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Kuwait: Prince Charles graces MEED conference

By Ben Garcia, Staff Writer KUWAIT: Kuwait's oil sector is a major contributor to national revenue and a failure to achieve optimal performance will impact the country, one Kuwaiti oil chief executive recently announced. In his keynote address at the opening of three-day seminar dubbed 'Kuwait Energy and Infrastructure Projects 2011' held at the Arraya Ballroom of the Courtyard Marriott, Kuwait Petroleum Corporation ( KPC ) CEO Farouk Al-Zanki noted that the Kuwait oil industry requires a huge transformation in order to meet global cha
llenges.

The future challenges are immense and Kuwait needs to shift from managing businesses to managing people with a focus on leadership, to achieve great success," he said. The three-day seminar, organized by Middle East Business Intelligence (MEED), is expected to showcase numerous development opportunities currently being implemented in Kuwait as part of HH the Amir Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah's vision to turning Kuwait into regional trade and financial hub.

Al-Zanki noted that global energy demands will continue to grow in the future and acknowledged that there is a corresponding need of cleaner energy for economic and social development. "Fossil fuel will remain the main source of energy for over 80 per cent of the energy mix," he said. According to Al-Zanki, KPC 's 2030 strategy calls for significant expansion both upstream and downstream, requiring tremendous effort technically and financially.

He explained that over the last 15 years, KPC has exerted much effort to re-shape the oil sector and prepare for the future. "We have developed and updated strategies for all the subsidiaries. During this period, much effort has been exerted across the oil sector, aiming to improve the operational efficiency and increasing productivity. We continue to work on areas of weakness and capitalize on our strengths," he continued.

Al-Zanki also spoke on the shortage of skilled manpower, particularly in the oil industry, and expressed his interest in focusing on the issue to ensure that the national oil industry has its requisite competencies. " KPC launched strategic sector training and development plans to ensure that the strength of the oil sector and is in its human resources," he said. Currently according to Al-Zanki, KPC provides work for 40,000 employees, of whom 17,100 are permanent full-time workers.

Developments in the energy sector were among the subjects discussed during the first day of the seminar, which was attended by prominent speakers from the Kuwait Oil Company, the Kuwait National Petroleum Corporation, the Kuwait Institute for Scientific Research and the Gulf Investment Corporation. Besides energy, industry leaders and government officials were also updated on the progress of a 'Clean Fuels' program and other world-class energy initiatives.

The inaugural ceremony was graced by no less than the visiting Prince of Wales, Prince Charles, the heir to the British throne. Prince Charles is currently visiting the country to mark the 50th anniversary of Kuwait's full independence from the Britain in June 1961. Despite his brief appearance at the seminar, his presence there was highly felt and appreciated by many. Prince Charles was immediately escorted to a close-door function-room where local and foreign businessmen were gathering in attendance.

For his opening remarks, Chairman of MEED Events Edmund O'Sullivan stressed that attendees will be empowered with strategic information about major developments in the Kuwaiti economy and opportunities business opportunities therein, particularly in the fields of oil, gas, manufacturing, electricity, water, transport, communications, education and leisure. "The burgeoning economy, stimulated by sound socio-economic policies, has truly transformed the country," he said.

Mr O'Sullivan was enthusiastic about the conference's timine, explaining that "The conference provided an ideal platform to highlight the major strides taken by the government and key industry leaders to create the phenomenal growth witnessed in recent years. This conference proved to be an invaluable opportunity for those at the cutting edge of Kuwait's future to discuss its development." He added, "Away from the formality of the conference rooms, networking was another key benefit of the event, allowing
contacts to be made with CEOs, VPs and chairmen from the key growth industries and government departments.

While acknowledging that the oil sector remains the backbone of Kuwait's economy and that it provides the bulk of government revenues, CEO of the National Bank of Kuwait Shaika Al-Bahar said too much of these revenues has been spent or allocated to wages and subsidies, which she argued is neither healthy nor sustainable in the long-term. "Kuwait's performance on capital spending has been poor. Investment as a share of GDP-at 17 per cent-has been the lowest in the Gulf over the past decade.

These have been the symptoms and the causes of our economic problems," she said, adding "political paralysis, government bureaucracy and lack of economic reforms have stifled both public and private sector investment." She further indicated that "We have to break this cycle for our economy to move into a higher, more balanced growth trajectory." Al-Bahar also recommended capitalizing instead on the golden age of oil before new technologies and environmental regulations begin to seriously affect such industries, which she is certain is imminent.

The first two days of the conference will focus on the energy sector, including Kuwait's long-term energy vision and procurement and development strategies. The last day will be dedicated to the infrastructure and construction sector with first-hand information on megaprojects.

MEED Projects data revealed that 29 per cent of current planned projects are in the construction sector, 25 per cent in infrastructure, 25 per cent in oil and gas production, 19 per cent in power projects, and the remaining four per cent in waste and water projects. Major projects under discussion at the conference also included a vast array being developed in the social and transport infrastructure sectors.

The Kuwait Energy and Infrastructure Projects Conference 2011 is part of MEED's comprehensive portfolio of large-scale summits and conferences that offer businesses unique one-to-one networking opportunities and facilitate the showcasing of solutions to key target groups and niche professionals.

© Kuwait Times 2011