Kuwait derives 94 per cent of its revenues from oil and the 70 per cent oil price slide over the past 18 months meant the state is under heavy pressure to cut costs and manage its state budget deficit, which is estimated to reach $40bn in 2016.
Revitalising the ports for commercial business is urgent, Minister of Commerce and Industry Yousef al-Ali told told London-basedReuters. We need to develop the management and transfer it to the private sector.
The current law in Kuwait is understood to only allow for the transfer of ownership in state assets.
Amending the law is seen to provide Kuwaiti companies such as logistics giant Agility, KGL Logistics and Jazeera Airways opportunities to get involved in the sector, according to Mustafa Behbehani, chairman of the Kuwaiti Gulf Group for Administration and Economic Consulting.
Al-Ali did not disclose a timeline for the passing of the legislation.