A recent government study has emphasized the necessity of creating new economic zones and strengthening the economic engines in each region of Kuwait. This move is seen as vital to enhance Kuwait’s ability to compete at both regional and international levels, diversify revenue sources, and reduce reliance on crude oil exports, as reported by Al-Qabas Daily.
The study recognizes the significance of establishing new regional cities as part of Kuwait’s fourth structural plan, which has recently received official approval. After conducting a thorough assessment of current assets, the study proposes specific activities for each region.
In the Northern Regional Region, the focus will be on developing a port project, a main logistics area, a business zone, and tourist attractions. These initiatives aim to boost economic growth and attract investments to the region.
The Southern Regional Region will prioritize projects in petrochemicals, manufacturing, and energy. By investing in these sectors, Kuwait aims to diversify its economy and reduce its dependence on oil exports.
The Western Regional Region will focus on agricultural, marine, and food-related projects, along with renewable energy initiatives and various tourism projects. These endeavors aim to capitalize on Kuwait’s natural resources and promote sustainable development.
The study acknowledges that Kuwait already has the foundations of economic clusters in the urban area and Kuwait City. To strengthen these emerging economic clusters, the proposed policies aim to improve surrounding infrastructure, enhance road connectivity, and foster synergy and relationships between commercial opportunities.
To successfully diversify revenue sources, Kuwait must capitalize on opportunities across multiple sectors. The study specifically highlights the potential for agriculture to contribute to Kuwait’s gross domestic product, enhance food security, promote innovation, and position Kuwait as a regional leader in innovative agricultural production by integrating new technologies.
Another aspect addressed by the study is the underutilization of Kuwait’s tourism sector. It calls for the establishment of a comprehensive tourism industry that contributes to the country’s GDP. To achieve this, a national tourism plan is recommended to guide the future development of tourism, identify Kuwait’s unique tourism offerings, and secure the necessary land for sector development.
These proposed projects aim to incentivize and attract investments in non-oil sectors, reducing Kuwait’s dependence on fluctuating oil prices. By diversifying its economy, Kuwait would not only increase its resilience to potential shocks but also create a more competitive and appealing business environment. Consequently, Kuwait would become more attractive to both local and international private sector companies, encouraging them to invest in the market.
The study also highlights the role of the private sector in Kuwait’s economic diversification. Efforts will be made to ease restrictions on foreign companies operating in Kuwait, facilitating their contributions to the country’s GDP. Moreover, these initiatives aim to generate more job opportunities for Kuwaitis in the private sector, addressing the current unprecedented economic challenges.
In conclusion, the recent government study in Kuwait emphasizes the importance of economic diversification through the establishment of new economic zones and the strengthening of regional economic engines. By focusing on sectors such as agriculture, tourism, and non-oil industries, Kuwait aims to reduce its reliance on crude oil exports, attract investments, and create a more competitive business environment. The study also recognizes the role of the private sector in driving economic growth and job creation. Through these initiatives, Kuwait is taking significant steps towards achieving a more diversified and resilient economy.
Source: TimesKuwait
