While in class today, studying about "Business Ethic & Law" the class entered into a heated discussion with the professor about foreign investment and how Kuwait's Commercial laws & regulations protect the interest of the locals from foreign invasion.
We all know the "51% to 49%" of ownership rule, the higher percentage always going to the Kuwaiti Sponsor. Also there are such rules that foreigners do not have estate purchase power, and the 15% income tax that has been enforced ( which was an astounding 55% just a couple of years back ! ) All these rules were placed to protect the greater good of our beloved Camels.
Along Came the KFTZ ( Kuwait Free trade Zone ) to save the day.... not. Here is a brief description of what the KFTZ is all about.
"Kuwait's newly privately-managed FTZ is located in Shuwaikh and ALLOWS 100% foreign ownership within the ZONE ( Nice work gents, very clever ). No Import Duties& foreign corporate income TAX FREE ( sounds fishy but OK ). All commercial, industrial & service licenses are available WITHOUT the need of a Kuwaiti Sponsor ( Ok too good to be true ). -http://www.kishtpc.com/Free-En/free_kuwait.htm
They have their own site which is www.kuwaitfreezone.com which is yet to operate. ( Excellent Customer Serivce )
Speaking about customer service they HAVE THEIR OWN HOTLINE !!! just simply dial : 1802808 ( Doesn't work, or nobody picks up, i wonder how many tried to actually contact them but could not )
The real question fellow Camels, how come this sweet deal exists and yet when one enters the FTZ all he/she sees are shops, cafe's, offices and so on ALL sponsored by Kuwaitis? Why aren't there any foreigners? oh and the Ministry of Higher Education have 10 buildings in there ( although i did hear it was temporary until they move into their new building in South Surra, Good luck to who lives there )
So i leave you fellow camels to think for yourselves and voice your own opinions on this matter ( please do comment, let me hear your thoughts ).
i inquired to the current situation of the FTZ and heard that it belonged to a family group, then it changed owners to a single person nicknamed the "White Lion" ( never heard of him, but going to find out )
I believe its high time that Kuwait realize that no matter for how long they protect the local interests and try to persuade them to invest locally, they are not, and Kuwait has the potential to be the best, and yet development is still underway with the many complications stopping the construction. Open the doors to the outside world, since they can do a better job than us ( especially since i just heard that the 25th largest bank in the world, which is german has enough assets that is worth all the banks together in the Arab World, thats just the 25th guys )
Kuwait was the G.C.C., now its Kuwait is back at a desk job. We MUST improve.
Signed, Sealed & Posted.
MR. Funky Camel
No comments:
Post a Comment