UIC Chairman Advocates for Enhanced Transparency and Governance in Kuwait’s Investment Sector

KUWAIT CITY: Enhancing transparency and governance in investment firms is crucial for boosting investor confidence and creating a more stable and lucrative investment environment, stated Abdullah Al-Terkait, Chairman of the Union of Investment Companies (UIC), on Wednesday. According to Kuwait News Agency, Al-Terkait emphasized the need to address bureaucratic hurdles to make Kuwait more appealing to foreign investors during an interview with KUNA. He highlighted the UIC's commitment to improving the legislative infrastructure of the investment sector to enable a more active role in the national economy. Al-Terkait discussed the development of infrastructure such as state-of-the-art facilities, advanced transportation networks, and digitization, which are essential to meet investor needs, alongside tax exemptions and credit facilities. Al-Terkait suggested that the private sector should have a greater role in decision-making through partnerships with the government sector due to its expertise and flexibilit y in innovating solutions. He advocated for an environment that fosters innovation and allows entrepreneurs to grow and prosper. "There is a constructive cooperation in some domains, yet there is a need to further boost this partnership to achieve national development goals," Al-Terkait added, emphasizing the importance of harmony between the private and public sectors for successful investment projects in Kuwait. He noted that the private sector is crucial in driving economic growth, attracting investment, and providing expertise and innovation. Furthermore, Al-Terkait called for easier contributions from the private sector in significant projects to achieve sustainable development and supported the strengthening of small and medium-sized enterprises, which he described as the backbone of the national economy, through financing or legislation. Addressing workforce challenges, Al-Terkait remarked that Kuwaiti citizens face difficulties finding suitable jobs in the private sector that meet their expectation s, leading to hesitancy in joining. He also pointed out that many Kuwaiti graduates lack the skills needed in the private sector. He contrasted this with the government sector, which offers attractive financial and social benefits, including pensions, making it more appealing to citizens. Al-Terkait also mentioned the challenges local investment companies face from foreign firms that have more resources and expertise, increasing pressure on local firms to maintain their market share. He stressed the importance of having a skilled national workforce in the investment domain to cope with international developments. On the topic of corporate tax, Al-Terkait explained that the UIC is working on recommendations based on specialized studies aimed at balancing the increase of the state's financial resources through taxes with maintaining a suitable investment environment for the growth of both local and foreign companies. He emphasized that any decision on imposing corporate tax should consider the competitive env ironment in Kuwait and the attraction of investment.