When it was inaugurated with great fanfare at the start of May this year, the iconic Sheikh Jaber Al-Ahmad Al-Sabah Causeway, or ‘Jaber Bridge’, spanning Kuwait Bay and linking the country’s capital with the barren northern zone was dubbed by some as the ‘Bridge to Nowhere’. But, barely seven months since inauguration, there are increasing signs that the causeway could soon become the ‘Bridge to Kuwait’s future’.
Named after the late amir Sheikh Jaber Al-Ahmad Al-Sabah in commemoration of his contributions to the development of Kuwait, the 36-kilometer long bridge is seen as the main link to Kuwait’s planned Northern Economic Zone (NEZ), set to emerge from the surrounding desert and marshland lying to the north of Kuwait Bay in Subbiya area. The NEZ will encompass among others the mega Silk City project and the Mubarak al-Kabeer Port, both of which are deemed as crucial to the future growth, development and continued prosperity of Kuwait.
Economic development of NEZ is a significant element in His Highness the Amir’s New Kuwait 2035 strategic vision, which envisages transforming Kuwait into a leading regional hub for financial, commercial and cultural activities. The northern project is expected to attract international investments and help Kuwait diversify its economy from the current preponderant reliance on hydrocarbon revenues.
Developments in NEZ are also designed to encourage greater private sector involvement in the economy, and provide employment to citizens so as to reduce the huge public sector wages that currently eat up around 70 percent of the annual budget. Moreover, the zone is projected to stimulate cross border trade with Iran and Iraq, as well as with Europe and the Far East through tie-up with China’s Belt and Road Initiative. As part of this ambitious initiative, China has already expressed interest in developing the port and five islands that lie off Kuwait’s coastline.
In a recent presentation on the potential of NEZ, member of the Business Development Team for the zone, Osama Al-Qrawi, said that when the zone is fully operational it could add around KD6 billion annually to the gross domestic product (GDP) of the country. A proposed master-plan for the NEZ shows it occupying a total of 1,665 square kilometers, an area that is larger than London and more than double the size of countries such as Bahrain or Singapore.
Development of the area, designated a free-trade zone, is estimated to cost around KD150 billion and will include 42 main projects and activities. The 250-square kilometer mega Silk City project in Subbiya and the deep-water Mubarak al-Kabeer Port on Bubiyan Island near Kuwait’s northern border with Iraq, are the anchor developments planned for the area. In addition, an international airport, a railway network, an Olympic stadium, a national green-park, and a one-kilometer-high Mubarak al-Kabeer Tower, which will then be the world’s tallest building, are expected to come up in NEZ over several phases of development.
The area will house up to 700,000 people and, more importantly, create over 200,000 jobs — a crucial issue for the country, considering that more than half of Kuwait’s population are currently below the age of 25, and an already bulging public sector is unable to absorb the annual influx of nationals into the labor market. “This is a project for the next generation of Kuwait, which will be financed by international financial markets and directed by the private sector,” said Al-Qrawi. He clarified that the zone will be administratively independent but under Kuwait’s sovereignty and will work in accordance with the Kuwaiti Constitution.
Pointing out that the zone will be of great strategic importance to Kuwait, he said, “It will be the gate to the northern border, supporting modern urban life, while also serving as an incubator for commercial projects, as well as social and cultural activities.” In addition, the area will form a bulwark against external and internal threats by improving regional and local security of Kuwait. “Activities in the zone could help the country in confronting many of the challenges it faces, including economy, job market, sustainability, infrastructure, security and many others,” explained Al-Qrawi.
For her part, Sara Akbar, Member of the General Secretariat for the Supreme Council for Planning and Development, said that oil is the mainstay of the Kuwaiti economy, and “our complete dependence on it makes our economy unsustainable.” The NEZ aims to diversify the economy from its dependence on a single source of revenue. “This area will allow investments in different areas, create a trade zone for creative investors, and provide new job opportunities for young Kuwaitis for a better life,” she added.
With regard to the NEZ, it is worth remembering that plans for setting up a northern trade zone was first mooted more than 50 years ago in the 1970s. But then, as with everything else about Kuwait, the idea got shelved and gathered dust, as social, political and Islamic revivals took precedence over the ensuing years. Credit for blowing off the dust and reviving the plan should go to Deputy Prime Minister and Defense Minister Sheikh Nasser Sabah Al-Ahmad Al-Sabah, the eldest son of His Highness the Amir.
In March of this year, Sheikh Nasser, who also spearheads the New Kuwait 2035 plan, presented an outline of the NEZ project before parliament.The strategic framework, which proposed separate administrative, financial and legal status for the free zone, as well as permitting modern arbitration and foreign ownership of companies, was met with immediate criticism from some lawmakers. They complained that the proposal would remove parliamentary oversight over the project, and that the ‘openness’ would lead to a laissez faire environment and introduce behaviors that are alien to Kuwait society.
Outspoken Member of Parliament Safa Al-Hashem warned it would ‘create a state within the state’. “It is the most dangerous law I have ever seen,” said the lawmaker while commenting about the draft proposal. Some other parliamentarians expressed worries that plans to promote tourism would lead to the sales of alcohol and other practices that go against religious edicts and upset social mores in a conservative society such as Kuwait. “In its nature and identity, Kuwait is Arab, Islamic and predominantly conservative… There must be no irresponsible openness,” Islamist MP Mohammed al-Dallal was quoted as saying.
Opposition to the northern project was only to be expected from MPs who have always disapproved of progressive reforms, especially if they are deemed to impact the entitlements that citizens have become accustomed to. For instance, in the wake of the 2014 oil price slump, the government attempted to introduce austerity measures by cutting subsidies on fuel and utilities, raising taxes and curbing state spending. But the parliament struck down or diluted most of the initiatives that were intended to support the economy, as it affected the pockets of citizens. In a compromise between the executive and legislative, the price hikes were then confined to expatriates.
Supporters of these MPS say that the lawmakers are an important brake on the government, which would otherwise run slipshod over the country’s revenues and resources. But detractors of the lawmakers say they are a hurdle to reforms and development of the country. They stress that it is not so much that MPs serve as brakes to the government, but that they often tend to run off with the very wheels of the country’s progress.
Staff Report
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