Saturday, February 24, 2018 | ePaper

Investment Opportunities in Kuwait

  • Print


Kuwait has always been a country open to foreign direct investment and is currently further opening up to foreign capital.
Kuwait has introduced new corporate legislation to encourage and facilitate foreign direct investment. The new regulations are part of recent measures that the Government has taken to attract investments as well as foreign companies that will generate employment and help develop their embryonic private sectors as part of the 2015-2020 National Development Plan.
The new regulations with 337 articles incorporate tried and tested measures including the creation of a 'one stop shop' for incorporation and licensing of new businesses.
In order to ease operating in Kuwait, single share holders are permitted to set up businesses for the first time and transfer shares in companies.
Following the introduction of the new Foreign Direct Investment Law in 2013 covering foreign investment in Kuwait. Executive Regulations have been issued in 2014 concerning its application.
The new law offers foreign investors several incentives, including the ability to own or increase ownership in a Kuwaiti Company to 100%, to operate through a 100% foreign owned branch and to benefit from income tax and customs duty exemptions.
The new FDI regime can be considered for both existing and new operations and investments except for, sectors included in the 'negative list'.
Kuwait Direct Investment Promotion Authority (KDIPA) which was set up as per the new regulations as a 'one stop shop' have recently issued a negative list as per the Council of Ministers Decision No. 75 (2015) which excludes the following sectors from the incentives and exemptions of the new FDI Law:
· Extraction of crude petroleum
· Extraction of natural gas
· Manufacture of coke oven products
· Manufacture of fertilizers and nitrogen compounds
· Manufacture of gas, distribution of gaseous fuels through mains
· Real Estate excluding privately operated building development projects
· Security and investigation activities
· Public administration and defence, compulsory social security
· Activities of membership organizations
The current policy to promote FDI focuses on a number of sectors like infrastructure investments, waste-water treatment, communications, banking and financial sectors, information technology and software development, insurance, hospitals and Pharmaceuticals, land and sea freight, tourism and urban development.
Kuwait has a favorable investment climate, particularly after the introduction of investment friendly regulations.
The high quality of life, its consistent oil reserves, low energy cost and a sound financial management and solid banking system make it an ideal destination for foreign investors. Further, Kuwait is blessed with a greater percentage of young consumers that guarantees a high demand for quality consumer products and services.
Availing the liberalized investment policy, US tech giant IBM became the first company to set up wholly foreign-owned operations in Kuwait and has embarked upon an ambitious expansion plans in collaboration with local industries. Giants like IBM plan to make Kuwait the hub for sales and services and reach out to the lucrative Gulf Market.

More News For this Category

The first battle

Prof. Zahurul Alam :Our Liberation War was a logical consequence Independence movement of the people of Bangladesh. Latter by itself was a combination of various movements, starting from 1947 in

Language Movement

Tahur Ahmed :Language movement is a historical part of Bangladesh. In 1947 India and Pakistan gained independence from Great Britain. Pakistan decided Urdu will be their State Language. One thing

The reminiscence of '52 Language Movement and its aftermath

Prof. Anwarul Karim PhD :What happened on the day :  I am now almost 80 years old and I am trying to recollect what happened on the day of 21st 

Message from the Ambassador

Message from the Ambassador

Dear Friends,  :As we step into the 57th Year of our glorious independence it is both a privilege and a pleasure for me to convey my fraternal greetings to

Parliamentary Life

Parliamentary Life

Democratic practice in Kuwait is imbued in the Kuwaiti entity itself. His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Amir of the State of Kuwait, has reaffirmed Kuwait's adherence to

Education in Kuwait

Education in Kuwait

The State of Kuwait is located in the Arabian Gulf and has a population of 26,46,314 people.Considering the strategic location of Kuwait in the Arabian Gulf, the Government of

Iran at a Glance

Geography : Location: Middle East, bordering the Oman Sea, the Persian Gulf, and the Caspian Sea, between Iraq and Pakistan.Area: 1,648,195 sq kmCountry comparison to the world: 18Border countries:

Message from the Ambassador

Message from the Ambassador

On behalf of the government and the people of Iran, I would like to extend my heartfelt greetings to the government and the people of Bangladesh on the occasion

Iran, a Major Victim of Terrorism

Iran, a Major Victim of Terrorism

From the very beginning of the Revolution in 1979, Iran  has suffered many terrorist attacks. One could even say Iran is somehow one of the major victims of terrorism

Responding first as a leading power

Constantino Xavier, Fellow, Carnegie India :cxavier@ceip.orgThe emerging concept of India as a "first responder" reflects the country's growing capability and increasing willingness to assume the role of a leading