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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!
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!