Govt eyes to extend renting properties to pvt sector

Oil sector plans to bring firms under one umbrella

KUWAIT CITY, March 14: Government is conducting studies concerning the possibility of extending the period of renting state properties to the private sector to 99 years which can be renewed, reports Al-Anba daily.

According to sources, the study includes amendment of Article 17 of Law No. 105/1980 to pave way for owners of investment projects in the fields of health and education. The step is based on the keenness to develop the private sector and diversify the sources of revenues. The study aims at reducing the budget deficit especially concerning the first chapter related to salaries.

The intended amendment aims at encouraging the private sector to extend its projects in order to include large number of employees and create job opportunities, as well as reduce dependence on oil as the sole source of revenues.

The oil sector is moving closer towards launching a new phase in terms of administrative structure by classifying the subsidiaries of Kuwait Petroleum Corporation (KPC) into three major categories based on the strategy to bring oil companies under one umbrella on the basis of their activities, reports Al-Nahar daily.

With this step, Kuwait Oil Company and Gulf Oil will come together under the production category, Kuwait International and Kuwait Oil Tanker Company under marketing category, and KNPC, KIPIC and Petrochemicals Industries Company (PIC) under industrialization category.

According to sources, there is a study in this regard to unify oil companies with similar objectives in order to reduce expenses and increase productivity. The merger of PIC with KNPC and KIPIC is one among the top priorities.