H. E. Mr. Sami Mohammad S.M. Al-Sulaiman

As Kuwait celebrates its 51st National Day on 25 February, Asia News Agency considered it appropriate to speak with H. E. Mr. Sami Mohammad S.M. Al-Sulaiman on bilateral relations with India.

ANA. Greetings from Asia News Agency. The people of India and Kuwait have interacted with each other for many centuries. Even today, we understand the 60,000 strong Indian communities is the largest expatriate population in your country. Excellency, give us a broad overview and your assessment of the state of bilateral relations as of now?

H.E.: It is true that that Kuwait and India have interacted for many centuries and we have a long standing history of good, cordial and friendly relations with India. A collection of antiquities such as seals, pottery, jewellery recently discovered on the Kuwaiti Island of Failaka which was a convenient passage for ships sailing between Mesopotamia and India confirm the fact that our relations with India date back the fourth millennium BC.

Kuwaitis immensely benefited from the cultural heritage that emanated from the historical relations between the Arabian Gulf region and India. Before the discovery of oil in Kuwait, our sailors used to sail annually from Shatt-al-Arab to the western port of India, carrying dates and horses of fine pedigree. The horse trade was stopped after World War –II in 1945. Then Kuwaitis started trading in pearls with India and in exchange took teakwood for ship building.

[expand title="Read More"]Our Diplomatic relations with India started in June 1962 with the appointment of H.E. Mr. Yacoub Abdulaziz al-Rasheed as the first Kuwaiti Ambassador in India. Since that time a number of decrees and agreements were issued to regulate bilateral relations between the two countries.

The Indian community is one of the largest in Kuwait, numbering about 640,000 people who live and work in peace and freedom. The number of those working in technology is permanently increasing especially in electronic, industrial and architectural engineering sectors. The Ministry of Health employs a number of doctors, physicians and para-medical professionals.

ANA. Kuwait is a rich country with estimated crude oil reserves of about 99 billion barrels or 10% of world reserves. Your country is a major supplier of oil and oil products to India and is the second largest source in the Gulf after Saudi Arabia. Excellency how would the US and EU sanctions on Iran impact on your economy?

H.E.: India is the second largest export destination of Kuwaiti crude oil and annually meets 10 to 11% of its oil import needs from Kuwait. Indian Oil Corporation (IOC) is one of the three Indian organizations importing crude oil from Kuwait. IOC has a long-standing crude oil supply term contract relationship with KPC. It also contracted for import of 350,000 metric tons of LPG from Kuwait Petroleum Corporation during 2009.

Currently, Kuwait is pumping at least 2.9 million barrels of oil per day in which it represents 3 percent of world oil production and more than 9 percent of OPEC's output. Kuwait contributes to stabilizing prices through output, without flooding the market.

ANA. To stay on the same subject, should India decide to go along with sanctions, would Kuwait be in a position to meet its additional needs? Have there been bilateral or multilateral discussions in the matter?

H.E.: US and EU sanctions on Iran would have no adverse effects on our trade relations with India. We are fully capable to meet any eventuality that might arise in the event of US and EU sanctions.

ANA. Kuwait is strategically located in a region that has been prone to instability. Excellency, how does your country assess the situation that would arise after the withdrawal of US forces from Afghanistan? There might be a scenario where the Taliban could have a major legitimate role to play in case talks with them are fruitful?

H.E.: Kuwait in general is working for peace and stability in the region. It is very much interested to see stability and security in the region. Therefore, Kuwait is working with the international community to restore stability in Afghanistan. Kuwait believes that there is an international responsibility to work together in Afghanistan and we must work to support the efforts of the Afghan government and President Hamid Karzai's endeavours in this regard.

ANA. A related question. How does your country see India's present role in providing assistance to Afghanistan and its larger role post 2014?

H.E.: We believe that India is not only a peace-loving country but a politically matured to tackle its role in Afghanistan post 2014.

ANA. Excellency, with India emerging as a major global economy, is Kuwait seeking to expand its investments in the country? We understand that presently, most investment are through portfolio management, international investment companies or via countries providing tax breaks.

H.E.: We are aware of the fact that India is the fourth largest economy in the world in terms of purchasing power parity and portfolio management is an important aspect of burgeoning economy. India is very important destination for our investment. Kuwait Investment Authority (KIA), the investment instrument of the government is considering a package of investments pertaining to energy and infrastructure projects in India.

On the other hand, Kuwait Foreign Investment Bureau which was established in 2001 deals with the regulation of foreign investment in Kuwait. The aim is to actively promote direct foreign investment in Kuwait and to transform the country into a leading financial and commercial centre in the region. The Bureau works to provide an environment of competitiveness to attract investment opportunities aimed at strengthening, encouraging and developing key economic sectors and at creating more job opportunities and supporting society's needs in line with country's strategic plan.

ANA. Similarly, is there a focused approach to attract further Indian investments in your country? Basically, what are the major incentives for Indian companies to invest in Kuwait?

H.E.: Kuwait welcomes Indian investment. There are several areas where we can work together in the oil and gas sectors. These include long term arrangement of crude oil supply from Kuwait and mutual investment in various areas of hydrocarbon and petrochemicals.

The Bureau of Foreign Investment provides facilities to simplify and ease the process of issuing licenses required for investment projects. It also seeks to increase Kuwait's share of the flow of direct foreign investment since it represents the driving force behind the development of the national economy.

ANA. Finally Excellency, what is your honest opinion and News behind the News which has been providing editorial services exclusively to the India based diplomatic community for close to 4 decades now?

H.E.: News behind the News is an excellent journal that gives the exhaustive coverage to the important news with in depth analysis. Its coverage on New Delhi's Diplomatic Circle is quite informative, particularly the interviews with foreign Heads of Mission stationed in New Delhi.