CR IP TI ON BS SU
MONDAY, FEBRUARY 3, 2014
Kuwait’s telcos launch new mobile technologies
Syrian forces kill 85 in barrel bomb Aleppo attacks
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150 FILS
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RABI ALTHANI 3, 1435 AH
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Why not Boeing? KAC narrows options with Airbus deal
Max 17º Min 8º High Tide 01:38 & 14:38 Low Tide 08:33 & 20:44
conspiracy theories
Millionaires yet debtors
By Badrya Darwish
badrya_d@kuwaittimes.net
I
laughed my head off reading a report in a local newspaper that Kuwait ranks second in the Middle East region in the number of millionaires. Amazingly, the same report crowned Dubai as number one. It shocked me that Saudi Arabia was excluded from the ranking. I think that Saudi Arabia is known worldwide for being a leader in millionaire numbers. Where are the Qatari brothers as well? They were also excluded. Where are the Harrods’ owners? Where are the leading European football club owners of Paris Saint-Germain FC and Malaga FC? Let’s trust the report that Kuwait came in second place. I have a suggestion for those who compiled the report to do a follow-up report on how many people in Kuwait live in debt. Wouldn’t that be interesting statistics? If we are so lucky to have so many millionaires, then where are these annoying numbers of debtors coming from? You just have to watch the news from the last 10 years and see how many people owe to the banks. It was a lucrative topic for the opposition to play with people’s emotions. Many employees of various ages were even banned from travelling for incurred debts. You know us Kuwaitis - travelling is in our blood. If you want to kill us, ban us from travelling. The debtors’ problem, actually, was an enigma for the government. It was a big issue for the nation. Every day the media was over-busy on how to solve the debtors’ problem. Their case was debated by different parliaments. MPs were constantly debating how to help debtors. At the end of the day, the only thing the government came up with was to reduce the interests and not scrap the debts. Then there were the slogans - MPs used the topic in their election campaigns and pre-election seminars. Many votes were cast for those who promised to solve the debt problem. The problem grew to such an extent that the Central Bank forced banks to put a limit on borrowing. Accordingly, employees could only borrow up to 40 percent of their salary. There were many promises and votes. There were many seminars on the topic. Suddenly, nobody mentions it at all. I do not know if the problem was solved secretly under the table. I doubt it. It is like the Silence of the Lambs - the famous movie of Jodie Foster and Anthony Hopkins. From debtors we turned into millionaires. Isn’t that ironic?
By Dr M Ziad Al-Alyan KUWAIT: A representative from Airbus is due in Kuwait next week to finalize a $4.4 billion deal with Kuwait Airways for the purchase of 25 new aircraft. The deal has garnered a lot of attention none of it good. Even leading MPs have questioned the speed and secrecy with which the deal was reached and have asked for greater transparency on the issue. MP Safa Al-Hashem said that it was “suspicious that there are so many concerns surrounding the Kuwait Airways-Airbus deal, which has been shrouded in secrecy.” I tend to agree. Why af ter only recently assuming the helm of KAC did the new management of KAC rush to ink a deal with Airbus? Why weren’t other airlines considered in depth?
mixed-supplier fleet can generate more cost savings and revenues as the airline can leverage the advantages and efficiencies of both through sub -fleet planning to maximize profits. I have to ask why all of Kuwait was precluded from insight into the decision-mak ing process. What are the qualifications of the technical board and why wasn’t more consideration given to the impact a single supplier might have on KAC’s long-term future as an airline Kuwait can be proud of again (some day)? There is also the question of political relations. Kuwait has a long and fruitful relationship with its close partner, the United States. I wonder what will be the financial or political impac t of unfairly excluding Boeing from an opportunity to fly our friendly skies? In
UAE summons Qatar envoy over ‘insults’
Yusef Al-Qaradawi
Israel, US spar over boycott warning Kerry, Zarif meet privately
MUNICH: US Secretary of State John Kerry waves while boarding his plane at Franz-Josef-Strauss Airport yesterday. — AFP
Why not Boeing? Historically, Kuwait Air ways has flown both Airbus and Boeing. In fact most major airlines fly both rather than choosing the slightly cheaper but narrower option of only one. Low budget airlines typically go for one aircraft supplier as a way to keep costs down. But this also limits their ability to negotiate future deals. Also let’s think a decade down the road. If we order only from Airbus and in 10 years Airbus has a full slate of orders, it may delay delivery or the placing of new orders until it clears its backlog. This could impact KAC’s ability to operate its fleet. Kuwait Airways isn’t a low-cost carrier and in order to take its place among its sister airlines in the region, it should have a comparable fleet. Emirates or Qatar Airways don’t fly only Airbus planes. Operating a
JERUSALEM: Israel and Washington were at loggerheads yesterday after senior Israeli figures attacked US Secretary of State John Kerry for warning of a growing boycott threat if peace talks fail. The latest spat erupted a day after Kerry warned of the potential economic impact on Israel if theUS-brokered negotiations with the Palestinians collapsed, in which he made reference to “talk of boycotts”. His remarks sparked several outspoken reactions from senior cabinet ministers in Israel, which prompted an unusually pointed response from the US State Department urging Kerry’s critics to get their facts straight. “For Israel there’s an increasing delegitimisation campaign that has been building up. Continued on Page13
ABU DHABI: The UAE summoned the Qatari ambassador yesterday to protest against remarks made by a Muslim Brotherhood-linked cleric who slammed the Emirates for jailing Islamists, the foreign ministry said. The summons was the first of its kind by a member of the sixnation Gulf Cooperation Council Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates against another GCC state since the bloc’s formation in 1981. Qatar’s ambassador to the UAE, Fares Al-Nuaimi, was summoned to the foreign ministry in Abu Dhabi and handed “an official letter of protest” over “insults” by cleric Yusef Al-Qaradawi, WAM news agency reported.
