Kuwait Real Estate News
Kuwait to soften land ownership rules
With an intention to diversify its economy from the oil sector, and attract greater investments and boost sale of state firms, Kuwait plans to ease land ownership rules so as to prepare for the post-oil era, said a top government body.
This is in accordance with the 2009-2014 policy strategy plans by the top planning council in the country, to control spending, amidst mounting inflation during the next five years.
The State intends to emulate the success of its neighbors Bahrain and Dubai, which have now turned out to be the most popular tourist destinations, apart from being regional financial centers in a non-oil economy, which accounts for less than 10 percent of state revenues.
Kuwait also seeks to draw in more foreign investments by being the financial hub and continuing with privatizations, ever-since the parliament approved the sale of loss-making Kuwait Airways, during initial part of the year.
The policy suggests a gradual governmental withdrawal from direct involvement in economic activities and the state monopoly to own land, which implies a speedy privatization. The policy recommends private sector to gain more access to land, as currently, about 90 percent of land is government-owned.
Last year, the Cabinet had emphasized on cutting down property prices, which was thought to be the main factor leading to inflation. This hit 6.7% in November, driven by 12.6 percent jump in housing prices.
The plan also suggests huge infrastructure projects, such as improving the roads, airports, power plants and phone lines, apart from ailing state health system.
Although the policy paper places suggestion in almost every sector, ranging from energy, real estate, to education and health, which the government will be discussing with the private sector, it does not hold a detailed plan of action or time frame.
The General Manager of Al-Joman Center for Economic Consultancy, Naser al-Nafisi, said that he is doubtful that unless the government and parliament became more cooperative, it may be difficult to achieve this.
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