Nov. 3--KUWAIT -- Kuwait is among countries that attract the least foreign investments worldwide, as statistics show that foreign capital influx in the country was around $120 million in 2006 and 2007, a World Bank official said during the Kuwait Financial Forum. Other speakers also addressed the issue of bank mergers as a way out of the liquidity crisis.

The retreat in the inflow of foreign capital into Kuwait was mainly due to lack of proper investment environment... Kuwait can do better," said Radwan Shaaban, the Director of the World Bank office in Kuwait during the second day of the forum at the Sheraton Hotel. Radwan noted that the World Bank report showed that the investment environment in Kuwait had retreated in the global classification index and it ranks 161 among countries worldwide.

The World Bank official also asserted that Kuwait is not prompt as other countries in improving its investment environment. "But this negative position is not inevitable," Radwan asserted, adding that Kuwait is a candidate to become one of the best economies in the region. "Kuwait's private sector is active," he said, reiterating that enhancing the investment environment in the country requires huge efforts.

Radwan underlined the need to implement the proposed government five-year plan which was recently submitted to the National Assembly. "This plan comprises projects that can improve both the economy and the environment," he added. The official also stressed the need for amendment to existing foreign investment regulations. "Foreign investments are necessary because they sustain domestic growth," he asserted.

Radwan said partnership between the public and private sectors is crucial, adding that the government should encourage investors to utilize the BOT (Build, Operate and Transfer) Law which was introduced in 2008. He affirmed that for Kuwait's to transform itself into a financial hub, it should implement projects included in the five-year government plan.

Former minister of planning Ali Al-Mousa echoed Radwan in supporting the five-year plan, saying that that the plan should be supported by both the executive and legislative authorities though it has some loopholes. Al-Mousa added that the state intends to allocate a budget of KD 7.4 billion for the five-year plan including KD 3.4 billion for private sector. "The relatively large budget brings big hopes to overcome the financial crisis that the country passed through in 2008 and 2009," he added.