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THE FIRST ENGLISH LANGUAGE DAILY IN FREE KUWAIT Established in 1977 / www.arabtimesonline.com NO. 15995 44 PAGES 150 FILS emergency number 112 THURSDAY, DECEMBER 31, 2015 / RABI AL AWWAL 20, 1437 AH Continued on Page 8 Continued on Page 8 Continued on Page 8 KSE +28.67 pts at closing, Dec 30 See Page 35 Dow -57.15 pts at 21:00, Dec 30 See Page 36 Nasdaq -20.36 pts at 21:00, Dec 30 FTSE -40.52 pts at closing, Dec 30 Nikkei +51.48 pts at closing, Dec 30 NYMEX crude $36.60 per barrel Brent crude $36.63 per barrel 3-month $ LIBOR rate 0.60670% US$/KD 0.30345/55 Euro/KD 0.3311 Yen/KD 0.0025 British £/KD 0.45 Gold $1,060.00 per oz (London) Fuel price hike prescribed remedy for budget deficit Subsidies for next 3 years to cost KD 16 bln ice hockey Page 38 KUNA photo Photo shows a surprise security campaign in Ardiya Industrial Area on Dec 30. — See Page 6 Newswatch KUWAIT CITY: His Highness the Amir Sheikh Sabah Al-Ahmad Al- Jaber Al-Sabah sent on Wednesday a cable of condolences to King Hamad bin Isa Al Khalifa of the Kingdom of Bahrain over martydom of three sol- diers of the Bahraini Defense Forces serving with the Arab coalition forces. The martyrs had fallen while perform- ing their national duty in defending the southern border of the Kingdom of Saudi Arabia. His Highness the Amir prayed to Almighty Allah to bestow His mercy upon souls of the martyrs and grant their families patience and fortitude. His Highness the Deputy Amir and Crown Prince Sheikh Nawaf Al- Ahmad Al-Jaber Al-Sabah and His Highness the Prime Minister Sheikh Continued on Page 8 In this Dec 24, 2015 photo released by the US Navy, guided-missile destroyer USS Bulkeley participates in a replenishment-at-sea with fleet replenishment oiler USNS John Lenthall in the Gulf of Oman. Iranian naval vessels conducted rocket tests last week near the USS Harry S. Truman aircraft carrier, the USS Bulkeley destroyer and a French frigate, the FS Provence, and commercial traf- fic passing through the Strait of Hormuz, the American military said on Dec 30, causing new tension between the two nations after a landmark nuclear deal. (AP) Happy New Year to all There will be no issue of the Arab Times on Friday. The next issue of the Arab Times will appear on the news-stands Saturday morning. — See you then Other Voices Streets, names, places and ice cream By Ali Ahmed Al-Baghli Former Minister of Oil IN RECENT times we have seen Kuwait changing the names of streets in an unprecedented manner and right so, Mr Jassem Al-Saadoun dur- ing one recent seminar said ‘We go to bed and when we get up in the morn- ing we find the name of our street or the number has been changed’. Moreover, the name is once again changed and we find that the old name which we were so familiar with through- out the period of our adoles- cence and youth has sud- denly disap- peared. The wise government keeps changing the names of our streets in our old age, the names which we were familiar with since our child- hood. How we wish our loyal govern- ment to affix the CV with the new street name since we are unfamiliar with many new street names for the simple reason we do not know the contribution of these people to the nation or even to themselves. For example, one of Kuwait’s streets in an ideal location was named after a very noted Arab poet. In fact, we knew his poetry by heart since it was taught at the primary, intermediate and secondary levels in government schools and the poetry Al-Baghli e-mail: [email protected] Rationalization plan to save KD 2.6 bln KUWAIT CITY, Dec 30, (KUNA): Undersecretary of Kuwait’s Finance Ministry Khalifa Hamada said Wednesday that the expected financial subsidy by the State for citizens is projected at KD 16 billion during the next three, in case the subsidy sys- tem remained unchanged. Khalifa added in an interview with Al-Qabas Arabic-language daily that the continuation of the subsidy sys- tem will contribute to increasing the expenditure which will lead to an imminent budget deficit. He said that the government plan to rationalize subsidization will con- tribute to saving KD 2.6 billion in three years, which shows the importance of the plan in a time when the budget is witnessing a large deficit because of falling oil prices. He pointed out that the rationaliza- tion process will ensure the sustainabil- ity of development in Kuwait and give the State the ability to continue to pro- vide essential services to its citizens, such as education, health, security, jus- tice and other services that are indis- pensable. Meanwhile, local scene has been abuzz with much talk about forecast Opinion MPs of shorn wool and sheep By Ahmed Al-Jarallah Editor-in-Chief, the Arab Times SOME members of the Parliament still believe that Kuwait is excep- tional compared to the rest of the world in terms of the repercussions of the crisis, steep oil price decline and its effect on the national econ- omy. These MPs have neither laid down proper plans nor proposed laws that would have prevented the State from falling into the pit of financial deficit because of its unreason- able consumer expenditures and the government would not have taken measures to ensure the con- tinuation of the lavish life of citi- zens. These MPs assume that their ticket to a longer life in the Parliament and to gain more popu- larity is by allowing the dark holes of support to continue swallowing about KD 7 billion. They deal with the issue of remedying flaws in public expenditures like the old saying, “Whoever is not satisfied with the shorn wool will be satis- fied with the shorn wool and the sheep”. They have yet to realize that salaries and support for services and goods will reach about KD 35 billion by 2020, and such figures will have severe