Investing in Kuwait: A guide for Investment Opportunities in Kuwait CONTENTS
Preface 1 2.3 Industrial, oil and gas, 24 2.8 Banking, financial 39 downstream chemical services and insurance Kuwait at a Glance 2 manufacturing - Private equity 40 1. Why Kuwait? 3 - Asset management 41 2.4 Education and training 25 - Direct sales agent 42 2. Sector 10 - Tertiary education 26 Opportunities - Institutes and training centers 27 2.9 Air, maritime and rail 43 passenger transport 2.1 Infrastructure 12 2.5 Healthcare 28 - Airport facilities management 44 - Power plant- Fuel based 13 - Specialty hospitals 29 - Rail facilities management 45 - Power plant - Renewable 14 - Lifestyle medical clinics 30 - Desalination plant 15 2.10 Tourism, hotel and 46 2.6 Integrated housing 31 - Funding - Project finance 16 entertainment projects and urban - Marine transport 17 - Branded theme park 47 development infrastructure - Budget hotels 48 - Development planning for 32 - Rail transport infrastructure 18 integrated housing projects 2.11 IT and software 49 2.2 Environmental services 19 - Property management 33 development - Solid waste management 20 - Facilities management 34 - Web and application 50 - Primary sewage treatment 21 - Construction contracting 35 development - Oil and effluent sludge 22 2.7 Storage and logistics 2.12 Culture, media and treatment services 36 marketing 51 - Waste recycling 23 - Logistics 37 - Digital media marketing 52 - Warehousing 38 - Digital content creation 53 - Application stores and 54 online portals 3. S ERVICING Local and 55 Appendix 7: 88 FOREIGN INVESTORS Glossary 4. AppendiCES 61 Appendix 8: 89 Appendix 1: 62 Kuwait’s Bilateral Investment Law No. 116 of 2013 Treaties Regarding the Promotion of Direct Investment in Appendix 9: 90 the State of Kuwait Kuwait’s Double Taxation Agreements Appendix 2: 69 Executive Regulations Implementing Law No. 116 of 2013 Appendix 3: 74 Economic information Appendix 4: 75 Living Appendix 5: 77 Important legislations in Kuwait Appendix 6: 84 Main Stakeholders
Images in this document are courtesy of Kuwait News Agency and the Ministry of Information Kuwait Investing in Kuwait: A guide for Investment Opportunities in Kuwait 1 PREFACE Promotion Authority(KDIPA) andinthepreparation ofKuwaitInvestmentGuide. the potentialinvestmentopportunitiesinState of KuwaitonbehalftheDirect Investment We wishtoacknowledgethesupportprovided byKPMGAdvisoryW.L.L., Kuwait inrelation tostudying against nationalizationorexpropriation withoutcompensation. exemptions, allocationofland,employmentforeign labour, andguarantees includingprotection from upto10yearsexemptionfrom incometaxandothertaxes,partialorfullcustomsduties obtain upto100%equityownershipinanysector (except thosespecifiedinanegativelist),benefiting Kuwait offers severalbenefitsunderitsnewdirect investmentlawwhichallowsforforeign investorsto developmentagenda. commitment toattainandsupporttheinternational macroeconomic fundamentals, atransparent legalsystem,highqualityoflife,democracy, anda commodities prices,Kuwaithasmaintainedalowriskclassificationandstableoutlook,withstrong Despite theglobaladverserepercussions ofthelastfinancialcrisisandvolatityoil agenda. with thepublicsectorinrealizing andachievingthecountry’s economic andsocialdevelopment that complimentsthewellestablishedbusinessandcommercial class,withallservingastruepartners human capitalofyoungandwelleducatedpopulation,witharemarkably risingentrepreneurial class neighboring markets.Besidesitsrichnessinnaturalresources ofoilandgas,thereal wealthliesinits partoftheGulf,witheasyaccesstodynamic amplified byitsstrategiclocationattheNorthern tradition ofopennesswithextensivecommercial relations thatKuwaithasalwaysenjoyedfurther vision fortransformingitintoaleadingfinancialandcommercial centre. Thisvisionisbasedona Kuwait isacountrythatembarkingtowards thefuture withstrong resolve toattainH.H.theEmir’s available toboththelocalandglobalinvestorcommunity. is toprovide aprofile onahostofpotentialinvestmentopportunitiesinvarioussectorsKuwait unique valueproposition of Kuwait,itseconomyandbusinessclimate.ThemainpurposeoftheGuide This isthefirsteditionofInvestmentOpportunitiesGuideinStateKuwaitthathighlights Kuwait Direct InvestmentPromotion Authority Director General Sheikh Dr. MeshaalJaberAlAhmadSabah +965 Country Code GMT +3hours Zone Time USD Value ofTotalExports exchange ratein Kuwaiti Dinar(KWDorKD),sub-dividedinto1,000Fils.(1USDequalsapproximately Currency winters and25°Cto39°Cinsummers. Temperatures cangobelow0°Cinwintersandabove50°Csummers.Meantemperaturesrangebetween11°Cto 29°Cin Climate 17,818 km² Area Arabic; Englishisalsowidelyused,particularlyasabusinesslanguage Official Language 4.18 Mn(June2015) Population His HighnessSheikhSabahAl-AhmadAl-JaberAl-Sabah Head ofState(Amir) Constitutional HereditaryEmiratewithademocraticallyelectedParliament Government Governorates Kuwait City Capital City State ofKuwait Official NameofCountry Mubarak AlKabeer Hawally, Ahmadi,AlAsimah,Jahra,Farwaniya, Kuwait at a glance (Nominal GDPovermid-yearpopulation) USD 2.94% (ConsumerPriceIndex,201 Annual InflationRate GDP USD 155 GDP USD 30billion(201 Value ofTotalImports 98 40,447 Per Capita billion(201 billion(201 (2014) 2015) (Administrative Units) 4 4) ) 4 ) 4 ) 301 Filsaspertheaverage
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 2 Investing in Kuwait: A guide for Investment Opportunities in Kuwait 3 KUW WHY 1 AIT? Source: Ministryof Planning,PublicAuthorityforCivilInformation, EIU, ratings (AA/AA2)andlowpoliticalriskfrommajor 592 Bn.Kuwaitenjoysastronginvestmentgradesovereign Kuwait. expected toprovideopportunities forforeigninvestmentin metro andnationalrailnetwork, etc.Theseinitiativesare infrastructure, water,powerand socialinfrastructure,a different sectors,suchasroads, portsandairport earmarked budgetofUSD10 plans prioritizinginfrastructureneedsofthecountrywithan of thecountry’sinfrastructurewith The ThirdKuwaitMasterPlanfocusesonimprovement dispite loweroilprices. projects anddrivedevelopmenteffortsinthecountry financial credit wealth fund,managesassetscurrentlyestimatedatUSD The KuwaitInvestmentAuthority,Kuwait’ssovereign estimated ataround101.5 Bn Middle East. financial tradeandlogisticsinthe into oneoftheleadinghubsfor economy andtransformingKuwait term visionofdiversifyingthe activity aimedatrealizing itslong levels ofinfrastructure development Kuwait ispromoting unprecedented 2. barrels. 6th largestoilreserves globally, Exporting Countries.Ithasthe the OrganizationofPetroleum the GulfCooperationCounciland Kuwait isafoundingmemberof Substantial government resources 1. tide overthepresent long term2035vision. infrastructure development Government ofKuwaitwillcontinuetospendheavilyon over the Kuwait’s economybenefitedfromrecordbudgetsurplus rating agenciesglobally.TheGovernment’sstrong Significant infrastructure development position givesittheabilitytounderwritelargescale past several lowoilpricesscenario.Therefore, years whichisexpectedtohelpit in comingyearstorealizeits 3 Bnforprojectsacross Kuwait development
Organisation ofthe PetroleumExportingCountries,WorldBankandSWF Institute
qAtAR kSA kuwAIt uAe IRAN 97.8 1 101.5 266.6 5 7.5 bn barrels bn bn barrels bn barrels 25.2 bn barrels barrels 1 -WhyKuwait?
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 4 Investing in Kuwait: A guide for Investment Opportunities in Kuwait 5 Source: the scopeofthislaw. negative listofdirectinvestments thatareexcludedfrom 100% ofbusinessentitiesin all sectorsexceptaspecified ownership to49%byallowing foreignerstoownup principle intheCommercialCode thatlimitsforeign Law No.116of2013givesan exceptiontothebasic No. 116of2013. Capital intheStateofKuwait,whichwasrepealedbyLaw Regarding theRegulationofDirectInvestmentForeign was establishedinaccordancewiththeLawNo.8for2001 division undertheMinistryofCommerce&Industrythat erstwhile KuwaitForeignInvestmentBureau(KFIB),a direct investmentagenda.KDIPAisthesuccessorto of 2013)todriveandcoordinateKuwait’slocalforeign of DirectInvestmentintheStateKuwait(LawNo.116 was establishedin2013undertheLawforPromotion The KuwaitDirectInvestmentPromotionAuthority(KDIPA) investment inKuwait. facilitating bothlocalandforeign making concertedefforts towards is The KuwaitGovernment private sectorinGDP. Promotion Authorityareaimedatincreasingtheshareof for SMEsDevelopmentandtheKuwaitDirectInvestment privatization law,establishmentoftheKuwaitNationalFund The Government’sinitiativessuchasthePPPprogram, diversification program. underits for theGovernment the privatesectorisakeypriority Increasing theinvolvementof 4. Private sector involvement 3. KDIPA businesses Enabling 100% foreign ownership in Source: MEED,Kuwait MinistryofElectricityandWater, OxfordBusinessGroup,BMI,KPMG ResearchandAnalysis supported byanindependentmonetarypolicy. of funds,includingrepatriation,astrongandstablecurrency restrictions onimportsandexports,unrestrictedmovement corporate taxforforeigncompanies( regime withbenefitsincludingnopersonalincometax, WEF ranksKuwaitastheworld’s 3rd mosttaxfriendlycountryglobally investment projects. financial Gross NationalSavingsglobally,indicatingitsrobust The WEFreportalsorankedKuwait Ranked property protectionandenvironmentalregulations. business andcommercialactivitiesincludingintellectual leading internationalstandardsandbodiesoflawgoverning a stablelegalframework.Theframeworkfollows Kuwait’s macroeconomicenvironmentissupportedby Stable legalframework One ofthehighestpercapitaincome Ranked 3rd formacroeconomic environment 5. debt andbudgetsurplus This islargelyattributabletoKuwait’slowgovernment G overall macroeconomicenvironment Kuwait at3rdpositionamong14 WEF’s GlobalCompetitivenessReport201 Kuwait alsohasarisingpercapitaincomewhichis overnment budgetbalanceasapercentageofGDP among thehighestglobally(USD Encouraging macroeconomic environment position andabilitytodeploypublicfundsfor 2nd in Gross National Savings es overtheyears. 0 countriesintermsof 3rd mostattractivetax 40,447 in2014). 2n
15%), limited and d intermsof 1st positionfor 5 -16 ranks
.
low 1 -WhyKuwait?
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 6 Investing in Kuwait: A guide for Investment Opportunities in Kuwait 7 Source: IEA2010,EIU, MinistryofPlanning serve strategicmarkets. railway networktoimproveaccess withinthecountryandto Bubiyan island),anewairport terminalandanewnational projects suchasanewport(Mubarak AlKabirporton Kuwait hasalsoplannedanumber oftransportinfrastructure Arabian Gulfwithawelldevelopedportinfrastructure. The countryalsohasacoastlinespanning290kmonthe and CentralEurope. States, Turkey, andintoEastern Commonwealth ofIndependent directions Asia, includingEastern access tomarketsinvarious which allowsforanextended Iran across theGulf.Alocation markets ofKSA,Iraqandfacing Arabian Gulfbordering three major Kuwait islocatedinthenorthern discounts. land isalsoprovidedbytheGovernmentatsubstantial of The Governmentprovidesindustriallandatasubsidizedrent imperial and offered at users. Potable water is subsidized US 0.5 cent/KWh for industrial residential users and farms and tariffs as low as US 1 cent/KWh for to 86% by the Government with Power tariffs are subsidized by up of power, water, land and labor. Kuwait is cost competitive in terms .Strategically located 7. Cost competitiveness 6. approximately USD90centpersq.mwhilecommercial gallon. nearly US 3 cents/ U Q kSA kuw subsidization %, 2010 subsidization tariff rate ofpower Average 68% 86% 75% 76% A SAUDI ARABIA A E T AR ai IRAQ t KUWAIT Rawdatain Al Jahra KUWA Al Ahmadi IT CITY Al Wa Mina Saud frah Source: CBKandKSE ose Kwi’ srnt i te financial the industry. in strength Kuwait’s bolster The region includingthe2ndlargestIslamicbankinworld. country. Kuwaitishometosomeofthelargestbanksin commercial banks(1Islamic)currentlyoperatinginthe conventional), 1specializedlocalbankand12foreign including The Kuwaitbankingsectorhasavibrantmixof22banks businesses. establishing andgrowing scalable mindset ofKuwaitibusinessmenin business acumenandcommercial etc, demonstratingthestrong aviation designing,animation,art retail, logistics,financialservices, in sectorssuchastelecom, leading businessesintheregion Kuwait ishometosomeofthe 9. the region. one ofthemostproactiveandsophisticatedregulatorsin The CentralBankofKuwait(CBK)iswidelyrespectedas (MENA) region. in theMiddleEastandNorthAfrica stable andresilient bankingmarkets support, makingitoneofthemost profile andstrong regulatory characterized byarobust financial Kuwait’s bankingsystem is 8. Capital Markets Authority (CMA) is (CMA) Authority Markets Capital Entrepreneurial nature of Kuwaiti citizens Evolved Financial Services sector 9 localcommercialbanks( 4 Islamicand5 expected to expected services indices. including sukuks(Islamicfinancialcertificates)andnew appropriate products,andfixedincomeinstruments, Funds (ETFs),futuresandoptions,market-makersfor services, throughtheintroductionofExchangeTraded KSE isnowpromotingawiderrangeofproductsand foreigners toparticipateintradingactivities. the firststockexchangeinGCCregion.KSEpermits Established in1983,theKuwaitStockExchange(KSE)was activities. to participateintrading KSE permitsforeigners 1 -WhyKuwait?
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 8 Investing in Kuwait: A guide for Investment Opportunities in Kuwait 9 language. is theofficiallanguage,Englishwidelyusedasabusiness the skillsandvaluetheybringtocountry.ThoughArabic comfortable placeforfamilies.Expatriatesarerespected The lowrateofcrimeandrespectforprivacymakeKuwaita acceptance ofnewconcepts. with aprogressive outlookand customs andpracticescombined built upontraditionalIslamic moderately conservativesociety Kuwait offers abalancedmixof 0 A hospitable culture 10. Source: Public AuthorityofCivil Information place forfamilies. Kuwait acomfortable respect for privacymake The lowcrimerateand Population by ethnic groups (June 2015) groups (June by ethnic Arab 28% Kuwaiti Others 31% 2% Asian 39% opportunities K 2 ey
sectors 2.6.3 2.6.2 2.6.1 2.6 2.5.2 2.5 2.4.2 2.5.1 2.4.1 2.4 2.3 2.2.4 2.2.3 2.2.2 2.2.1 2.2 2.1.6 2.1.5 2.1.4 2.1.3 2.1.2 2.1.1 2.1
Facilities management Property management integrated housingprojects Development planningfor and I Lifestyle medicalclinics Specialty hospitals H centers Institutes andtraining Tertiary education E I Waste recycling treatment Oil andeffluent sludge Primary sewagetreatment Solid wastemanagement E Rail transportinfrastructure infrastructure Marine transport Funding –Project finance Desalination plan Power plant–Renewable Power plant-Fuelbased I downstream ntegrated nfrastructure ndustrial ducation nvironmental ealthcare
urban
oil
development and housing
and chemical
training services
gas
projects
2.12.3 2.12.2 2.12.1 2.12 2.11.1 2.11 2.10.2 2.10.1 2.10 2.9.2 2.9.1 2.9 2.8.3 2.8.2 2.8.1 2.8 2.7.2 2.7.1 2.6.4 2.7
online portals Application stores and Digital contentcreation Digital mediamarketing marketing C development Web andapplication development IT Budget hotels Branded themepark entertainment T Rail facilitiesmanagement management Airport facilities passenger A Direct salesagent Asset management Private equity and Banking, Warehousing Logistics services Storage Construction contracting ourism, ir, ulture, and
maritime
insurance
software
media and
hotel financial
transport
logistics and
and and
for
rail
services
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 10 11 investment Investing in Kuwait: A guide for Investment Opportunities in Kuwait with leading local players. Kuwait in the digital media and marketing sector. High services Demand 2 Cultu 12. 11. 10. A 9. Dow 3. 2. INFRAS 1. eeomn pa fr nrsrcue eeomn i scos uh s oe, ae, rnpr ifatutr (ot, vain n ri) rvdn opruiis for opportunities providing rail) and aviation (ports, infrastructure transport water, power, as such international investors.KuwaitisthefirstcountryinregiontoadoptaPublicPrivatePartnership(PPP)frameworkattractforeigndevelopers. sectors in development infrastructure for plan development brands Tourist arrivals are A number of projects have been USD then more earmarked has Kuwait with the augment demand Kuwait opportunities diverse sectors Attractive investment opportunities across En W affinity for entertainment and media on digital platforms T ir present plans to double is ou e and solutions Government seeking from consumer v , m developing b ir ns ris
and o ari an opportunity for concepts T r n .B 8. A robust BFSI institutions to offer specialized products and services. .e 4. Kuwait’s education global t for R m, hotel expected e, me r me U t
services over e a i in C me its chemical production d an a educational pp focused Kuwait. n TU u financial USD m - t ca dia to grow from k a and R d active private allied 2 in l Se initiated E evelopme c 0 sectors like t .Sto 7. he 5. international for opportunities considerable presents warehousing and logistics for imports, hub on a reliance as Kuwait’s country with the combined position This, trade. to regional view a with rail and airport ports, across infrastructure transportation its developing is Kuwait affluent, growing population. an to catering clinics lifestyle and hospitals specialty establish to opportunities providing 2013-19) between growth annual (6% 2019 by Bn 1.3 USD reach to expected are investments sector Private GCC. the in expenditure healthcare total largest third the has Kuwait Bn
g, hem and i sector, proactive and to o property international Kuwait has a pipeline of several large housing projects .I 6. institutions to reach
expenditure of rai the n r financia Bn in the in Bn 103 transport to address the current and future capacity constraints in critical n &t v 306,559 transport a m ica e targeting business l p ic sector teg retail ra lth and facilities management. n ar players. capacity e rainin ass te l m ge s infrastructure is expected to increase from USD 6.8 Bn in 2013 to USD 10.5 Bn by 2019. Kuwait is investors to and banking participation. in 2013 to 491,000 ra n car ket sector. regulatory r t second an and t te e l for ethylene international enrolment levels ain n in s e g d u ge e g such participate Kuwait Development Plan (201 Plan Development Kuwait hou fac travelers. log r along me regime and projects r v as smartphones t ic n and polyethylene providing room tu with IT by rans is sin e t in aviation 2022, creating s across the real estate rin t rising personal and institutional
ics and g p transformation initiatives g po
r s and and
ins oje e r r t need and standards rail tablets and v u which including integrated c ic ranc for greater hotel capacity. Limited 5 t /16 e value s s will
- and high affordability
20 chain including development planning, for international of facilitate increasing passenger transport at the e ) and has earmarked a similar amount for the new five year five new the for amount similar a earmarked has and 19/20) environmental education. u wealth make Government level rban townships. are opening investors segments
