FOREIGN INVESTMENTS IN KUWAIT

Many laws and decrees were enacted to encourage, promote and endorse national and foreign investments in Kuwait.

According to the Commercial Law, foreign investors are permitted to engage in business in Kuwait through local partners owning not less than 51% of the business capital (60% for banks and insurance companies), or through local agents. However, there are other laws enacted that facilitate direct foreign investment and provide full ownership of their businesses.

A) Law No. 8/2001, Regulating Direct Foreign Capital Investment:

Introduction:

Law No. 8/2001 regulates the commercial activities and projects in which foreign investors may engage, either independently or in participation with national investors. The Law also regulates the warranties and privileges offered to foreign investors to safeguard their investments in the state.

Procedures:

Foreign investors must first submit an application to the Foreign Capital Investment Committee, and thereafter obtain a license to incorporate a commercial project fully owned by them.

Guarantees:

The Law guarantees against confiscation, expropriation or nationalization of any foreign project.

Amendments to the law should not prejudice foreign investors' rights or interests previously permitted.

In addition, foreign investors are entitled to sell or transfer their investments wholly or partially to other foreign investors or to national investors. Foreign investors can also transfer their profits abroad.

Privileges:

1. Exemption from income tax or from any other taxes for a period not exceeding ten years.

2. Benefit from dual taxation treaties.

3. Total or partial exemption from custom duties on the imports necessary for their projects.