negative impact on the national economy which will not be remedied unless bold steps are taken. Undoubtedly, these bold steps will have short-term negative effects on citizens, but there will be many positive effects in the long run. At least, these positive effects entail continuous provision of the current quality of public services, or perhaps, even better. Another long-term effect is the guarantee of pension for citizens, and most important of all, is the start of diversification of income sources and exit from the tunnel of dependence on oil as the only source of income. For the past five years, experts, through several analyses and researches, have been warning about the dire consequences of con- tinuing the current consumer expen- diture mode. For some of these experts, the level of pessimism made them warn about economic Continued on Page 8 Email: [email protected] Follow me on: [email protected] Al-Jarallah Bahrain F-16 crashes in Saudi RIYADH, Dec 30, (AFP): A Bahraini fighter jet taking part in the Saudi-led coalition battling rebel forces in Yemen crashed Wednesday in Saudi Arabia due to a “technical error,” the alliance said. The F-16 jet crashed in the kingdom’s southwestern Jazan region near the border with Yemen, the coalition said in a state- ment on the official SPA news agency. Bahrain’s military confirmed that the jet crashed “while carrying out its national duty in defending the southern borders” of Saudi Arabia. The pilot was “saved and is in good health,” it said, adding that the plane’s wreckage had been found and that an investigation had been launched. The crash comes a day after Bahrain said that three of its soldiers had died “in an incident” along the Saudi border with Yemen. It did not say how or when they had died. The rebel sabanews.net website said meanwhile that insurgents fired a “bal- listic missile” early Wednesday on the southern Saudi port of Jizan, which they claimed “precisely hit its target.” But the coalition said that Saudi Arabia’s defence forces safely inter- cepted the missile, destroying the war- head as well as its launcher in Yemen, Need for alternative energy Water, power to consume 25% of oil KUWAIT CITY, Dec 30: Electricity and water consump- tion will eat up 25 percent of Kuwait’s oil production by 2030, reports Al-Rai daily quoting a source from Kuwait Institute for Scientific Research (KISR). The source made the state- ment in the midst of controver- sies regarding the alleged plan to reduce subsidies and ration- alize public spending. He warned against the country’s continuous use of fuel in pro- ducing electricity and water. He stressed the need to find alternative sources of energy Washington describes action as ‘provocative’ Iran Guards test fire rocket near US carrier DUBAI, UAE, Dec 30, (AP): The US on Wednesday accused Iran of launch- ing a “highly provocative” rocket test last week near its warships and com- mercial traffic passing through the Strait of Hormuz, exposing how ten- sions between the two countries could escalate even after a landmark nuclear deal. The strategic Arabian Gulf water- way, which sees nearly a third of all oil traded by sea pass through it, has been the scene of past confrontations between America and Iran, including a one-day naval battle in 1988. But Saturday’s incident brought no immediate response from Iranian offi- cials or media, while French authorities downplayed its danger. Military vessels taking part in the war against the Islamic State group in Iraq and Syria also pass through the narrow waterway between Iran and Oman. On Saturday, the USS Harry S. Truman aircraft carrier, the USS Bulkeley destroyer and a French frigate, the FS Provence, were passing through it, said Cmdr Kyle Raines, a US Central Command spokesman. As they passed, Iranian Revolutionary Guard vessels, hailing other ships in the strait over maritime radio, announced they’d be carrying out a live fire exercise, Raines said in a statement. After 23 minutes, the Iranian boats fired “several unguided rockets” about 1,370 meters (1,500 yards) from the warships and commercial traffic, he said. While the rockets weren’t fired in the direction of any ships, Raines said Iran’s “actions were highly provoca- tive.” “Firing weapons so close to passing coalition ships and commercial traffic within an internationally recognized maritime traffic lane is unsafe, unpro- fessional and inconsistent with interna- tional maritime law,” he said. A French military official, speaking to The Associated Press on condition of anonymity as he was not authorized to be publicly named, confirmed the rock- et fire took place Saturday. However, Thousands of homes destroyed in ‘liberated’ Ramadi – official BAGHDAD, Dec 30, (Agencies): Months of fight- ing in Ramadi have caused extensive destruction, offi- cials said Wednesday, warn- ing that it was too soon for civilians to return to the Iraqi city after its recapture from jihadists. Iraqi forces declared victo- ry on Sunday night in the Ramadi battle after wresting back control of the city’s cen- tral government complex from the Islamic State group. Some jihadist fighters have yet to be flushed out, mostly on the eastern edge of the city, and many reconquered areas have yet to be fully cleared of roadside bombs and booby traps. “There is extensive destruction in the city as a result of terrorist activity and military operations,” said Ibrahim al-Osej, a member of the Ramadi district council. IS fighters had laid thou- sands of explosive devices across Ramadi as part of their defence against an offensive that was launched on Dec 22 by elite federal forces. The US-led coalition sup- porting the Iraqi effort to reclaim the city, which was lost to IS in May, has also Continued on Page 8 Continued on Page 8 Continued on Page 8

