THE official visit to Guyana yesterday by Kuwait Prime Minister Sheikh Nasser Mohammed Al-Ahmed Al-Jaber Al-Sabah, although short, is expected to yield far-reaching trade, economic and other ties with that country and other states in the Middle East.
The signing of five agreements covering bilateral trade, economic and technical cooperation, establishment of a joint commission, the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital and an air services agreement has set the foundation for firm growth in these ties.
We expect details on the agreements concluded in Georgetown yesterday will be made public in due course, but the visit fits in with the Guyana Government’s strategy of expanding the traditional frontiers of investment for this country.
“We have to open new frontiers for investment”, President Bharrat Jagdeo stated last year as he stepped up the drive for more support from the Middle East.
The President last year visited the Middle East and has stated that Guyana’s economic diplomacy will move from an emphasis only on North America and Europe to one that emphasizes Brazil, China, India, and other new emerging markets and the Middle East, which is a large exporter of capital.
“We have to be aggressive at the world level to raise money for this country,” he said, pointing to the possibilities of huge inflows of investment finance from the growing carbon trading market.
That Middle East thrust has resulted also in an agreement by Kuwait to provide up to US$10M for an infrastructure project here, and President Jagdeo said this most likely will be used to develop 10,000 more house lots for low-income groups.
Kuwaiti assistance will come through the Kuwait Fund, after Guyana submits a proposal based on a feasibility study, Mr. Jagdeo told reporters here after an official visit to that country in January.
The President said then, that extensive discussions in Kuwait also covered strengthening relations between the private sectors of the two countries and this was advanced during yesterday’s visit.
The Middle East outreach has also seen Iran agreeing to deploy its world-class geo-scientific techniques to help Guyana accurately map its mineral wealth deposits. An Iranian mission has begun working with the Guyana Geology and Mines Commission in this area.
Iran, in addition, will provide Guyana with a US$1.5M grant for the health sector, the President reported.
After an official visit to Libya last year, Mr. Jagdeo announced that Guyana is looking to tap into the billions of dollars available there and in other Middle East countries interested in investments overseas.
He said Libya is interested in investments in agriculture, and value-added products in forestry and mining, but this has to be advanced.
Middle East investments are also likely in tourism and other areas, he said.
It is within this context that the visit by the Kuwait Prime Minister and his delegation here yesterday must be seen, and we have no doubt that the relations between these two countries and others in the region will be advanced from here on.