Better Financial Education Needed to Foster Economic Growth, Say Experts
As the potential threat of a recession looms, there is a growing realization among Kuwaitis and individuals from neighboring countries that saving and investing wisely is essential. To explore the best strategies for saving, investing, and improving a country’s economy, the Kuwait Times reached out to Saudi and Kuwaiti consultants for expert insights.
Ranim Machhadi, a Saudi investment and marketing consultant, highlighted the consumerist nature of Arabian Gulf countries, particularly when it comes to daily use items such as food and clothing. She emphasized that in order for Gulf residents to save more money, they need to first pay off their debts and refrain from purchasing unnecessary items. Machhadi emphasized the importance of countries supporting their own economies by providing job opportunities and fostering growth through education, international company expansion, and tourism.
For individuals in the GCC countries looking to invest, Machhadi stressed the significance of gaining knowledge and educating oneself about the investment landscape. Contrary to popular belief, she noted that luck plays no role in investment success; instead, it is essential to make informed decisions based on knowledge.
Abdulaziz Al-Darweesh, a Kuwaiti business consultant and finance podcaster, pointed out that Kuwaiti society tends to prioritize entertainment due to a lack of financial awareness. He emphasized the importance of educating oneself, establishing a monthly budget, creating a savings account, and investing any remaining funds. Al-Darweesh also proposed that the government and private companies should reduce their spending to curb inflation and ultimately increase Kuwaitis’ income. Additionally, he suggested revising specific laws, such as the ‘tamalluk’ law that restricts non-Kuwaitis from owning property or investing in Kuwait, and implementing a minimum wage.
According to Al-Darweesh, a lack of education and awareness is the root cause of most problems in Kuwait. He believes that improving the quality of education would solve numerous issues in the country.
In conclusion, experts emphasize the urgent need for better financial education and awareness in order to promote economic growth. By encouraging responsible spending habits, providing job opportunities, and supporting education, countries can empower their residents to become more informed investors and savers. Furthermore, experts recommend revising laws and regulations to foster foreign investment and stimulate economic development. Through these collective efforts, Gulf countries can navigate potential economic challenges and create a solid foundation for future prosperity.
