KUWAIT CITY, Jan 18: Days after the removal of Venezuelan President Nicolás Maduro, information, economics, gold and finance experts in Kuwait shared their views on the investment opportunities in Venezuela and how the public and private sectors in Kuwait could take advantage of Venezuela’s economic capabilities.
These experts agreed on the need for Kuwait to capitalize on the unfolding developments in Venezuela, particularly since many major and emerging countries are expected to move quickly to exploit the attractive investment prospects there. Venezuela holds the largest oil reserves in the world, estimated at 303 billion barrels, along with gold reserves estimated at 8,000 tons. Its extensive agricultural plots make it suitable for livestock investment, alongside natural resources that are likely to stimulate global economic interest, especially in the mining sector. Director General of the Gulf Center for Information and Documentation Dr. Ibrahim Al-Shukri pointed out that if new investment opportunities emerge in various Venezuelan economic sectors, there will be no objection to pursuing them provided feasibility studies are conducted.
He explained that Venezuela’s investment environment was previously unattractive to foreign investors, which contributed to the economic downturn in multiple sectors in the country. He thinks this deterioration negatively affected the living standards of the Venezuelan population. Al-Shukri supports the idea of investing in Venezuela’s oil and refining industries, given its confirmed oil reserves exceeding 303 billion barrels.
He suggested that Kuwait Petroleum Corporation (KPC) could establish an oil refinery in Venezuela, similar to its refineries in Vietnam, Italy and Oman. Meanwhile, economist Qais Al-Ghanim emphasized that any Kuwaiti investment abroad must satisfy several requirements like security stability and the adoption of government policies that encourage investment without complications or excessive bureaucracy. He warned against directing Kuwaiti investments to Venezuela, unless the situation there becomes clearer and more stable. He recalled that when Cuba opened its economy and some Kuwaitis sought to invest there, they were advised to wait until conditions stabilized. Al-Ghanim explained that Venezuela’s economic direction – whether positive or negative – typically becomes evident after a year and a half to two years. He said if the Venezuelan government becomes more dynamic and implements policies that attract foreign capital, then Kuwaiti investment in the oil and mining sectors will be acceptable, particularly in light of the country’s natural wealth.
Gold expert Bader Al-Arbash believes that the most promising investment opportunity after the stabilization of conditions in Venezuela lies in gold, taking into consideration the substantial gold reserves of the country — estimated at 8,000 tons. He indicated that the most viable investment prospect in Venezuela is closely tied to gold, especially since prices have risen in recent months. He expressed opposition to any Kuwaiti investment in oil exploration in Venezuela, citing the extremely difficult infrastructure involved in oil extraction and the high cost of producing a single barrel from its reservoirs. He argued that prioritizing the development and expansion of oil extraction within Kuwait itself is far more advantageous than investing in Venezuela.
Financial and economic expert Khaled Mohammed underscored the importance of Kuwait benefiting from Venezuela’s economic potential, taking into consideration that major global powers will be competing for it. He said the Kuwaiti private companies can take advantage of numerous investment opportunities in Venezuela within a wide range of fields, including contracting, real estate, tourism, mining and other promising sectors. He also stressed the value of investing in livestock and cattle farming in Venezuela, which has vast fertile land suitable for agriculture and animal husbandry, along with its abundant water resources. He added that Venezuela’s natural wealth will draw international economic attention, especially in the mining sector, which includes iron, aluminum, coltan (used in electronics manufacturing), phosphate and nickel. He concluded that all forthcoming projects in Venezuela are expected to succeed due to its proximity to the American market and its strong economic relationship with China.
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