A plan for privatisation

Kuwait

Khalid E. Al Shatti, Kuwait country senior partner at PwC Middle East, talks about PwC’s role in Kuwait’s Vision 2035 and the next steps of the privatisation process in the country. PwC is a network of firms in 152 countries with nearly 328,000 people delivering assurance, advisory and tax services.

What role does PwC Middle East in Kuwait play in the execution of Kuwait’s Vision 2035?
Kuwait ‘s Vision 2035 sets out an ambitious plan to diversify Kuwait’s economic base by boosting revenue beyond hydrocarbons, improving productivity of different socio-economic factors and reducing reliance on the public sector for employment of nationals. At PwC Middle East, we work to help our clients from both private and public sector entities deliver sustained outcomes and achieve their goals. We’re thrilled to have a role in Kuwait’s transformation through providing our industry’s expertise and supporting the government’s efforts in reforming the governmental framework.

What are the next steps to be taken in the privatisation process?
Ideally, privatisation needs to be planned thoroughly. Local officials considering privatisation should focus on the goal, which is to reinforce and enhance their ability to govern and increase the level and quality of services for their constituents. The next step is to identify the assets that could be attractive to investors. It is always preferred to develop alternative plans that balance a government’s constraints and opportunities with the often rigorous requirements of private investors and the capital market. Also, incorporating innovative strategies to overcome obstacles including existing legislation and regulations, public employee resistance, misperceptions about privatisation and a general resistance by governments to change are essential for the transition’s success.

How attractive is Kuwait for international investors?
Kuwait is offering a number of incentives in an effort to increase the volume of foreign investment coming into the country.
With its Vision 2035 programme, Kuwait has signalled maturity in terms of infrastructure, laws and regulations, becoming more open to international companies. The development plans hope to attract private investment, with the Kuwaiti government aiming to reduce its official contribution to projects.

What are the key benefits of Kuwait for investors?
Kuwait is ranked the 3rd most tax-friendly country in the world, stands 2nd in gross national savings and has the 3rd best macroeconomic environment globally, according to the NBK guide to investing in Kuwait. The Kuwaiti government passed a foreign direct investment law in 2013 that permits up to 100% foreign ownership of a business if approved by the Kuwait Direct Investment Promotion Authority (KDIPA). This effective legislation, in addition to the human capital and prominent geographical location, provides massive opportunities to create a more mature and diversified economy and accelerate the accomplishment of Vision 2035.

What is your vision of the future for PwC Middle East in Kuwait?
We’re working to build trust and deliver sustained outcomes to our clients in the region. We’re committed to being part of our region’s transformation journey, and Kuwait’s transformation specifically. Our country is witnessing a massive digital transformation with the current development of the government’s infrastructure, and we will continue to be part of the process and employ our digital capabilities to support the government in building a more sustainable future.

Read our latest insights on:

• Kuwait