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Ambassador of Kuwait: Armenia not open for investments

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  • Ambassador of Kuwait: Armenia not open for investments

    Ambassador of Kuwait: Armenia not open for investments
    ArmInfo's interview with Ambassador of Kuwait to Armenia Bassam
    Mohammed Al-Qabandi

    by Marianna Lazarian

    http://www.arminfo.am/index.cfm?objectid=95E6FBB0-5043-11E2-AD81F6327207157C
    Thursday, December 27, 19:34

    Among the issues discussed during the recent visit by Armenian Foreign
    Minister Edward Nalbandian to Kuwait was possible visit of Emir of
    Kuwait, Sheikh Jaber III al-Ahmad al -Jaber al-Sabah to Armenia. At
    what stage is that issue at present?



    Nalbandian's visit was quite successful by all criteria, first of all,
    because it finally took place after several postponements by both
    Armenia and Kuwait due to some objective reasons in the political
    situation in both the countries. One of the positive arrangements made
    during that visit was cancellation of visas for the two countries'
    diplomats and the invitation for the Emir of Kuwait to visit Armenia.
    Emir confirmed his desire to visit Armenia and I think the visit will
    take place in the near future. In addition, among other achievements
    of the two countries were many agreements signed earlier. During their
    meeting the Kuwaiti Prime Minister and the Armenian Foreign Minister
    made an arrangement of economic cooperation. A meeting was held with
    the Finance Minister of Kuwait, who is also the Kuwaiti Co-Chair the
    Intergovernmental Commission. The parties agreed to discuss the terms
    of a second business forum of the two countries within the coming 3
    months. I'd like to recall that the Armenian co-chair of the
    Armenian-Kuwaiti Intergovernmental Commission is the Minister of
    Territorial Administration.



    Kuwait Fund For Arab Economic Development (KFAED) has announced an
    intention to implement projects in Armenia. What projects are in
    question and how much they will cost?



    There are two funds, Kuwait Fund For Arab Economic Development (KFAED)
    and Kuwait Investment Authority (KIA). Nalbandian had a meeting with
    the head of KFAED. The two parties discussed an issue of repair of
    some 10-11 Armenian polyclinics. We have received a letter from the
    Healthcare Ministry of Armenia requesting assistance in repair of the
    above polyclinics, but KFAED has not studied the request, because it
    studies requests only from the finance ministries of countries. Since
    the procedure was not observed, the issue has not been discussed.
    Nalbandian promised to tackle the issue on his return to Armenia and
    address the Fund from the Finance Ministry. I'd like to say that
    repair of medical establishments in the regions is a very important
    task because Armenia needs it. Our Fund operates also in Africa and
    Asia and in some other countries, but there are procedural rules of
    KFAED that must be observed.



    Thus, the obstacles are of technical nature... Is it known what
    particular regions in Armenia will be involved in the project?



    Surely, these are procedural and technical issues. Receiving a request
    from the Finance Ministry of Armenia, it will be possible to start
    studying the request that will contain also a cost estimate for the
    needs of regional polyclinics. Only after signing the given agreement
    it will become known what particular polyclinics will receive
    assistance of the Fund. I am sure that issue will be settled as
    Nalbandian himself promised to tackle it.



    As for the KIA, I'd like to say that it is a separate structure that
    was founded in 60s of the last century. The state budget allocated
    quite a significant amount of sum to establish it. Some 10%-15% of
    profits from the oil recovery are directed to the given Fund annually.
    It is also called the Fund of the future generation. All the funds
    directed to KIA are spent on investment projects. In order the Fund
    makes investments in Armenia it is necessary to pave the way for it.
    First of all, I mean the infrastructures. Our countries lack air
    communication and a Kuwaiti investor is reluctant to arrive in Armenia
    via third countries losing over 8 hours in the way. In the meanwhile,
    a direct flight to Armenia would take 1 hour and 50 minutes. The Fund
    cannot persuade a private investor to leave for Armenia unless there
    are relevant conditions for investing. The two countries have an
    agreement on tourism development, which is not implemented also for
    the same reason. We hope Armenia will create all the conditions for
    direct air communication.



    As far as I know during your meeting with Armenian Diaspora Minister
    Hranush Hakobyan you mentioned some technical reasons that impede
    direct flights. What reasons are these?



    The civil aviation departments of the two countries need an agreement
    wherein they must observe the parity principles in line of the rules
    of ICAO, and an opportunity should be provided for the use of the
    fifth freedom right. A question arises as to whether an investor will
    arrive in your country if it is not favorable for investments.



    You are right, there has been such problem in the country for a long
    period of time already. This is because the Armenian aviation market
    is not only monopolized but also it has limited possibilities.
    Therefore, the parity principles cannot be observed with many
    countries. I'd like to know what contractual basis is there between
    Armenia and Kuwait? In what fields do the countries cooperate and in
    what fields do they plan to launch cooperation?



