SUBSCRIPTION WEDNESDAY, SEPTEMBER 27, 2017 MUHARRAM 7, 1439 AH www.kuwaittimes.net Qatar laborer Mud, misery Concert-goers England drop ‘sacked’ after for refugees arrested for all-rounder speaking to as Bangladesh raising rainbow Stokes after UN team6 tent11 city grows flag32 in Egypt assault14 arrest Kuwait shaves KD 1 Min 25º Max 44º High Tide billion off spending 03:07 & 17:01 Low Tide Economic reforms proving effective • KIA sees 34% growth in 5 years 10:25 & 22:14 32 PAGES NO: 17340 150 FILS By Nawara Fattahova and Faten Omar ing Liquidity Coverage Ratio and Net Stable Funding Ratio. He added that the CBK improved, with banks’ non- KUWAIT: Kuwait’s financial leadership heralded a positive performing loan ratio steadily declining to reach 2.2%, a outlook for the country’s slow growing economy, point- historic low. Also ensured the justified buildup of suffi- ing to a significant reduction in government spending cient provisions; consequently, coverage ratio has and growth in assets under management as key achieve- climbed to a record high of 237%. ments. Kuwait shaved off “more than KD 1 billion in gov- The Central Bank government also called for further ernment expenditure between 2016 and 2017,” said Anas reform: “Progress on many structural fronts is needed; Al-Saleh, Deputy Premier and Finance Minister during the further rationalizing expenditures, increasing non-oil annual Euromoney conference in Kuwait City. revenues, reforming the labor market, increasing the “To reach this result the public financial bodies imple- role of the private sector and in general diversifying the mented measures including adjusting cap and growth economy are some key areas that would continue to rate of public spending and treating the waste in this require unremitting attention.” spending, accelerating the process of collecting late state debts, shifting from the annual budget system to the Investment legislation medium-term budget system, limiting the violations of Kuwait’s parliament is likely to approve a law to the social allowances, and other measures,” he explained. extend the country’s borrowing limits, enabling 30-year debt issues, a senior finance ministry official said yester- Income growing, projects on track day. The law would allow Kuwait to increase its debt ceil- Kuwait sets one of the lowest price per barrel break ing to KD 25 billion ($83 billion) from 10 billion currently. evens in the region. Its 2017/2018 budget includes a $45 It would also allow the Gulf state to issue debt instru- per barrel break even for oil revenue. But forecasts KUWAIT: Anas Al-Saleh, Deputy Premier and Finance KUWAIT: Mohammad Y Al-Hashel, Governor of the ments with maturities of up to 30 years, from a current expect Kuwait crude to earn an average $52.50, accord- Minister speaks during the annual Euromoney confer- Central Bank of Kuwait speaks during the annual limit of 10 years. ing to Fitch Ratings. This will bolster the state’s finances ence in Kuwait City. — Photos by Yasser Al-Zayyat Euromoney conference yesterday. “We’re optimistic that the parliament will pass the law and could reduce a projected deficit of KD 7.9 billion as it is, it’s a matter of getting it through the process,” (this includes transfers to the Future Generations Fund, Abdulaziz Al-Mulla, head of the debt management part of the country’s sovereign wealth fund). SEE PAGES 17 AND 18 department at the ministry of finance, said during a Kuwait Investment Authority (KIA) also grew its assets Euromoney conference. Kuwait issued a debut $8 billion by more than 34 percent over the last five years, noted is the first phase of the North Zour Refinery Project,” said Dr Mohammad Y Al-Hashel, Governor of the Central international bond in March with maturities of five and 10 the Finance Minister during the Euromoney conference Al-Saleh. “We are now preparing the tenders for three Bank of Kuwait, noted the soundness of Kuwait’s bank- years. The government decided to extend its borrowing yesterday. According to Al-Saleh the state’s reserves and other partnering projects including the Kabd station for ing sector during the conference, pointing to a slate of limit to 30 years after noting interest from pension and assets managed by the KIA are stable. “This is considered solid waste, the sewage network project at Um Al- reforms intended to protect local banks against global insurance funds for long-term paper when the bond sale the safety vale to our national economy during any crisis Haiman, and the public schools development project,” economic uncertainty. “We have enhanced our capital was presented to international investors, said Al-Mulla. and for the future generations, in addition to enhancing he noted. adequacy regime by setting out higher and better quali- “We believe time is a very important aspect, as we state’s high creditworthiness,” he said. ty