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Kuwait has the world's most valuable currency, the strongest purchasing power, and the most stable currency, not to mention one of the richest countries in terms of per capita GDP. It is also one of the largest oil producers in the world, the British Daily Express newspaper pointed out.
According to the paper, the Kuwaiti dinar is linked to an undeclared basket of weighted currencies, which consists of a portfolio of currencies from various countries with significant commercial and financial ties to Kuwait, and it is believed that its composition is heavily influenced by the dollar.
The Central Bank of Kuwait regulates the money supply in line with the country's economic needs, supports the value of the Kuwaiti currency, and during the 2008 financial crisis, it injected capital into banks and guaranteed deposits to protect the economy and the value of the currency.
The Kuwaiti currency is stable due to several factors, including economic strength, political stability, and a low trade deficit. The value of the currency increases if the country's economy is growing and stable, which attracts foreign investment and increases demand.
According to the newspaper, the Kuwaiti dinar's exchange rate was about $3.25 as of December 2023, and although the Kuwaiti economy is heavily dependent on oil, the country relied heavily on fishing, pearl hunting, and trade before its discovery.
According to the newspaper, Kuwait has experienced rapid growth since oil was discovered in the last century, generating about 90% of government revenues through industries based on oil and petroleum derivatives. Due to the heavy reliance on the oil industry, the currency has not been devalued to support non-oil exports, estimated at $440 million.
As Kuwait is one of the world's largest oil exporters, and with global oil demand remaining very high, the demand to pay for it is also very high, making the Kuwaiti dinar an extremely valuable currency.
Since oil resources are susceptible to depletion, it will be interesting to see how Kuwaiti economy will be managed if the need arises to reduce oil dependence and find alternative sources of income.
Kuwait also has one of the lowest unemployment rates in the world. While it was expected to reach 2.2% at the end of 2023, this rate was much lower than its counterpart in the United Kingdom, which reached 4.2% during the same period.
Kuwait also has a tax exemption system and a fixed exchange rate of $3.32 for its currency, which helps maintain its value and provide stability despite fluctuations in global markets. Kuwait City has become a skyscraper as a result of the country's wealth, the newspaper concluded.
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UCSO President Musab Al-Mulla has announced a new initiative aimed at enhancing price control within cooperative societies for essential commodities, vegetables, and fruits.
In a press statement, Al-Mulla revealed that the Union has engaged with the Ministries of Trade and Industry, as well as Social Affairs, proposing a novel concept under the “Sahel” program. This initiative aims to facilitate the monitoring of prices for basic goods, vegetables, and fruits in each cooperative society, allowing for comparisons with other societies to ensure uniformity and minimal price differences.
According to Al-Mulla, this idea would empower shareholders to access and compare prices of the cooperative societies in which they are members, providing transparency even from the comfort of their homes. If implemented, cooperative societies would be mandated to update their prices through the “Sahl” system, eliminating disparities.
Al-Mulla emphasized that this approach aligns with the social responsibility of the Union and its commitment to the well-being of citizens contributing to cooperative societies. He highlighted that under this system, various entities, including price monitors in the federation, associations, and inspectors, could scrutinize prices to ensure they are not unjustly raised.
The President stressed that the Union has numerous other ideas and suggestions aimed at benefiting citizens, which will be presented to the relevant authorities for implementation. The goal of these initiatives is to provide shareholders and citizens with the best prices and services possible. In response to the decision by the Minister of Trade and Industry, Muhammad Al-Aiban, to restrict the retailing of vegetables and fruits in cooperative societies, Al-Mulla explained that discussions were held involving officials from trade, affairs, and the union to study such proposals. Supporting these measures, he urged everyone to adhere to them.
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Director of the Department of Information Security and Emergency Response at the Communications and Information Technology Regulatory Authority, Eng. Layali Abdullah Al Mansouri, has announced the implementation of a comprehensive strategy to combat electronic fraud via phones, particularly those employing phone numbers resembling local ones, reports Al-Anba daily. The goal is to integrate all Kuwaiti operating companies into caller ID services in order to combat electronic impersonation, also known as "Caller ID spoofing."
