruption/bureaucracy)
Corruption
Extreme cases of corruption exist on all levels and through every sector and industry. Instead of fighting corruption in the country, Kuwait actually managed to raise its annual corruption index ratings. Money and influence (via wasta) are major sources of facilitating the damaging nature of the country.
Women must wear an Islamic headscarf June 2, 2008
Posted by mylastresort in analysis.Tags: al-Humoud, Islam, kuwait, Kuwati, Minister, Mouthi, Parliament, politics
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When Mouthi al-Humoud, [female] new Kuwaiti minister, was taking the oath yesterday, Islamic MPs protested against her and interrupted her while taking the oath, but she continued. Following her oath, Islamic MPs announced that they would submit a rebuttal to the Constitutional Court, in order to censure Minister Mouthi al-Humoud. This is all because she does not abide by ‘the religious dress’, which is stipulated by the law* of granting political rights to woman.
Suggestion: Passing a simple regulation. To raise the minimum educational requirement to run for parliament from secondary school to a ‘recognized’ university. This will surely improve the outcome of future elections by bringing more competent members to political office.
* The law stipulates that women must wear an Islamic headscarf, whether she is a minister or MP.
KD 140,000 dilemma – Real Estate April 3, 2008
Posted by mylastresort in analysis.Tags: Banks, Central Bank, Companies, construction, Government, Ijara, kuwait, Land, Law, Parliament, Prices, Real Estate, Recent, Regulation
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The price of real estate in Kuwait had risen to ridiculous levels. Inflation in the country had risen to 6.7% in November ‘based on a 12.6% jump in housing’. A new law passed by Parliament prohibited banks and real estate companies from investing in residential real estate. Then a series of regulations passed by the central bank of Kuwait minimized the loans citizens could take to purchase homes. Real estate in Kuwait fell 20% – 40% in some areas.
Kuwait’s policy strategy plan 2009 – 2014 April 2, 2008
Posted by mylastresort in analysis, bahrain.Tags: Arab, bahrain, Countries, Dubai, Future, Government, Gulf, Investments, kuwait, Kuwait City, Kuwaiti, Manama, Oil, Outlook, Parliament, Policy, Policy strategy, Report, Strategy, uae, United Arab Emirates
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Information in a 2009 – 2014 policy strategy plan formulated by Kuwait’s planning council has been made public. The policy strategy is not strictly adhered to, nor is it marketed to the public, rather it is just a report amid many reports circulated by the government.
Here are a few of the plans:
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Boost non-oil economy (at less than 10% of revenue)
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Increase foriegn investment (become a financial hub)
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Sell land/Ease ownership rules (in preparation of post-oil era)
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Continue privatizations (eg. selling of Kuwait Airways Corp.)
Kuwaiti elections and economy March 23, 2008
Posted by mylastresort in analysis, rumors.Tags: analysis, Bad Debt, Cabinet, Citizens, Debt, Dewaniya, Economic, economy, Elections, Employment, Government, Gulf, investment, kuwait, Parliament, Permits, Political, politics, Risk, Salary
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Political risk is of high importance when measuring risk prior to an investment. The recent laws concerning real estate investments in the gulf country have decreased some land values upto 40%. Economic performance, especially in the real estate sector, is strongly linked to the politics of the country. Plans of transforming the country into a regional financial and commercial center have come and gone, repeatedly.Kuwaitis in general are extremely dependent on the government. The recent debacle of dewaniya demolition, bad debt repayment, salary increase and again, salary increase have shown the direct correlation the citizens place between the parliament and their pockets.
A Kuwaiti citizen is like an employee in a family company on vacation all year round and repeatedly asking for a pay raise. They are guaranteed employment and receive an increase in wages (regardless of contribution).
Kuwait has fallen behind its Gulf neighbors economically, but not politically. If the Gulf state can repair its political situation then it can begin to prepare its economic agenda. The plan for a regional financial hub, commercial center or logistics center for the region will only occur once the political sector is stable, sophisticated and willing to work based on ethics rather than vote count.Also see “Kuwaiti parliament and economy“
Kuwaiti parliament and economy March 20, 2008
Posted by mylastresort in analysis, bahrain.Tags: Bad Debt, bahrain, Debts, Deputy, Dubai, Economic, Elections, Emir, Finance, Government, Growth, Gulf Consulting Company, kuwait, Kuwaiti, May, Mustafa Behbehani, Parliament, politics, Reform, Regulators, Sabah, Stock Exchange
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News that the parliament would be dissolved sent the Kuwait stock exchange index up 1.54% to its biggest one day jump in two weeks, and a record high (14,445.40 points). Newly elected members would be seen to push through policies to spur economic growth in the country.
“There is a big disappointment with this assembly which has hindered economic reforms… there is hope that things will move in the right direction with a new assembly”
- Mustafa Behbehani, Head of Gulf Consulting Company
The long-term plan for Kuwait would be to mimic its Gulf neighbors and diversify its economy away from oil, such as Bahrain and Dubai, who have already established themselves as regional financial centers. (more…)
“No more increase in salaries”: Government (Kuwait) March 9, 2008
Posted by mylastresort in analysis.Tags: Budget, Government, kuwait, Parliament, Salary
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The government has stated that it will not increase the salaries of Kuwaiti public and private employees by KD 50 as it had already given them a KD 120 raise. The government pointed out that increasing the salaries of Kuwaitis by KD 50 would greatly affect the state’s budget and put too much of a burden on Kuwait in the future. A governmental source noted that the MPs who were for the new raise are not thinking of the well-being of Kuwait and are only thinking about their personal interests and about getting elected in the next elections.
Kuwait – MPs adamant on new KD 50 raise for citizens. March 4, 2008
Posted by mylastresort in analysis.Tags: Increase, inflation, kuwait, Parliament, Salary
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Provided by: Kuwait Times: A majority of lawmakers are apparently adamant in pushing for an additional KD 50 salary raise for citizens. The raise is in addition to the KD 120 already approved by the government last month. Three of the assembly’s main blocs have unanimously agreed on submitting a petition in today’s session. The same petition was reportedly rejected by the government through its constitutional powers a couple of months ago after being sanctioned by the National Assembly late last year.