d Kuwait an evelopme These projects are augmenting presence to forge partnerships/ strategic alliances new such as attractive destination seeking markets and of international sanitation provide construction to attract leading n demand activity t opportunities business and waste management in for web-enabled IT budget contracting the for international opportunities country hotel for and and the publictransportationsector. respectively areintegralpartofKuwait’splantoupgrade network, withprojectvaluesofUSD The developmentofanationalrailwayandmetro likely topromotegrowthofprojectfinanceinKuwait. Private sectorinvolvementininfrastructureprojectsis desalination capacity. and drivedemandforexpansionestablishmentofnew expected toputincreasedpressureondesalinationfacilities Scarcity ofnaturalgroundwaterresourcesinKuwaitis renewable sourcesby2020. at least10%ofitselectricity(orover2,000MW)from energy tomeetgrowingdemand.Kuwaitaimsgenerate The KuwaitGovernmentisconsideringalternativesourcesof leading tolongtermopportunitiesforforeigninvestors. 2025. Theprivatesectorisexpectedtoplayamajorrole, electricity productioncapacitytargetsof25,000MWsetfor 25 Bntomeetthe investment ofapproximatelyUSD The MinistryofElectricityandWater(MEW)anticipatesan service providers. specialized globalconstructioncontractors,operatorsand are planned,presentingconsiderableopportunitiesfor A numberofportexpansionandnewconstructionprojects FuNDINg –pRojeCtFINANCe s R Marin De P P facilities atparwithglobalstandards andbenchmarks. provide specializedfacilitiesmanagement(FM)servicestomaintainKuwait’s airport Kuwait’s initiativestopositionitselfasacommercial hub.There existspotentialto The plannedupgradestoKuwait’s aviationinfrastructure are expectedtosupport 2.1: Infrastructure opportunities for foreign andlocalinvestors Government’s infrastructure planprovide significant Power andtransportbeingthe mainfocusareas ofthe e owe owe ai c sa l t to l r r rans ina e t r
G G ove e e rans t n n i o po e e r n ra ra v r pl po i ew t t t i i infras an o o r n n t t -Re –Fuel infras t n r ew u bas t c r ab 10 BnandUSD tu u e c le r d tu e r e 7
Bn Project value USD USD Fuel-based power production capacity System to increase by over Kuwait National Rail Road Project value 2 -Keysectorsfor opportunities (tendering 10 25
Mn Bn in 10,000 2016) MW by 2025
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 12 13 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Opp Source: KuwaitPower Report,BMI,GCCEnergySector – QuarterlyReview,Zawyaprojects,MEW increasing demandfrom consumers. projects tostrengthen Kuwait’s electricityandwatersupplysituationinor generation inKuwait.TheMinistryofElectricityandWater hasannouncedseverallarge Conventional fossilfuelsare expectedtoremain thedominantfuelmixforelectricity investors toparticipateinKuwait’s powersector. participation throughthePPPmodelcreatingsignificantopportunitiesforinternational meet thisexpectedincreaseinpowerdemand,theGovernmentisinvitingprivatesector isthesoleproducerGovernment anddistributorofpowerinKuwait.However, inorder to the peakloaddemandof12, Demand forpowerinKuwaitisexpectedtogrowatarateof5.7%perannum(p.a)from 2.1.1: PowerPlant-Fuelbased power until2015. next twotothreeyearscatergrowthindemandfor approximately USD2.5Bnofinvestmentproposedoverthe plants inKuwaitisprojectedatUSD25Bnby2025with demand. Theestimatedmarketsizeoffuel-basedpower MW ofpowerisplannedby2025tomeettheexpected 2014 anditisestimatedthatanadditionalcapacityof Kuwait’s powergenerationcapacitystoodat1 international firms. to providesubstantialbusiness opportunitiesforlocaland and watercapacityinthecountry. Theseprojectsarelikely including throughthePPProute,tostrengthenelectricity The MEWhasrecentlyannouncedseveralpowerprojects, Kuwait the PPP Proposed Hybrid Kuwait Kuwait Kuwait Kuwait Kuwait North IWPP - Phase 4 North IWPP - Phase 3 North IWPP - Phase 2 North IWPP - Phase 1 o Power Plant rtunity model KAPP
KAPP KAPP KAPP KAPP KAPP power - Al Khiran IWPP - Al Zour - Al Zour - Al Zour - Al Zour - Al Abdaliya plants o through verview Planned 1,000 g/day 800 MW (power) and 50 million 2,500 280 (desalination) million g/day 1,500 million g/day 1,500 MW MW MW and 125 (desalination) MW MW capacity 8 00 MW (power) (power) (desalination) (desalination) 5,990 MWin and million and in 2013toreach25,000MWby2025.Currently,the 102 102 12,170 g/d
• • • planned developmentoftheindustrialsector. infrastructure projectsbeingundertakeninthecountryand Kuwait’s growingeconomycombinedwithlargescale Demand forelectricityisexpectedtogrowasaresultof has ledtohighelectricityconsumption. Rapid populationgrowthandsubsidizedelectricityprices cooling systems. occurring duringthesummermonthsduetoheavyuseof drivers forpowerusage,withpeakdemandusually Seasonal variationsandextremetemperaturesaremajor der tomeetthe international participationinthissector. and renewableenergysources,highlightingthescopefor Japanese firmstobuildpowerplantsusingalternativefuels MEW hasalsoreceivedoffersfromUS,Europeanand renewable energy. approximately 2,000MW,istargetedtobemetthrough 10% ofthetotalelectricitygenerationby2020,or
Source: KuwaitPowerReport, BMI,GCCEnergySector–QuarterlyReview 2011,ZawyaProject,MEW,KAPP,KISR andKPMGAnalysis opportunities for foreign and local private investors to participate in this sector. The PPP model being adopted by the Government for large projects provide significant to oil would allow Kuwait to conserve its oil for other uses including for export purposes. upgrading the technologies used in power generation. Renewable energy as a substitute The MEW is planning to enhance the efficiency of installed power stations through per day to generate power. and uses an estimated average of 200,000 to 300,000 barrels of oil and refined products spends over USD conservation have led to high per capita consumption of power in Kuwait. The MEW R 2.1.2: PowerPlant–Renewable O ISCC plant at Al-Abdaliya 2,000 MW Al Shaqaya Renewable Energy Project Project Name Renewable sectorprojects ising population, growing consumerism and limited awareness or incentives for energy ppo r tu ni ty ove r 3.5 v i ew Bn per annum to meet the electricity requirements of the country Capacity 280 MW • • • • generation. is anurgentneedtoexplorealternativemeansofpower As Kuwaithasbecomeanetimporterofnaturalgas,there targets ofatleast10%totalpowerproductionby2020. Kuwait Governmenthassetambitiousrenewableenergy energy canfreeupoilforothercommercialuses.The Shifting fromfuel-basedpowerplantstorenewable sources neededtogeneraterenewableenergy. taking advantageofabundantheat,windandsunlight support candriverenewableenergyinitiativesinKuwait, Increased environmentalawarenessandGovernment the saleofgreenhousegasesreductionunits. conserving/environmentally efficientplantstobenefitfrom greenhouse gasescanprovideanopportunityforenergy Ratification oftheKyotoprotocolforcontrolemission 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 14 15 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Opp Source: ZawyaProject, MEW,MeedandKAPP Estimates for water consumption in Kuwait, 2011-2020 in for waterconsumption Estimates Water andPowerPlants(IWPP)through thePPPmodel. all desalinationplantsinKuwait.However, theMEWisseekingtoestablishIntegrated driving Kuwaittoexpanditsdesalinationfacilities.Currently operates theGovernment Continuously increasing demandforwaterandscarcity ofnaturalwaterresources is Plant andSubiyaPlant,tonameafew. several projectstoaddnewcapacity,includingtheAl-ZourSouthPlant,DohaWest (from 410Mnimperialg/din2013 It isestimatedthatwaterconsumptioninKuwaitwillriseto780Mnimperialg/dby2020 513 2.1.3: DesalinationPlant 2014 e 201 2015 2020 410 423 780 Shuwaikh Plant Shuaiba South Plant Doha East Plant Subiya Plant Doha West Plant Al Khiran IWPP Al-Zour North IWPP Plant mn imperial gallons/day mn imperial gallons/day mn imperial gallons/day mn imperial gallons/day 3 o f rtunity f o verview Planned CapacityMnImperial g/d 50 36 42 100 110 125 276 approximately • • • • • have reached44,611imperialgallonsby2015. nearly highest intheworld.Percapitaconsumptionreached Kuwait’s per-capitaconsumptionofwaterisamongthe consumption. industrial sectorarelikelytoincreasedemandforwater Government-led initiativesforthedevelopmentof new desalinationfacilities. high levelsofwaterconsumption,drivingthedemandfor Population growthandrisingurbanizationareleadingto source ofwatersupplyinKuwait. increases dependencyondesalinatedwaterastheprimary The scarcityofnaturalwaterresourcesinthecountry developers, operatorsandinvestors. represent potentialopportunitiesforinternational The plannedandupcomingdesalinationprojects 9.6% y-o-y).Kuwaithasplanned 3 8 ,000 imperialgallonsin20 13 andisestimatedto Opp GCC- Project Finance Market GCC- ProjectFinance high-growth marketforproject finance. Bn are expectedtobeimplementedoverthenext1520years,presenting anattractive, models especiallyincore sectorssuchaspowerandwater. Projects worthoverUSD358 However, adoptingPPP thisscenarioissettochangewiththeKuwaitGovernment Source: IJGlobal in private sectorparticipationininfrastructur 70% oftotalprojectfinancelendingamongGCCcountries.Historically,thelack transactions wereintheutilitiessectorwithKSAandUnitedArabEmiratesattracting were fundedthroughprojectfinanceintheGCC.Over7 Over aperiodofsixyears(2009-2014),overUSD148Bninfrastructureprojects 2.1.4: Funding–Project Finance • • • 2012 29,601 20 2014 2010 24,928 USD 2009 22,164
Mn 28,788 2013 21,745 20,396 banks andotherlongterminfrastructureinvestors. finance, presentingasizeableopportunityforinternational PPP modelisexpectedtogiveriseaneedforproject of theseprojectsunder the Private sectorleddevelopment projects. PPP lawtocreatewiderprivatesectorownershipinlarge The KuwaitGovernmentispursuingprojectsunderthe significant constructionactivity. large infrastructureprojects,whichareexpectedtodrive The KuwaitDevelopmentPlanincludesanumberof Kuwait. 11 o rtunity USD Mn USD Mn USD USD Mn USD Mn Mn o verview e hashindered thegrowth ofproject finance 2 -Keysectorsfor opportunities 2% oftheseprojectfinance
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 16 17 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: CentralStatisticalbureau, ZawyaandMiddleEastEconomic Digest(MEED) enterprises inKuwait. engineeringandconstruction considerable long-termpotentialforinternational development ofnewportsandexpansionworkontheexistingpresent led toseveralglobalcompaniesestablishingdirect regional presence. Theplanned The prioritizationofmarineinfrastructure developmentacross GCCcountrieshas Construction &Engineering 2.1.5: MarineTransport Infrastructure –
Port aloneconstitute Shuaiba andDoha.Theconstruction the redevelopmentofexistingthreeports-Shuwaikh, developing plansforsixadditionalportsinKuwaitbesides equivalent units)in201 and Shuwaikhhadreached Kuwait’s portvolume project. need fornewmarinefacilities fortheAlZourrefinery construction andengineeringcompaniesinaddition O Doha Port Shuaiba Port Shuwaikh Port Bubiyan Island Mubarak Al KabirPort – Kuwait ports ppo r tu ni ty ove s aUSD for thetwoprimaryportsofShuaiba 3. Thegovernmentiscurrently r v 840,149 i ew 4 Bnopportunityformarine Expansion anddevelopment plans handling facilities. of warehousing and cargo ample space for the expansion as the port isendowed with handle more commercial cargo Plans to develop Doha port to Shuaiba port. plan to redevelop and expand 2009 to drawup a master international consultants in Kuwait had invited investment in its infrastructure. Shuaiba Port could see further terminals. allow larger ships to use the of the approach channel to to the deepening and widening are in the pipeline, in addition of enhanced computer systems stacking areas, and installation equipment, redevelopment of New gantry cranes and yard TEUs. will haveacapacity in 3 phases, once port is The development of the new TEUs(Twenty-foot of MubarakAlKabir expected tobeexecuted completed it of 2Mn to the • • • and otherconsumables. from vehicles,electronics,buildingmaterialstofoodstuff translates toadependencyonimportsforitemsranging The limitedlocalproductioncapacitiesacrosssectors and expansionofexistingports. for developmentofnewports,aswellthemaintenance The KuwaitGovernmenthasundertakenmajorinitiatives infrastructure. trade andsupportsthedevelopmentofKuwait’slocalport demographic balancepositivelyimpactsinternational Kuwait’s economicgrowthandfavorablesocio-
disciplinary andintegratedserviceproviders. and metro networksinKuwait.Thesetwoare expectedtorequire specializedmulti- To addressisplanningthedevelopmentofrail thesechallenges,theGovernment activity. additional movementofpeopleandgoodsarisingfrom higherdomesticeconomic infrastructure inorder tosupportKuwait’s increasing populationaswelltoservice Development Plan.There isaneedtosignificantlydevelopKuwait’s transport Transportation infrastructure constitutesamajorarea offocusundertheKuwait Construction, EngineeringandMaintenance 2.1.6: RailTransport Infrastructure – • • • Source: KAPPand Zawya O equipment firms,amongothers. rolling stockmanufacturers,signalingandcommunication engineering servicesproviders,constructioncontractors, for ahostofindustryplayersincludingintegrated Both theseprojectsareexpectedtoprovideopportunities operational by2018. the GCCrailnetwork.Thisprojectistargetedtobecome industrial installationsaswelllinkingthecountrywith integrated railnetworkconnectingKuwait’skeyportand The USD1 Bn. ppo The valueoftheMetroprojectisestimatedatUSD
The projectistargetedtobeoperationalby2020. r tu ni 0 Bnrailwayprojectcomprisesofanew ty ove r v i ew
7
of aroundUSD17 The plannedrailandmetroprojects,withacombinedvalue opportunities for specialized, experienced firms. opportunities forspecialized,experienced for “greenarchitecture”theseprojectsandpresents on environmentalsustainabilityindicatestherequirement on anannualbasis.Kuwait’sincreasedfocusandawareness market ofUSD100-150Mnforoperationsandmaintenance 2 -Keysectorsfor opportunities Bnareexpectedtogenerateanannual
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 18 19 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
under-capacity incriticalsegmentssuchassanitationandwastemanagement. isundertakingaseriesofprojectsThe Government toaddress thecurrent situationof gas sectorandanemergingindustrialsector. resources, thefast-growing population,theenvironmental needsofthethrivingoiland long termrequirement ofsafeguarding Kuwait’s naturalenvironment andlimitedland The growth ofKuwait’s environmental servicessectorisexpectedtobedrivenbythe 2.2: Environmental Services s 500,000 to 700,000 Haym Tr Al Umm 500,000 sq.m Expected landarea forthe facility treatment facility - Kabd Planned BOT municipal solid waste c environmental services sector in Kuwait. in keysegments isexpectedtodrivethegrowth of and theneedto address current under-capacity situation Implementation ofstricterenvironmental regulations Capacity (cm/d) e o c e mmence operationsby2019 to at et Plant ment r ove r v i ew a Wse Water Waste n – Ex p ected to waste producedinKuwait. capacity totreatapproximately50%oftotalmunicipalsolid Kuwait Municipality.Theplantisexpectedtohavea will beawardedasa30yearlongtermcontractfromthe project atKabdareaofKuwaitonaPPPbasis.The The KAPPisseekingtodevelopasolidwastetreatment through thePPProute. Most oftheseprojectsareproposedtobeundertaken existing 947,300cm/dto to increaseKuwait’ssewagehandlingcapacityfromthe and initiationofnewprojects.Theseprojectsareexpected addressed throughacombinationofcapacityexpansions The currentcapacityconstraintsareproposedtobe services. effluents increasingthedemandforenvironmentalremedial (KEPA) havedirectedfocustowardstreatmentofindustrial directives bytheKuwaitEnvironmentPublicAuthority significant opportunitiesforoilsludgetreatment.Recent effluents. Kuwait’soilandgasexplorationindustryprovides Sludge treatmentinvolvesofoilorindustrial capacity andenvironmentalissues. is currentlydisposedoffatlandfillsiteswhicharefacing with onlyafewactiveplayers.Mostofthesolidwaste Waste recyclingasaconceptisrelativelynewinKuwait Sol
Eff Was Pri m lue id te Re ar
Was n y Sew t Slu c te y c Mana a l d ge in ge g Tr Tr geme approximately 1,500,000cm/d. e e a a tme tme n t n n t t 04 08 100 80 60 40 20 0 201
(‘000 tonnes) Municipal than 17.1Mntonnesby2019. drive construction activities,increasingpopulationandrapidurbanizationareexpectedto highest intheGCCregion. Factorssuchasstrong growth intheenergysector, growing Kuwait’s solidmunicipalwastegenerationof1.4kg/day per capitaisamongthe Source: Annualstatistical abstract,realtimedelphi.com,KPMG Analysis BRI n d ge kuw 2.2.1: SolidWaste Management waste disposal method waste disposal markets, developed Kuwait vs.other 10,453 1,532 O 547 e ethe c L h ppo n a r R T 4 a gr ecyc o ous m m AIN ai n E annual solidwastegenerationfromanestimated12.5Mntonnesin2014tomore n r an ar d
t i r s c tu f eh tr l 201 ul 11,185 1,578 ill k y l 563 ands ni waste e/c u old t ty ove u ct 5 r om f io al
solid n 2016
p estimates, 2014-2019 11,968 a 1,625 Inc 580 al os r n v d w g e i c ew i
d as ner a f omm
/ rb o te 12,805 201 ther 1,674 598 a a t ge erc io 7 n f
ial 13,702 201 1,724 616 g a 8 rb f , 2019f a ge 14,661 1,776 634 household solidgarbage construction waste.Organicwaste,consistingof inorganic wasteperannum,primarilycomprisingof By 2019,Kuwaitisexpectedtogenerate • • • existing landfills. facilities aswellforremediationofaccumulatedwasteat Opportunities existforestablishingsolidwastetreatment to constituteanother1. untreated wasteatlandfillsites. waste, movingawayfromthepastpracticeofdumping This isexpectedtoencouragebettermanagementofsolid towards strictcompliancewithenvironmentalregulations. The KEPAandtheKuwaitMunicipalityaretakinginitiatives efficiencies. to bringininternationalexpertiseandprivatesector sector intheareaofsolidwastetreatmentwithaview The KuwaitGovernmentisseekingtoinvolveprivate the needforadditionalwastemanagementfacilities. in Kuwait,driving ofsolidwastedisposal method dominant In comparisontoEuropeancountries,landfillsremainthe 2 -Keysectorsfor opportunities 8 and Mntonnesperannum. agricultural waste isexpected 14.6 Mntonnesof
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 20 21 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: MEED, be 2.2.2: PrimarySewageTreatment million cm/dwithprivatedeveloperssettocontrolover80%ofthecapacityby2016. Hayman. By Considerable capacityexpansionisplannedfortheplantsatSulaibiyaandUmmAl under thePPProutethroughKAPP. Sulaibiya, Jahra Government hasearliersuccessfullyutilizedtheBOTmodelforWWTPprojectsat wastewater, therebycreatingdemand water consumptioncontributeto (IG) Kuwait’s per population. Inaddition,there are three small-scaleplantsatKhiran,Wafra andFailaka. design capacityofthesefivemajorplantswas947,000cm/d,servicingover98%the at AlJahra,Sulaibiya,Kabd,RiqqaandUmmHaymanareas.In2014,thetotal Kuwait isprimarilyservedbyfivemajorwastewatertreatmentplants(WWTP)located
facilities forthenext35years. expanding Kuwait’swastewaternetworkandtreatment thestrategyfor Master Planprojectthatseekstodefine private sector.TheGovernmentispreparinganewSanitary (Sulaibiya, UmmAlHaymanandKabd)beingoperatedbythe reach 1.5Mncm/dperday,withallthreeplants The marketsizeofsewagetreatmentplantsisexpectedto WWTPs. construction, operationandmaintenanceactivitiesforthe to participateinthePPPprocessandcarryoutdesign, There existsasizeableopportunityforinternationalfirms O Total Al Khiran Al Jahra Al Riqqa Kabd Umm Al uaby 425,000 Sulaibiya Treatment Plants Waste Water ppo decommissioned. Thetreatmentcapacitywillhaveincreasedbynearly in 201 r
Hayman tu Centralstatisticalbureau andMinistryofPublicWorks ni 3
