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Volume :9 Issue : 33 1983      Add To Cart                                                                    Download

AN ANALYTICAL STUDY OF SOME PROBLEMS CONFRONTING KUWAITI INDUSTRY

Auther : By: Dr. Mahmoud Salama

            In a country like Kuwait whose economy is heavily and unhealthily dependent of oil which is a depleting resource, industrial development becomes a hopeful sector for diversification of sources of national income.  Industrial output in Kuwait has considerably risen from KD 45 million in 1970 to KD 350 million in 1979.  The number of industrial establishments has also increased from 2030 in 1966 to 3000 in 1974.  Despite this marked growth, particularly during the last decade, industry still occupies a modest status in the gross domestic product, hardly exceeding 3.5% in 1977.  The problems that beset this sector and narrow its scope, are quite substantial irrespective of the few discernable advantages.  The objective of this paper is to depict the handicaps and problems facing Kuwaiti industry, through conducting a field investigation embracing a representative sample of 200 industrial establishments. The relevant questionnaire included a number of pertinent elements, which may shed light on these problems.  The main elements included in the questionnaire are as follows:

 1.     Dealings with external organizations and institutions, i.e. the customs department, Ministry of Trade, Ministry of Finance, Ministry of Planning, Ministry of Electricity, Ministry of Public Works, Ministry of Interior, the Industrial Bank,……etc.

 2.     Systems of planning, i.e. quality control, production information, inventory, industrial costing….etc.

 3.     Energy, water and fuel.

 4.     Transportation, its means and maintenance.

 5.     Maintenance of machines and equipments.

 6.     Employment and incentives.

 7.     Raw materials (semi-manufactured and manufactured).

 8.     Marketing.

 9.     Degree of profitability.

 Previous literature on the industrial development of Kuwait has been canvassed in addition to the conduction of interviews with a representative sample of the engaged personnel.  The results were carefully processed and analyzed, giving way to a set of recommendations submitted by the author to overcome some of the difficulties facing the development of industry in Kuwait.

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May 18, 2017

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