THE FIRST ENGLISH LANGUAGE DAILY IN FREE KUWAIT …Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Prime Minister Sheikh Continued on Page 8 In this Dec 24,

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Page 1: THE FIRST ENGLISH LANGUAGE DAILY IN FREE KUWAIT …Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and His Highness the Prime Minister Sheikh Continued on Page 8 In this Dec 24,

THE FIRST ENGLISH LANGUAGE DAILY IN FREE KUWAITEstablished in 1977 / www.arabtimesonline.com

NO. 15995 44 PAGES 150 FILSemergency number 112THURSDAY, DECEMBER 31, 2015 / RABI AL AWWAL 20, 1437 AH

Continued on Page 8 Continued on Page 8

Continued on Page 8KSE +28.67 pts at closing, Dec 30

See Page 35

Dow -57.15 pts at 21:00, Dec 30See Page 36

Nasdaq -20.36 pts at 21:00, Dec 30

FTSE -40.52 pts at closing, Dec 30

Nikkei +51.48 pts at closing, Dec 30

NYMEX crude $36.60 per barrel

Brent crude $36.63 per barrel

3-month $ LIBOR rate 0.60670%

US$/KD 0.30345/55

Euro/KD 0.3311

Yen/KD 0.0025

British £/KD 0.45

Gold $1,060.00 per oz (London)

Fuel price hike prescribed remedy for budget deficit

Subsidies for next 3 years to cost KD 16 bln

ice hockey Page 38

KUNA photoPhoto shows a surprise security campaign in Ardiya Industrial

Area on Dec 30. — See Page 6

Newswatch

KUWAIT CITY: His Highness theAmir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah sent on Wednesday acable of condolences to King Hamadbin Isa Al Khalifa of the Kingdom ofBahrain over martydom of three sol-diers of the Bahraini Defense Forcesserving with the Arab coalition forces.The martyrs had fallen while perform-ing their national duty in defending thesouthern border of the Kingdom ofSaudi Arabia.

His Highness the Amir prayed toAlmighty Allah to bestow His mercyupon souls of the martyrs and granttheir families patience and fortitude.