ty ove and 2016, capita consumptionoffreshwaterreached 947,300 300 65,000 180,000 250,000 27,000 development plans Expansion and is estimatedtoreachapproximately45,000IGby2015.Highlevelsof and KabdwhiletheUmmAlHaymanWWTPprojecthasbeenfloated r the v i ew older plantsatAlRiqqa,JahraandKhiranareplannedto Approx - - - 250,000 500,000 to700,000 600,000 (cm/d) Planned capacity a corresponding increaseingenerationof 1,500,000 for additionaltreatmentcapacity.The • • deficit. with bothenvironmentalpollutionandwaterresource Wastewater reuseisseenasameanstoaddressissues affects thequalityofcoastalwaterandmarinelife. friendly andcontributestowastewaterdischargesthat Desalination, anexpensivepractice,isnotenvironmentally gallons. Umm AlAish)havingestimatedreservesof40billion groundwater islimitedtotworeservoirs(Rawdatainand ground water,desalinationandwaterreuse.Fresh limited rainfall,Kuwaithasonlythreesourcesofwater- In theabsenceofnaturallakesorperennialriversand nearly 38,000imperialgallons 60% to1.5 discharge, there are opportunitiesforspecialistserviceproviders. tighteningregulationsWith theGovernment onadequatetreatment ofeffluents priorto effluents whichusedtobedischargedintopublicsewersystemswithouttreatment. The growth ofthemanufacturingsectorisleadingtoincreased generationofindustrial of oil. prevention ofenvironmental contaminationandpotentialforrecovery 1991. TheKuwaitOilCompanyisundertakingpilotprojects toexplore technologiesfor as aresult ofoilspillsfrom damagecausedtooilwellsbytheretreating Iraqiarmyin pits. Separately, there are around 114square kilometersofoilwellsthatwere created as partoftheoilextractionprocess hastraditionallybeendepositedinlargesludge (bpd) in2014to3.5Mnbpd2021.Theconsiderableamountofoilsludgegenerated Kuwait’s oilproduction levelsare expectedtoincrease from 2.9Mnbarrels perday 2.2.3: OilandEffluent SludgeTreatment Source: Annualstatistical bulletin,2012OPECandFlottweg separationtechnology,technicaldocument, KPMGAnalysis
2011 (Mn gallons/year) f Effluentestimates,2011-2016, 2011 Oil sludge estimates, 2011-2016, (Mn bbl/year) 2011-2016, estimates, Oil sludge O
850 29.1 ppo
2012 r 2012 tu 902 28.5 ni
ty ove
2013 2013
957 29.2
r 2014 e 2014 v i ew 1,015 29.9 e 2015 2015
1,077 30.6 f f 2016 2016 1,143 31.3 f • • issues inKuwait. comprehensive technologysolutionstoaddressthese is anopportunityforinternationalspecialiststobringin reach approximately1,143Mngallonsby2016.There The risingindustrialeffluentvolumesareexpectedto reusable crudeoil. there isapotentialtorecoveraround16Mnbbl/dayof generated peryear.Withthetreatmentofthisoilsludge of approximately36Mnbbl/dayoilsludgewouldbe Mn barrelsperday(bbl/day)by2030,willleadtogeneration Kuwait’s plantoincreaseoilproductioncapacitynearly4 • demand foreffluenttreatmentfacilities. considerably resultinginacorrespondingincrease the amountofeffluentgeneratedisexpectedtoincrease With thegrowthinindustrialandpetrochemicalsectors, demand fortreatmentofsludgeandeffluents. towards conservationoftheenvironmentaredriving heightened awarenessofcorporatesocialresponsibility Increased regulatoryandpublicscrutinycombinedwith stimulus tothedemandforsludgetreatment. recovering crudeoilfromsludgeprovidesadditional Further emergenceoflowcostnewtechnologiesfor 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 22 23 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: Life CycleAssessment (LCA)ofMunicipal SolidWasteManagement intheState ofKuwait *Note: Othersinclude Metals,Glass,Fibers,WoodandPlastic 2.2.4: Waste Recycling typically comprisesmetals,plastics,woodandothermaterials. for 81.3%oftotalsolidwasteproducedbetween2009–2013.Construction Construction wasteisthemajorcontributortosolidincountry,accounting is disposedatlandfillsites,creatingpotentialpublichealthandenvironmentalissues. as (21%) Kuwait producesover32, By Type, 2010-2020 - ‘000 tonnes - ‘000 By Type,2010-2020 Waste Production Solid Municipal Forecasted
O
p 2010 2015 f 2020 f ppo o scrap plasticproducts,flakes,andothermaterials.Theremainingsolidwaste las rg 355 434 420 314 523 1,255 222 662 273 1,050 265 167 r is beingrecycledandusedtoproducevarioustypesofreusableproductssuch a t tu n i c i c ni s ty ove
p r o a v ther per i ew s * 000 tonsof total solidwasteperdayofwhichonly6,700tons • • • • Kuwait’s abilitytorecyclewaste. technological expertiseandexperienceinenhancing privately owned.Thereissignificantpotentialforintroducing of theexistingwasterecyclingcompaniesinKuwaitare estimated atoverUSD350Mninannualrevenues.Most The sizeofthedomesticwasterecyclingmarketis plastic. component of growth inpopulation.Organicwasteisthe as comparedwith waste isexpectedtoreach of solidwasteinthecountry.Generationmunicipal Municipal solidwastecomprisesthesecondlargestsource facilities. expected todrivedemandforadditionalwasterecycling Environmental regulationscontrollingdisposalofwasteare materials arealsodrivingdemandforwasterecycling. Lower manufacturingandenergycostsforrecycled components suchasfibers,wood,glassandpaper. of complexcomponentssuchasplasticandlowervalue there isaneedtoestablishfacilitiesaddressrecycling metals haveattractedinterestfromrecyclingcompanies, While somehighvaluecomponentsofwastesuchas
municipal solidwaste,followedbypaper 2. 1 milliontonsin201
over 2.5milliontonnesin2020 5 onaccountof secondlargest
and polyethylene seek todoubleKuwait’sproductioncapacityforethyleneand participate intheOlefinsIIIandPET/PTAprojectswhich There couldbeopportunityforinternationalinvestorsto Source: BMI,Equate, PIC
turn strengthenKuwait’spetrochemicalsector. Kuwait’s refiningcapacityfromthecurrent936,000b/dtoover 1.5 M n b/dandin upgrade oftheMinaAbdullahandAl-Ahmadirefineriesareexpectedtoincrease The constructionofthe615,000b/dAl-Zourrefinery project, togetherwiththeplanned Kuwait’s productioncapacityfrom7.6Mntonsin201 proposed toundertaketheOlefinsIIIprojectandaPTA/PETincrease Kuwait’s largestpetrochemicals manufacturer, thePetroleum IndustriesCompany, has domestic demandforchemicals. industry primarilyservicesAsianmarketssuchasChinaandIndiawhichhavestrong ethylene, polyethylene,urea, ethyleneglycolandchemicalcatalysts.Kuwait’s chemicals Chemicals constituteKuwait’s secondlargestmanufacturingindustry. Kuwaitproduces driven byincreaseinpolyethyleneandethyleneglycolcapacity. Manufacturing 2.3: Industrial Oil & Gas Downstream Chemicals O Total Ethylene Ethylene Xylenes Urea Ammonia Benzene Polypropylene Polyethylene Ethylene in ‘000 tpa Kuwait petrochemicals sector - chemicals capacity ppo r oxide glycol tu ni ty ove r v i ew 1,000 1,040 1,700 2014e 7,567 765 822 885 370 160 825 10,542 1,600 1,040 1,800 3,100 2019f 765 822 885 370 160 • • • alleviating concernsaroundshortageofgasfeedstock. be usedasanalternativefeedstockforpetrochemicals, are expectedtoincreaseavailabilityofnaphthawhichcan The projectsatAlZour,MinaAbdullahandAl-Ahmadi output. focus onthemanufacturingsectorandincreasingindustrial it isexpectedtoincreasesasaresultofGovernment’s Though domesticdemandforchemicalsiscurrentlylow, manufacturing industryinKuwait. export marketsisexpectedtodrivethechemical Increasing demandforchemicalsinKuwait’skeyAsian 2 -Keysectorsfor opportunities 4 to10.3Mntonsby2016,mainly
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 24 25 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: Ministryoffinance, CBK,CentralStatisticalBureau AnnualStatisticalAbstract201 2.4: EducationandTraining
University CitywhichwillaccommodatethenewcampusofKuwaitUniversity. includes severaleducationfocusedprojectsincludingtheSabahAl-Salem as expected toincreasefromUSD6.8Bnin201310.52019(7.5%y-o-y), development andsocialprogress.Educationexpenditureinthecountryis The 2013-201 Education expenditure: for investment inKuwait’s education andtrainingsector favourable demographics formaconducive environment support,private sectorparticipationand Government s
2019f 2018f 2017f 2016f 2015f 2014e 2013 e a c 10.5 9.8 8.5 9.1 Kuwait Government hasidentifiededucationasakeytoachievingeconomic Kuwait Government 7.9 7.3 to 6.8 result ofsignificantspendinginthissector.TheKuwaitDevelopmentPlan r ove 9 (USDBn) r v i ew global enrolmentlevelsintertiaryeducation. offerings inhighereducation,asKuwaitattemptstoreach to setupbranchesinthecountryandprovideniche to students.Growthpotentialexistsforforeignuniversities has anumberoflocaluniversities,offeringselectcourses private universitiesin2013.ThetertiaryeducationKuwait approximately Kuwait hasadiversifiedsystemofhighereducationwith opportunities fornewentrants. to improvethequalityofvocationaltraining,andprovide companies andinstitutionsareseenasapreferredapproach university education.Partnershipswithreputedforeign of corporatesectorandstudentswhoareunabletopursue for vocationaltrainingismainlydrivenbytheneeds being themostnotedamongothers.InKuwait,demand Public AuthorityforAppliedEducationandTraining(PAAET) by establishingseveraltraininginstitutesintherecentpast, development ofitstechnicalandvocationaltrainingsector The KuwaitGovernmenthaslaidastrongemphasison I T by 2019 expenditure Planned education USD 10.5Bn ns e r t t 3 i , BusinessMonitor International iar tute y Ed s 106,680 studentsenrolledinbothpublicand
and u ca
- Trainin t i Education o n g Ce sector n te expenditure rs
provide standards international ofhighereducation. Significant potentialexistsforforeign universitiestosetupbranchesinthecountryand regional educationoperatorscompellingstudentstogoabroad forhighereducation. The privateuniversitiessegmenthasbeenasubjectofactiveinterest from global/ sector. offering highqualityaccredited educationpresents strong potentialforgrowth inthis participation inmanagementofschoolsandlimitedpresence ofinternational brands.TheGovernment’swith leadinginternational efforts towards privatesector interest from localinvestorstoestablisheducationalinstitutionsinpartnership Tertiary educationisakeyfocusareaandthere fortheKuwaitGovernment ishigh Source: CentralStatistical BureauAnnualStatisticalAbstract andPUC 2.4.1: Tertiary Education students (‘000) students enrolled University Public Private and 2013 2012 2011 2010 2009 O ppo pr p u 65 89 87 74 70 12 18 16 15 21 i b v r li a tu te c ni u u n ty ove n i ver i ver si si r ty ty v i ew • • • leading internationalbrands. graduate andpostcoursesinpartnershipwith Opportunity existstoestablishtertiaryinstitutionsoffering increase ofapproximately8%and1 Public andprivateuniversitieswitnessedayearon 10.5 Bnby2019. crossed USD6.8Bnin2013andisexpectedtoreach 2009 to2013,respectively.EducationexpenditureinKuwait education inKuwait represents considerablepotentialtospendonquality High GDPpercapitaandstatesubsidyforcitizens mix, drivesthegrowthoftertiaryeducationsector Healthy populationgrowthandanattractivedemographic private sectorparticipationinmanagementofbusiness. seeking toestablishbranchesinKuwaitandalsopromotes The Governmentissupportiveofforeignuniversities 2 -Keysectorsfor opportunities 1 % duringtheperiod
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 26 27 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
Source: CentralStatistical BureauAnnualStatisticalAbstract market requirements. of recruits considerupgradingtheirskilllevelsandbetteraligningthemselvestojob by privatecompaniesare expectedtodrivedemandinthesectorasincreasing number Expansion ofarelatively youngworkforce inKuwaittogetherwithinitiativesundertaken university education. the trainingneedsofcorporatesectorandstudentswhoare unabletopursue strong emphasisonthetechnicalandvocationaltrainingsectorwhichseekstoaddress its youngworkforce andaddress risingrequirements ofthejobmarket.Thishasputa iskeentomakeaconcertedeffortKuwait Government towards skillenhancementfor 2.4.2: InstitutesandTraining Centers Vocational training (‘000) training Vocational training inthecountry. requirements. Currentlythereislimitedprovisionforquality engineering andbusinesswhicharealignedwithjobmarket Opportunities existtoprovidetrainingindisciplineslike providers includingestablishedvocationaltraininginstitutes. Kuwait isseekingtoattractregionalandglobaleducation O
2014 2013 2012 2011 2010 2009 ppo 5 53 42 43 40 40 5 r tu ni ty ove r v i ew , PACIandPUC • • • further demand. segment forvocationaltrainingandisexpectedtodrive population betweentheageof15-29years,formskey Kuwait’s youngdemographicprofile,with2 levels. vocational programsandre-skillorupgradetheirskill there isalikelypotentialforthepopulationtoenrollin age groupof20to34years)andrisingunemployment, relatively youngdemographicprofile(targetworkforce– Considering theexpansionofworkforceinKuwait, driving growthinthissegment. education programstothegrowingpopulationofKuwait, vocational traininginstitutes,offeringhighquality Several privatesectorcompanieshavebeguntoestablish 5% ofthe
2.5: Healthcare part 1. Private sector USD infrastructure andagrowingprivatesector.TheGovernmenthasspentapproximately near term.Kuwait’s evolvinghealthcare industryischaracterizedbyalargepublic sector after UAEandQatardemandforhealthcare isexpectedtorisesignificantlyinthe Kuwait recorded thethird largesttotalhealthcare expenditure across theGCCregion Source: BusinessMonitor International Healthcare (USD Bn) healthcare sectorand specialities treatments support willdrive theoveralldevelopment ofthe per capitaexpenditure onhealthcare andGovernment Stable economic growth, increasing population,high O 3
2019f 2018 f 2017 f 2016 f 2015 f 2014 2013 ppo Bn by201 of theoverallhealthcarelandscape. 6.4 6.2 5.7 5.5 5.4 5.1 5.9 5.1 r tu Bnin2013onhealthcareandisexpectedtospendoverUSD6.42019. ni expenditure ty ove 9 indicatingthepotentialgrowthandrisingshareofprivatesectoras investments areexpectedtoincreasefromUSD0.9Bnin2013 r v i ew in Kuwait-2013-201 9, developing adedicatedhealthcaresystem. manage thehealthcareneedsofexpatriatesinKuwaitby Company in2011asapublic-privatepartnershipinitiativeto The GovernmentestablishedtheKuwaitHealthAssurance KUWAIT HEALTH ASSURANCE COMPANY treatment. highlighting thegrowingneedforlifestylerelateddisease female populationandtwo-fifthsofmalesreportedobese, rates ofobesityanddiabetesgloballywithoverhalfthe individual healthandlifestyle.Kuwaithasoneofthehighest the objectiveofenhancingqualitylifeandimproving follow aproactiveapproachtohealthandwellness,with There isanincreasingdemandforlifestyleclinicswhich end specialityhospitals. develop inboundmedicaltourismmarketbydevelopinghigh opportunities toreducetreatmentsperformedoverseasand This trendislikelytogrowfurther,especiallyintapping Private sectorhospitalsinKuwaitoffermultiplespecialities. specialty hospitals. specialties isexpectedtostimulatemarketdemandfor availability ofqualitytreatmentforhigh-endhealthcare Concentrated effortsbytheGovernmenttoensure
Spe USD 6.4Bn 2019 Planned healthcare expenditure in Lif e cia 2 -Keysectorsfor opportunities s tyle me lty H o dica s p i t a l l c s l inics
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 28 29 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
Source: MOHKuwait andEIU private sector. specialties suchasgastroenterology andneurosurgery thatdidnotexistearlierinthe Private sectorOPDhasrapidlyemergedduringthelast5years,withintroduction of reducing theneedforoutboundmedicaltourism. infrastructure andexpertisetoprovide specialtyhealthcare treatment inKuwait, participation islikelytohelpfostergrowth inthissegmentthrough developmentof Most privatehospitalsinKuwaitoffer multiplespecialties.Increasing privatesector 2.5.1: SpecialityHospitals O Maternity Allergy K Ibn Psychological Infectious Chest (PPP Physical Med. Al-Razi Hospital Specialty uwait Cancer Control ppo Sina model) Diseases Centre Hospital r Name Hospital Diseases hospitals tu Medicine & Rehabilitation ni Hospital (Al ty ove C in Kuwait (201 e Sabah) ntre r v i ew 3 Infectious Chest Spinal Allergies Cancer Psychiatric Maternity Rehabilitation Physical Orthopaedic Speciality ) Diseases Surgery Med Diseases Surgery & Current No. 290 (240) 199 (618) 364 764 173 (255) 329 441 (617) 75 36 of Beds (new) • • as constructingnewhospitals. investing incapacityexpansionatexistinghospitalsaswell To addressthegrowingdemand,Governmentis hospitals andclinicscateringtolifestylediseases. and presentopportunitiesforestablishmentofspecialty growing specialtiesinthehealthcaresectorKuwait Obstetrics, gynecology,cardiology,areamongstthefastest diseases andtreatment. especially giventhehighincidenceoflifestylerelated demand for reach 4.8 2015 and Kuwait’s populationreachedaround4.2MnbyJune procedures andtreatmentswithinthecountry. penetration drivesthedemandforspecialtymedical the compensationpackage.Increasinglevelofinsurance Kuwait provideprivatehealthcareinsuranceaspartof for allexpatriates,whilemultinationalcorporationsin for healthcare.Publichealthinsuranceismandatory Insurance coverageisoneofthekeydemanddrivers Mnby2019.Thisrepresentspotential isexpectedtogrowannuallyatnearly3% healthcare. demand drivers for is oneofthekey Insurance coverage healthcarefacilitiesandinfrastructure,
demand foradvancedtreatment services. in Kuwait,highlightingthegrowing needforlifestylediseasetreatments andagreater incidence oflifestylerelated diseasesincludingdiabetesandcardiovascular ailments A combinationofanindoor, sedentarylifestyleandpoordiethabitsisleadingtoahigh hypertension andobesity, beautyandanti-agingweightlossfitnesssolutions. preventive andpersonalizedhealthcare, solutionsforlifestylerelated diseasessuchas medicine,nutritionanddietsolutions, Lifestyle clinicsincludespas,alternative 2.5.2: Lifestylemedicalclinics Source: MOHKuwait andEIU O for healthcare servicesinKuwait. series ofadvanced medicalclinicsthatmeetthe growing demand an opportunityfor specializedhealthcare providers tosetupa advanced private clinicsinvariousareas. Consequently, there is “The privatesectorishighlyfragmented withanumberof Lifestyle related ppo Prevalence of diseases r tu ni ty ove Growth Drivers demographics r Favorable v i ew Socioeconomic conditions • • inpatient andoutpatientservices. clinics cateringtothegrowingdemandforhighquality healthcare providerstosetupachainoflifestylemedical governorates inKuwait.Opportunityexistsforspecialized a numberofprivatelifestyleclinicspresentacross owned. Theprivatesectorishighlyfragmentedwith Lifestyle clinicsinKuwaitarepredominantlyGovernment- lifestyle clinics. 2019) areexpectedtoleadincreaseddemandfor (projected togrowannuallyat3%reach4. Increased lifeexpectancyandrapidpopulationgrowth diseases. address highincidenceofobesityandotherlifestyle personalized healthcareprogramsatlifestyleclinicsto Rising healthawarenessisdrivingthedemandfor 2 -Keysectorsfor opportunities 8 Mnby
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 30 31 Investing in Kuwait: A guide for Investment Opportunities in Kuwait S Source: CentralStatistical BureauAnnualStatisticalAbstract 201 construction contractingtoreal estateserviceslikeproperty andfacilitiesmanagement. investors toparticipateacross thereal estatevaluechainfrom developmentplanning, are expectedtopropel growth ofthereal estate sectorandprovide opportunities for housing projects toaddress thehousingneedsofitsgrowing population.Theseprojects Kuwait hasoutlinedplansfordevelopmentofanumberlargescaleintegrated development sector 2.6: Integratedhousingprojects andurban business andoutsourcepropertymanagementservices. expected toincreaseasownersseekfocustheircore across residential,commercialandretailsegmentsis Demand forspecializedpropertymanagementservices property managementaspartoftheirserviceportfolio. managed andseveralrealestateservicescompaniesoffer A largeproportionofpropertiesinKuwaitareowner- such services. increase inrealestateassetsislikelytodrivedemandfor services andcompetentprofessionalresources.Theplanned and thereisaneedforspecialistfacilitiesmanagement The facilitiesmanagementmarketinKuwaitisfragmented in thecountry. international constructioncontractorstoestablishpresence and oilgas.Thisconstitutesasizeableopportunityfor across sectorslikerealestate,infrastructure,power,water Kuwait hasastrongpipelineofplannedconstructionprojects design andfeasibilitystudiesforrealestateprojects development planningservicessuchasconceptplanning, 135 Bn.Theseprojectsarelikelytodrivethegrowthof integrated housingprojectswithanestimatedvalueofUSD The Governmentisseekingtodeveloplargescale F Co Developme Pr the real estate valuechain. demand forservices across projects is expectedtodrive townships andhousing of largescaleintegrated The plannedconstruction aci E ope C ns TO l i t t r r R ove i e ty u s c
