According to the Kuwaiti newspaper "Al-Rai," Acting Minister of Finance, Saad Al-Barak, stated that the proposed Sovereign Fund aimed at investing in the country will consolidate government companies and manage them in a private sector manner. He confirmed the government's continued push to enact the long-awaited Public Debt Law.
Minister Saad Al-Barak, who also serves as the Minister of Oil, remarked in an interview published on Wednesday: "It is necessary to manage state-owned companies in the manner of the private sector, which is why we will gather Kuwaiti companies. They must be managed by a fund operated in an investment-oriented fashion similar to that of the Public Investment Authority."
He emphasized the importance of consolidating these companies and entering into international partnerships to enhance their performance and open up international partnerships to develop the country’s assets and properties, creating competition at the international and global levels.
Al-Barak clarified that this fund will open new investment opportunities in Kuwait, including the state’s properties and lands, to be invested in advanced projects through this fund.
Concerning the Public Debt Law, the minister confirmed the government’s ongoing focus on approving the long-awaited law, allowing the Gulf state to benefit from global debt markets if oil prices decline.
The newspaper quoted the minister stating: "So far, we have a tendency to potentially use public debt, so we want to cooperate for the benefit of everyone, and there will be no impact on the citizen's pocket."
He also indicated that there might be a requirement for state borrowing to comply with Islamic law, saying: "Some brothers or sisters may raise the issue of borrowing; we say that our borrowing will comply with Islamic law. There are many sukuk and instruments that fund this economy."
He stressed that the critical issue is securing financial flows within the state, explaining that if the price of a barrel of oil is $70, the budget deficit for Kuwait in the current fiscal year would exceed $6 billion.
He added: "This deficit will affect our projects, plans, programs, and our ability to meet our commitments, which is why we should not take a negative stance on borrowing. You should have a means to overcome cash flow gaps, as it benefits the state as a whole."
