Vision Kuwait 2030

Final Report

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TABLE OF CONTENTS

Foreword by Tony Blair 4

Acknowledgements 6

1. - Executive Summary and list of recommendations 7

2. - Overview of the Current Situation 21

3. - Vision Kuwait 2030 39

4. - The Reform Agenda of Vision 2030 68

4.1. Economy I: Unleashing the full potential of the Kuwaiti Economy

4.1.1. Reducing Red Tape 72

4.1.2. Improving Access to Land 86

4.1.3. Creating Fair and Equal Opportunities in the Market 97

4.1.4. Creating Sound and Sustainable Public Finances 112

4.2. Economy II: Leveraging Kuwait‘s natural resources and geography

4.2.1. Expanding and Empowering the Energy Sector 126

4.2.2. Turning Transportation and Logistics into a Key Growth Driver

4.2.3. Developing a Niche Financial Centre 180

4.3. People: Developing human capital and creating sustainable professional opportunities

4.3.1. Changing the Dynamics of the Labour Market 197

4.3.2. Upgrading the Education System 214

4.3.3. Building a Stronger Healthcare System 232

4.3.4. Protecting the Environment and Fostering Green Development 251

4.4. Building a Cultural Haven and Leisure, Sport and Media Sanctuary 267

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5. - Security and Prosperity in a Changing World 283

6. - Delivery Mechanisms 308

7. - Communicating the Vision and Reform Agenda 320

8. - How to Put the Vision into Practice 330

9. - Appendices 353

Appendix 1 – Methodology

Appendix 2 – Vision 2030 Reform Agenda as compared to the Draft Five-Year plan of the Supreme Council for Planning and Development

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Foreword by Tony Blair Kuwait now needs to make a fundamental decision about its future. Its history is great. Its potential is enormous. Its people are highly talented and creative. But the plain truth is that on current policies, this potential will not be realised, and the talent will be squandered.

On a no-change scenario, the future will be uncertain, possibly bleak. The population is set to more than double by 2030. 4/5ths of Kuwaiti citizens are employed in the public sector. The oil reserves are large, but will decline over time. But at present oil revenues drive 90% of GDP. There will, almost certainly, be a global shift away from carbon due to worries over global warming. The education and health systems have higher levels of expenditure than the EU average but much lower outcomes. Kuwait, a nation with an extraordinary and proud trading heritage, has now reached a stage where its entrepreneurs feel so constrained that they look abroad, and not at home, for opportunities.

Put simply, Kuwait cannot sustain its present path. It changes direction or it declines. Yet, over the last months when such a change has to be debated, decided and followed through, the political system has seemed paralysed, with parliament and Government in a perpetual deadlock. There is however hope, that the recent elections and the decisiveness of the government will allow Kuwait to go forward.

So there is no point in dressing this message up: there has to be a thorough, deep and radical set of changes introduced, for Kuwait and Kuwaitis to achieve the future they deserve.

Our report – from a team part Kuwaiti, part outsiders – proposes such a set of changes.

But it does more. It lists the action points to get the changes done. There is a strong vision at the heart of this, which is a vision derived from the Amir‘s own strongly felt and strongly declared intentions. But, in one sense, the ‗what‘ of the issue is not much in doubt; it is the ‗how‘ that is critical.

So the report proposes, across all areas of policy, the things that, in a detailed and granular way, would cumulatively change the direction of the country: reforms to the business environment; freeing up industry; reforms to the health and education

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system to make them accountable, efficient and professional; and to the public sector, to reduce its waste and get it focussed on quality outcomes; and reforms to the social systems that allow talent to be rewarded both of men and women, the innate tolerance of the country to flourish and the rich cultural heritage of the nation to be exploited. Though it is for Kuwaitis , both the people and those in positions of leadership, to decide the political reforms necessary, we also, at least, point to the objectives those reforms should aim for. And here again, reform is undoubtedly necessary.

So it is a big and ambitious programme that we have assembled. That is what the challenge requires.

However, it will now need to be taken forward. This will mean a far-reaching organisation of the capacity and processes of Government in each main area, to get the job done. We also suggest how this could be implemented. But as I discovered in Government, the hardest part is not articulating the vision, it is putting it into practice. Nonetheless we are absolutely confident it can be done. A nation, with the history, ability and potential of Kuwait, has no other option if it is to shape its future in a way consistent with its own view of itself. The challenge may be immense but meeting it, will be exciting, invigorating and ultimately, fulfilling.

Tony Blair