Mohammed Eid Ali Aladwany

PAI has worked to develop Kuwait’s National Industrial Strategy 2035 to help the country revitalize its economy and improve efficiencies across all sectors.

Looking at the present state of the Kuwaiti economy, what is PAI’s perspective on the industry’s participation and impact on the country’s market?

The Kuwaiti economy, like other Gulf Arab oil-exporting countries, is characterized by a dominant oil sector. This is apparent from many relevant economic indicators such as the petroleum sector’s contribution to GDP, the contribution of oil exports in total exports, and the value of oil revenues that accounts for an overwhelming proportion of the Kuwaiti government’s total revenues. Thus, Kuwait is trying to diversify its economy through a plethora of new ventures. An important example lies in the country’s efforts toward improving its manufacturing industry, which currently constitutes 7% of its GDP.

What changes are currently worked to enhance the country’s industrial and economic output, allowing more production and increased levels of efficiency across the sectors?

PAI is currently working on developing Kuwait’s National Industrial Strategy 2035, which will include many initiatives targeted towards the following: increasing the country’s manufacturing sector contribution to the GDP; increasing Kuwait’s local exports; increasing the percentage of private-sector investments, as well as national Kuwaiti employment; and supporting priority sector initiatives. These initiatives will eventually serve as a catalyst for sustaining economic growth.

Looking at the past few years and the present situation in the country, what have been some of the major achievements of PAI?

In recent years, PAI has been implementing its own development programs within the framework of the state’s development plan, foremost of which are the new construction projects through which industrial plots will be provided by projects, such as infrastructure development for Al Shadadya Industrial Area, Al Naayem Economic City and Technological industrial park. This is only a small part of the ambition that the Authority seeks to achieve in the coming years. Therefore, the expansion in the distribution of industrial plots is considered the main incentive for many industrialists to invest capital in setting up industrial projects, which enables the industrial sector to play the role assigned to it. PAI is keen to enhance the production capacity of industrial facilities by benefiting from the expertise of regional and international institutions in the field of industrial development to achieve the strategic objectives of the economic development plan in raising the industrial sector’s contribution to the country’s gross domestic product. PAI has also contracted with international organizations to provide technical data and information on the nature of export markets to help develop national products in quantity and quality and to enhance their competitiveness. PAI has also developed IT systems to simplify the procedures of industrial investor transactions and form an information base that provides the planning and executive agencies of the authority with industrial information and data that helps advance the industrialization process and enhance industrial development opportunities. In the environmental field as well, PAI is making great efforts to protect the environment in all areas under its control, as the submission of environmental studies is a prerequisite for establishing an industrial project in new industrial zones. Also, PAI is working to revitalize the economic movement in the country, revive the movement of capital, and restore Kuwait to its economic leadership in the region by managing its operational activities with high efficiency and simplifying procedures to meet the needs of investors.

What changes should be implemented to improve the country’s industrial output?

Kuwait is heavily reliant on the oil sector and the petrochemical industries through utilizing its crude oil. In addition, the country has future plans of establishing a petrochemical industrial park with a total area of 7sqkm located in the southern regions and designated as a petrochemical production hub, which will thereby increase Kuwait’s petrochemical added value. Furthermore, Kuwait supports local and international export industries due to its strategic location, which serves as a gateway to its northern, western, and southern neighboring countries, as well as its shared eastern maritime borders with Iran.