Fahad H. Sh. Almetairi

Oil-rich Kuwait, a rapidly growing market for Sri Lankan workers, wants to invest millions of US dollars in Sri Lankan infrastructure like highways, airports, hotels or shopping malls but is constrained by the lack of investment protection and arbitration mechanisms.

Kuwaiti Ambassador in Sri Lanka, Fahad H. Sh. Almetairi, firmly believes Kuwait and other GCC (Gulf Cooperation Council) countries want to invest here, but “the problem is we still have not signed an investment protection agreement and until we sign this, no investor is willing to put their money in.”

In an interview with The Sunday Times FT, he said there is also a need for proper arbitration processes. “This is a beautiful and nice country. There is good labour and we can invest in roads, airports, five-star hotels, shopping malls,” he said. The GCC comprises comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Mr Almetairi said negotiations are ongoing on an Investment Protection Agreement (IPA) with Sri Lanka but the dispute is over the period. “We want a longer period while Sri Lanka wants to limit it to 10 years,” he said adding, “There is a conflict (war) here … its difficult to recover your investment in 10 years.”
He said countries around the region have longer IPAs like Malaysia which provides a 50 year IPA. A shorter IPA will not encourage investments here.

The ambassador said Kuwaiti investors are prepared to pour in millions of dollars as long as the investment climate is condusive in terms of protecting their investment and quick arbitration is allowed in case of a problem. “No one would like to take risk of going to courts – in case of a dispute -- as it would take 15-20 years. We need some protection and quick relief.”

Kuwaitis have invested heavily in Malaysia, Singapore and India with the sum total of investment in Asia being in the region of $4.5 billion. “There is a lot of scope for investment in infrastructure. For instance you need a five-star hotel in Nuwara Eliya and airports there and in Kandy. Road transport should be fast and should just take 30 minutes to go to the (Colombo) airport or Kandy; that’s what investors want,” he said.

The ambassador said the number of jobs for Sri Lankan workers is increasing in Kuwait with the number of visas being issued daily rising to 300 from 50, a few months back. The visa process has been streamlined and an applicant can obtain a visa within 24 hours if all documents and medical certificates are in order.Migrant worker industry officials said Kuwait is almost overtaking the demand from Saudi Arabia, Sri Lanka’s biggest labour-receiving country, for jobs. This year jobs in excess of 50,000 are expected to be offered by Kuwait. Kuwait is one of the biggest donors to Sri Lankan helping in a range of sectors including education, new villages and infrastructure, the ambassador said.