Kuwait News

 

 


KUWAIT: If you have 300,000 dinars and want to buy a house in Kuwait your chances are good if it is in some remote area of Kuwait far from the capital, but you can never dream of owning house in model areas because the price of real estate in posh areas is calculated in millions, reports Al-Qabas daily. In a simple calculation, the average price per square meter of private housing property in Kuwait was about 1,074 dinars per sq meter at the end of the second quarter of 2022, according to data from the Kuwait Finance House (KFH).
This means a citizen needs about 430,000 dinars to buy a property with an area of 400 square meters. On the other hand, it is unbelievable that with this amount (300,000 dinars) or even a little less than that you can buy a luxurious mansion in some US cities with an area of more than 600 square meters and with attractive views and distinctive specifications. In the United States a house sitting on an area of more than 5,000 square feet (464.5 square meters) is considered a “palace”, according to the opinions of some real estate experts.


KUWAIT: An Arab country has been ranked the top ninth country in the world in terms of military spending. The volume of military spending of just three Arab countries will reach $80 billion by the end of the year 2022, reports Aljarida daily. The Kingdom of Saudi Arabia is the largest Arab country in terms of military spending. Its defense budget ranks 9th in the world, according to the statistics published by the American website “Global Firepower” for the year 2022.
Saudi Arabia is followed by the UAE in second place and Kuwait in third in terms of volume of military spending among Arab countries, according to the website’s statistics. These three countries spent about USD 80 billion for military purposes from the current year’s budget. According to the statistics, the volume of the military spending of the three countries, and the global ranking of each of them are as follows
1. Saudi Arabia – It has the largest Arab defense budget and the top ninth in the world, with a total of $ 46 billion.
2. UAE – It has the second largest Arab defense budget and the 13th in the world, with more than $ 25.2 billion.
3. Kuwait – It has the third Arab defense budget and the 29th in the world with a budget of $8.1 billion.
As per the global military ranking index, Saudi Arabia ranks 20th in the world, the UAE ranks 36th, and Kuwait ranks 71st among a total of 142 countries around the world, according to the global rankings. Although the Saudi army has the largest Arab defense budget, it ranks second among the largest Arab armies, as it comes after the Egyptian military, which ranks first in the Arab world, and is the 12th most powerful military in the world in 2022.


KUWAIT: Sixty expats are to be deported as they were caught operating illegal taxi service using their own personal cars. They were caught transporting passengers from and to Kuwait Airport. They were observed by traffic patrols for giving illegal taxi service for arrivals and departures from airports entrances and exits. These instructions came directly from the Director General of the General Traffic Department, Major General Yousef Al-Khadda
Most of the arrested violators were Indian, Bangladeshi and Egyptian expats. They were referred to the deportation center and are being ready to be deported back to their respective countries. Many complaints were received from travelers about cheating and extortion from these vehicle drivers who don’t have a license of a taxi driver.


KUWAIT: The Environment Public Authority has sounded the alarm bell again, against the danger of “random disposal” of waste in the country, especially solid waste, and said in a recent report that 6 landfills are “fully responsible for polluting Kuwait’s air with gases,” and that “96% of emissions are all over the country from 3 landfills only, reports Al-Qabas daily. Surprisingly, despite the small area of the country, it has 19 landfills spread across the country of which only 3 are active, 11 are closed and contain 56 million cubic meters of waste.
The landfills in Kuwait, are an imminent environmental and health danger, and the accumulation of waste and its wrong filling or random disposal, are all dangerous factors for the emission of toxic gases and unpleasant odors, and possibly the outbreak of fires, which negatively affects the country’s environment and the health of its residents.
The Environment Public Authority revealed 6 landfills, currently in operation, received 75% of the total waste during the past decades, 3 of which receive municipal waste. In a recent report, the copy of which has been obtained by the daily, the EPA stated that the landfills of Jahra, south of the Seventh Ring Road and Mina Abdulla weigh the incoming waste and fill it without prior treatment, while 96% of the total gases are emitted from these three sites.
The sources pointed out that the 2040 national waste management strategy in the country includes the prevention of landfills of untreated waste with a high organic content, which will represent a significant contribution to climate protection.
It indicated that 11 landfills were closed without completing their full rehabilitation, as they contain 56 million cubic meters of waste. Despite their closure, the report indicated that the landfills still emit greenhouse gases and form leaching water resulting from waste many years after the last load was filled which makes it necessary to monitor the sites carefully and rehabilitate them.


KUWAIT: The Criminal Court, headed by Counselor Abdullah Al-Othman, has sentenced a military man working for the Ministry of Interior to capital punishment after finding him guilty of suffocating to death a young man (bedoun) in the desert in Julaia and ordered the referral of the civil case to the competent court, reports Al-Rai daily.
The daily added, this is the first murder recorded in 2022, and summed up that the suspect was released from the Central Prison weeks before he committed the murder. He was reportedly sentenced to 15 years in prison and was released on pardon after serving 10 years. The man was caught after the operations room of the Ministry of Interior received information about the dead body in early hours of the morning following which security personnel rushed to the spot and found the corpse of the victim born in 1987. There were clear traces of suffocation and blood. After the suspect was arrested, he confessed to committing the crime.


