Business guide to explore how infrastructure builds could turn wheels of State's economy

Kuwait, 07 November 2010: The Vice Group President of the multinational trading company, Mohammed Abdulmohsin Al-Kharafi and Sons, has called on Kuwait's government to stop stalling on its long list of projects, saying they are the country's best hope for generating new economic momentum.

Speaking exclusively to Oxford Business Group, the global publishing, research and consultancy firm, Marzouk Nasser Al-Kharafi said Kuwait was crying out for infrastructure while its economy was in need of a major boost which was unlikely to come from other areas of business, given the current financial climate. 

"All circumstances point towards a pressing need for projects to go ahead," he said. "The government has surplus funds and there are local and foreign contractors hungry for work. We have a real need for new infrastructure in many areas. The demand is there and the timing is right."

Al-Kharafi put some of the delays down to unqualified contractors winning tenders which, he said, highlighted the need for an overhaul of the tendering process. He called for a shake-up of the Central Tendering Committee (CTC) which, he said, should include specialists to evaluate contracts. He also suggested replacing the current system of choosing the lowest-cost bid with a two-step process which would score a bid on separate technical and financial assessments. "A system needs to be developed which would combine the two scores and allow a decision to then be reached on the best bid," he said.

The interview with Al-Kharafi will appear in The Report: Kuwait 2011, an in-depth economic guide produced by OBG. The report will include a detailed, sector-by-sector guide for foreign investors, together with a wide range of interviews with the most prominent political, economic and business leaders, including HH The Emir Sheikh Sabah Al Ahmad Al Jaber Al Sabah, Deputy Premier for Economic Affairs Sheikh Ahmad AL Fahad Al Sabah and Central Bank Governor Sheikh Salem AbdulAziz.

While Al-Kharafi makes no secret of his frustration that so many of the country's projects are at a standstill, he acknowledged the government had now taken important steps forward, such as introducing a new spending package. "The wheels are starting to turn," he said. "In 2010 alone, 80 projects worth KD7.4bn ($25.9bn) were announced. Even if just 50% of them take place, it will give the economy a huge boost."

Al-Kharafi believes that the private sector would be more likely to consider signing up for partnerships if the government eased the conditions of its contracts. He added that by levelling out the playing field in its contract conditions, the government would also be helping to prevent project prices from rising. "Bidders need a safety net in the event of price escalations and legal certainty should a conflict arise," he said. "If there is perceived risk and uncertainty, you have to factor this in to the bidding price. Then everyone loses, as projects become unnecessarily expensive."

The Report: Kuwait 2011 marks the culmination of more than six months' on-the-ground research by a team of analysts from OBG, assessing trends and developments in all major sectors of the economy.  It will provide information on opportunities for foreign direct investment into Kuwait's economy and will be a guide to the many facets of the country, including its macroeconomics, infrastructure, political landscape, banking and sectoral developments.  

OBG's forthcoming business guide will also feature a comprehensive analysis of the country's impressive development over the past five decades to mark Kuwait's 50th anniversary of independence. The Report: Kuwait 2011 will be available in print form or online.

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About Oxford Business Group
Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic and political intelligence on the markets of the Middle East, Africa, Asia, Eastern Europe and the Caribbean. Through its range of print and online products, OBG offers comprehensive and accurate analysis of political, macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms.  

The critically acclaimed economic, political and business reports have become the leading source of business intelligence on developing countries in the regions they cover. OBG's online economic briefings provide up-to-date in-depth analysis on the issues that matter for tens of thousands of subscribers worldwide. OBG's consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.

For more information please contact:
Action Kuwait, Part of Action Global Communications
Amna Al Jarery/ Sara Alsaleh
Tel: 00965 2491 5616
Email: amna.j@actionprgroup.com
Sara.s@actionprgroup.com

© Press Release 2010