His Highness the Deputy Amir andCrown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and HisHighness the Prime Minister Sheikh

Continued on Page 8

In this Dec 24, 2015 photo released by the US Navy, guided-missile destroyerUSS Bulkeley participates in a replenishment-at-sea with fleet replenishmentoiler USNS John Lenthall in the Gulf of Oman. Iranian naval vessels conductedrocket tests last week near the USS Harry S. Truman aircraft carrier, the USS

Bulkeley destroyer and a French frigate, the FS Provence, and commercial traf-fic passing through the Strait of Hormuz, the American military said on Dec 30,causing new tension between the two nations after a landmark nuclear deal.(AP)

Happy New Year to allThere will be no issue of the Arab Times on Friday. The next issue of the Arab Times will appear on the news-stands Saturday morning. — See you then

Other Voices

Streets, names, places and ice creamBy Ali Ahmed Al-BaghliFormer Minister of Oil

IN RECENT times we have seenKuwait changing the names of streetsin an unprecedented manner andright so, Mr Jassem Al-Saadoun dur-ing one recent seminar said ‘We go tobed and when we get up in the morn-ing we find the name of our street orthe number has been changed’.

Moreover, the name is once again

changed andwe find that theold namewhich we wereso familiarwith through-out the periodof our adoles-cence andyouth has sud-denly disap-

peared.The wise government keeps

changing the names of our streets inour old age, the names which wewere familiar with since our child-hood.

How we wish our loyal govern-ment to affix the CV with the newstreet name since we are unfamiliarwith many new street names for thesimple reason we do not know the

contribution of these people to thenation or even to themselves.

For example, one of Kuwait’sstreets in an ideal location wasnamed after a very noted Arab poet.In fact, we knew his poetry by heartsince it was taught at the primary,intermediate and secondary levels ingovernment schools and the poetry

Al-Baghli e-mail: [email protected]

Rationalization plan to save KD 2.6 bln

KUWAIT CITY, Dec 30,(KUNA): Undersecretary ofKuwait’s Finance MinistryKhalifa Hamada saidWednesday that the expectedfinancial subsidy by the Statefor citizens is projected atKD 16 billion during the nextthree, in case the subsidy sys-tem remained unchanged.

Khalifa added in an interview withAl-Qabas Arabic-language daily thatthe continuation of the subsidy sys-tem will contribute to increasing theexpenditure which will lead to animminent budget deficit.

He said that the government plan torationalize subsidization will con-tribute to saving KD 2.6 billion in threeyears, which shows the importance ofthe plan in a time when the budget iswitnessing a large deficit because offalling oil prices.

He pointed out that the rationaliza-tion process will ensure the sustainabil-ity of development in Kuwait and givethe State the ability to continue to pro-vide essential services to its citizens,such as education, health, security, jus-tice and other services that are indis-pensable.

Meanwhile, local scene has beenabuzz with much talk about forecast

Opinion

MPs of shorn wool and sheepBy Ahmed Al-Jarallah

Editor-in-Chief, the Arab Times

SOME members of the Parliamentstill believe that Kuwait is excep-tional compared to the rest of theworld in terms of the repercussionsof the crisis, steep oil price declineand its effect on the national econ-omy.

These MPshave neitherlaid downproper plansnor proposedlaws thatwould haveprevented theState fromfalling into thepit of financialdeficit becauseof its unreason-able consumer expenditures andthe government would not havetaken measures to ensure the con-tinuation of the lavish life of citi-zens.

These MPs assume that theirticket to a longer life in theParliament and to gain more popu-larity is by allowing the dark holesof support to continue swallowingabout KD 7 billion. They deal withthe issue of remedying flaws inpublic expenditures like the oldsaying, “Whoever is not satisfiedwith the shorn wool will be satis-fied with the shorn wool and thesheep”.

They have yet to realize thatsalaries and support for servicesand goods will reach about KD 35billion by 2020, and such figureswill have severe negative impacton the national economy whichwill not be remedied unless boldsteps are taken.

Undoubtedly, these bold stepswill have short-term negativeeffects on citizens, but there will bemany positive effects in the longrun. At least, these positive effectsentail continuous provision of thecurrent quality of public services,or perhaps, even better.

Another long-term effect is theguarantee of pension for citizens,and most important of all, is thestart of diversification of incomesources and exit from the tunnel ofdependence on oil as the onlysource of income.

For the past five years, experts,through several analyses andresearches, have been warningabout the dire consequences of con-tinuing the current consumer expen-diture mode. For some of theseexperts, the level of pessimismmade them warn about economic

Continued on Page 8Email: [email protected]

Follow me on:

[email protected]

Al-Jarallah

Bahrain F-16 crashes in SaudiRIYADH, Dec 30, (AFP): A Bahrainifighter jet taking part in the Saudi-ledcoalition battling rebel forces in Yemencrashed Wednesday in Saudi Arabia dueto a “technical error,” the alliance said.

