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Kuwait's SMEs Fund standards depend on nat'l labor, capital - official

Secretary General of the National Fund for Small and Medium Enterprises (SMEs) Development Dr. Mohammad Al-Zuhair
Secretary General of the National Fund for Small and Medium Enterprises (SMEs) Development Dr. Mohammad Al-Zuhair

By Fawaz Karami

KUWAIT, Aug 31 (KUNA) -- Categorization standards for Small and Medium Enterprises (SMEs) vary from one country to another, and in Kuwait it depends on the size of national labor and capital, a Kuwaiti official said Sunday.
"A small enterprise, according to the Fund's categorization, should not have more than four Kuwaiti workers with a capital that does not exceed KD 250,000," Executive Chairman and Secretary General of the National Fund for Small and Medium Enterprises (SMEs) Development Dr. Mohammad Al-Zuhair told KUNA.
On the other hand, a medium enterprise should have five to 50 workers, with a capital of between KD 250,000 and KD 500,000, he noted.
"Some countries adopt other categorization standards such as volume of revenues and the enterprise's contribution in Gross Domestic Product, or GDP. These are not enlisted in the Fund's bylaws, but could be included in the future." Al-Zuhair pointed out that the Kuwaiti market is "relatively" small, which requires development of SMEs in order for them to delve into regional and global markets, especially in the GCC. "Such enterprises will be promoted as soon as they reach a certain point (of development) with the help of concerned bodies here and in host countries." On the Fund's mechanisms, Al-Zuhair said they were different from previous experiments in Kuwait, which basically focused on financing low-risk projects. "The Fund has the authority to take up a calculated risk percentage so as to encourage SMEs and allow them more space to maneuver.
"The Fund will not only provide finance for entrepreneurs, but will also cater for them by holding necessary training courses in order to help them develop their capabilities." Al-Zuhair hoped for the Kuwaiti youth to think out of the box and come up with innovative ideas and conquer new fields, thus raise the added value of the national income and provide more job opportunities.
In March 2013, the Kuwaiti Parliament approved the law to establish the Fund, with the purpose of providing financing for small and medium businesses submitted or initiated by Kuwaiti citizens, thus enhancing private sector activity and reducing pressure on the public sector in the provision of job opportunities for the Kuwaiti labor force. (end) fnk.hb