Mana Mana t i n o r t v n P i Co ew l geme geme annin n t rac n n t g t t in g 3, BusinessMonitor International 2009-2012 to GDP, Real EstateSectorcontribution USD 250 200+ projects, USD Project value USD 135Bn Project value Project value Pipeline of construction projects Expectedoperationsby 2023 – Madinat Al Hareer (Silk City) project urban development integrated housing projects and Development of large scale 8
Bn Bn -
providers tooffer suchservicesinKuwait. developmentplanningfirmsandrealdemand forlocalandinternational estateservice City. Developmentplanningforsuchlargescaleprojects requires specialistsandcreates Al Hareer (SilkCity)project, KhairanResidentialCityandtheSabahAlAhmadFuture Kuwait hasplannedanumberoflargeintegratedhousingprojects includingtheMadinat for suchprojects. development planningservicessuchasconceptplanning,designandfeasibilitystudies stages andseveralothersyettobeinitiated,there existsconsiderableopportunityfor With anumberoflargeprojects forhousingandurbandevelopmentcurrently intheinitial housing projects 2.6.1: Developmentplanningforintegrated Source: Zawya *Selectreal estate project Note: Allprojectsare residentialandongoing to establishpresenceinthecountry activity wouldcreateopportunities forinternationalinvestors The plannedconstructionand infrastructuredevelopment model. office presenceinthecountry whichisnotaveryefficient work donebyforeignplayerswhodonothaveaphysical development planningfirmsinKuwaitwithmostofthis Currently, thereisalimitedpresenceofspecialized is approximatelyUSD900Mn The potentialmarketsizefordevelopmentplanningservices O Total Residential City PAHW - North West Sulaibikhat - PAHW - Sabah Al Ahmad Future City – PAHW - North West Sulaibikhat Residential City B PAHW - Sabah Al Ahmad Future City - Area Sulaibikhat PAHW - North West - PAHW - Sabah Al Ahmad Future City project KIPCO - Daiya real estate PAHW - Sabah Al Ahmad Future City PAHW - Khairan Tamdeen - Madinat Al Hareer Select Housing Projects* 310 Apartments Package Area Dahiya ppo Public C - Area Public Buildings r Buildings tu A4, A5 Residential ni ty ove - 396 House Package Residential City r v City i ew Value (USD Mn) 135,124 14,000 88,000 27,000 5,000 121 130 136 274 452 11 • • • be undertakenwithprivatesectorparticipation. large scaleintegratedhousingprojects,manyofwhichwill Obtaining financeisexpectedtobeacriticalaspectfor for developmentplanningservicesinthenextfewyears. residential andinvestmentsectorswillcreateopportunities the Governmenttoaddresscurrentundersupplyin The largescaleintegratedhousingprojectsplannedby banks andinvestorsrequireforevaluatingprojects. and financialfeasibilitystudiesduediligencethat such asdevelopmentplanning,mastertechnical These projectsareexpectedtodrivedemandforservices 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 32 33 Investing in Kuwait: A guide for Investment Opportunities in Kuwait contributed a In 2014,theRealEstateandConstructionsector offer specializedservices. opportunities forglobalandregional propertymanagersto expansion ofretailandcommercial spacewouldprovide Development oflargescaleresidential projectsand 2011, withcommercialrealestatebeingthekeysegment. The marketsizeforPMwasestimatedatUSD350Mnin
Source: KuwaitReal EstateAssociation,KFH,KPMGResearch andAnalysis in leadingpracticesthissector. specialized third party, pure playproperty managerstoestablishtheirpresence andbring to specializedprofessional managementfirms.Thiswouldresult inastrong potentialfor core businessofreal estatedevelopmentandoutsource property managementservices However, asthereal estatemarketmatures, assetmanagerswillneedtofocusontheir these servicesbeingoffered in-housebyowners/assetoperators owners. Property managementisstillrelatively underdeveloped inKuwaitwithmostof liaise betweenownersandtenantstomanageproperty related servicesonbehalfof resources orexpertisenecessaryforday-to-daymanagementoftheproperty. PMfirms Property management(PM)firmsare oftenusedwhentheassetownerslacktime, 2.6.2: Property Management O space Malls - operating Category Kuwait -Retailmarket(2011) Total Other Class C Class B Class B+ Class A Class A+ Category Kuwait -Residentialreal estate market(2011) ppo r tu round ni ty ove 9.6% and2.6ofthenominalGDP o fbidnsPotential annual property No. of buildings (SQM ‘000) r Total GLA v 11,069 i 5,182 3,578 1,195 ew 618 657 435 22 management fees (USD ‘000) management fees (USD ‘000) Potential annual property 132,438 50,792 42,157 15,865 11,760 10,825 1,040 31 • • oa ,9 18,359 1,098 4,292 549 Total Other Class C Class B Class B+ Class A+ Category Kuwait-Office andmixed-use real estatemarket(2011) for PMfirmstomanageassetsonbehalfoftheoperators. planned bytheKuwaitGovernment,anopportunityexists With severalrealestatedevelopmentinitiativesbeing and correspondingopportunityforPMservices. has ledtoadditionaldemandforrealestatedevelopments growing populationandincreasingnumberofexpatriates Kuwait’s economicgrowth,togetherwiththesteadily buildings ,0 6,311 6,000 1,803 1,200 No. of 0 2,400 2,550 400 340 (SQM’000) Total GLA management fees (USD’000) Potential annual property 197,421 67,137 66,662 27,554 28,556 7,513
to specializedFMserviceproviders islikelytofurtheraugmentdemandforFM. Additionally, achangeinmindsetofassetmanagerstooutsource thisnon-core activity a growing needtomanagethesefacilitiesandrequirement forFMserviceproviders. estate activities.Severallargeinfrastructure projects initiatedinKuwaitwillresult in Facilities Management(FM)servicesare mainlydrivenbyanincrease inavailablereal 2.6.3: FacilitiesManagement infrastructure assetownersandoperatorsinKuwait. benchmarks andenterintolongtermcontractswith firms toenterKuwait,establishindustrystandardsand providers. Thereisanopportunityforsuchspecialized there islimitedpresenceofspecializedglobalFMservice by 2013.Localplayerscurrentlydominatethemarketand in 2011,andisexpectedtohavereachedUSD430Mn The FMindustryinKuwaitwasestimatedatUSD270Mn O sustainability ppo Focus on r tu ni ty ove Growth Drivers Growth inreal estate sector Outsourcing r v i ew demographics Favourable • • • to demandforspecializedFMserviceproviders. developments conformingtogreen/LEEDstandards,leads Rising focusonsustainabilityandgrowingnumberof resulting ingrowingdemandforprofessionalFMservices. further expectedtooutsourcetheirnon-coreactivities, Companies focusingonreducingoperatingcostsare resulting inademandforhighqualityFMservices. in theresidentialrealestatesectorisexpectedtogrow, demand forhigherqualityresidentialoptions.Investment income ofitsrelativelyyoungpopulationareleadingto Kuwait’s expandingrealestatesectorandhighper-capita 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 34 35 Investing in Kuwait: A guide for Investment Opportunities in Kuwait (by value) in % in (by value) by sector projects construction Proposed
Source: Zawya the GCCregion. contractorstoconsiderKuwaitasakeymarketwithin potential marketforinternational to bemore thanwhatcanbeabsorbedbydomesticplayerswhichfurtherhighlightsthe companies.Additionally,point forinternational thescaleofannouncedprojects islikely and experienceinexecutinglargescalecomplexprojects, thereby creating anentry Construction contractorsinKuwaitfaceconstraintstermsoftechnologicalexpertise construction activityinthecountry. along withlargescaleintegratedhousingprojects isexpectedtodrivealargevolumeof Kuwait Government’s focus ondevelopmentofinfrastructure (roads, ports,airport,rail) 2.6.4: ConstructionContracting and majority oftheplannedconstructionactivities,followedbyoilandgas,infrastructure considerable opportunityforconstructionactivity. Real The stretched. where localcontractingcapacity andexpertisemaybe particularly inlarge,complexortechnicallychallengingareas opportunities forinternationalconstructioncontractors hospitals inthecountry.Theseprojectsoffersignificant Ministry ofHealthisundertakingconstruction8additional initiated bythePublicAuthorityforHousingWelfare.The a periodof6to7yearsunderthevarioushousingprojects Over 90,000housingunitsareproposedtobeaddedover O ppo Power &Water power andwater. pipeline ofcurrentprojectsisvaluedatover r tu 6% ni ty ove Infrastructure 15% r v Others i ew Oil &Gas 8% 22% Real Estate 49% • • • additional residentialunitsandconstructionactivity. A growing,youngpopulationisdrivingtheneedfor significant constructionactivity. airports, railandGovernmentbuildingswhichwillleadto large infrastructureprojectssuchasroads,bridges,ports, The KuwaitDevelopmentPlanincludesconstructionof services. augment thedemandforconstructionmanagement The plannedintegratedhousingprojectswillfurther USD 250Bn estate projects accountfora in 2015. Thisprovides S regulations. center withexcellentmultimodallogisticinfrastructure supportedbyfavorabletrade Kuwait’s Third KuwaitMasterPlanseekstodevelopasaregional transport 2.7: StorageandLogisticsservices for foreign tradeandKuwait’scentrallocationintheGulfmakelogisticsastrategicpriority annually at4.3%during2014-2019toreachUSD62Bnin201.Theimportanceof Imports constituteakeycomponentofKuwait’seconomyandareexpectedtoincrease Source: BusinessMonitor International City andotherprojects. warehousing facilitiesthroughdevelopmentoftheCargo The Governmentisseekingtoaddressthedemandfornew facilities. goods, requiringthedevelopmentofadditionalwarehousing are expectedtoacceleratedemandforvariouskindsof Kuwait’s increasingpopulationandconsumerspending increased demandforlogistics. to serveinternationalairfreight,areexpectedsupportthe Projects suchastheproposedCargoCity,whichisintended the GCCrailroadnetwork. and anewnationalrailroadnetworklinkingthecountryto port attheBubiyanIsland,upgradeofairportinfrastructure projects aretheinitiativestoupgradeexistingports,anew as partoftheKuwaitDevelopmentPlan.Keyamongthese several transportationinfrastructureprojectsbeinginitiated Logistics servicesinKuwaitareexpectedtobenefitfrom
Kuwait’s import and exports, 2014-2019 Kuwait’s importand War L logistical and warehousing hubinthe region. developments havethepotentialtopromote itasakey the GCCisrelatively small,theproposed infrastructure Though Kuwait’s current share ofthelogisticssectorin og
E n Nomi C the country. omi is TO ehou t R ove ics n n al al sin
exp im r g p v o i o ew rt rt s s , , us us $bn $bn USD 4Bn USD 7.5Bn infrastructure Investment plan for road Estimated project value Mubarak Al Kabir Port in Bubiyan Island Project value 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 36 37 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
Source: BusinessMonitor International 2.7.1: Logistics of these ports. 40 two keycommercialportsof Maritime transportis regional markets.Investment of capacity ofadditional2.5Mn TEUs andfacilitateaccessto Bn by2019.TheplannedMubarakAlKabirPortwilladda transport. north ofKuwaitwhichwillenhance overlandfreight new andexistingroad planned overthe an averagerateof4.3%during2013-201 Imports inKuwaitareprojectedtoincreaseannuallyat O (Mn tonnes) 2013-201 Maritime freightthroughput,
2019f 2018 f 2017 f 2016 f 2015 f 2014 e 2013 ppo Saudi ArabiaandIraq,generateconsiderablevolumesofroadfreight. Mn P P O O 35 29 25 37 41 32 10 13 4 11 11 12 12 1 r 3 RT RT 4 tonnes offreightin2014.Plansareunderwaytoexpandthecapacitiesboth tu O O ni F F ty ove S S Hu H Kuwait’s tradeactivitieswithregional countries, particularly next fiveyearsinthedevelopment of UAI w infrastructure, particularlyinthe B aik r A v THR h i ew THR the OU over OU GHP primary modeofcommercialfreightmovementinKuwait.The USD 7.5Bnis GHP U Shuaiba andShuwaikhhandledacombinedthroughputof 9 T toreachUSD62 U T 9, • • • (‘000 tonnes) Air freight Arabia andIraqinacosttime-efficientmanner. ports andtransportingoverlandtotheKingdomofSaudi opening upopportunitiesforbringinggoodstoKuwait’s key industrialareasandwiththeGCCrailroadnetwork, The nationalrailroadnetworkseekstoconnectportswith and giverisetore-exportopportunities. Kuwait’s strategiclocationwithintheArabianPeninsula port infrastructureupgradesareexpectedtoleverage The upcomingMubarakAlKabirportandotherplanned renewed focusonindustrialdevelopment. manufactured goods,oresandmetalsaswella be drivenbythegrowthintradeofagriculturalmaterials, The domesticdemandforfreightlogisticsisexpectedto 2019f 2018 f 2017 f 2016 f 2015 f 2014 e 2013 210 189 176 199 194 182 204 throughput, 2013-201 the 9, Kingdom
planned CargoCitywhichwillcatertoaircargo. Warehousing capacityisalsoexpectedtobeaddedthrough projects suchasthe needed additionalportwarehousing capacity. upcoming MubarakAlKabirPortattheBubiyanIslandisexpectedtoprovide much ports haveremained staticresulting insignificantun-met/pentupdemand.The While freight throughput hasincreased steadily, warehousing capacitiesatKuwait’s 2.7.2: Warehousing Source: InchcapeShipping Services,DeskResearch warehousing relatedvalue-addedservices. presenting sizeableopportunitiesforwarehousingand for localandinternationalinvestorsisexpectedtoremain, Kuwait’s warehousingcapacity,considerablemarketspace While Governmentinitiativesareexpectedtoexpand O hab otWrhue: 14,500 sq. m Airport Kuwait International Warehouses: Doha port Shuaiba port Shuwaikh port Current stockofWarehousing in Kuwaitatseaportsand airport ppo r tu ni ty ove Export warehouse: warehouse: Import Warehouses: Open storage area: Covered sheds: Warehouses: Outside the portarea Open storage area: Covered sheds: Warehouses: Within the port r v i ew 100,000 sq. m 500,000 sq. m 78,000 sq. m 40,000 sq. m 15,000 sq. m 70,000 sq. m 2,300 sq. m 5,600 sq. m 8,110 sq. m • • • the demandtoanextent. and thesewarehousescanbeexpectedtohelpaddress space inKuwait.Providingconnectivitybetweentheports considerable partofthesupplyinlandwarehousing Private sectorlogisticsservicesproviderscontrola further strainonthelimitedwarehousingfacilities. The ongoingandplannedinfrastructureprojectsareplacing imports furtherdrivesthedemandforstoragefacilities. need forwarehousingservices.Thecountry’srelianceon Kuwait’s increasingimportandexportvolumesindicatethe 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 38 39 Investing in Kuwait: A guide for Investment Opportunities in Kuwait S Source: CentralStatistical Organization,CBK,Markaz likely tofurthersupportdevelopmentofthebankingandfinancialservicessector. affordability. KuwaitGovernment’s plannedinfrastructure developmentprojects are policies ofmandatorymedicalinsuranceforexpatriatesandnationalsalongwithrising interests. Thegrowing insuranceindustryisalsoexpectedtobenefitfrom thefavorable The bankingenvironment haswitnessedtighterregulationsstakeholder governing Industry bytheMinistryofCommercemarket activities.Theinsuranceindustryisgoverned and The CBKoverseesbankingandfinancingactivitiestheCMAregulates securities 2.8: Banking,FinancialServices&Insurance investment fundsand regional andinternationalbanks,81 over 5.6 Kuwait has investors. especially forfundraisingduetohighliquidityamong as anattractivedestinationforPrivateEquity(PE)firms, contribution continuoustogrow,Kuwaitislikelyemerge the stockexchange.Asprivatesector’seconomic with onlyarelativelysmallnumberofbusinesslistedon The publicsectoraccountsformorethan50%ofGDP, demand forDSAservices. preference forpersonalattentionareexpectedtocreate for sophisticatedfinancialinvestmentinstrumentsanda between thefinancialcompaniesandclients.Demand Direct salesagents(DSA)actasanintermediary management productsandservices. and aburgeoningmiddleclassaredrivingdemandforasset increased numberofHighNet-WorthIndividuals(HNWIs) Rising wealthintheKuwaiteconomy,coupledwithan management (USD4.1Bn)in2013. second behindKSAintermsoftotalassetsunder income intheMiddleEastregion(USD As of2014,Kuwaithadonethehighestpercapita
D A Pri growth of the financialservicessector inthecountry. are indicative ofincreasing wealth inKuwait,drivingthe Robust GDPgrowth andhighGDPper capitaincome ss ir E C v e et TO a c te t S Mana R ove % E a qu le of total a i s geme r ty Age v well developedbankingandfinancialservicessector,accountingfor i ew n n GDP t t s over 23local,regionalandinternationalinsurancecompanies in 2014.Thelocalfinancialservicessectorconsistsof23local, 37,821 ), andranks localinvestmentandfinancecompanies,113
advisory alongsidePE. multiple financialservicesincludingassetmanagementandinvestmentbanking players rangingfrom privatefirmstopubliclylistedcompanies,mostofwhichoffer there isrenewed interest inPrivateEquity(PE)opportunities.KuwaithasseveralPE assets suchasreal estateandlistedsecuritiesfallingoutoffavorwithmanyinvestors, and privateinvestorsare lookingforavenuestoinvestsurpluscapital.Withtraditional Kuwait’s economyiswitnessinghighliquidity, owingtoincreasing oilprices.Institutional 2.8.1: PrivateEquity development ofthePEmarket. Medium Enterprises(SME)growtharefavorabletothe involvement intheeconomyaswellfosteringSmalland Government initiativestowardspromotionofprivatesector O ppo Improving economic scenario r tu ni ty ove Growth Drivers family business High percapita r Dominance of v income i ew Increased liquidity • • • • • • wealth fundsiscreatingopportunitiesforfundraising. Increasing liquiditywiththeGovernmentandsovereign HNWIs providingimpetustogrowthofPE. Kuwait hasanaffluentpopulationandarisingnumberof opportunity forPEinvestments. substantial businessopportunitiesandcreatessignificant Kuwait’s strongeconomicenvironmentpresents confidence amonginvestors. governance standardsinKuwaitareleadingtoincreased Stricter regulatoryrequirementsandimprovingcorporate growth. experienced PEfirmswhocanguideandsupportsuch and professionalsectorexpertise,drivingdemandfor ambitions forgrowthandareseekingcapital Mid-sized family-ownedbusinessesinKuwaithave underpenetrated comparedtodevelopedeconomies. However, theKuwaitmarketremainssignificantly 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 40 41 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
