A WORLD WITHOUT SADDAM:

Kuwait’s economic outlook brighter since Saddam’s ouster (V. M. Sathish, 12/08/03, The Daily Star)

KUWAIT: A new report issued here contends that the economic prospects for Kuwait and other members of the Gulf Cooperation Council have improved considerably in the wake of Saddam Hussain’s ouster in Iraq.

Global Investment House said in its report, Kuwait Economic and Strategic Outlook, that “investor confidence toward and within Kuwait has increased manifoldly as the window of opportunity in both Iraq and the neighboring GCC countries has opened up.”

The report lauded the fact that Kuwait’s government will introduce an income tax on capital and commercial activities without considering owners’ nationality and also allow 100 percent foreign ownership in certain sectors. The finance minister has offered legislation that would place a tax on income from commercial, industrial, real estate and certain other noncommercial activities regardless of the nationality of the owner.

Increased consumer spending, better bank performance, surplus budget, surging real estate prices and soaring capital market index are potentially some aspects of a booming Kuwait economy, says the report.

It also discloses that the Kuwait Investment Authority will divest ownership in companies listed on the Kuwait Stock Exchange, thereby enhancing the prospects of public offerings in those companies.

The report also praises the Kuwait government for placing priority on solving unemployment, expediting privatization, promoting northern oil field development and inviting more foreign investment.

It adds that the recent Cabinet decision to allow establishing new low-fare passenger, freight and cargo airlines ­ thereby ending the monopoly of the state-owned Kuwait Airlines ­ is a positive direction in economic reforms.