The Duke of York hosted a Seminar at St James’s Palace on 20th June, 2011
“Business Opportunities between the United Kingdom and the State of Kuwait”
The commercial relationship between the State of Kuwait and the United Kingdom is strong and growing. Following discussions with The Emir and The Prime Minister of Kuwait during an official visit to the State in 2010, The Duke of York decided to hold a high level seminar at St James’s Palace to highlight to British companies the opportunities afforded by Kuwait’s ambitious National Development Plan. The Plan intends to spend £93bn on infrastructure projects in a sequence of projects which look forward to 2035. UK companies have already secured £2bn of contracts in connection with the Plan.
In addition, 2011 is an important year for Kuwait as it marks the 50th Anniversary of Independence from the United Kingdom and twenty years since the State was liberated from Saddam Hussein’s forces. The UK’s links with Kuwait date back over 200 years and this year highlights the importance of our long term and close relationship.
The event was attended by both the Kuwaiti and British Ministers of Trade and Industry, Dr Amani Bou Resli and Lord Green of Hurstpierpoint. Dr Bou Resli was accompanied by a delegation of 30 Kuwaiti business leaders from a range of sectors including financial services, health, education, energy, transport and infrastructure.
The British Government was also represented by Gerald Howarth MP, Minister for International Security Strategy and Lord Marland of Woodstock, Parliamentary Under-Secretary for Energy and Climate Change.
The seminar, which was attended by over 100 British businesses, was chaired by Dr Gerard Lyons, Chief Economist at Standard Chartered Bank, and included the following speakers:
– Lord Green of Hurstpierpoint, Minister of State for Trade & Investment
– Mr Keith Clarke, Chief Executive Officer, Atkins Global
– Mr Jeff de Lange, Deputy Managing Director, Gulf Consult
– Mr Ali Al Ghanim, President, Kuwait Chamber of Commerce & Industry
– Mr Adel Al Roumi, President, Kuwait Partnerships Technical Bureau
As a mark of the importance of the relationship between the two countries, the Prime Minister visited Kuwait in February of this year. During the visit a Memorandum of Understanding was signed between the two Governments with the express aim of doubling bilateral trade to £4 billion a year by 2015. In an effort to support this goal a UK-Kuwait Trade and Investment Task Force has been established.
The discussions at the Seminar concluded the following:
1. International trade is crucial for the UK’s economic growth and the British Government has put commercial relations with the Gulf at the centre of this strategy.
2. Kuwait is at a ‘tipping point’ with a long term vision for 2035 and a series of ambitious development plans. There are improved signs of the Government’s commitment to implement vital reforms with a number of new laws already passed. The Kuwait Government is moving from its role as an operator to that of a regulator.
3. The Kuwait market and particularly the National Development Plan, present UK businesses, large and small, with genuine opportunities for engagement in a diverse range of sectors. Specific projects include;
– Kuwait International Airport
– Kuwait City Metro
– Kuwait Hospital Development Plan
– Boubyan Island Port Development
4. Energy has been a key part of Kuwait’s economic success but the country needs to diversify its economy to boost the private sector and create jobs for its growing population of educated young people.
5. Under the National Development Plan Kuwait will build on three strands of infrastructure:
– ‘Hard’ Infrastructure – the construction of hospitals, schools and transport links
– ‘Soft’ Infrastructure – human capital (education, training, skills transfer)
– Institutional Infrastructure – regulation, legislation
6. One of the main elements of the plan is to restore the leading role of the private sector, primarily through the introduction of various reforms and incentives, to stimulate private investment. Accordingly, half of the envisioned investment outlays under the 4 Year Plan are anticipated to come from the private sector, either as direct investments or in the form of Public-Private Partnerships (PPP).
7. Government and the private sector are looking for turn key solutions, rather than offerings which form individual parts of a project solution. British companies need to work together in consortia to provide tailored packages that provide for the design, construction, management, training and service delivery of a project. In this context medical solutions were discussed as a potential area for consortia.
8. Since Kuwait’s independence in 1961, the UK has lost market share – to the USA, Germany, France, Korea and China; the UK needs to re-establish its position as Kuwait’s ‘Partner of Choice’.
9. Those that go to Kuwait will need a local partner, and should plan to be in Kuwait for the long term. The business relationship is based on personal relationships, one to one. Those who flit in and out will not gain business. Be patient, establish a local presence, and foster a relationship of trust with your Kuwaiti partners.
10. Companies should not expect to sell yesterday’s equipment and technology. Kuwait is a highly competitive market, and only the best will survive. To succeed, offerings must be world class.
11. While Kuwait is not the easiest market to work in, and there are significant challenges, including transparency, nevertheless it is certainly worth UK companies engaging in Kuwait.
For more information about the Kuwait market and the specific opportunities that fall under the National Development Plan please click here.
