KUWAIT -- Boosting transparency and governance of investment companies will boost confidence amongst investors because it contributes to more stable and lucrative investment environment, Union of Investment Companies (UIC) Chairman said Wednesday.

Abdullah Al-Terkait called for addressing bureaucracy to make Kuwait more attractive to foreign investors. UIC, he said in an interview with KUNA, was keen on improving legislative infrastructure of investment sector to enable it play more active role in national economy.

He said development of the infrastructure - like state-of-art facilities, advaced transport network and digitization - was key to honor investors' needs, coupled with tax exemptions and credit facilities.
Al-Terkait said the private sector, which has expertise and flexibility to come up with innovative solutions, should be given a bigger role in decision-making through partnership with the government sector.
He called for creating an environment that encouraged innovation that enabled entrepreneurs the space to grow and prosper.

Al-Terkait said harmony between private and public sectors was key to successful investment projects in the State of Kuwait. "Although there is a constructive cooperation in some domains, there is a need to further boost this partnership to achieve national development goals," he added.

"The private sector plays a major role in triggering economic growth, lures investment and provides expertise and innovation that contribute to development," he said. Al-Terkait called for facilitating contributions of private sector in huge projects to ultimately achieve sustainable development.

Supporting small and medium-size companies - the backbone of the national economy - through financing or legislations will help boosting economy and diversify income, he said. 

Commenting on national workforce, Al-Terkait said citizens were facing challenges resembling in lack in jobs that meet their expectations in the private sector "so they hesitate in joining" the sector. On the other hand, he continued to say, many Kuwaiti graduates lacked skills needed in private sector. "This too is another challenge." The government sector, said Al-Terkait, offered mouth-watering financial and social benefits, like pensions, making it more attractive to citizens.
Al-Terkait, meanwhile, said local investment companies were under pressure because foreign companies have more resources and expertise, thus increasing the pressure on local firms to maintain their shares in the market.

"The lack of skilled national workforce in investment domain is one of the pressing challenges because companies are facing tough time finding qualified experts with necessary skills, which thus limits their abilities to cope with international development," he said.

Al-Terkait talked about imposition of corporate tax, and said they may have varying impacts on attraction of foreign capitals. "UIC is working on recommendations based on specialized studies aimed at achieving a balance between increasing state's financial resources through taxes, and maintaining suitable investment environment to enable growth of local and foreign companies alike." A decision to impose corporate tax should take into consideration on competitiveness environment in Kuwait and luring of investment, he said, rather than adding to burden of investors. 

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