Source: MarkazGCC AssetManagementreport entrants andmore sophisticatedproducts. respectively. Thisindicatesstrong potentialforgrowth supportingintroduction ofnew economies suchasChinaandIndia,whichexhibitapenetrationlevelof25%14% However, Kuwaithasarelatively lowlevelofpenetrationcompared tootheremerging average of1.9%makingitonethemore developedmarketsacross theGCCregion. Kuwait’s AssetUnderManagement(AuM)toGDP ratioof2.3%surpassestheGCC 2.8.2: AssetManagement emerging economies emerging (AUM/GDP)across of penetration Comparison management companies. sector, theinvestmentopportunitylookspromisingforasset and limitednumberofspecializedserviceprovidersinthe management (AUM).Withapositiveeconomicenvironment in theGCCwithanestimatedUSD4.1Bnofassetsunder In 2013,Kuwaitwasreportedasthesecondlargestmarket O ppo China 25% r tu ni ty ove India 14% r v i ew Kuwai 2.3% tG Kuwait -Longwaytocover Management Businessin Potential forAsset 1.9% CC • • • supporting thegrowthofAMserviceproviders. confidence inthelocalassetmanagementindustry, to enactandamendregulationssafeguardinvestor The CMAandKuwaitGovernmenthavetakensteps asset managementservicesinKuwait. High numberofHNWIsislikelytopropelthedemandfor products. deployment ofsurpluscashinvariousinvestment management servicesinthecountryasinvestorsconsider in themarketisexpectedtoincreasedemandforasset A strongeconomicoutlookleadingtoincreasingliquidity
fragmented withpresence ofmultiplechannelswhichcompetewithDSAs. the growth ofbusinessforDSA.Thefinancialservicesdistributionmarketremains with thedemandforsophisticatedfinancialinvestmentinstrumentswillsupport base investmentdecisionsbasedontheiradvice.Growing wealthinKuwait,coupled services andindividualattention.Investorsplacetrustintheirfinancialadvisors The growth ofDSA’s isdrivenbythedemandamongKuwait’s investorsforpersonalized 2.8.3: Direct SalesAgents O Higher confidence & comfort level ppo with DSA r tu ni ty ove Growth Drivers demographics r Favorable v i ew of sophisticated Development instruments financial banking andfinancial sector Kuwait hasawell developed • • • products, willprovidegrowthopportunitiesforDSAs. The launchandusageofmoresophisticatedfinancial Kuwait hasawelldevelopedbankingandfinancialsector. foster growthinthissegment. strength ofrelationshipenjoyedbyDSAscontinuesto Despite growthofalternativedistributionchannels,the in makinginvestmentdecisions. of complexfinancialproductsincreasetheneedforadvice The sophisticationoffinancialmarketsandtheintroduction with theirinvestmentneeds. more comprehensivefinancialsolutionscommensurate increasing numberofexpatriates,isexpectedtodemand Kuwait’s youngandaffluentpopulation,coupledwiththe 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 42 43 Investing in Kuwait: A guide for Investment Opportunities in Kuwait S Source: KAPP,DGCA within thecountry. redevelopment oftheairport,maritimefacilitiesanddevelopmentrailinfrastructure isseekingtoenhancethetransportinfrastructureThe KuwaitGovernment including development ofthecountry’s transportinfrastructure. Kuwait’s strong economicgrowth andasteadypopulationgrowth are drivingthe Air androad are passengertransportinKuwait. theprimarymodesofinternational 2.9: Air, maritimeandrailpassengertransport passengers isexpectedtoleadgrowthofthissector. The plannedintroductionofasingleGCCvisaforcruise Cruises andCrystaladdingKuwaitasaport-of-call. number ofcruiselinersincludingStarCruises,Silversea Growing demandfromKuwaitbasedtouristshasseena freight. rail connectivityacrosstheGCCregionforpassengersand Kuwait withtheGCCRailwayNetwork,providingseamless the KuwaitNationalRailwayNetworkseekstoconnect railway project, Another Kuwait Citytoeaseroadcongestion. The Governmentisplanningametrorailnetworkprojectin through twolargerailwayprojects. The GovernmentintendstointroducerailtransportinKuwait as atransitpointwithintheGCCregion. congestion. ThenewterminalwillhelpKuwaitpositionitself to raisethecapacity25Mnby2025andhelpease An expansionoftheairportisunderwaywhichexpected 2014 International Airporthasreached10 country. The the onlycivil/passengerairportofsevenairportsin The KuwaitInternationalAirportistheprimaryairportand Marin R A ir ai E C l p p
compared TO ass ass e p R ove e ass numberofpassengersattheKuwait e n n ge ge with r e r v n r t i ge ew
t its officialcapacityof7.2Mn. rans rans r t rans po po r r t po t . 3 Mnpassengersin r t Project value USD 10Bn USD 5Bn Aviation (DGCA) Kuwait by Directorate General of Civil Planned aviation sector projects in Project value Expected operationsby2018 National railway network-
par withglobalstandards andbenchmarks. specialized facilitiesmanagement(FM)servicestomaintainKuwait’s airportfacilitiesat Kuwait’s initiativestopositionitselfasacommerce hub.There existspotentialtoprovide The plannedupgradestoKuwait’s aviationinfrastructure are expectedtosupport 2.9.1: AirportFacilitiesManagement Source: KAPP,DGCA,Euromonitor, Frost&Sullivan,MEED contracts withairportauthorities/operatorsinKuwait. experienced FMserviceproviderstoenterintolongterm infrastructure. Therecouldbeasimilaropportunityfor long-term multi-yearcontractsformanagementofairport FM contactsacrosstheGCCaviationsectortendtobe revenues. with anestimatedmarketsizeofUSD30-40Mninannual growth inrequirementforFMservicestheaviationsector new terminalisoperational,therelikelytobeamulti-fold of 710,000sq.mforthefacilitiesmanagement.Once under developmentisexpectedtoaddanadditionalarea measures approximately190,000sq.m.Thenewterminal The currentterminalattheKuwaitInternationalAirport O ua ipr Integrated facilities management Dubai Airport Airport International Sharjah Airport (KFIA) international King Fahd Al Ain Airports Abu Dhabi and 15year contract to manage facilities at Bahrain Airport FM Contracts in theGCCAviation sector ppo r tu ni ty ove contract for Terminal 3. International Airport. facilities management services atSharjah 2009 for multi-technical and specialized (SDCA) signed 3 year FM contract in Sharjah Department of Civil Aviation operations including FM services. management of KFIA’s maintenance and 5 year contract in initiated in 2008 for International Airport. Dhabi International Airport and the Al Ain more than 260,000 sq.m areas atthe Abu Comprehensive contract tomanage management for an area of 70,000 sq. m. includes technical & infrastructural building Bahrain Airport in 2008. Scope ofwork r v i ew
• • • new specializedFMservices. environment sustainabilitywhichcouldpotentiallyrequire There isincreasedfocusandawarenessgloballyon nascent stage. providers astheFMservicesmarketinKuwaitisata There isexistentdemandforaviationfocusedFM for FMservicesinKuwait. Expansion ofairportinfrastructurewillaugmentdemand 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 44 45 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
Source: providers. (FM). RailFMisanewsegmentinKuwaitandpresents opportunitiesforspecializedFM are expectedtoexpandthemarketforrailservicedeliveryandfacilitiesmanagement The proposed railandmetro projects undertheKuwaitTransportation Masterplan 2.9.2: RailFacilityManagement O ppo sustainability Focus on KAPP r tu , MEED,dubaimetro.eu, Frost&Sullivan,Picturesouced fromtheBerlinMetroProject ni ty ove Growth Drivers Development of Reducing traffic Rail Networks r congestion v i ew GCC widerail Impetus from initiatives • • • sizeable addressablemarketforFMservices. of USD7Bn.Theenvisagedrailandmetronetworksoffera km. Themetroprojectisexpectedtoentailaninvestment 2020, increasingto69stationswithatotallengthof160 50 kmand28metrostationsinthefirstphasebyyear of aroundUSD10Bn.Themetronetworkseekstocover with 511kmdoubletracktotallengthinvestment National RailRoadSystemwillbeanintegratedrailnetwork approximately USD90Mnp.a.inrevenues.TheKuwait The RailFMmarketinKuwaithasthepotentialtogenerate environment friendlystationsandalliedinfrastructure. to requirementofpotentiallynewFMservices,build Focus onsustainabilityandresourceoptimizationwilllead in Kuwait. System isplannedtosignificantlyenhancepublictransport Metropolitan Area.TheKuwaitRapidTransit of theroadinfrastructure,especiallyinKuwait Automobile trafficinKuwaithasoutgrownthecapacity the broaderGCCRailwaysproject. benefits itoffersthecountryandaspartofintegrationwith interest totheGovernmentinviewofpotentialtrade The KuwaitNationalRailRoadprojectisofstrategic S Bn andthereafter riseby5.4%perannumtoUSD1.9Bn2024. Business travelspendinginKuwaitisexpectedtogrow by8.9%in2014toreach USD1.2 As abusinesshub,transitarrivalsintoKuwaitcompriseprimarilyoftravelers. 2.10: Tourism, HotelandEntertainment related initiatives. account ofplannedinfrastructureprojects,economicexpansionandtourism Tourist arrivalsareexpectedtoincrease491,000by2022from306,559in2013on Source: AlpenCapital HospitalityReport201 purposes. of GDPpercapitawasdirectedtowardsrecreational entertainment andculturalservicesannuallyimplying8.5% approximately USD4, During the entertainment optionsinKuwait. are expectedtodrivedemandforamusementand propensity tospendonleisureandentertainment amusement centers.Highpercapitaincomeanda Kuwait hasalimitednumberofthemeparksand and resortcategories. the roomcapacityisconcentratedinfour-star,five-star rates intheregion,estimatedatUSD Hotels inKuwaithaveamongthehighestaveragedaily and hotelapartmentsarepreferredforextendedstays. result inincreaseddemandforhotelrooms.Budgethotels The growthinbusinessactivitiesKuwaitisexpectedto hotel
No. o Kuwait (2013) in Hotels En HOTEL expected tocreate investmentopportunities inthissector. Economic growth anddemandforentertainment optionsare E te C TO f r hotel a t S p th R ove ain Fou ar year 2013,theaveragehouseholdspendwas two o F r r i n tme ve St ee e me r e s s
o r s s s s n n r t t t t v ar ar ar ar ar t t i t ew s s 000 perannumonleisure, 13 10 10 12 2 3 43 4, MinistryofPlanning 246 in2013.Mostof No. o 1,057 82 1,854 1,381 62 2,120 2,017 f
r oom s Estimated USD 4.2Bn sector Spending on leisure and tourism 7-8% Expected y-o-ygrowth over 2011–2015 Revenue of branded theme parks 2 -Keysectorsfor opportunities value by 2015 195
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 46 47 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
Source: CentralStatistical BureauAnnualStatisticalAbstract 2013,EIU,AlShall,KUNA 2.4 Mnin2013. entity.Kuwait Government Thefootfallsforrecreational andculturalattractionsreached square meters.Thiswasestablishedin1984bytheTouristic EnterprisesCompany, a Entertainment CityisthelargestthemeparkinKuwaitandcoversanarea ofonemillion water parks,aswellotherconceptslikeazoologicalparkandculturalattractions.The Kuwait hasanumberofrelatively smallrecreational concepts,includingamusementand 2.10.1: BrandedThemePark Footfalls in recreational places in Kuwait in places recreational in Footfalls O Aquarium Zoo Branded Theme Amusement Indoor Water Theme Park
in Mn ppo 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Entertainment r tu 2009 Park 2.60 ni ty ove Park 2010 .0 2.80 2.80 r Recreational places in Kuwait Cartoon 99 Village Sha’ab Leisure Hawally Entertainment Play Marah Lagoons Kuwait Kid Land Infunity Future Messila Aqua The Scientific Center Kuwait v i ew Land Park Kid Land Magic Zoo Zone Network World Beach Park 0121 2013 2012 2011 City Park 2.45 Trampo Kidzania Magic Planet 2.42 annual growthof approximately USD Kuwait's spendingontravelandtourismisestimatedat • • • conditions. family-oriented themeparkconducivetoKuwait’sclimatic is significantpotentialforintroducingalarge,branded In viewofthelimitedoptionsavailableinKuwait,there sizable marketforbrandedthemeparks. with morethan and children.Kuwaithasayounggrowingpopulation, Amusement parkstendtoattractfamilies,youngadults options inthecountry. are expectedtoincreasedemandforentertainment with arisingnumberoftouristsfromotherGCCcountries Increased tourisminvestmentsinthesectoralong the brandedthemeparks. disposable incomealsopositivelyimpactthedemandfor Lifestyle preferences,andtherelativelyhighlevelof 6.2 58% belowtheageof35,presentinga 6.4 Bnin2013,withanexpected % until 2025.
overall hotelcapacity. more budgethotels.Budgethotelscurrently constitutelessthanone-fourthofKuwait’s along withthedevelopmentofnewcommercial hubsinKuwaitwillaugmentneedfor demand forhotels.Anincreasing globaltrend towards cost-consciousbusinesstravel to stimulatebusinesstravelinKuwaitovertheforeseeable future, creating additional The plannedinfrastructure projects andeconomicdevelopmentplansare expected 2.10.2: BudgetHotels Source: WTTS2012 ReportandRespectiveHotelsWebsites indicating considerablepotentialfornewbudgethotels. higher averagehoteloccupancyratesandrevenueperroom, etc.) andrisinginflowofbusinesstravelerscouldyielda City, MubarakAlKabirportdevelopment,airportexpansion, The plannedinfrastructureprojectsinKuwait(e.g:Cargo only afewbudgethotelbrandsoperateinKuwait. is expectedtohavereachedUSD1.2Bnin2014.Currently, international players.SpendingonbusinesstripsinKuwait which makesitanattractiveentryopportunityforlocaland country and100%foreignownershipisallowedinthesector Mn by2016.Thelowpresenceofbudgethotelsinthe Kuwait’s hospitalitymarketisprojectedtoreachUSD500 O uatHtl opn SafirInternational Hotel Kuwait Hotels Company Corporation Limited Rotana Hotel Management Estate Company Al Argan International Real Salhia Real Estate Accor Hotels Key Players ppo r tu ni ty ove r v i ew Hotel Brands Rimal Hotel & Resort Bida’a Movenpick Hotel& Resort Al Al Manshar Rotana Courtyard Marriott Hotel IBIS Hotel Kuwait –Salmiya IBIS Hotel Kuwait –Sharq • • • • hotels. rates inKuwait,willfurtheraugmenttheneedforbudget Growth inbusinesstravelandprevailinghighaverageroom business hub,providinganopportunityforbudgethotels. sectors aremajordriversfordevelopingKuwaitasa Government incentivestopromotenon-oilindustrial oil industrystimulatedemandforbusinesstravel. Economic growthinthecountry,supportedbyagrowing the demandforbudgethotelsinKuwait. curtailment oftravelexpenditureisexpectedtostimulate Shift ofcorporatemind-setfromluxuryhotelstothe 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 48 49 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
Source: BusinessMonitor International,Ipsos,EIU,Cisco, KPMGanalysis electronic organizationsandthegeneralpublic. servicesbyGovernment projectshas initiatedmanye-governance whichare expectedtodrivetheuseof technologies andassociatedsoftware. Ontheinstitutionalfront, theKuwaitGovernment The country’s youngandaffluent populationalsosupportsdemandfor emerging quick technologyadoptionandsupportingdevelopmentofsoftware andITbusinesses. region, penetration(62%)andmobile(138%)reflecting suchasinternet Kuwait rankshighonkeyITandmobileinfrastructure related benchmarksintheMENA 2.11: ITandSoftware Development in The Software and service sector sales Software andservice limited extent,bysomeregionalplayers. been traditionallyservedbyinternationalplayersand,toa wider GCCregionisrelativelynewasthesesectorshave The opportunitytoofferwebbasedservicesinKuwaitand especially thosewhicharewebenabled. further developmentofdigitalapplicationsandsolutions month by2016.Thisoveralldevelopmentwillinducethe driven byprivateconsumers,reaching45.4petabytesper historical growthtrendovertheforeseeablefutureprimarily Kuwait’s internettrafficingeneralisexpectedtocontinueits expectations onservicequality. businesses strivetomeetcustomerdemandsand Web andappdevelopmentisgainingimportanceas
O W and appdevelopment. expected todrive theneedforITservices suchasweb Favorable demographics anddigitization of contentare
USD Mn ppo 2013 andisexpectedtogrowannuallyat8%overtheperiod201. e b 100 200 300 400 500 market sizeforsoftwareandITrelatedservicesamountedtoaroundUSD528Mn
0 and r tu 188 0321e21f21f21f2018f 2017f 2016f 2015f 2014e 2013 AppDevelopme ni 340 ty ove 204 364 otaeServices Software r v i 222 ew 390 n t 238 416 260 450 281 481
players withlocalandregional presence. web-enabled ITservicesandsolutions.Thisprovides opportunitiesforinternational levelarewith ITtransformationinitiativesattheGovernment augmentingdemandfor businesses inKuwait.Demandfrom consumerfocusedsectorslikeretail, bankingalong Web andappdevelopmentisbecomingincreasingly importantforcustomer-centric 2.11.1: Web andAppDevelopment Source: BusinessMonitor International,InternationalData Cooperation localized andArabiccontent. other marketsintheregion.Therealsoexistspotentialfor with mostrequirementsbeingcurrentlyservicedoutof annum. ThemarketinKuwaitisstillatanascentstage 2013, withaprojectedgrowthratebetween and appdevelopment)wasestimatedatUSD340Mnin The marketsizeoftheITservicessegment(includingweb O ppo High internet penetration r tu ni ty ove Growth Drivers r population Young and v educated i ew 7 spending onIT % per Government • • • smart phones. phones, withmorethan64%ofKuwaitinationalsusing of thepopulationhasaccesstointernetovermobile for mobileappsandinternetbasedservices.Around41% using internetmorethanonceaday,resultingindemand within theMENAregionwith62%ofadultpopulation Kuwait hasoneofthehighestinternetpenetrationrates expansion ofwebandappdevelopment. Kuwait’s e-governmentinitiativesareexpectedtodrivethe applications, onlinevideos,etc.). digital tools(includingsocialnetworkingplatforms,mobile drive consumptionofcontentandengagementviamultiple Kuwait’s youngandeducatedpopulationisexpectedto 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 50 51 Investing in Kuwait: A guide for Investment Opportunities in Kuwait S Source: PACI,BMI. opportunity inthespaceofmediaandmarketingespeciallydigitalsegment. of broadband, mobilephoneandtelevisionalsoindicatethemagnitudeofpotential considering majorityofitspopulationisyoungandaffluent. Kuwait’s high penetration Kuwait hasdemonstratedahighaffinity forentertainmentandmediaespecially entertainment andmedia. backgrounds, whichgeneratesdemandfordiversifiedadvertising,marketing, Kuwait hasadiversepopulation,reflecting awiderangeofcultures andethnic 2.12: Culture, MediaandMarketing providers. provide growthopportunitiesforonlineretailersandservice coupled withrisingincomelevelsinKuwaitareexpectedto enabled devices(smartphones,tablets,smarttelevisions) across awideraudience.Thegrowingpenetrationofweb presence throughonlineformats,thusprovidingreach Kuwait isleadingtomanyconsumerbusinessesconsidering The prevalenceofinternetandbroadbandpenetrationin providers offeringlocalizedArabiccontent. market fordigitalcontentinKuwaitespeciallyservice phones, tabletsandsmarttelevisions,islikelytodrivethe audio-video). Increasingadoptionofdigitaldeviceslikesmart development (text,animation,graphics,images,designand tools suchasgames,e-books,appsandwidgets,web/blog Digital ContentCreation(DCC)includescreationofdigital a keydriverofdigitaladvertisinginKuwait. High penetrationofbroadbandandmobilebasedinternetare computers, tablets,smartphonesandgamingconsoles. platforms connectedviainternettodevicessuchas Digital mediamarketingisalignedwithnewage Appl D D i i culture, media andmarketingsectors. and culturaldiversity offer opportunities inthe A wealthypopulation withhighlivingstandards g E g C i i t t TO a a ica l l Co R ove M t e i o dia n n te r Sto
v Mar n i ew t C r e ket r s e & a in t On i g o n l in
e P o r t a l Population by ethnic groups (June by ethnic 2015) Arab 28% Kuwaiti Others 31% 2% Asian 39%
