Government needs to speed up launch of development projects

The government has to increase spending on infrastructure projects and speed up its launch to help revive national economy, a Kuwaiti economist said Tuesday. "The government has to speed up the approval of the mega development projects as it will have positive impact on all economic activity in the country," Tareq Sultan said in an interview with KUNA on the sideline of the MEED Kuwait Projects 2013 conference. He went on to say that the government needs to boost spending on infrastructure in particularly to bridge the gap between Kuwait and its Gulf neighbors in this regard. Sultan, also chairman of Kuwaiti giant logistics provider Agility, believes that the proposed package of legal reforms which meant to end bureaucracy and cut paperwork time would have great effects on investors' sentiments and thus giving an impetus to national economy. The MEED Kuwait Projects 2013 conference is the definitive event of the year for all those seeking opportunities and solutions to challenges throughout Kuwait's oil, gas, electricity, water, transport, housing and basic infrastructure sectors. It is designed to address the latest developments and business opportunities associated with the state's mega projects as well as transfer global best practice on how Kuwait can successfully deliver its ambitious capital expenditure plans. With regard to the performance and plans of his company, Sultan said Agility is making strides despite difficult time facing national and world economy. "The profits of Agility in the third quarter of this year rose by 40 percent from the same period last year," he told KUNA. "Agility's objectives exceed this high growth rate it achieved in this difficult time." He unveiled that Agility focuses on emerging economies which enjoy high growth rates and invest in specific economic sectors such as oil, petrochemicals, transport and freight. "This concentration has positive effect on the company's operational performance," he told KUNA. He noted that Agility has investments in more than 100 countries, but admitted facing fierce competition in the emerging economies. Agility is one of the world's leading providers of integrated logistics. It is a publicly traded company with over USD five billion in revenue and more than 22,000 employees in 500 offices across 100 countries. The company reported a net profit of KD 12.1 million for the third quarter of 2013, and Earnings per Share (EPS) of 11.62 fils, up 26 percent over the same period last year. Revenues and EBITDA stand at KD 326.7 million and KD 23.6 million respectively. For the nine month period ended September 30, 2013, the company reported a net profit of KD 33.8 million a 40 percent increase from same period last year. Revenues remained flat compared to the first nine months of 2012, but EBITDA improved by 23 percent standing at KD 68.9 million. Agility's core commercial business, Global Integrated Logistics (GIL), provides supply chain solutions to meet traditional and complex customer needs. GIL offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility's Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support