Ministry of Commerce and Industry (MoCI) said that it is working to ensure that subsidized construction materials directly benefits citizens, and is not being redirected to create a black market.
According to Salah Al-Rashidi, who heads the Subsidies Department at MoCI, a total of KD125 million worth of subsidies were given by the ministry in 2018. The ministry was now monitoring prices of construction material and activities in this market to make sure that subsidized construction material was not making its way into the market..
The government implemented Decree 232/2018 with the aim of creating affordable options for citizens looking to purchase construction material from the market. Subsidies are now being paid not only for limestone and paints, but also extended to other materials such as electrical cables, ceramics, porcelain, water and heat insulators, and so on, said Al-Rashidi.
In accordance with the ministry’s regulations, subsidies for constructional materials should not exceed KD30,000 per citizen who is given KD8,460 for 50 tons of steel, 100 cubic meters of white stone, 2,000 bags of cement, and 450 cubic meters of ready-mixed concrete. The ministry also offers 15,000 cement blocks at around KD1,920; central air-conditioning equipment for KD 5,000; outer paint material worth KD800 and KD1,300 for purchase of limestone.
All these facilities are made available for citizens who have to meet several conditions, indicated Al-Rashidi, affirming that subsidies by the ministry were given on the condition that it be used for legitimate purposes.
Meanwhile, citizens speaking for and against the misuse of subsidies said that though providing more options by the ministry to the citizen is a good step, it would be advisable to add more materials to the subsidies list to prevent others from taking advantage of citizens. By doing so, Kuwaiti nationals could fully benefit from the government constructional loans, which currently barely covers the need for house construction, he added.
Another citizen said that specifying certain materials that meet the subsidies criteria might lead certain individuals to sell subsidized goods that they were not in need of thereby creating a black market for such material. However, he cautioned that selling material to other house owners within the boundaries of the neighborhood should be considered as a ‘black’ market activity, as it was only preventing waste of material and this should be applauded, rather than being frowned upon.
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