Economies specialized international playersinKuwait. specialized international catering toin-housedigitalmarketingrequirements indicatingroom forpresence of firmswhoaredominated byinternational primarilyoperatingthrough localtie-upsand The sectorcomprisesofglobal,regional andlocalboutiqueplayersbutislargely 5% ofthetotaladvertisingspend. population isfuelingthegrowth indigitaladvertising,whichcurrently accountsforonly traffic onsocialnetworkingsitesandincreased timespentonlinebytheresident multiple servicessuchasmarketing,advertising,analytics,technologyetc.Growing marketing industryishoweveratanascentstageinKuwait,withplayersoffering Kuwait hasthefourthhighestadvertisingexpenditure intheMENAregion. Thedigital 2.12.1: DigitalMediaMarketing Source: Arabmedia outlook digital marketingofferingsacrossneighboringmarkets. Middle Easterncountriesprovidepotentialforreplicating Additionally, linguisticandculturalsimilaritieswithinthe in theKuwaitmarket. significant opportunitiesforcompaniesinthissectortogrow (nearly USD61Mn)by2015.Thisisexpectedtoprovide advertising risingfrom5%in2011toapproximately13% around USD470Mnby2015,withshareofdigital The advertisingmarketinKuwaitisexpectedtoreach (2011) expenditure advertising total as %of expenditure advertising Digital Developed Developed O ppo region GCC r tu ni ty ove Netherlands South Korea emrk Denmar Australia arin Bahrai Kuwait China Qatar (2015). UA KSA UK US E r v i ew 5% 5% 6% 7% 8% 17% 18% 21% 21% 23% 27% 32% • • • marketing space. adoption, whichsupportsopportunitiesinthedigital (138%) andTV(99%),henceisquickintechnology The countryhashighpenetrationofinternet(62%),mobile formats includingsocialmedia. rates ofinformationconsumptionacrossmultiplemedia literacy ratesandpercapitaincome,translateintohigh Kuwait’s favorabledemographics,coupledwithhigh propelling thegrowthofdigitalmediamarketing. easier foradvertiserstotargetnicheaudiencesthereby Cost effectivenessofthedigitalmediumalsomakesit Digital 2 -Keysectorsfor opportunities 20 40 60 80 0 advertising expenditure advertising 01e21 03f21 2015f 2014f 2013f 2012f 2011 e 5% 20 Proportion ofDigitalAdvertising(%) Digital Advertising(US$mn) 8% 31 expenditure as %oftotal expenditure 10% 41 12% 51 in 13% 61 Kuwait 0% 5% 10% 15%
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 52 53 Investing in Kuwait: A guide for Investment Opportunities in Kuwait
Source: IFPIDigital MusicReport2012,DFCIntelligence, MahmoudKhasawneh-GameDevelopers Conference localized Arabiccontent. the marketfordigitalcontentinKuwaitespeciallyserviceproviders whocanoffer adoption ofdigitaldeviceslikesmartphones,tabletsandTVsislikelytodrive development (text,animation,graphics,images,designandaudio-video).Increasing content marketespeciallyinareas likegames,e-books,appsandwidgets,webblog Kuwait is,however, stillintheearlystagesofdevelopmentwithregards todigital Bn by2016,recording anannualgrowth ofaround 5%perannum. USD 49Bnin2012termsofrevenues. Thisindustryispoisedtogrow tooverUSD62 The sizeoftheglobalconsumerdigitalcontentindustrywasestimatedatapproximately 2.12.2: DigitalContentCreation variously estimatedintheregionatUSD1Bn. is reportedtohavethefastestgrowthwithasizethat For instance,thegamingmarketinMiddleEastregion e-publishing, localcomicseriesandgamingapplications. opportunity inareaslikemobileapplications,Arabic established internationalplayerstoexplorethisuntapped nascent marketwithfewnicheplayersindicatingroomfor In Kuwait,thedigitalcontentcreationmarketremainsa O High potentialof from advertisers digital platform ppo Sponsorship Sponsorship r tu ni ty ove Growth Drivers entertainment and media content localization of r population Young and educated Need for v i ew capita income High ratesof penetration and mobile broadband High per
• • • • drives demandforentertainmentandmediacontent. A young,well-educatedandrelativelyaffluentpopulation of digitalcontent. designed forthesedigitaldevicescanleadtomonetization Encouragement fromadvertiserstosponsorcontent social networkingandonlinegaming. provides largepotentialopportunitiesinsegmentssuchas The increasingadoptionofsmartphonesandtablets in digitalcontentcreation. television, filmandmusicislikelytopropeldemandtrends localization ofcontentandregionaltrendsPan-Arab With Kuwait’shighpenetrationofTV,mobileandinternet, localized Arabiccontent. expected tohavehighdemandalongwithpreferencefor and subscriptionbasedwebsites(e.g.:Zawya,MEED)are Category specificonlineportals(e.g.:electronics,fashion)
portals alongwithincreasing acceptanceofonlinepaymentsystems. coupled withrisingincomelevelsinKuwaitwillfurtheraugmentthemarketforonline region. Growing penetrationofwebenableddevices(smartphones,tablets,smartTV’s) examples ofonlineportalssomewhichare expandingacross theGCCandwider market forapplicationstores andonlineportals.Kuwaithaswitnessedmanypopular penetrationandtechnologyadoptionareHigh levelsofinternet likelytostimulatethe 2.12.3: ApplicationStores andOnlinePortals O ppo mobile penetration High literacylevels Young population r broadband and High ratesof tu Growth Drivers ni ty ove r v i ew initiatives inthis initiatives capita income Government Supporti measures Successful High per space ve
• • region. e-commerce andonlineplatformsinKuwaittheGCC country isleadingtosuccessfuladoptionofthemedium The broadreachofsocialmedia,internetandmobileinthe infrastructure, educationandGovernmentservices. to promoteITacrossnumeroussectors,suchas Kuwait Governmentisimplementingvariousmeasures 2 -Keysectorsfor opportunities
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 54 55 Investing in Kuwait: A guide for Investment Opportunities in Kuwait LOCAL FOREI S 3 er v icin G in N AND g v estors Commerce &Industry. The KDIPAisapublicauthorityheadedbytheDirectorGeneralreportingtoBoardofDirectorschairedMinister own upto100%ofequityinterestinaninvestmententity. The DirectInvestmentLawenablesforeigninvestorstopursuebusinessopportunitiesinKuwaitwithoutalocalsponsorand direct investmentinthecountrybyoffering arangeofincentives (Direct InvestmentLaw),withaviewtoattract,promote andencourage Regarding thePromotion ofDirect InvestmentintheStateofKuwait The KDIPA wasestablishedtoimplementLawNo.116of2013, theLaw Facilitating direct investmentsinKuwait The Kuwait Direct Investment Promotion Authority Bu “ Offs sin A Compet B D Cou ssis O G Dep Dep e Dep I Pr P n D Se Dep et” Dep ss l ve n annin t omot ar ar Developme an te ar s ar i cr tme t tme tme r t D i tme ve tme t ar i g & g & rad et o G n n n n n tme
t f e aria t t n
n o ss e e t t r n
n t t t Bo Investmet Opera D (I n ard ir ve A Ec On ssis e s L Dep Dep Dep Dep Follow up & Follow up& to M o eg c o e Stop Shop e StopShop n o to rs 3 -ServicingForeign t a om ni f ar ar ar ar an Se l A D r to tme tme tme tme ic r
t D ffairs G ir v rin Zo ic e e G e Ce n n n n n c
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e) l A Trainin d and Local m F Developme f A inancia A I inis T o A T ( d Dep Dep d Dep c e ssis r m m o c F A t g Dep inis inis h ns ra ar ar inancia ffairs ar nica t an t l A tme tme ult t t i tme ve A ra ra ar Investors t D t ffairs l an n t n n t tme i n l & l & Uni t & t & i G t t ve ffairs ve ve t t
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Investing in Kuwait: A guide for Investment Opportunities in Kuwait 56 57 Investing in Kuwait: A guide for Investment Opportunities in Kuwait The Kuwait Direct Investment Promotion Authority having thesolepurposeofpreparingmarketstudiesorproductionpossibilities. Companies Lawwithupto100%foreignequity;asalicensedbranchofcompany;orrepresentativeoffice Ability topursuebusinessopportunitiesinoneofthreedistinctforms:asaKuwaiticompanyaccordancewiththe or remittanceof theircapitalandprofits. Investors arealsoguaranteed protectionfromseizureorexpropriationwithoutcompensation andguaranteedfreetransfer Allocation oflandtocarryouttheproposedprojects. Exemptions fromcustomsduties. Avoidance ofdoubletaxationandbenefitsunderbilateraltreaties fortheprotectionandencouragementofinvestment. projects. Tax incentivesforuptotenyearswithrespect to non-Kuwaitishareholders’shareoftheprofitsfrom qualifying Responding toinvestorsinquiriesandprovidingrequestedinformation. Identifying andpromotinginvestmentopportunitiesinKuwait,coordinationwithotherstakeholders. sector, exceptthosespecifiedinthenegativelist. Granting attractiveincentivestoinvestorspursueprojectsthatarealignedKuwait’sinterests.Projectscanbein any application supportedwithrequesteddata,documentationandconditions. Providing adecisiononthemeritofapplicationswithinmaximumduration30dayssubmissioncompleted with relevantgovernmentalministriesandauthoritiestoattendneedsofforeigninvestors. network withvariousGovernmententities.KDIPA’sInvestorServiceCenterfunctionsasaOne-StopShopincoordination Streamlining thelicenseissuanceprocessandfacilitatingmarketentryofinvestorsbyestablishinganeffective T a Un I i On nve n he KDI v ve ail d e-Stop Shop Taxincentivesmayalsobe er theD s s
t o tme m f the P ent A a n ct ma i t rect Inve ollo s inc
tter as
a e f w
n o si s i ng
t ng r su i s
ve a t ch i l ncent m ll e p availedforasimilarperiod s ent L as
and in oi nt ve i ve a gu w, Inve o s s to f c
a aran n rs o d nt g s t a ua o tee ct f r r s a c s forfurtherinvestmentinanalready approvedproject. o ntee a r n all s
di rect Other considerations for international investors • incentives: Foreign companiescanalsobenefitfromthefollowingtax Other taxincentives and theirshareholders. and grantsafive-yeartaxholidaytonon-Kuwaitifounders allows theformationofinvestmentandleasingcompanies Leasing andInvestmentCompaniesLawNo.12of1998 3 -ServicingForeign investment projects. three economiczonesthatwillaccommodatenew KDIPA isintheprocessoffinalizingastudyfordeveloping concerned governmentauthorities. or suggestionsthatitcanhelpfollowthoughwiththe Investors canalsoinformtheISCregardinganycomplaints Investment intheStateofKuwait. Law No.116of2013RegardingthePromotionDirect issue theinvestmentlicensesorgrantingincentivesunder manner, andtoensurefollowingtheproceduresrequired equipped torespondinquiriesinatimelyandefficient KDIPA hasateamofqualifiedstaffmembers,whoare encountered. assists theminovercominganyobstaclesthatmightbe investors inestablishingtheirbusinessKuwait,and KDIPA’s InvestorsServiceCentre(ISC)seekstosupport processes andaddresssuchchallenges. KDIPA canhelpinvestorsinnavigatingthroughtheofficial • • • • • Investors shouldseektoobtaininformationregarding: processes willhelpanticipateandaddresssuchdelays. A thoroughunderstandingofapplicableproceduresand industrial land. face additionalconstraintsintermsoflimitedavailability can takeaprolongedperiod.Landintensiveprojectsmay In certaincases,obtainingtherequisitelicensingapprovals Points forconsideration Typical timerequiredtoobtainallclearances. Process andproceduresinvolvedintheapprovalprocess. authorities involved. Information abouttherelevantGovernmentandregulatory and permits. Understanding theprocessofobtainingbusinesslicenses Prerequisites, ifany,includingdocumentationrequired. and Local Investors
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 58 59 Investing in Kuwait: A guide for Investment Opportunities in Kuwait business formsare setoutbelow. options forestablishmentofbusinessesinKuwait.Theprominent The CompaniesLawandtheCommercial AgenciesLawprovide flexible Business forms in Kuwait Source: Ministryof Commerce&Industry,KPMGAnalysis Description capital. interest in the membership extent of their only to the shall be liable Each partner fifty partners. a maximum association of A WLLis an company Limited liability (KSCC Closed) company Closed jointstock therein. contained conditions terms and with the rules, in accordance 116 of 2013 and under Law No. be established investors could for foreign ownership up to 100% companies with joint stock while a closed general rule This is asa authorities. the concerned approval of attaining company after KSCC Closed capital of a of the share own up to 49% foreigners may However, company. of ajoint stock shareholders citizens may be only Kuwaiti As arule, a non-Kuwaiti. established by firm can be A KSCCClosed company (KSCP) Public jointstock the law. prescribed by in the manner of equal value tradable shares is divided into whose capital a company A KSCPis Partnership the capital. contribution to of their to the amount the company obligations of liable for the shall only be and who contributions with cash of the company in the capital shall participate partners: who Limited the company. obligations of assets for all their personal liable with all shall be jointly partners who General namely: of partners categories There are 2 Joint venture(JV) parties. respect of third operate in and shall not the partners between the relationship be restricted to company shall partners. The two ormore between agreed is a company A JVcompany agency Commercial permission. without his be disclosed name may not principal’s name. The in his/its own into contracts agent enters agency: The Commission the profit. percentage of in return for a defined territory product in a the principal’s distributor of is the Local agent agency: fee. Distributor in return for a the principal in the name of transactions to enter into territory and basis in the a continuous business on the principal’s to promote undertakes by contract, local agent, agency: The Contract agencies: 3 types of There are Branch therein. contained conditions terms and with the rules, in accordance 116 of 2013 and the Law No. in Kuwait under open branches companies may foreign exception, while ,as an general rule, This is asa carried out. the operation is whose name agent under by a Kuwaiti be sponsored branch must a branch. The do so through activities can commercial business and to conduct in Kuwait open an office wishing to company A foreign owner andtheliabilityofsuchislimitedtoextent ofthecapital. The CompaniesLawalsointroducedtheconceptofaSingle PersonCompanywhereinthecapitalisfullyheldbyasingle of members Minimum no. participation company Foreign Incorporation company Limited liability 2 116 of 2013. under Law No. be exceeded This quota may stake. Up to49% Register. Commercial with the Registration of Association. a Memorandum application for Through (KSCC Closed) company Closed jointstock 116 of 2013. under Law No. be exceeded This quota may stake. Up to49% five years. within the next remainder and the incorporation shares upon value of their the nominal 20 percent of minimum of have to paya Founders incorporation. authorizing require a decree Does not - company (KSCP) Public jointstock 5 own shares. Permitted to incorporation. to be paid upon of the capital of 20 percent and a minimum subscription, the public paid for before which must be of capital, least 10 percent subscribe for at required to Founders are required. incorporation authorizing Decree is Partnership stake. Up to49% 2 Established Registrar. Commercial with the of Association and Articles Memorandum registering a preparing and by Joint venture(JV) member. the Kuwaiti license of through trade Allowed, 2 procedures. establishment no formal Requires agency Commercial - - agents. commercial can act as nationals only Kuwaiti Register; Commercial with the registration Requires Branch 116 of 2013. under Law No. Exceptions Kuwaiti agent. Through a - -
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 60 61 Investing in Kuwait: A guide for Investment Opportunities in Kuwait 4 APPENDICES in theStateofKuwait Regarding thePromotion ofDirect Investment • • • • • • • • Having reviewedtheConstitution; APPENDIX 1: • • • • • • • • Commercial Agencies; and LawNo.(36)of1964regardingtheRegulation amended; and TemporaryPossessioninthePublicInterestas and LawNo.(33)of1964regardingExpropriation Audit Bureauasamended; and LawNo.(30)of1964ontheEstablishment 2001; Diagrams andDesignsasamendedbyLawNo.(4)of and LawNo.(4)of1962regardingPatents,Industrial by LawNo.(17)of1960asamended; and TrialsLawpromulgated Procedures and theCriminal 1960 asamended; byLawNo.(16)of Lawpromulgated and theCriminal Tax asamended; (3)of1955regardingKuwaitiIncome and DecreeNo. Law No.(61)of1982; Adjudicating AdministrativeDisputes asamendedby of aDivisionintheCourtFirst Instancefor No.(20)of 1981 ontheEstablishment and DecreeLaw in theAuditingProfessionasamended; No.(5)of1981regardingthePracticing and DecreeLaw Properties oftheStateasamended; No.(105)of1980regardingthe and DecreeLaw No. (68)of1980asamended; byDecreeLaw Lawpromulgated and theCommercial Service Systemissuedon4April1979asamended; Service asamendedandtheDecreeregardingCivil No.(15)of1979regardingtheCivil and DecreeLaw and FinalAccountsasamended; for PreparingPublicBudgets,MonitoringtheirExecution No.(31)of1978regardingtheRules and DecreeLaw Commercial Storesasamended; and LawNo.(32)of1969regardingtheLicensing Business asamended; Central BankofKuwaitandtheOrganizationBanking and LawNo.(32)of1968concerningCurrency,the amended; and LawNo.(37)of1964regardingPublicTendersas Law No. 116 • • • • • • • • • • • • • • • Kuwait; Direct InvestmentofForeignCapitalintheState and LawNo.(8)of2001regardingtheRegulation Governmental Entitiesasamended; Promotion ofNationalLabourtoWorkintheNon- and LawNo.(19)of2000regardingtheSupport the IndustrialLaw; and LawNo.(56)of1996regardingthepromulgation Establishing theWorldTradeOrganization; and LawNo.(81)of1995onApprovingtheAgreement and LawNo.(26)of1995regardingFreeTradeZones; which wehaveratifiedandissued : Assemblyhas approved thefollowinglaw The National Medium Enterprises; for theEnhancementandDevelopmentofSmall and LawNo.(98)of2013regardingtheNationalFund Companies LawasamendedbyNo.(97)of2013; No.(25)of2012regardingthe and DecreeLaw Privatization ProgramsandOperations; and LawNo.(37)of2010regardingtheRegulation Developmental PlanfortheYears2011-2012/2013-2014; and LawNo.(9)of2010ontheIssuanceState of theState; Decree LawNo.(105)of1980regardingtheProperties Systems andtheAmendmentofsomeProvisions Operations ofBuild,OperateandTransferSimilar and LawNo.(7)of2008ontheRegulation Competition asamendedbyLawNo.(2)of2012; and LawNo.(10)of2007regardingtheProtection Companies intheState’sBudget; Contribution ofPublicandClosedShareholding and LawNo.(46)of2006regardingZakatthe Council Countries; Unified CustomsCodefortheArabGulfCooperation and LawNo.(10)of2003onthepromulgation Countries; Economic AgreementbetweenGulfCooperationCouncil and LawNo.(5)of2003ontheApprovalUnified of 2013 Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 62 63 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Direct Investment: Capital: Investment Entity: License: Investor: Regulations: Director General: Chairman oftheBoard: Board: Authority: Relevant Minister: corresponding toeachofthem: The followingtermsandphrasesshallbearthemeanings Article 1:Definitions Application:
accordance with this Law. accordance with thisLaw. the StateofKuwaitlicensedin through anInvestmentEntity in employs hiscapitaldirectly participation ofanotherinvestor, Investor, individuallyorwiththe An investmentwherethe Law. licensed inaccordancewiththis through anInvestmentEntity purposes ofDirectInvestment is employedorusedforthe increase ofthecapitalorifit invested capitalifusedforthe Profitsandproceeds ofthe 5. designs. industrial andtechnological registered tradenamesand patents, trademarks,licenses, Intangiblerightssuchas 4. Investment Entity. production oroperationsbythe the commencementofactual intermediate goodsrequiredfor Rawmaterialsand 3. technological devices. transportation meansandother Machinery,tools,equipment, 2. local orforeign commercial securities,bethey Funds,financialand 1. to thislaw,including: Investment Entitythatissubject Direct Investmentthroughan directly forpurposesof What isemployedorused State ofKuwait. activity legalexistenceinthe which grantssuchenterpriseor virtue ofaninvestmentlicense accordance withthisLawby activity thatislicensedin Is aneconomicenterpriseor accordance withthisLaw. Investment licenseissuedin nationality. Natural orlegalpersonofany Law. Executive Regulationstothis Director GeneraloftheAuthority. Relevant Minister. Authority. Board ofdirectorsthe Direct InvestmentPromotion Industry. Minister ofCommerceand The application submittedbythe Authority.