In this month, the regulations for this project will be officially launched, representing a crucial measure against the rising attempts to defraud citizens and residents by calling deceptively. The Authority has finalized procedures to identify local telecommunications companies, as well as CITRA, on the network, according to Al Mansouri.
These numbers will display the company name above the number even if they are not registered on the customer's phone, enhancing their trustworthiness and thwarting impersonation attempts. Currently, the Authority is collaborating with Kuwait's Central Bank to authenticate the identities of local and foreign banks, as well as Kuwait's exchange companies. By blocking avenues of access for impersonators, this initiative aims to prevent fraud.
It also actively defines the identities of companies providing Internet services, a crucial segment serving a wide customer base. As part of the upcoming phase, Al Mansouri outlined plans to directly integrate all Kuwaiti companies into the caller ID system, ensuring automatic identification of company numbers on the network. A priority will be given to companies that directly serve individual customers, particularly those that provide financial services.
According to Al Mansouri, this comprehensive integration of companies will serve as a safeguard against phone-based electronic impersonation, effectively closing the door to fraud in this field. The Authority's website will offer a specialized caller identification service in the future, according to Al Mansouri. In addition to enhancing the overall security and trustworthiness of communication channels, this service will act as a gateway for companies and government agencies to take necessary measures for identifying their identity on the network.
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Local banks in Kuwait are shifting their job preference list for expatriates, focusing on sectors such as education and healthcare. According to sources, the updated list now prominently features doctors, nurses, technicians, and people in elite positions where competence is vital. In accordance with nationalization policies, this preference extends to stable government jobs and positions unlikely to face competition from Kuwaitis.
According to bank sources, the banking industry is shifting its focus to customers with high-quality credit records and substantial end-of-service benefits. The focus is on individuals with stable jobs, emphasizing a reluctance to grant loans to newly appointed expatriates. For non-Kuwaitis with over 10 years of continuous employment earning around 1,250 dinars, consumer loans are capped at 25,000 dinars.
Bank policy reflects a growing appetite for low-risk ventures, resulting in a reluctance to accept unstable financing. Increasingly, banks limit loans for newly appointed expatriates and set strict guidelines for employees over 55 with low salaries and non-university educations.
In the government sector, loans to expatriates have declined significantly over the past year. Banks attribute this to the reduction in non-Kuwaiti appointments in government jobs in 2023 and the prioritization of appointments for citizens.
Kuwaiti banks' overall loan growth has slowed due to this cautious approach to lending. EFG Hermes estimates a meager 4 percent annual growth and 1 percent quarterly growth for the fourth quarter of 2023, placing Kuwaiti banks below the expectations set for Gulf banks.
According to sources, non-Kuwaiti individual loans will continue to experience sluggish credit growth through the first quarter of this year. With most banks adopting stringent credit policies, the question arises: who is willing to lend to newly hired and middle-income expatriates?
Four out of ten banks are more willing to offer favorable terms to expatriates, according to sources. These banks face stiff competition for the Kuwaiti segment, and to fuel their growth plans, they turn to the expatriate sector, capitalizing on the limited credit space for Kuwaitis. As required by the Central Bank, these banks will wait for their customers to switch banks after 30 percent of the repayment period has passed.
Expat lending becomes a viable alternative for banks struggling to gain market share in Kuwait's retail sector. Market studies indicating a manageable default rate among expatriates drive these banks to expand their lending portfolios, even as they maintain general principles for good individual lending.
Even though these banks insist on certain criteria, such as a well-known employer and known history, they are comparatively more lenient when it comes to years of experience, salary rate, and end-of-service bonuses. Expatriates with salaries exceeding 300 dinars can secure loans, even with just four months of employment, adhering to the legally required stabilization period. The banks adopt a broader list of companies than their conservative counterparts, which enhances their protective measures.
