The newspaper "Al-Qabas" reported that the Kuwaiti plan aimed at the largest restructuring of government agencies in the country's history includes the establishment of nine public shareholding companies, which are likely to fall under the umbrella of the Public Investment Authority or its affiliated entities according to their activities.
The Kuwaiti government is working on shifting the role from operator to regulator for the majority of the country’s facilities, allowing the private sector a greater role in the operational process on a profitable commercial basis, thus freeing the Kuwaiti economy from long-standing government dominance.
The activities of the shareholding companies will vary, including a company for managing local airports and air navigation operations, another for operating port activities, a postal company to manage the postal system in the country, and a national holding company for media, intended to replace the Ministry of Information, which is set to be abolished. This media company will oversee all media operations across subsidiary sectors starting in early 2024, in preparation for privatization.
According to responsible sources for the newspaper, the establishment of these companies is expected to begin in 2022, with the transfer of assets from similar government facilities to the newly established companies in preparation for their future privatization, whether to the local private sector, foreign investors, or through joint partnerships, while the state retains a significant stake to intervene in cases of management or operational issues.
The sources added that Kuwaiti employees will retain their jobs in the government facilities expected to be privatized, and new jobs will be created for recent graduates. It is also anticipated that there will be a call for public subscription in government companies in the future, once the government is assured of its successful path.
Based on the new government restructuring plan expected to launch early next year, there is a government inclination to approve a new plan to abolish the Supreme Council for Planning and Development and create a new advisory entity called the "Economic Development Council." A workshop will be organized in the coming months to prepare a comprehensive study on defining the functions of this new Economic Development Council and to nominate its members from both the public and private sectors, with a launch planned during the first half of 2022.
Additionally, according to information from the newspaper, the Secretary-General of the Supreme Council for Planning will also be abolished, along with the Government Performance Follow-up Office over the next two years, with their responsibilities transferred to other entities closer to the upcoming "Kuwait Center," which will operate under the Office of the Prime Minister.
According to government sources, the restructuring will also include the Office of the Prime Minister, where its leadership will be granted executive and supervisory roles over government entities through the "Kuwait Center," following the issuance of new governmental mandates with supporting authorities to perform its role.
The government plans to dissolve the Higher Committee for Privatization and the Higher Committee for Partnership Projects starting in early the first half of 2022, with their responsibilities being transferred to the Ministry of Economy and Trade, which is expected to be established at the beginning of the new year.
Moreover, the Cabinet has tasked the Public Authority for Roads and Transport to complete the missing components of the feasibility study for the Kuwait Metro Network and to devise a clear plan for implementing the project. The assignment limits the timeframe for completing these components to approximately one year.
"Al-Qabas" learned that the Cabinet has assigned the Directorate General of Civil Aviation to complete the process of privatizing Kuwait Airways within a period of three years. The government also plans to establish a company for electric vehicle charging under the supervision of the Public-Private Partnership Authority, which, according to the government plan, is expected to commence operations by the end of 2025.
Furthermore, there will be a review of oil production costs through studying and reviewing the development of oil costs per barrel and collaborating with the Ministry of Finance to improve capital and operational costs.