this regard. accordance withthebestinternationalstandardsadoptedin professional skillsbyimplementingthelatesttechnologyin the nationalworkforce,andincreasingitsproductivity of Kuwait,thecreationemploymentopportunitiesfor diversification ofnationalrevenuesourcesintheState plans, thedevelopmentofproductionsectors, policy ofthestate,approvedeconomicdevelopment The Authorityshallperformitsactivitiesinlightofthepublic which shallincludethefollowing: both foreignandlocalDirectInvestmentinthecountry, The Authorityaimstoattractandpromoteencourage Article 3:AimsoftheAuthority the countryandabroad. Kuwait, anditshallhavetherighttoestablishofficeswithin The headquartersoftheAuthorityshallbeinState be attachedtotheRelevantMinister. under thename“DirectInvestmentPromotionAuthority”to A publicauthoritywithlegalpersonalityshallbeestablished Article 2:EstablishmentoftheAuthority objectives, andthefollowinginparticular: The Authorityshallperformalltasksnecessarytoachieve its Article 4:Tasks oftheAuthority .Encouraginginvestorstotransfer,settleanduse 3. Raisingawarenessregardingtheimportance 2. Developingandimprovingtheinvestment 1. 3. 2. 1. modern andsophisticatedtechnologies,meansof means ofmarketing,orientationandpromotion. available DirectInvestmentopportunitiesbyall of theKuwaitiinvestmentenvironmentand especially foreigninvestment,andthepromotion importance ofDirectInvestment, country. and supporttoencourageDirectInvestmentinthe well astheprovisionofvariousmeansassistance removal ofhurdlesencounteredbyinvestorsas environment, thefacilitatingofproceduresand investors thatfostertheobjectivesofdevelopment. coordination with theconcernedauthorities. locations within thegeneralstructuralplanin and suggest their zones To establisheconomic Regulations. in accordancewiththislawand itsExecutive to takethenecessaryactions regardingthem applicationsand To receiveandassessinvestors’ statistics toinvestors. providing availableinformation,clarificationsand necessary studies,researchandstatistics granted toinvestors,inadditionpreparingany present theincentives,exemptionsandguarantees in thecountry,promotesuchopportunitiesand opportunities DirectInvestment To screenpossible encourage and technicalmarketingexpertiseto production and operations, management methods, operations,management production and partnerships between Kuwaitiandforeign partnerships rules relevanttoeachcase. accordance withprinciplesand merge InvestmentEntities,in the Licenseorincentivesto Investor toobtain,asapplicable,
Relevant Ministerandamembershipof: The Authorityshallhaveaboardofdirectorschairedbythe Article 5:Board ofDirectors oftheAuthority courts. the Authorityinitsrelationsto thirdpartiesandbeforethe shall signonbehalfoftheAuthority andshallrepresent The ChairmanoftheBoardor hisauthorizedsignatory determined byaresolutionof theCouncilofMinisters. renewal. TheBoardmembers’ remunerationshallbe The termoftheBoardshallbe fouryears,subjectto 9. 8. 7. 6. 5. 4. 2. 3. 1. Direct Investmentinthecountry. that relatetoitsobjectivesorwouldencourage the CouncilofMinistersorRelevantMinister thetasksandmandatesassignedby To implement authorities. such hurdlesincoordinationwiththecompetent they mayencounterandattempttoovercome Investments inthecountryandidentifyanyhurdles ofDirect To overseeandmonitortheperformance encourage investmentsneededbythecountry. in coordinationwithconcernedparties,orderto andcreditfacilities, To securepotentialfinancing work andactivities. prepare, printandpublishonalltopicsrelevanttoits to participateininternalandexternalevents, training programsinlinewithitsobjectives,and and workshopsaswellprovideservices exhibitions, To organizeconferences,seminars, of Kuwait. encouragement ofDirectInvestmentsintheState standards andreports,soastoensurethe the investmentfieldonbasisofinternational competitive positionandperformanceindicatorsin enhance itscompetitiveadvantageandmonitorthe investment environmentintheStateofKuwaitand and servicesrequiredtoimprovestreamlinethe authorities tosimplifyandfacilitatetheprocedures andcompetent withallrelevant To coordinate by theBoardinthisregard. accordance withtheprinciplesandrulesestablished the approvalofCouncilMinisters,andin that meettheobjectivesofAuthority,following management ofbusinessincubatorsforprojects companies specializedintheestablishmentor capitalof contributetothe To establishor the ChairmanofBoardinhisabsence. amongst themwhoshallbegrantedthepowersof resolution shalldesignateavice-chairmanfrom upon theproposalofRelevantMinister.The of Ministers, of theCouncil by aresolution appointed matters assignedtotheAuthoritywhoshallbe of theBoardwithnorighttovote. attendthemeetings The DirectorGeneralwhoshall equivalent. is atleastthatofanassistantundersecretaryor the RelevantMinisterprovidedthattheirseniority of theCouncilMinisters,uponproposal Authority whoshallbenominatedbyaresolution government agenciesrelatedtotheactivitiesof representing members Three members experienced Three theministriesand specializing inthe all itseffectsandshallbeconsiderednonexistent. this provision,therelevantresolutionshallbevoidincluding making regardinganyproject.Intheeventofaviolation from participatingindiscussionsabout,orthedecision and shallbeboundtodisclosetheirinterestsabstain interest inanyprojectorservicesprovidedbytheAuthority degree areprohibitedfromhavinganydirectorindirect including theirrespectivespousesorrelativesofthefirst Members oftheBoard,employeesAuthority Article 7:ConflictofInterest committees. resolutions andtheorganizationofworkitssub- of itsmeetings,thetermsimplementation its affairs,definingtherules,procedures,andscheduling The Boardshallissuethenecessaryresolutionsregulating side favoredbytheChairmanshallprevail. of thevotesitsmembers.Whereareequal, The resolutionsoftheBoardshallbepassedbymajority matter withouthavingtherighttovote. individual toparticipateinthediscussionofanyparticular issued resolutions.TheBoardmayinvitetoitsmeetingany of theBoardandrecorditsminutesfollowupon secretary shallundertakethepreparationofmeetings of theBoardandselectedfromAuthority’sstaff.The The BoardshallhaveasecretaryappointedbytheChairman Chairman oftheBoardorvice-chairman. if attendedbythemajorityofitsmembersincluding the Boardorvice-chairmanandsuchmeetingshallbevalid The BoardshallconveneattheinvitationofChairman Article 6:MeetingsoftheBoard same, includingthefollowinginparticular: general policyandsupervisetheimplementationof the objectivesofAuthorityandshallformulateits The Boardshallhaveallthepowersnecessarytoachieve Article 8:PowersoftheBoard 1. 9. 8. 7. 6. 5. 4. 3. 2. To issue the resolution regarding the To issuetheresolution regarding and exemptionsinaccordance withthislaw. fromtaxincentives To setthecriteriaforbenefitting within thecountryandabroad. oftheAuthority To approvetheopeningofoffices penalties assetforthinthisLaw. and disciplinary administrative To imposethe this Law. asset forth in mergerapplications To resolveupon to therelevantauthorities. Authority anditsfinalaccountpriortoreferringthem budgetofthe To approvetheproposedannual in conductingitsbusiness. financial andtechnicalregulationsthatarerequired of theAuthorityandtoissueadministrative, To setthebylawsandorganizationalstructure management. or thosewhicharesubjecttoitssupervision land, realestateandplotsallocatedtotheAuthority fortheuseof principlesandrules To definethe Executive Regulations. assessed inaccordancewiththisLawandits which basisvariousinvestors’applicationsare andstandardsupon principles,rules To definethe Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 64 65 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Chairman oftheBoardortovice-chairman. The Boardmaydelegatesomeofitspowerstothe the StateofKuwait. regarding theinvestmentsof foreign corporateentitiesin The CouncilofMinistersshall settheprinciplesandrules this regard. of thestateanditsplansproposalsBoardin Law andwhichshallbeupdatedinlightofthegeneralpolicy Investments thatwillbeexcludedfromthescopeofthis the CouncilofMinistersshallpreparealistDirect Within thelimitsofArticles152and153Constitution, Article 11:NegativeList The Authority’sresourcesshallconsistofthefollowing: following financialyear. this lawcomesintoforceandshallendattheclosingof state .Thefirstfinancialyearshallcommenceonthedate year commencesandendswiththefinancialof The Authorityshallhaveanannexedbudget.financial Article 10:FinancialsoftheAuthority powers toanyofhisassistants. renewal. TheDirectorGeneralmaydelegatesomeofhis of theRelevantMinisterforfouryearsandissubjectto undersecretary appointedbydecreeupontheproposal assistants holdingatleastthepositionofassistant The DirectorGeneralshallbeassistedbyoneormore reasons forsuchrejection. the projectsapprovedandrejectedwith of theAuthorityincludingnumberprojectssubmitted, submitted totheCouncilofMinisters,regardingactivity shall furtherprepareanannualstatisticalreport,whichis financial functionsoftheAuthority.TheDirectorGeneral Board andshallsupervisethetechnical,administrative The DirectorGeneralshallimplementtheresolutionsof years andsubjecttorenewal. a decreeupontheproposalofRelevantMinisterforfour least thepositionofundersecretary,appointed,pursuantto The AuthorityshallhaveaDirectorGeneralwhoholdat Article 9:Director General cases: Investment Entity specifiedaccordingtothe following in accordancewith theprovisionsofthisLaw byan The ApplicationfortheLicense shallbesubmitted Article 12:Type ofInvestmentEntity 10. 3. 2. 1. subject toitssupervisionormanagement. of thefundsallocatedtoAuthorityorthatare provisions anditsExecutiveRegulations. of theobjectivesthisLawinaccordancewithits provisions ofthisLaw. committees inrespectoftheimplementation recommendations submittedbythecompetent Returns or revenues resulting fromtheinvestment Returns orrevenuesresulting Board inthisregard. the affairsofDirectInvestment,asresolvedby workshops ortrainingprogramsforthoseinvolvedin Authority’s activities,services,organizedevents, resultingfromthe Returns, revenuesorallowances budget. allocated toitintheannualstate funds Financial To issue resolutions necessary forthefulfillment To issueresolutionsnecessary notification andthefeesforissuanceofLicenses. by theapplicant,appropriatemethodsofnoticeand attached totheApplicationandconditionsbemet information andstatementsthatmustbecontainedin,or cases setforthinthisLaw.Theyshallfurtheroutthe of ApplicationstoobtaintheappropriateLicensein rules andproceduresforthesubmissionregistration The ExecutiveRegulationsshallestablishtheprinciples, Article 13:RulesofApplication lack ofresponse shall be deemedarejection ofthe appeal. thirty daysfollowing thedateofreceipt appeal,such rejection. Inthe eventthereisnoresponse to theappeal be reasonedand inwriting.Theapplicantmay appealthe In theeventApplicationis rejected,therejectionshall Article 16:Rejectionof Application the Authority. Application withthedata,documents andconditionssetby within thirtydaysfromthedate ofsubmissionacomplete A decisiononthemeritsofApplicationshallberendered Article 15:Term forDecision onApplication the provisionsofthisLaw. branches andrepresentativeoffices,whicharesubjectto and issuanceofLicensessupervisioncompanies, Ministry ofCommerceandIndustryontheincorporation In allevents,theAuthorityshallcoordinatewith implementation ofitsprovisions. of 1968,andtothedecisionsinstructionsissuedin Law, withoutprejudicetotheprovisionsofLawNo.(32) their branchesshallbesubjecttotheprovisionsofthis The Licensefortheincorporationofforeignbanksand Code. provisions ofArticle24theaforementionedCommercial to theprovisionsofparagraph1Article23and This Licenseshallnotbesubject,withregardstoforeigners, submission oftheApplicationtoAuthority. Investor shallbenotifiedofsuchrequirementspriortothe regarding eachofthecasessetforthinthisLaw,and principles andassessmentrulesestablishedbytheBoard the DirectorGeneral,ifApplicationfulfillscriteria, The Licenseshallbeissuedpursuanttoadecisionof Article 14:IssuanceofLicenses 3. 2. 1. shall settheprinciplesandrulesinthisregard. activity orofcommercialagents.TheBoard possibilities, withoutengaginginacommercial of preparingmarketstudiesandproduction thesolepurpose Representative officeshaving procedures forthecommencementofoperation. the officialauthoritieswithrespecttonecessary between thebranchofforeigncompanyand the principlesandrulesregulatingrelationship the proposalofBoard,aresolutionclarifying Investment. TheRelevantMinistershallissue,upon within theStateofKuwaitforpurposeDirect licensedtooperate A branchofaforeigncompany and rulessetforthundertheCompaniesLaw. of thecompanyinaccordancewithprinciples in suchcompanymayamountto100%ofthecapital purpose ofDirectInvestment.Foreignparticipation No. (25)of2012,whichwillbeincorporatedforthe promulgated bytheaforementionedDecreeLaw forms ofcompaniessetforthintheCompaniesLaw ofthelegalentity A Kuwaiticompanyhavingone savings andentitlements abroad. in theInvestment Entityshallhavetheright to transfertheir compensation set forthinthisLaw.Moreover, employees his sharesorparticipation intheInvestment Entityorthe profits, capitalorproceedsresulting fromthedisposalover The Investorshallhavetheright totransferabroadhis Article 22:Transfer of MoniesAbroad the mergedInvestmentEntities. remaining forexemptionsandincentivesgrantedtoanyof The new enjoy theshortestperiods entity shallautomatically entities intheirrightsandobligations. successor tothemergedentitiesandshallreplacesuch the newentityresultingfrommergershallbealegal joint requestsubmittedtotheAuthorityinthisregard,and carried outwiththeconsentofBoard,followinga The mergeroftwoormoreInvestmentEntitiescanbe Article 21:MergerofInvestmentEntities obligations. or assigneeshallreplacetheoriginalownerinrightsand the InvestmentEntity,inwholeorpart,newowner In theeventoftransferorrelinquishmentownership regulations inthisregard. Kuwaiti investor.TheBoardshallestablishtheprinciplesand over itinwholeorpart,forthebenefitofaforeign ownership ofthelicensedInvestmentEntity,ordispose The Investorhastherighttotransferorrelinquish Article 20:DisposaloftheInvestmentEntity paid assoonthesaiddecisionistaken. any threatofexpropriation.Theduecompensationistobe estimated inaccordancewiththeeconomicsituationpriorto of theexpropriatedprojectattimeexpropriation, against compensationequivalenttothetrueeconomicvalue interest andonlyinaccordancewiththeapplicablelaws Law norbedeprivedofitspropertyexceptinthepublic provisions ofthisLaw,shallbeconfiscatedpursuantto No InvestmentEntity,licensedinaccordancewiththe Article 19:CompensationforExpropriation with separately. Investment Entity,eachEntityshallbedealt Where theInvestorisgrantedlicensesformorethanone supervised byanauditorormoreamongthelegalauditors. provisions ofthisLaw,shallmaintainregularaccounts Each InvestmentEntity,licensedinaccordancewiththe Article 18:AccountsoftheInvestmentEntity Authority. in accordancewiththeprinciplesandrulessetby qualified consultingfirmsthatareapprovedbytheAuthority The applicantmayappointspecializedcompaniesor coordinating betweenthemandtheAuthority. method tobeadoptedforcallingupontheiremployeesand to identifythementionedgovernmentauthoritiesand The Boardshallestablishtheprinciplesandrulesnecessary the periodsetoutinthisLaw. in ordertoensurethecompletionofprocedureswithin procedures andtheestablishmentofInvestmentEntity authorities toproceedwithresolvinguponthelicensing employees designatedbytherelevantgovernment Authority calledthe“One-StopShop”whichshallinclude An administrativeunitshallbeestablishedwithinthe Article 17:One-StopShop incentives: The Investorshallbeentitledtosomeorallofthefollowing Article 27:IncentivesandExemptions also agreetorefersuchdisputesarbitration. and thirdparties,whoevertheymaybe.Theparties consider anydisputesarisingbetweeninvestmentprojects The Kuwaiticourtsaretheonessolelycompetentto observed. investments andtheavoidanceofdoubletaxationshallbe international conventionsinforcethecountryrelatedto Investments fallingwithinthepurviewofthisLaw,andall regulations applicableinthecountryshallgovernDirect Unless thereisaspecialprovisioninthisLaw,thelawsand Investments Article 24:LegislativeFrameworkofDirect issued byajudicialauthority. permitted bylaworpursuanttoajudgmentanorder that issubjecttotheprovisionsofthisLaw,exceptwhere technical, economicorfinancialaspectsofaninvestment any ofitsdivisions,relatingtoinvestmentinitiativesorthe to hisparticipationinanactivityinitiatedbytheAuthorityor gained knowledgeofasaresulthisemploymentordue divulges orbenefitsfromanyinformationthathemighthave thousand dinarsoreitheroneofthesetwopenalties,who not lessthanonethousanddinarsandexceedingten imprisonment foratermnotexceedingoneyearandfine for inanyotherlaw,apersonshallbepunishedwith Without prejudicetoamoreseverepenaltyprovided country. the provisionsoflawsandregulationsinforce investment andtosafeguardinitiativesinaccordancewith technical, economicandfinancialinformationrelevanttohis the basicprinciplesofconfidentialityinrespect By virtueofthislaw,theInvestorshallbeentitledto Article 23:ConfidentialityofInformation Article 26:CompetentCourts and howtolicensethesame. the regulationsinrelationtoexpansionsandmodifications which thisLawcomesintoforce.TheBoardshallestablish expansion ormodificationoccursfollowingthedateon or modificationofanexistingInvestmentEntityifthe The provisionsofthisLawshallapplytoanyexpansion for inthisLawtheAuthority’sconsideration. implementation. Investorsmayapplyforprivilegesprovided this Lawshallbenolessthanwhatwasgrantedbeforeits the incentives,exemptionsandguaranteesgrantedunder such DirectInvestmentstoanydamage,providedthat prior tothisLawcomingintoforce,withoutsubjecting Investments andthoseinvestmentsthatwerelicensed The provisionsofthisLawshallapplytoexistingDirect Article 25:ScopeoftheLaw’s Application 1. 2. of theexemption grantedtotheoriginalInvestment paragraph, fora periodofnolessthantheduration this Law,from the taxessetforthinpreceding Entity, licensedinaccordance withtheprovisionsof anInvestment anyexpansion of Exemption of investment entity. actual commencementofoperations ofthelicensed period notexceedingtenyears fromthedateof anyothertaxesfor a incometax or Exemption from Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 66 67 Investing in Kuwait: A guide for Investment Opportunities in Kuwait for theimportationattimeofdisposal. and shallpaythetaxesfeesthatwouldhavebeendue the principlesandrulesdecidedbyBoardinthisregard, for whichtheywereimported,exceptinaccordancewith utilize thegoodsinanyothermannerthanforpurpose assignment. Duringthesameperiod,Investormaynot described inthisclause,includingbywayofsale,swapor in thisarticle,fromdisposinganymanneroverthegoods date notifyinghimofexemptionsfromthedutiesdescribed The Investorisprohibited,foraperiodoffiveyearsasthe Private Sectors Exemptions toPartnershipsofthePublicand Article 28:ApplicabilityofIncentivesand criteria: nature, shallbe connectedtoallorsomeof the following granted forinvestments,each accordingtoitstypeand The value,typeanddurationof incentivesandexemptions state andeconomicdevelopment plans. in thisregardlinewiththeapproved generalpolicyofthe principles, rulesandprocedures establishedbytheBoard by the Authority with the goal of ensuring that it satisfies the following theapplicationforLicense,consideration the incentivesprovidedforinthisLaw,simultaneouslyor The InvestorshallapplytotheAuthorityforallorpartof of Incentives Article 29:ApplicationandCriteriaforGranting establishes therelevantrulesandprinciples. of 2008andLawNo.(37)2010providedthattheBoard including companiesandprojectsstipulatedinLawNo.(7) sectors establishedforthepurposeofDirectInvestment, types ofpartnershipsbetweenthepublicandprivate The provisionsofthepreviousarticleshallapplytoall 6. 5. c. b. a. 3. 4. exemptions, whicharenotmentionedinthisarticle. some casesandgroupscertainadvantages Ministersmaydecidetogrant The Councilof national employmentthatmustbeprovided. Ministers inrespectoftheminimumproportion restrictions establishedbydecisionoftheCouncil investment, inaccordancewiththeprinciplesand requiredforthe offoreignlabor The employment rules establishedbytheBoardinthisregard. management, inaccordancewiththeprinciplesand Authority orthatissubjecttoitssupervision The useoflandandrealestateallocatedtothe goods, wrappingmaterialsandpackaging. rawmaterials,partiallymanufactured Merchandise, what hasbeendescribedintheprevioussubsection. Spare partsandnecessarymaintenancesuppliesfor transport andothertechnologicaldevices. andmeansof Machinery, toolsandequipment Direct Investment: be payableonimportsrequiredforthepurposesof taxes, customsdutiesoranyotherfeesthatmay following shallbewhollyorpartiallyexemptedfrom for theGulfCooperationCouncilCountries, of 2003promulgatingtheUnifiedCustomsCode ofLawNo.(10) totheprovisions Without prejudice production oractualoperationoftheexpansion. Entity asofthedatecommencement of theStateandapprovedeconomicdevelopmentplans. aforementioned criteria,inaccordancewiththepublicpolicy The Boardmayamendoraddothercriteriatothe impose oneofthefollowingsanctions: this LawortherequirementsofLicense,Boardmay In caseofaviolationbytheInvestorprovisions Law ortheLicense ofthe Article 32:SanctionsinCaseofViolation Council ofMinisters. projects, within30daysfromthedateofsubmissionto a copyofthestatisticsrelevanttoitsactivitiesand a copyoftheannualreportissuedbyAuthorityand The RelevantMinistershallsubmittotheNationalAssembly Article 31:AnnualReport required documentationanddata. content aswellthemechanismforregistrationand specifying themethodofsettingupregisterandits The DirectorGeneralshallissueanydecisionsrequiredfor related datashallbeattachedtotheregister. and penaltiesconnectedthereto,alldocuments well asallApplications,Licenses,incentives,exemptions accordance withtheprovisionsofthisLawarerecorded,as be preparedinwhichallInvestmentEntitieslicensed A specialregistercalledthe“InvestmentRegister”shall Article 30:InvestmentRegister 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. 