Kuwait Local Time

Latest Kuwait News

Privatization of Kuwait national airline gets nearer

As per the latest decision by a Parliamentary committee, the privatisation of national airline in Kuwait, will in-turn reinvigorate a long-stalled programme to open up ownership of other state enterprises, or, part of them to the private sector.


The National Assembly, in early January, announced that it had approved privatization of Kuwait Airways. Exact details of the planned sell-off were not released.


As per the privatization law on Kuwait Airways, that was passed in May last year, 35% of shares in a public-sector asset, which is being opened to private ownership, should be sold at auction to private or foreign investors. Another 40% would be allocated for sale to Kuwaiti nationals through an Initial Public Offering, while the state would retain 20% holding in the company, and the rest 5% will be distributed to employees of Kuwait Airways.


The Minister of Communications and housing in Kuwait, Salme Al Othaina, said that privatization will take up to three years, a period that would take into account a restructuring of the carrier to make it more viable and more appealing as an investment vehicle.


If privatization of Kuwait Airways does get underway, it would be one of the first of such sales, with the next target likely to be the national stock market.


In January, Kuwait’s Capital Markets Authority (CMA) signed a deal with HSBC Bank Middle East to monitor the privatization of Kuwait Stock Exchange. Under the terms set out by the government, 50 percent of the exchange is to be sold to listed companies with a cap of 5% to any single buyer, and balance to be given to Kuwaitis via n IPO.


But, the process hit a hurdle late last year, when it was discovered that a particular clause in legislation establishing the CMA, prevented the agency from involving commercial activities.

comments powered by Disqus

Recent Articles

New rule mandates recruitment of Kuwaitis in private sector

Issuance and renewal of driving licenses to go online soon

New rule mandates salary of KD500 or more for visit visas

Longest bridge in the world to be ready this year

Slashing of expat numbers likely to hit economic growth

New decision to stop expat transfer if job title does not match degree

Parents and In-laws allowed three months stay on visit visa

Indian Government defers pre-departure registration for ECNR passport holders

Kuwait plans to slash expat numbers

Kuwait CSC plans to replace expats with nationals in 3140 jobs

 

Top