Focus on infrastructure differs in GCC states - Report

KUWAIT, Aug 2 (KUNA) -- The Gulf Cooperation Council (GCC) member states are very similar in many aspects, such as income levels or oil dependency. However, differences are striking in some other aspects, a report said on Sunday.
This is the case of infrastructures and equipment, ports, airports and railways, the latest report Asiya Capital Investments Company said.
For instance, the quality of port infrastructure in UAE is amongst the highest in the world, only behind the Netherlands and Singapore, but far below the Organization for Economic Co-operation and Development (OECD) standards in Kuwait.
According to the report, the UAE and Qatar are important trade hubs, concentrating about 60 percent and 23 percent of freight of the Middle East and North African (MENA) region, versus 1 percent in Kuwait, Bahrain and Oman.
UAE and Qatar airports also capture 37 percent and 10 percent of MENA's passenger traffic. Telecommunications are not an exception either, with Saudi, Kuwait and Oman significantly below GCC average, with 75 percent or less of internet users.
There is a clear link between income levels and the quality of infrastructure. Some countries have pursued an investment-led development, updating their capital stock in order to attract foreign direct investment (FDI) or fuel their nascent industry. This is the case of UAE-Dubai in the GCC or China and Singapore in Asia-Pacific. Emphasis on infrastructure is a common denominator in most GCC countries development plans.
Kuwait's Vision 2020 laid emphasis on the upgrade of port and airport infrastructure to become a trade and logistics hub. The country's ambitions to become a regional financial reference will also require an update of telecommunications infrastructure and related skills of its labor force, the Asiya Capital report stated.
Investment on infrastructure is a key aspect to diversify the economy and stimulate the targeted sectors in the development plans of all other GCC countries, it noted. Improvement of the quality of institutions and legislative changes are also given a great importance. While the ultimate goal of diversification is the same, plans on how to reach these goals differ, from Bahrain's "laissez faire" to the active promotion of specific sectors of UAE-Dubai.
Asiya Capital Investments is an investment company founded by an Emiree Decree with a capital of KD 80 million and a mandate to invest in domestic demand-driven sectors in Asia, namely energy, real estate, healthcare, infrastructure, and financial services.
It is the parent company of a group that includes Asiya Investments Dubai Limited and Asiya Investments Hong Kong Limited. Asiya Investments Dubai Limited serves as the investment advisory hub for Asiya Capital Investments Company. (end) fh.ht.amh.msa