Kuwait: Re-engaging with Iraq |
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Kuwait is moving to mend fences with its neighbour Iraq, seeking to heal some of the wounds left over from Baghdad's 1990 invasion and the subsequent widespread devastation to the Kuwaiti economy and society.
On September 7, Kuwait's Prime Minister Sheikh Nasser Mohammed Al Ahmed Al Sabah announced he had accepted an invitation to go to Baghdad, in what would be the highest-level visit by an official of the emirate in 18 years.
The announcement, which came during an official visit by Iraqi Finance Minister Bayan Jabr Solagh, is the latest step in Kuwait's slow process of reconciliation with Baghdad.
In July, Kuwait named Ali Al Momen, formerly the head of the country's defence forces, as its first post war ambassador to Iraq. Al Momen is expected to preset his credentials during the prime minister's visit, tentatively scheduled for after the finish of the holy month of Ramadan at the end of September.
The resumption of high-level relations between the two neighbours could in time provide a further stimulus to the Kuwaiti economy. Though still trying to recover from the effects of the 2003 Gulf War, and the subsequent civil unrest, Iraq can serve as both a source of imports - notably non-oil minerals and agricultural produce - and investment opportunities.
Kuwait already benefits from being on Iraq's doorstep, with much of the supplies and aid being channeled into the country being transshipped through the emirate.
One Kuwaiti firm that has not waited for diplomatic ties to be strengthened is Al Aqeelah International Real Estate, which is leading up an investment group involved in a series of projects in Najaf, site of the shrine of Imam Ali, the son-in-law of the Prophet Mohammad.
The firm has ploughed some $50m into rebuilding the Najaf airport, and has announced plans to construct thousands of homes and a number of hotels in and around the city, which attracts up to 9m Shi'ite pilgrims every year.
Nazeh Khajah, the head of marketing and public relations for Al-Aqeelah, said a proposal for a multi-billion redevelopment of Najaf had been lodged with Iraqi authorities. According to Iraqi officials, the development proposal includes the construction of 200,000 new homes, schools, medical facilities and an artificial island in Lake Najaf. As a region that draws millions of visitors, Najaf is a natural choice for investment, Khajah said in an interview with Reuters in late July.
"The question shouldn't be why we chose to invest in Najaf. The question should be why don't we choose Najaf? It's one of the most noble places in the world," he said.
Al-Aqeelah recently baulked at another venture put forward by Iraq, that of developing an island on the Tigris River in central Baghdad into a honeymoon resort.According to Khajah, there is not a sound business case for developing leisure tourism in Iraq at the moment.
"Iraq is not exactly the place you want to spend a romantic time with your newlywed, if you know what I mean," Khajah told the local press on August 31. "So I don't think we'll be ready to jump into such a project."
While the two neighbours are moving closer together, there are still a number of issues that divide them. Foremost among these are Kuwaiti claims for compensation stemming from damage and losses caused by Iraq's 1990 invasion.
Through a fund set up by the United Nations Security Council, Iraq contributes 5% of its oil earnings towards paying compensation for the war. To date, some $11bn has been paid to Kuwait from the fund, with the UN having approved claims of around $45bn.
Baghdad has called for the remaining debts and reparations dating from the war and the Saddam era to be written off, though this request has only received a lukewarm response from Kuwait.
The compensation issue resurfaced in late August, when national flag carrier Kuwait Airways (KAC)Kuwait Airways (KAC)
won an injunction from a Canadian court allowing it to seize up to 10 aircraft being supplied to Iraqi Airways (IAC)Iraqi Airways (IAC) in part reparation for losses resulting from the 1990-91 war. The planes, being built by Canadian firm Bombardier, are part of an order placed by Iraqi AirwaysIraqi Airways
and the Iraqi government earlier this year. KACKAC
, with the support of the Kuwaiti government, had been forced to seek the seizure order following the failure of Iraq to commit to meaningful negotiations over compensation, said Christopher Gooding, a legal advisor for the airline. "I hope that this action will act as a wake-up call," he said on August 29. "As I have said before, it is not the intention of KACKAC
to take aggressive action for its own sake, but in the absence of any meaningful dialogue and in the light of KACKAC's duty to protect public funds, IACIAC and Iraq can expect further similar action to be taken without further warning."It appears that the warning has been heeded. The dog fight between the two airlines may be about to be resolved though, with Solagh telling media during his trip to Kuwait that a memorandum of understanding to settle the compensation claims had been signed.
"We have agreed to resolve the dispute between Kuwait AirwaysKuwait Airways
and Iraqi AirwaysIraqi Airways. We have agreed on the main points and left a technical team to discuss the details," Solagh said. While it may be a long time before all of the wounds from the war are healed, economic and political salves are being applied, to the benefit of both Kuwait and Iraq.
© Oxford Business Group 2008
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was liberated by the people of America in 2003,as was kuwayt prior to that.
Medina 1st noble place in the islamic world,resting place for habibiallah and the light in his heart fatima zhedra and the the helpers ansars
Medina was bushwacked,highjacked stolen in 1925 by taliban foreigh fighters guise under the color of Islam.They lipped arabia to suidi-arabia.Demolition Crew found a home.
from 1925 a madressar,to 1948 many school of thought from Saudi Creed of Khalifatul mumin empire state of mind all over the world.In the USA a few of them.preach Islamic state-ism to their own demise.
The liberation of medina from taliban in 2009 would be nice.
The people of the House in Najaf should be the ones in medina and Mecca.`Listen to what Fatima says. Ask her to tell you everything precisely. Have her count all the things that she saw after you,Habbibiahhah, one by one....<http://www.al-islam.org/fatimaisfatima/16.htm>
ecoavila go your own way
Quietness,Letters and Numbers Rule over proliferation chaos interpretation.
The Kings and princes saudi Image should be given the same diplomatic immunity SaddamHusain the spider recieved from the coalition of american and iraqi ArmedForces!
Set a time and date.
Fire@will
PhiladelphiaFreedom4Medina.0j0.com/
ecoavila go your own way
USArmy/CoquiFrog killer of the west nile virus mosquito. [Report Abuse | Email to a Friend | Reply to this Comment]