The F-16 jet crashed in the kingdom’ssouthwestern Jazan region near the borderwith Yemen, the coalition said in a state-ment on the official SPA news agency.

Bahrain’s military confirmed that thejet crashed “while carrying out its

national duty in defending the southernborders” of Saudi Arabia.

The pilot was “saved and is in goodhealth,” it said, adding that the plane’swreckage had been found and that aninvestigation had been launched.

The crash comes a day after Bahrainsaid that three of its soldiers had died“in an incident” along the Saudi borderwith Yemen.

It did not say how or when they haddied.

The rebel sabanews.net website saidmeanwhile that insurgents fired a “bal-listic missile” early Wednesday on thesouthern Saudi port of Jizan, whichthey claimed “precisely hit its target.”

But the coalition said that SaudiArabia’s defence forces safely inter-cepted the missile, destroying the war-head as well as its launcher in Yemen,

Need for alternative energy

Water, power to consume 25% of oilKUWAIT CITY, Dec 30:Electricity and water consump-tion will eat up 25 percent ofKuwait’s oil production by2030, reports Al-Rai dailyquoting a source from KuwaitInstitute for ScientificResearch (KISR).

The source made the state-ment in the midst of controver-sies regarding the alleged planto reduce subsidies and ration-alize public spending. Hewarned against the country’scontinuous use of fuel in pro-ducing electricity and water.He stressed the need to findalternative sources of energy

Washington describes action as ‘provocative’

Iran Guards test fire rocket near US carrierDUBAI, UAE, Dec 30, (AP): The USon Wednesday accused Iran of launch-ing a “highly provocative” rocket testlast week near its warships and com-mercial traffic passing through theStrait of Hormuz, exposing how ten-sions between the two countries couldescalate even after a landmark nucleardeal.

The strategic Arabian Gulf water-way, which sees nearly a third of all oiltraded by sea pass through it, has beenthe scene of past confrontationsbetween America and Iran, including a

one-day naval battle in 1988.But Saturday’s incident brought no

immediate response from Iranian offi-cials or media, while French authoritiesdownplayed its danger.

Military vessels taking part in thewar against the Islamic State group inIraq and Syria also pass through thenarrow waterway between Iran andOman. On Saturday, the USS Harry S.Truman aircraft carrier, the USSBulkeley destroyer and a Frenchfrigate, the FS Provence, were passingthrough it, said Cmdr Kyle Raines, a

US Central Command spokesman.As they passed, Iranian

Revolutionary Guard vessels, hailingother ships in the strait over maritimeradio, announced they’d be carryingout a live fire exercise, Raines said in astatement. After 23 minutes, the Iranianboats fired “several unguided rockets”about 1,370 meters (1,500 yards) fromthe warships and commercial traffic, hesaid.

While the rockets weren’t fired in thedirection of any ships, Raines saidIran’s “actions were highly provoca-

tive.”“Firing weapons so close to passing

coalition ships and commercial trafficwithin an internationally recognizedmaritime traffic lane is unsafe, unpro-fessional and inconsistent with interna-tional maritime law,” he said.

A French military official, speakingto The Associated Press on condition ofanonymity as he was not authorized tobe publicly named, confirmed the rock-et fire took place Saturday. However,

Thousands of homes destroyedin ‘liberated’ Ramadi – officialBAGHDAD, Dec 30,(Agencies): Months of fight-ing in Ramadi have causedextensive destruction, offi-cials said Wednesday, warn-ing that it was too soon forcivilians to return to the Iraqicity after its recapture fromjihadists.

Iraqi forces declared victo-ry on Sunday night in theRamadi battle after wrestingback control of the city’s cen-tral government complexfrom the Islamic State group.

Some jihadist fighters haveyet to be flushed out, mostlyon the eastern edge of thecity, and many reconquered

areas have yet to be fullycleared of roadside bombsand booby traps.

“There is extensivedestruction in the city as aresult of terrorist activity andmilitary operations,” saidIbrahim al-Osej, a member ofthe Ramadi district council.

IS fighters had laid thou-sands of explosive devicesacross Ramadi as part of theirdefence against an offensivethat was launched on Dec 22by elite federal forces.

The US-led coalition sup-porting the Iraqi effort toreclaim the city, which waslost to IS in May, has also

Continued on Page 8

Continued on Page 8

Continued on Page 8