Kuwait has recently introduced the Direct Investment Promotion Law to stimulate economic growth and encourage foreign direct investment. The new law creates attractive economic and financial market conditions for foreign direct investment. The new law provides an opportunity for businesses looking to expand into the Middle East to enter a market with a stable political regime and a sound financial market. The macro and micro economic conditions in Kuwait make it an attractive place for foreign direct investment.

The key aspects of the Direct Investment Promotion Law include the following: 1.) establishment of a new public authority tasked with the licensing of direct investment in Kuwait, 2.) under the new law foreign investors can operate in the country through either a Kuwaiti company that may be licensed to be 100% foreign owned, through a registered branch, or through a representative office, 3.) investors will continue to benefit from tax exemptions for a period of up to 10 years, as well as tax and customs exemptions for the importation of machinery, equipment, spare parts, raw materials and intermediary goods, among others, in addition to the employment of foreign labor, and 4.) the new law provides a maximum period of 30 days from the date of receipt of the completed application for a decision to be rendered in respect of investment license. In addition, the law adopts the “one-stop shop” whereby one administrative unit within the newly-established public authority will be responsible to coordinate the issuing of all necessary license to operate the business.

The new law provides a significant opportunity for foreign investors to enter into the Kuwait market. Kuwait’s economic and financial indicators show that it is a solid growth market, and with the new law in place, investors can be confident that their investments will be protected from political risk such as: expropriation, political violence and unrest, and currency incontrovertibility.  For more information take a look at the Kuwait Direct Investment Promotion Authority’s website by clicking here. If you are interested in speaking with us directly to learn more about foreign direct investment opportunities in Kuwait such as: infrastructure projects (water, power, waste water treatment or communications); investment and exchange companies; insurance companies; information technology and software development; hospitals and pharmaceuticals; air, land and sea freight; tourism; hotels; entertainment; housing projects and urban development; and or logistic services and environmental activities call Subhan Law Office, LLC today at 414-223-5718 or 1-855-946-6848.