Kuwaiti emir called on the government and parliament to “safeguard oil and fiscal wealth.”
12 January 2022, 12:00 AM
31 January 2022, 12:00 AM
Kuwait’s ruler has called for stepping up plans to reduce Kuwait’s dependence on oil revenues by diversifying the economy.
He has warned that declines in the oil price were damaging the economy of the energy-rich Gulf state, urging lawmakers to “stop squandering resources” and to diversify revenues.
Oil prices have lost more than a quarter of their value since June, hitting the state coffers of energy-dependent countries like Kuwait.
Oil income accounts for about 94 percent of Kuwaiti revenues. But Kuwait has piled up massive fiscal reserves of more than $500 billion during the past 15 years due to high oil prices.
“We are witnessing a new cycle of low oil prices as a result of economic and political factors that have hit the global economy and started to negatively impact our national economy,” Sheikh Sabah Al-Ahmad Al-Sabah said in a speech to open the new parliamentary term.
“You have the responsibility to stop squandering resources, rationalize spending and direct subsidies to reach those who need it... without impacting the standard of living,” he said.