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As a result of the intensive campaigns organized by the tripartite committee formed by the Commerce and Industry Ministry, Interior Ministry, and Public Authority for Manpower (PAM) ensuring strict compliance with recent decisions specifying recruitment fees for domestic workers, and the requirement to collect such fees through K-Net devices, indicate that the government will rely on Al-Durra Labor Recruitment Company for the recruitment of domestic workers and will be firm against the domestic labor recruitment offices.
In spite of the company's launch in 2016, the company failed to keep pace with the domestic labor market as required due to the growing demand, which raises further questions regarding its readiness to fulfill its role as required and the speed at which it recruits workers, especially since Filipino workers are no longer being recruited.
The Ministry of Commerce and Industry's official spokesman Abdullah Al-Haraz reiterated that all domestic labor recruitment offices must have K-Net devices. He warned that the necessary legal measures will be taken against any office without such a device. According to him, the goal is to prevent these offices from increasing their fees by collecting only the specified fees in accordance with the regulatory decisions. The offices that violated the regulations must modify their status, obtain K-Net devices, and adhere to the regulating ministerial decisions and Domestic Workers Law number 68/2015; and must comply with the specified fees. According to him, the Commerce Ministry's decision - number 2/2024 - amends the decision issued in 2022 regarding recruitment fees. As he pointed out, the recent campaigns aim to ensure the presence of K-Net devices in domestic labor recruitment offices; and if they are not available, the citizen should file a complaint with the competent authorities for action.
According to domestic labor experts Bassam Al-Shammari, the recent decisions will result in a scarcity of requests for domestic workers and difficulty in finding them. A number of factors could harm the domestic labor market, he told the daily, including the recent decision of the Ministry of Commerce, the lack of workers, and the suspension of recruitment processes by Sri Lankan domestic labor companies and labor recruitment offices. He pointed out that the local market needs around 5,000 to 6,000 female workers per month; indicating the owners of domestic labor recruitment offices will face a problem in continuing to recruit these numbers in light of the current conditions. He added the total number of domestic workers in the country now stands at 811,000 420,000 of whom are female. He said the main problem with female domestic workers is that the Kuwaiti labor market needs more female domestic workers due to the opening of new residential areas and urban expansion. The owners of domestic labor recruitment offices are waiting for the new government formation to present their ideas and suggestions in a way that protects the labor market, owners of domestic labor recruitment offices, and private companies.
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Speaker Ahmed Al-Saadoun has invited the government and MPs to the parliamentary session on Tuesday to discuss:
– Voting on the minutes of the previous session;
– Parliamentary queries;
– Amiri Speech delivered on Oct 31, 2023;
– Report of the Legal and Legislative Affairs Committee about the bills on reforming the constituencies, and amending the National Assembly Law and Penal Code number 16/1960;
– Report of the Interior and Defense Affairs Committee on the proposed amendment to the Foreigners Residency Law;
– Report of the fact-finding committee tasked with investigating the armament deals (Eurofighter and Caracal helicopters);
– Report of the Oil and Energy Committee on the proposal to establish a national shareholding company for advanced petrochemical industries;
– Reports of the Financial and Economic Affairs Committee on these proposals — amend the law on establishing the Public Institution for Social Security in order to grant zero interest loans to retirees, increase the cost of living allowance, transform Kuwait Airways Corporation into a shareholding national company, and exempt the heirs of those who obtained loans from Kuwait Credit Bank from paying the remaining installments in case of the death of the borrowers;
– Reports of the Interior and Defense Affairs Committee on the proposal to amend the Traffic and Police laws;
– Report of the Illegal Residents Affairs Committee about the bills on granting social, civil and career rights to Bedouns;
– Report of the Human Resources Development Committee on the proposed amendment to Civil Service Commission Law number 15/1979.
– Report of the Public Funds Protection Committee on the proposed amendment to the Public Funds Protection Law;
– Report of the Health, Social and Labor Affairs Committee on the proposed amendment to the Cooperative Societies Law;
– Report of the Family, Women and Children Affairs Committee on the proposal to grant rights to the children of Kuwaiti women married to non- Kuwaitis;
– Report of the Foreign Affairs Committee on the military cooperation treaty between Kuwait and Turkey; – Request of several MPs to discuss the strategic alternative to the salary scale with the government;
– Request to discuss the factors leading to price hikes;
– Request to discuss the procedures and criteria adopted to fill up vacant supervisory posts;
– Request to form a fact-finding committee to investigate the Dhaman Hospital issue and violations recorded by the State Audit Bureau.
