Kuwait is a sovereign Arab Emirate located on the coast of the Arabian Gulf, and is one of the world’s richest countries. Its vast economic resources facilitate its global acquisitions and investments for safeguarding its own development. Many Kuwait companies, with funds in abundance, are eyeing global investments at a time when the worldwide financial crisis has sent prices of land and organizations spiraling downwards.
For instance, the Kuwait Investment Authority is exploring investment opportunities in North Africa and would invest either through subsidiary funds or direct purchase in a diversified range including financial services, telecom, technology and the services sector. However, it is interested only in large countries like Egypt and Morocco, which could absorb the large investments it is planning, and also fit into the long-term global strategy of the company.
Kuwait offers a huge export potential to many countries including Africa. South African exports are well received in Kuwait. The products exported to Kuwait include chemical products, base metals, pulp and paper products, transport equipment and animal products. A number of Kuwaiti companies have made large investments in the construction of hotels and other real estate ventures in South Africa. The Johannesburg Stock Exchange has also benefited from Kuwaiti investment. Important investments have been made by Mohammed Abdulmohsin Al-Kharafi and Sons, who own the Pretoria Sheraton Hotel, the Oubaai Golf Estate and the Lombardy Estate. The company’s other interests include moulded foam products used for thermal insulation, in vehicles and for upholstery in South Africa. Other investors include the International Financial Advisors, the Kuwaiti Auto Parts Import Company to name just a few.
Another avenue of interest to Kuwait is to resolve its need for sustained supply of agro products. Kuwait happens to be one of the GCC countries with limited food production due to lack of adequate arable land and water. Its own declining agricultural produce has made it a large importer of food and Africa is one of the countries with ample amounts of cultivable fertile land, adequate rainfall and other water sources. Many African countries have lifted barriers for rich nations to invest in land or lease it for a long time. The Africa-Arab-Agro-Investment Summit 2009, is scheduled for May, and is an endeavor to discuss these issues and come to mutually beneficial strategies to coordinate the needs of each country. It will also discuss possibilities of public private partnerships, new agricultural technologies and ways to increase agricultural productivity.
Source : Chinafrica
