Kuwait Government Should Do More to Stimulate Economy, Says Leading Kuwaiti Banker
Kuwait can overcome the global economic crisis by the end of 2009 if the Kuwaiti government helps to boost the economy with financial incentives.
“The Kuwaiti economy will return to its norm by the end of the year, provided that the government interferes positively to stimulate the economy,” said Ibrahim Dabdoub, Chief Executive Officer of National Bank of Kuwait Group.
Dabdoub urged the Kuwaiti government to announce a financial incentives package linked to public spending on large-scale service and construction projects such as schools, hospitals and the City of Silk, which various companies can invest in and contribute to. He made the comments during an interview on CNBC Arabiya’s ‘Fil Omoq’ program.
Dabdoud added that his bank’s expansion initiatives may be halted in the current economic climate but did not rule out that the bank will pursue other development goals.
“The National Bank of Kuwait’s current policy is to prudently prepare for difficult times,” Dabdoub said, pointing out that fifty million Kuwaiti dinars of the bank’s 2008 profits was recently transferred and allocated for this purpose.
Dabdoub said that he is cautiously optimistic about a solution to the global economic crisis since US President Barack Obama assembled an efficient, well-known economic team to help deal with world financial issues. At the same time, Dabdoud warned that a credit crisis could result if governments do not apply a funding stimulus, urging positive cooperation between governments and financial institutions to surmount the current crisis.