capital. As highlighted in our flagship Financial need to finance this fiscal year, from the beginning of The minister did not divulge the exact size of KIA’s Stable, strong banks Stability Report for 2016, CAR of the banking industry April to the end of March 2018, and as we all know there assets under management. The Sovereign Wealth Fund At the same time, reforms of the investment sector stands at 18.6%, well above the Basel benchmark. We are windows in the market,” he added, without specify- Institute ranks KIA as the world’s fourth-biggest sover- are also tracking gains. “The daily average of stock trad- have also put up additional capital requirements, up to ing when a new bond issue is likely. Kuwait is also work- eign fund, managing $524 billion. Increased govern- ing value at the Kuwait Boursa hiked by 139 percent dur- 2%, for our systemically important banks,” Al-Hashel said. ing on a law that would allow the sovereign to issue ment spending on megaprojects under the New Kuwait ing the first eight months of 2017 compared to the same Kuwaiti banks stand at 10.1%, substantially higher sukuk, said Al-Mulla, adding he did not know when such 2035 reform program is also expected to bolster the period last year,” the Finance Minister noted, adding that than the 3% global benchmark where the CBK strength- a law would be in place. The current legal framework local economy. “Two weeks ago an initial public offering the growth indicated increased confidence and trust by ened banks’ capacity to withstand liquidity stress and to does not allow the government to raise financing (IPO) of the first partnering project was launched, which local and international investors in Kuwait’s economy. make their funding structure more stable by implement- through Islamic bonds. Saudi to allow women to drive in historic decision US hails Saudi U-turn on women drivers RIYADH: Saudi Arabia will allow women sharia law, have justified the ban over the to drive from next June, state media said years, including one who claimed that UAE tackles forced yesterday, in a historic decision that driving harmed women’s ovaries. Many makes the Gulf kingdom the last country women’s rights activists were jailed over labor, harassment in the world to permit women behind the years for defiantly flouting the ban. DUBAI: The United Arab Emirates, criticized globally the wheel. The longstanding driving ban The shock announcement was met in for its treatment of migrant workers, issued a law yes- was seen globally as a symbol of repres- Riyadh with a mix of euphoria and disbe- terday to combat abuse of domestic staff, state news sion of women in the ultra-conservative lief. “I am very excited and shocked at the KUWAIT: Security officers inspect the scene of the accident that left three people agency WAM said. It includes prohibitions on sexual kingdom and comes after a years-long same time... I expected this to happen 10 dead and three others injured. harassment, forced labor, and the employment of resistance from female activists. The deci- or 20 years later,” Haya Al-Rikayan, a 30- domestic workers under 18. sion, which risks riling religious conserva- year-old bank employee in Riyadh said. It also stipulates that workers are entitled to one tives, is part of powerful Crown Prince The announcement follows a dazzling Three perish in fatal accident paid day off each week, 30 days of paid vacation per Mohammed Bin Salman’s reform drive gender-mixed celebration of Saudi year and up to 30 days of sick leave. President Sheikh aimed at adapting to a post-oil era and national day at the weekend, the first of By Meshaal Al-Enezi ing one man who was identified as the son Khalifa Bin Zayed Al-Nahyan approved the law, which improving its battered global reputation its kind, which aimed to spotlight the of senior Interior Ministry official and two was praised by human rights organizations when its due to its harsh human rights record. kingdom’s reform push, analysts say, Egyptian workers, while three others were KUWAIT: First Lieutenant Ahmad Al- draft was passed by the country’s legislative body in “The royal decree will implement the despite a backlash from religious conser- rushed to the nearest hospital for treat- Dousari, son of Interior Ministry’s May. The UAE relies heavily on migrant labor with an provisions of traffic regulations, includ- vatives. Men and women danced in the ment of injuries sustained during the Undersecretary Lieutenant General estimated 8 million workers making up more than 80 ing the issuance of driving licenses for streets to drums and thumping electron- crash. According to eyewitnesses, the acci- percent of its population, according to the Mahmoud Al-Dousari died in an accident men and women alike,” the Saudi Press ic music, in scenes that are a stunning dent happened when a vehicle crashed International Labor Organization.