KUWAIT: In lightof decree 232/ 2018, the Ministry of Commerce and Industry is workingdiligently to ensure that construction materials' subsidies were reachingbenefactors directly and not used in an illicit manner to create a blackmarket. In 2018, KD 125 million (around $412.5 million) worth of subsidies weregiven by the ministry in a clear indication towards its mission to eradicatemalice use of funding.
Head of subsidiesdepartment at the ministry Salah Al-Rashidi said that the ministry wasmonitoring prices of constructional materials to make sure that no illpractices were taking place. Decree 232 aims to create more options forcitizens for their constructional needs, revealed Al-Rashidi who noted thatsubsidies were now paid not only for limestone and paints, but also extended toother materials such as electrical cables, ceramics, porcelain, water and heatinsulators, and so on.
KD 30,000 percitizen
In accordancewith the ministry's regulations, subsidies for constructional materials shouldnot exceed KD 30,000 per citizen who is given KD 8,460 (around $27,000) for 50tons of steel, 100 meter of white stone, 2,000 bags of cement, and 450 metersof ready-mixed concrete. The ministry also offers 15,000 cement blocks ataround KD 1,920 (around $6,300) KD 5,000 (around $16,500) for centralair-condition, KD 800 ($2,600) for outer paint material, and KD 1,300 ($4,290)for limestone. All these facilities are made available for citizens who have tomeet several conditions, indicated Rashidi, affirming that subsidies by theministry were given to ensure that the materials were available in a legitmanner.
Meanwhile,speaking on the ills of a secondary or black market for construction material,Khaled Al-Otaibi, head of the quality development team, a voluntary group,could not stress enough the negative impact of the presence of such market.Though providing more options by the ministry to the citizen is a good step, itwould be advisable to add more materials to the subsidies list to preventothers from taking advantage of citizens, Otaibi affirmed. By doing so, Kuwaitinationals could fully benefit from the government constructional loan, whichcurrently barely covers the need for house construction, he added.
Citizens' needs
The issue ofhouse construction all boils down to the needs of citizens. Mohammad Al-Mutawa,a Kuwaiti national, said that specifying certain materials that meet thesubsidies criteria might lead certain individuals to sell subsidized goods thatthey were not in need of creating a debacle. Selling material to other houseowners within the boundaries of the neighborhood should be considered as ablack market activity, he indicated, saying that instead of wasting material,it was put into good use, a matter that should be applauded and not frownedupon.
On the flipsideof the coin, citizen Khaled Al-Yaseen praised the government for providingsubsidies on basic construction material, saying that it enabled him toconstruct a house based on his needs. The government loan in addition tosubsidies is a great deal for citizens and it will enable them to buildadequate dwells, he added. - KUNA