Kuwaiti bank to invest in green energy

The future of Kuwait?

When comparing oil reserves to area, Kuwait is one of the most oil-rich nations on the planet. As such, it is massive surprise to learn that the Kuwait Finance House is planning to invest in the alternative energy sector, though it has stressed that this will "negatively affect Kuwait's oil dependant national income."

Speaking to ArabianBusiness.com, Abdul Nasser Al-Subeih, the acting assistant general manager for investment sector of the KFH (Baitak), said the bank was studying projects with a view to invest in the industry.

In talking to the new service, Al-Subeih seemed very aware that the financial institution's decision is a complete contradiction for a Kuwaiti business considering the resource-rich nation's main export, as well as the other Gulf states who produce vast quantities of oil for the world. However, he added that supporting renewable energy would not "substitute fossil fuels, oil, gas and coal."

Preventing an "uncertain future"?

The Kuwait Finance House's decision comes a month after former British Prime Minister Tony Blair said that Kuwait would need to "change if it is to fulfil its potential and avoid an 'uncertain future'".

Speaking to the KUNA News Agency at the Vision Kuwait 2035 launch in March, Blair said "Kuwait's history is great with a proud tradition of entrepreneurship and trading. Its potential is enormous and its people are talented and creative. But the plain truth is, that without a change in direction, this potential will not be realised."

He added that Kuwait had the potential to become "a regional powerhouse of the future" but stated that if it adopts a "no-change scenario" the future "will be uncertain".

Could the Kuwait Finance House's decision to support renewable energy be a direct consequence of his comments or does the financial institution see the writing on the wall? After all, Kuwait's oil reserves can only last so long before the country has nothing left to trade with and its wealth disappears.

So are we to see Kuwait start to heavily invest in solar energy? The next few months will be very interesting....

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Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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