Qaradawi, an Egyptian-born Muslim scholar, wields huge influence through his regular appearances on Al-Jazeera television from his base in exile in Qatar, where he has lived for decades. He is a staunch backer of Egypt’s deposed Islamist president Mohamed Morsi, unlike the UAE which supports the interim government installed in Cairo by the military that overthrew Morsi last July 3. In a Friday sermon two weeks ago delivered at a mosque in the Qatari capital Doha and broadcast by state television, Qaradawi condemned the UAE as a country which was against Islamic rule, UAE media reported. Continued on Page 13
fact, if KAC was going to go hand-inhand with a single aircraft supplier, why not our good American friends? Haven’t they proved reliable in times of need? Boeing is a reputable, quality airline and its aircraft just as reliable, safe, efficient and durable as its European rival. To maintain a balance and buy from both seems to me a more reasonable choice given our need to maintain friends on every continent. To wholly exclude one in favor of the other seems unnecessarily risky, financially unsound and a choice that leaves Kuwait Air ways and Kuwait itself with few options for the future. I don’t know what the leadership of KAC was thinking and it seems neither does the rest of Kuwait. I wish they would explain it to us.
Actor Philip Hoffman found dead NEW YORK: Oscar-winning actor Philip Seymour Hoffman was found dead in his New York apartment yesterday, a law enforcement official said. He was 46. Media reports suggested a drug overdose could be to blame, but the official, who declined to be named, told AFP the cause of death was under investigation. Police responded to the scene in Manhattan’s West Village after receiving a call at about 11:15 am (1615 GMT), the official said. The Wall Street Journal, which broke the story, said Hoffman was found with a needle in his arm by a screenwriter in the bathroom of his apartment. Continued on Page 13
Panel approves ban on ‘usury’ MP proposes changes in election law By B Izzak KUWAIT: The National Assembly’s legal and legislative committee yesterday approved a draft law that makes bank interest illegal in Kuwait. The draft law was approved by three members and opposed by two, member of the committee MP Yacoub Al-Sane said. Islamist MPs view that conventional banks charge interest which is known as usury in Islam, while the profits or charges taken by Islamic banks are not considered as interest. Similar bids to outlaw bank interest have failed in the past. Sane said the committee also approved a draft law calling to abolish a law issued in 2010 to establish public shareholding companies to build power and water desalination plants in the country. The law has been implemented once for the Al-Zour North Plant amid an ongoing controversy over the awarding process. Under the law that may be scrapped, half of the company shares will be given to citizens free of charge, 40 percent goes to a strategic local or foreign investor and 10 percent to the government. Continued on Page 13
Counterterrorism law alarms Saudi activists DUBAI: Saudi Arabia put into effect a sweeping new counterterrorism law yesterday that human rights activists say allows the kingdom to prosecute as a terrorist anyone who demands reform, exposes corruption or otherwise engages in dissent. The law states that any act that “undermines” the state or society, including calls for regime change in Saudi Arabia, can be tried as an act of terrorism. It also grants security services broad powers to raid homes and track phone calls and Internet activity. Human rights activists were alarmed by the law and said it is clearly aimed at keeping the kingdom’s ruling
Al Saud family firmly in control amid the demands for democratic reform that have grown louder since the Arab Spring protests that shook the region in 2011 and toppled longtime autocrats. Saudi activist Abdulaziz Al-Shubaily described the law as a “catastrophe”. And Human Rights Watch researcher Adam Coogle warned: “The new law is draconian in spirit and letter, and there is every reason to fear that the authorities will easily and eagerly use it against peaceful dissidents.” The measure was approved by the Cabinet on Dec. 16 and ratified by King Abdullah. Continued on Page 13