    We have signed an agreement on mutual protection of investments, on
    abolition of double taxation, agreement on exchange of students. Every
    year 4 Armenian students receive education in Kuwait. Last year, 2
    students arrived in Kuwait to study. Don't forget that we have an
    Armenian community comprising nearly 6,000 people. There is an
    Armenian school that was established 50 years ago. The Kuwaiti people
    are familiar with the Armenian culture and traditions. During his
    meeting with Nalbandian, our Emir highly appreciated the Armenian
    community. The Armenians in Kuwait are very hardworking and honest.
    They have never complained during such long period of residence in our
    country. The Armenian community is among the most respectful ones in
    Kuwait.



    Have you got any statistics on Kuwait's investments in Armenia?
    Official statistics keeps silence. In what fields may Kuwait's
    investments be used most effectively?



    Unfortunately, no investments in Armenia from Kuwait and its citizens
    have been registered; everything is at a standstill. It is necessary
    to create relevant conditions for investments; a relevant ground is
    needed.



    We also tried to learn the statistics on foreign trade turnover
    between our countries, but we have not found it either.



    I have already said that, unfortunately, there are no more or less
    developed trade and economic relations between our countries. If
    Armenia is not open for some reason, there are no basic conditions for
    development of any partner relations. Nobody will agree to waste time;
    Armenia is not open for Kuwait's investments. Furthermore, I invited
    representatives of Kuwait's civil aviation to Armenia, and we held a
    consultation that covered the issue of air communication. Some
    promises were given, but the issue did not get off the ground.



    The Government of Kuwait has announced its intention to allocate
    100,000 USD to support the Syrian Armenians. What stage is this issue
    at?



    We are cooperating with the Armenian Diaspora Ministry. There is a
    Center for Coordination of Syrian-Armenians' Issues NGO that deals
    with distribution of the aid. The amount should be converted into
    coupons for the beneficiaries to make use of food and commodities.
    This program is underway. As soon as the coupons are printed, we will
    start distributing them. Due to these coupons, the beneficiaries will
    be able to acquire goods of first priority, except alcohol drinks and
    cigarettes. The whole amount will be distributed among 200 families.
    This money will supposedly be enough for 4 months.



    As far as I remember, Armenian Diaspora Minister Hranush Hakobyan
    offered you to renovate a building consisting of 50 apartments for
    Syrian Armenians' families. What stage is this offer at?



    We visited the building and saw that it really needs to be renovated.
    In order to implement the project, we photographed it and sent these
    photos to benevolent organizations of Kuwait. This building belongs to
    a Catholic church, and now we request them to provide us with
    documents giving a complete idea of the building and the scope of
    work. We are interested in implementation of this offer.



    Does this building belong to a Catholic church? Why doesn't the
    Diaspora Ministry apply to Vatican?



    I do not know, but this building belongs to a Catholic church, it is a
    very good building, but needs to be renovated. The building is meant
    for Syrian Armenians and orphans. The fact that this activity is of
    charity nature is very important to us.



    Does the Kuwait Investment Authority (KIA) work on the basis of
    business mechanisms? What programs being implemented in other
    countries may later be implemented in Armenia?



    In this case, the country itself should present projects for
    investments. Armenia needs hotels, as well as projects for development
    of Lake Sevan. Jermuk also needs to be developed, but KIA investors
    will not come to Armenia for the sake of $30 mln, their business and
    interests start from at least $150 mln. Nobody will invest in small
    and medium business. The Kuwait Investment Authority has its programs
    in Europe. Your country itself should invite investors to make the
    investments and develop the infrastructures.



    What would you say about the Armenian-Kuwaiti business forum? Where
    would it be reasonable to hold the forum?



    We are working in this dimension. It is necessary to hold the forum
    jointly with the Chamber of Commerce and Industry. This year is
    already over and we hope that this plan will be carried out by mid
    2013. However, first we hope for establishment of direct air
    communication, as we will hardly persuade our businessmen to spend a
    whole day on the trip. Armenia has a favorable investment potential,
    it has a lot of opportunities and the most important thing is that it
    is a very safe country. Here people are very amicable and nothing
    threatens the tourists.



    Have the Armenian tourists discovered Kuwait for themselves?



    I do not know. There is an agreement, but I do not know whether it
    works. I think there should be no obstacles in this matter.



    Where can one receive a visa? At the Embassy of Kuwait or in the airport?



    As the visa regime is not facilitated, it is possible to visit Kuwait
    if there is an invitation letter. Armenia needs tourists more than
    Kuwait does. If you remember, last year very few tourists visited
    Armenia during Novruz. The hotels, restaurants and markets were
    complaining of the few number of tourists.



    But if there are direct air flights between our countries, I won't
    doubt the flow of tourists from Kuwait, who will visit Armenia 12
    months a year, both in winter and in summer. The tourists will come to
    Armenia and spend money, and the Armenian market will only benefit
    from it. Now Kuwait has a new government, and new processes are
    expected. We hope that new mutually beneficial agreements will be
    signed in the course of the work of the Intergovernmental Commission.
    Certainly, much depends on the political situation in our countries,
    parliamentary elections in Kuwait and forthcoming presidential
    elections in Armenia. I have been in Armenia for a year already, and a
    lot of things have been done over that period. I hope that even more
    various and useful projects will be implemented.



    And, finally, I would like to wish a Happy New Year and a Merry
    Christmas to Armenian people, especially given that Christmas is of
    special importance to you. All the best to Armenian people!

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