We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Mon 8 Oct 2007 12:01 AM

Font Size

- Aa +

Kuwait finance plans on slow burn

Country will not become international financial and trading centre until 2020, bank governor says.

Kuwait, which hopes to emulate the success of neighbours Dubai and Bahrain, will not become an international financial centre until 2020, the Gulf Arab state's central bank governor said in remarks published on Sunday.

"The plan to transform Kuwait into a financial and trading centre is a long-term project that will not happen overnight. It will take until 2020 to execute this plan," al-Rai daily quoted Sheikh Salem Abdul-Aziz al-Sabah as saying.

A major OPEC exporter, Kuwait wants to diversify its economy away from oil to become a regional financial and trading centre, but its efforts have been paralysed by political disputes.

Government reform plans aimed at liberalising the economy, including a bill to slash high taxes on foreign firms, are stuck in parliament due to a long-running standoff that analysts say is unlikely to be resolved any time soon.

In contrast, countries such as the United Arab Emirates and Qatar have used the windfall from high oil prices to power rapid economic growth and attract foreign firms.

Sheikh Salem, a member of the ruling family, said in the interview that the project to transform Kuwait would require efforts by all involved and would be difficult to execute without consensus.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.