In another development, MPs Mubarak Al-Tasha, Adel Al-Damkhi, Hamad Al-Obaid, Abdullah Fehad and Abdulaziz Al-Saqaabi have submitted a bill on amending Personal Status Law number 51/1984, particularly Clause A of Article 189, such that the order of granting custody of the children in case of divorce shall be as follows: mother, grandmother (mother of the female spouse), father, aunt (sister of the female spouse), sister of the female spouse’s mother, sister of the female spouse’s father, grandmother of the father and father’s aunt.
The existing law puts the father in seventh place among the relatives who could be granted custody of the children in case of divorce. The lawmakers explained that their bill is aimed at correcting this, considering the essential role of the father in raising children.
Meanwhile, Secretary of Inter-Parliamentary Group MP Muhammad Al- Mahan has called on the parliaments of Islamic countries to push for a ceasefire in Gaza and to stop the genocide being committed by the Zionist entity against the Palestinians. He stressed the need to provide safe passages for the affected as a humanitarian gesture. Al-Mahan made the statement at the recent meeting of the Permanent Palestinian Committee in the Organization of Islamic Cooperation hosted by the Iranian Parliament; during which he also called for confronting Israeli attacks and foiling attempts to displace the people in Gaza.
He stressed the need to file a case against the Israeli prime minister, and the political and military leaders, as they are war criminals. He stated that Israel and its supporter countries must respect international legitimacy. Treasurer of the group MP Hamad Al-Obaid and member MP Fahd bin Jamee attended the meeting as well.
Hamad Al- Matar, Undersecretary of the group, as well as MPs Dawoud Maarefi and Shuaib Shaaban, will attend the first meeting of the Palestine Committee at the Asian Parliaments Union. Furthermore, MP Fahd bin Jame’e enquired about the role of the National Council for Cybersecurity in protecting ministries' and other public institutions' websites, and how hackers can access important data through these websites. Sheikh Talal Khalid Al-Ahmad Al-Jaber Al-Sabah is acting Deputy Prime Minister and Minister of Interior.
In addition, he wishes to know the agreements or contracts the council has signed with local and international cybersecurity companies and individuals, the council's organizational structure, recruitment regulations, the number of its employees, their nationalities, qualifications, jobs, salaries and allowances, as well as if any of them have been appointed without publishing recruitment advertisements since the council was established until today. In addition, he asked Abdulrahman Al-Mutairi, acting Minister of Information, Endowments and Islamic Affairs, how many electronic newspapers and media services were licensed, how these entities were monitored, what measures have been taken against electronic media services without licenses, censorship regulations, and the number of violations since January 2020.
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Kuwait's strategic water reserve recently reached an unprecedented 4,186 million imperial gallons, breaking records. This marks an increase of 11 million gallons from the highest rate earlier in the week, demonstrating the nation's commitment to water security.
Al-Rai was informed by ministry sources that a series of ongoing and future projects will increase water storage capacity to accommodate the growing population. It includes key initiatives like the nine Al-Mutlaa reservoir projects and reservoir developments in Wafra and Na'ayem to fortify Kuwait's strategic water reserve.
It can be attributed to meticulous coordination among concerned sectors that the water stock levels have increased during this period, compared to a significant 72 percent decrease just a few months ago. Notably, the maintenance of distillers and effective water network management have played pivotal roles in this reversal.
Regarding the Gulf water connection project, sources confirmed that discussions are ongoing. The initial plan involves establishing a bilateral connection between Kuwait and Saudi Arabia before extending the connection to encompass other Gulf countries. Kuwait's commitment to improving water infrastructure and promoting regional collaboration on water resources is evident in this strategic approach.
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