KUWAIT: The Ministry of Interior is facing a major challenge with the increasing number of expats who are in deportation centers. Currently their number has reached 3,500. They cannot leave as one of the companies contracts with the ministry has expired.
The contract expired in mid August and its renewal is still under process at the financial department of the Ministry of Interior which is waiting for approval. The deportation department no longer receives any deportees without an air ticket.


KUWAIT: The interests on deposits with some banks recently increased to 4 percent record as minimum, record, however, a historical interest rate for funds that deposits have not reached since around 2008, when they were trading until the end of last year at a barrier even lower than the prescribed Zakat rate of 2.5 percent, reports Al-Rai daily. It seems that the gradual transition of banks from cheap to high interest, compared to the rate circulating at the beginning of the year and the past 14 years, will not mark the end of the escalation of the money-attraction pricing fever, as deposit rates are expected to reach 5 percent and perhaps more in the coming months, especially if the lending interest exceeds 7 percent.
For a banker, the lending rate is currently 5.75 percent, compared to 4 percent for depositing, which means that the margin between them has shrunk to about 1.75 percent, a rate that some banks may maintain in the future, and may have to narrow it further. Perhaps what enhances the expectations of adjusting interest rates again to exceed 4 percent more than the following considerations includes: — Growing expectations about the Central Bank of Kuwait’s tendency to raise the discount rate again on Wednesday, in parallel with the prospects of the US Federal Reserve raising the dollar’s interest on the same day, even if this is gradual.
The important thing is that this trend pushes to increase the margin that banks must have to cover it in its subsequent pricing. — Of the banks that announced the 4 percent interest, those which officially stated that the new interest rate represents only the minimum ceiling for them indicates the possibility of granting additional interest to some privileged customers, as this refl ects their planning to expand the margin soon, especially if the fever of deposits increases and their interests between banks. — Adjusting deposit rates in Kuwait is different from loans.
In the first case, banks face a procedure that the majority of the deposit portfolio funds (total 47.3 billion dinars) are replenished locally at about the same time, with an average term of 45 days, whether from companies or individuals who prefer that their deposits be between one month and 45 days, and sometimes 3 months, while their desire for year’s deposits decreases; these deadlines refl ect the pricing of new loans, which is usually quarterly or semi-annually, noting that the adjustment of the prices of existing loans at the applicable prices is every 5 years from granting the financing, according to the instructions of the Central Bank and faced with this reality, the banks find themselves obligated to ensure that the new money and the renewed deposits benefit from the interest movements in full. — With the realization of interest trends globally and locally by raising it to about 5 times during this year, it has been decided by Kuwait 4 so far, while the fifth increase is expected to be approved after two days, the segment of depositors that tends to renew their deposits for short periods has expanded, hoping to achieve additional benefits with an increase in the return margin which is currently expected to be every two months; hence, some banks prefer to attract additional layers of funds at higher prices than traded, provided that the new price covers longer periods, and thus the total cost on them decreases, and if this is not achieved at least, their ability to meet their liquidity ratios will increase, if the profit margin achieved between loans. and deposits narrows the target; but for a banker such moves reinforce what is known as hostile deals between banks, where such behavior stimulates the banks’ quiet appetite to participate in the competition, albeit relatively.
• Local banks, especially the major ones, enjoy additional levels of liquidity derived from their current accounts and other sources of cheap funds, which raises the possibility of offering additional offers on deposits; compared to the one circulating in the market, by virtue of its cheap money surpluses, it can raise the intensity of competition for deposits to a pricing that most banks are unable to reach.
• Contrary to the Fed Reserve which prioritizes combating infl ation rather than employment, and even if this leads to the entry of the American economy into a severe recession, which pushes it to raise interest rates more than expected, the CBK aims to achieve a balance between economic growth and maintaining the attractiveness of the local currency, without harming any sector, including the banking sector, which makes it ready to intervene with its various tools to compensate the banks for paying interest that is not restricted to the equation of supply and demand only, but directed to address the migration of customers from the dinar to the dollar.
• The Central Bank of Kuwait directed banks some time ago to implement a new mechanism in pricing deposits in dinars, especially those whose maturity date is approaching, as well as those whose deadlines are nearing and work is underway to renew them.
The regulator obligated banks to disclose and advise clients, especially with regard to the application of the interest rate on clients’ deposits in dinar, provided that the client is fully aware of the bank’s procedures taken in this regard.
The Central Bank’s move, which comes within the framework of dedicating its supervisory role in the field of protecting customers’ rights, especially with regard to applying deposit prices to customers in dinar, allows obtaining the highest possible pricing for its deposits compared to the highest levels traded in the market.

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