3. 2. 1. consulting services. Use ofnationalproducts. practiced. the specificprojectoreconomicactivitythatisbeing the communitythatareoutsideframeworkof offersservicesto The extenttowhichtheproject impact. Favorable environmental similar projectsoractivities. ofareasthatlack thedevelopment Contribution to national workforce. andtrainingofthe opportunitiesfor, Creation ofjob Increase innationalexports. diversification. Investment anditscontributiontoeconomic marketforDirect The needofthelocalandGulf offered. productsandservices The amountandqualityofthe the StateofKuwait. advanced technicalandmarketingexperienceinto modern managementmethodsaswellpractical, technologyand The transferandsettlementof Temporary administrative detention. Temporary addressed. may bereconsidered iftheviolationhasbeen exemptions granted.Thedecision ofwithdrawal and Partial ortotalwithdrawalofincentives warning. Investment Entitywithinone year ofthefirst been addressedtothesame Investor orthesame can bedecidedintheeventthreewarningshave Written warning,andamoreseveresanction Use of national technical, professional and Use ofnationaltechnical,professional to theprovisionsofthisLaw,shallundertakefollowing: investment wasgrantedincentivesorexemptionspursuant The Investor,whohasbeengrantedaLicenseorwhose Article 34:ObligationsoftheInvestor decision inthisregard. refer ittotheBoardwithhisopinioninordertakea following itscompletiontotheDirectorGeneral,whoshall detailed reportontheresultsoftheirworkimmediately The relevantemployeesoftheAuthorityshallsubmita end ofmyservice.” available tomeinthecourseofmydutiesevenafter will safeguardtheconfidentialityofinformationmade with honesty,impartiality,integrityandtruthfulness,I “IswearbyAlmightyGodthatIwillperformmywork following oathbeforetheMinister: the performanceoftheirduties.Theyshallalsotake of InvestmentEntitiesreceivedbytheminthecourse the obligationnottodiscloseconfidentialinformation work withhonesty,integrityandimpartialityshallhave and decisions.Thesaidemployeesshallperformtheir regulations of thisLawandits implementing implementation the capacityofjudicialofficersinordertomonitor by virtueofadecisionissuedhim,shallbegranted Specialist employees,whoaredesignatedbytheMinister Officers Article 33:AppointmentandPowersofJudicial criminal liability. imposition ofsuchsanctionsdoesnotprejudiceanycivilor relevant totheInvestmentEntityassociatedtherewith.The Investment RegisterstipulatedinthisLawthesection date ofnotificationtotheInvestorshallberecordedin Sanctions imposedinaccordancewiththisarticleandthe appeal, thedecisionshallbewrittenandjustified. be decidedwithinthirtydaysandincaseofrefusalthe date ofnotificationthesanctiondecision.Theappealshall subsections 2and3ofthisarticlewithinthirtydaysfromthe The Investormayappealagainstthesanctionssetforthin request. submitted bytheAuthorityprovidingjustificationfor President oftheCourtFirstInstancebasedonapetition terminated exceptaccordingtoanorderissuedbythe cases, theLicensemaynotberevokedorInvestment out theprinciplesandrulesnecessaryinthisregard.Inother acceptable justification.TheExecutiveRegulationsshallset the timeofrequestLicenseApplication,without to thetimetableprovidedbyInvestorAuthorityat from thedatesetforactualoperationstobeginaccording justification, orinthecaseofadelaymorethanoneyear and businessformorethanayearwithoutacceptable law intheeventInvestmentEntityceasesitsactivities The Licenseshallbeconsiderednullandvoidbyforceof 3. 2. 1. regulations issued bytheMinistryofFinance, andtax Comply withthe rulesandfinancial said date. within aperiodnotexceeding thirtydaysfromthe actual operationofthelicensed InvestmentEntity, ofthedatestart Notify theAuthorityinwriting from thedateofeachthem. thereof, withinaperiodnotexceeding thirtydays Investment Entityandthedateofcompletion steps necessarytostarttheworkoflicensed the beginningofmeasuresandoperational ofthedate Notify theAuthorityinwriting Authority Article 35:Funds,AssetsandEmployeesofthe Sabah Al-AhmedAl-Jaber Al-Sabah Amir ofKuwait publication intheOfficialGazette. shall comeintoforcesixmonthsfollowingthedateofits respective capacity,shallimplementthisLawwhich The PrimeMinisterandtheMinisters,eachintheir Article 38:ImplementationoftheLaw of thisLawisrepealed. Law No.(8)of2001andanyotherarticlewhichisinbreach Article 37:RepealofLawNo.(8)2001 date ofitspublicationintheOfficialGazette. implementation ofitsprovisionswithinsixmonthsfromthe to thisLawandtakethedecisionsnecessaryfor The RelevantMinistershallissuetheExecutiveRegulations Article 36:ExecutiveRegulations from theaforementionedbureautoAuthority. for thetransferofemployeeshedeemsappropriate the datethisLawcomesintoforce,decisionsnecessary The RelevantMinistershallissue,withinsixmonthsfrom the remunerationgrantedinkindandcashtoemployees. Directors, whichshallincludetherulesofappointmentand appointed accordingtotheregulationssetbyBoardof system issuedon4April1979,theAuthorityshallhavestaff (15) of1979andthedecreeconcerningcivilservice Without prejudicetotheprovisionsofDecreeLawNo. No. (8)of2001shallbetransferredtotheAuthority. the ForeignInvestmentBureauestablishedpursuanttoLaw All funds,assets,obligations,rightsandanythingrelevantto 6. 5. 4. not toexposeothersrisk. relating tosecurity,publichealth,orderand duty toprotecttheenvironmentandregulations regulations applicableinthecountry,especially performance ofhisworknottoviolatethelawsand In allcases,theInvestorisobligedduring what hedeemsappropriateinthisregard. completion totheDirectorGeneral,whoshalldecide results oftheirworkimmediatelyfollowingits employees shallsubmitadetailedreportonthe the Investoragainstactualpractices.TheAuthority’s information, statisticsanddocumentssubmittedby this Lawaswellverifyingthecontentofdata, following upinaccordancewiththeprovisionsof Investment Entity,forthepurposeofmonitoringand sites andfacilitiesassociatedwiththelicensed by theDirectorGeneral,toenterallbuildings, authorized Allow anyoftheAuthority’semployees this Law. the Authorityinordertoimplementprovisionsof documents requestedanddeemednecessaryby Provide anyinformation,data,statisticsor returns andissuingofthetaxcard. especially thoserelatedtothesubmissionoftax Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 68 69 Investing in Kuwait: A guide for Investment Opportunities in Kuwait in theStateofKuwait Regarding thePromotion ofDirect Investment Ca Investment Entity: License: Investor: Law: Director General: Chairman oftheBoard: Board: Authority: Relevant Minister: corresponding toeachofthem: The followingtermsandphrasesshallbearthemeanings Article (1) Chapter I:Definitions Implementing Law No. 116 of 2013 APPENDIX 2: Executive Regulations pital:
for pur What isemployedoruseddirectly designs. and industrial technological registered tradenames patents, trademarks,licenses, Intangiblerightssuchas 4. Investment Entity. production oroperationsbythe the commencementofactual intermediate goodsrequiredfor technological devices. means oftransportationandother local orforeign commercial securities,bethey Funds,financialand 1. is subjecttothislaw,including: through anInvestmentEntitythat Kuwait. the legalexistenceinStateof investment licensewhichgrants with thisLawbyvirtueofan is licensedinaccordance Any economicActivitythat these Regulations. accordance withtheLawand Investment licenseissuedin nationality. Natural orlegalpersonofany above. Law No.(116)of2013referredto Director GeneralofKDIPA. Relevant Minister. Board ofDirectorsKDIPA. Promotion Authority(KDIPA). Kuwait DirectInvestment Industry. Minister ofCommerceand .Rawmaterialsand 3. Machinery,tools, equipment, 2. poses of Direct Investment
Direct Investment: Commencement ofExecution: : MinistersInvestment Register: Activity: Application:
an InvestmentEntityintheState his capitaldirectlythrough another investor,employs or withtheparticipationof the Investor,individually An investmentwhere Law andtheseRegulations. licensed inaccordancewiththis through anInvestmentEntity purposes ofDirectInvestment it isemployedorusedforthe the increaseofcapitalorif the investedcapitalifusedfor Profitsandproceedsof 5. the Investment Entity. commencement ofoperations by activities thatprecedethe preliminary proceduresand The commencementof competent authorities. which areissuedbythe commencement ofoperations, permissions requiredforthe approvals, authorizationsand permits andotherlicenses, recorded, includingbuilding and changesmadetheretoare relating toInvestmentEntities The registerinwhichalldata Ministers. resolution oftheCouncil that shallbedeterminedbya from thescopeofLaw,and whose activitiesareexcluded forth inthelistofinvestments exception oftheactivitiesset Investment ismade,withthe impact throughwhichDirect Every Activitywitheconomic rules relevanttoeachcase. accordance withprinciplesand merge InvestmentEntities,in the Licenseorincentivesto Investor toobtain,asapplicable, The applicationsubmittedbythe with theLaw. of Kuwaitlicensedinaccordance
within theircompetencies, includingthefollowing: forms andallelse necessarytocompletethe tasksthatfall or action;andshall beprovidedwithalldata, information, a higherauthorityinordertotake theappropriatedecision completion oftransactionswithout havingtoreferback they representtoperformthe dutiesnecessaryforthe Such employeesshallbedesignated bytheauthorities representing themintheOne-Stop Shop. administrative supervisionof the employeeswhoare in theOne-StopShopshallcoordinaterespectof The Authorityandthegovernmentauthoritiesrepresented Article (6) representation. behalf ofInvestor;iftheInvestorwishtotakeupsuch submit andfollow-uponApplicationsinthename firms andofficesthatareprequalifiedapprovedto The Authorityshallpreparealistofspecializedcompanies, Article (5) raised inrespectofsuchguides. shall alsoberesponsibleforrespondingtoanyqueries The One-StopShop setting outtherequirementsforcompletionoftransactions. introductory guides,tobeapprovedbytheDirectorGeneral, The One-StopShopshallberesponsibleforpreparing General. also undertakeanyfurthertasksassignedbytheDirector and licensesrelevantthereto.TheOne-StopShopshall thereto, andshallissuerenewapprovals,permits Investment Entityandanyexpansionschanges transactions relatingtotheInvestor’sestablishmentof The One-StopShopshallberesponsibleforcompletingthe be specifiedbytheBoard. sufficient numberofgovernmentauthorities’employeesto the “One-StopShop”.Suchunitshallbestaffedwitha The Authorityshallhaveanadministrativeunitcalled Article (4) Chapter III:One-StopShop assigned tothem. interest anditsrelevancetothetaskscompetencies and shallsubmitittotheDirectorGeneralstating The Authority’semployeesshallalsocommittodisclose, disclosure shalladviseontheinterestreferredto. the Boardwhendiscussingprojectorservice.Thesaid the secretariatofBoard,whichshallinturnreferitto therefrom. Suchdisclosureshallbepresentedinwritingto shall benullandvoidaswellallconsequencesarising to suchprojectorservice;failingdoso;resolution in thediscussionorpassingofanyresolutionrelated Board. Theyshallinallcasesrefrainfromparticipating relatives inanyprojectorservicetobepresentedthe and theinterestsoftheirspousesfirstdegree the DirectorGeneralshallcommittodisclosetheirinterests Each oftheChairmanandmembersBoard, Article (3) eliminate obstaclesfacingtheinvestors. the investmentenvironment,facilitateproceduresand Direct Investmentinthecountry,developandstreamline Ministers ortheRelevantMinister,thatwouldencourage relevant toitsobjectivesassignedtheretobytheCouncilof shall undertaketheexecutionofanyothertasksthatare objectives andcompetenciesstipulatedintheLaw, The Authorityshallcarryoutthebusinessachievingits Article (2) Authority Chapter II:KuwaitDirect InvestmentPromotion services renderedbytheAuthority. The RelevantMinistershalldeterminethefeesfor pursuant toanyofthefollowingforms: these Regulations,throughaspecifiedInvestmentEntity, licensed inaccordancewiththeprovisionsofLawand (12) oftheLaw,activitiesDirectInvestmentshallbe Without prejudicetotheprovisionsofArticles(11)and Article (8) to besubmittedtheAuthority Chapter IV: InvestmentEntityandApplications and decisionsnecessaryinthisregard. of theirtransactions,andshalltakeallactions,measures proposals submittedbystakeholdersregardingtheprogress follow-up systemthatshallincludereceivingcomplaintsand within itsjurisdictions;shallformulateandoverseea accuracy ofthecompletiontransactionsthatfall procedures andindicatorsthatensurethespeed the One-StopShop,andshallsetrules,mechanisms, The DirectorGeneralshalloverseetheworksystemwithin Article (7) proving theacceptance ofhisApplicationfor thepurposes The Authorityshallhandover totheapplicantareceipt by theAuthority,includingregistered mailore-mail. Submission mayoccurthrough anyothermeansspecified documents submittedbythe Investor orhisrepresentative. The Authorityshallreceivethe Applications,papersand Article (10) and inparticularthefollowing: various typesoftransactionsthatfallwithinitsjurisdiction The Authorityshallpreparetheapplicationformsfor Law. licensing ofeachtypeInvestmentEntityreferredtointhe Board shallsetthespecificprinciplesandrulesfor Subject totheprovisionsofArticle(12)Law, Article (9) .Providingtheservicesthatfallwithinjurisdiction 2. Receivinganddeliveringallthepapers,Applications, 1. .Amendmentstothe percentageofshareholders’ 4. Amendmentstothe name,address,purpose,capital 3. Grantingofincentives andexemptions. 2. LicensingofanInvestment Entity. 1. Arepresentativeofficehavingthesolepurpose 3) Abranchofaforeigncompanylicensedtooperate 2) AKuwaiticompany,incorporatedforthepurposeof 1) authorities, ifrenderednecessary. One-Stop Shopandfollowingupwiththeiroriginal of theiroriginalauthorities,atthepremises rendered necessary. and followitupwiththeiroriginalauthorities,if necessary approvalsanddecisionsrelevantthereto, receipts andfees;takingallactions,issuingg documents, contracts,permits,licenses,approvals, equity inanInvestmentEntity. or domicileofanInvestmentEntity. Activity orofcommercialagents. possibilities, withoutengaginginacommercial of preparingmarketstudiesandproduction Investment. in theStateofKuwaitforpurposesDirect or asingle-personcompany. shareholding company,oralimitedliability might obtaina100%shareofthecapital Companies Lawreferredto.Theforeigninvestor Direct Investmentpursuanttotheprovisionsof Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 70 71 Investing in Kuwait: A guide for Investment Opportunities in Kuwait include thefollowing: accompanied byaninitialstudy,whichshallspecifically for theestablishmentofaKuwaiticompany,itshallbe In ordertoacceptreceivingtheLicenseApplication Article (14) Execution andcommencementofoperations. reveal thetimetableofbothCommencement authorities, allofwhichshallbevalid.TheInvestor information, dataanddocumentsrequiredbythecompetent Regulations, theLicenseApplicationmustinclude Without prejudicetotheprovisionsofLawandthese Article (13) Chapter V: Rules of LicenseApplications reasoned andinwriting. event ofarejection,thedecisionforrejectionneedstobe notified oftheapprovalorrejectionApplication.In signature oftheDirectorGeneral.TheInvestorshallbe correspondence inthisrespectshallbeissuedwiththe and theseRegulations.Decisionsanynecessary be madeinaccordancewiththeprovisionsofLaw Deciding onthemeritsofApplicationssubmittedshall Article (12) register shallinparticularrecordthefollowinginformation: Applications, accordingtotheirtypeandprecedence.The The Authorityshallset-uparegistertorecordall Article (11) conditions, informationanddocuments. of review,afterensuringthefulfilmentallrequired shall includein particularthefollowing: The Applicationforthelicensing ofarepresentativeoffice Article (16) operations. a certificateevidencingitsexistence andperformingits articles ofassociation,thelatest auditedbalancesheetand to acertifiedcopyofthecompany’s memorandumand particulars setforthintheprecedingarticle,addition company shallbeaccompaniedbyaninitialstudyofthe The Applicationforthelicensingofabranchforeign Article (15) )Anyfurtherdataor clarifications requestedbythe 9) Theestimatedannual quantityofwaterandenergy 8) TheneedsoftheInvestment Entityfornationaland 7) Theexperienceandcapabilitiesoftheinvestor. 6) Theeconomicandenvironmentalimpact. 5) Financingstructureandsources. 4) Thesizeoftheinvestment. 3) Thelegalformofthecompanyrequiredtobe 2) ThetypeofproposedActivityorproject. 1) Theappropriatemeansofnotification,whichshallbe 5. TypeofActivityandtheformInvestment 4. TheInvestor’sname,addressandnecessary 3. ThedateonwhichtheInvestorreceivedreceipt 2. ThetypeofApplicationanditsnumber. 1. )Acertified copyofthememorandum andarticles 2) The purposeoftheestablishment oftheoffice. 1) Application. Authority beforeorafterthesubmissionof required. intermediate goodsandtheirsupplysources. foreign labour,areaoflandrequired,rawmaterials, licensed. specified bytheAuthority. Entity. identification particulars. described intheprecedingarticle. such date. the commencementofoperationswithinthirtydaysfrom The InvestorshallnotifytheAuthorityofactualdate limit setforthintheprecedingparagraph. The Boardmaygrantanothertimelimitexceedingthe period shallnotexceedoneadditionalyear. Investor ifhesubmitsacceptablereasons,providedthatthis The DirectorGeneralmaygrantadditionaltimetothe submitted totheAuthorityspecifiesalongerperiod. the dateofissuanceLicense,unlesstimetable for theCommencementofExecutionwithinoneyearfrom The InvestmentEntitymustobtainthenecessaryapprovals Article (18) General. The LicenseshallbeissuedbyadecisionoftheDirector commercial licenseshallproceed. incorporation oftheInvestmentEntityandissuance In casetheAuthorityapprovesLicenseApplication, Authority andthecompetentauthorities. conditions, data,papersanddocumentsrequiredbythe Application withinthirtydaysasofthefulfilmentall The AuthorityshalldecideonthemeritsofLicense Article (17) with thedates to bespecifiedbytheMinistry ofFinance. tax returnonthe exemptedInvestmentEntity inaccordance Investment Entity; providedthattheInvestor shallprovidea from thedateofcommencement ofoperationsthe exemptions foraperiodnotexceeding tenyearsbeginning The Investormaybenefitfrom incometaxoranyother Article (22) Activity. Regular andseparateaccounts shallbemaintainedforeach of thedatecommencementactualoperations. calculated foreachActivityseparatelyas Regulations, thenthetaxexemptionperiodshallbe governed bytheprovisionsofLawandthese If anInvestmentEntitypracticesmorethanoneActivity the supervisionofoneormorecertifiedauditors. provisions oftheLawshallmaintainregularaccountsunder Each InvestmentEntitylicensedinaccordancewiththe Article (21) Second TaxExemption respect. be limitedtotheActivityapprovedbyAuthorityinthis granted toanInvestmentEntitywithmultipleactivitiesshall The incentivesandexemptions,includingtax Article (20) and rulesestablishedbytheBoardinthisregard. the submissionthereof,uponfulfilmentofallconditions can accompanytheLicenseApplicationorbedoneafter (27) oftheLawonformspreparedforthispurpose.This receive theincentivesandexemptionsprovidedforinArticle The InvestorshallsubmittotheAuthorityanApplication Article (19) and Exemptions First TheProcedures forObtainingIncentives Chapter VI:IncentivesandExemptions )Anyfurtherdataorclarificationsrequestedbythe 3) Application. Authority beforeorafterthesubmissionof existence andperformingitsoperations. audited balancesheetandacertificateevidencingits of associationtheforeigncompany,itslatest or anyotherfees thatmaybedueonimports necessaryfor fully orpartially exemptedfromtaxesandcustoms duties Arab GulfCooperation States,theInvestment Entityshallbe on thepromulgationofUnified CustomsCodeforthe Without prejudicetotheprovisions ofLawNo.(10)2003 Article (28) following: provisions oftheLawandtheseRegulations,subjectto from customsdutiesandtaxesinaccordancewiththe The InvestmentEntityshallbefullyorpartiallyexempted Article (27) Application. imports ofInvestmentEntities,whicharethesubject customs exemption,intermsoftheadoptionlists the technicalandproceduralaspectsofApplicationsfor shall determinethecooperationmechanismsforhandling Administration ofCustomsandotherconcernedauthorities, The Authority,incoordinationwiththeGeneral Article (26) all relevantparties. Director Generalandshallbeconclusiveevidencetowards The customsexemptioncertificateshallbeissuedbythe established bytheBoard. in accordancewiththeprinciples,rulesandstandardstobe The Applicationforcustomsexemptionshallbeassessed subject oftheApplication. shall beaccompaniedbyalistofthematerials,whichare with theformspreparedforthispurpose.TheApplication duties shallbesubmittedtotheAuthorityinaccordance The Applicationfortheexemptionfromcustomtaxesand Article (25) Third CustomsExemption production oractualoperationsoftheexpansion. case shallenterintoforceasofthecommencementdate the existingInvestmentEntity.Thetaxexemptioninthis The foregoingprovisionsshallapplytotheexpansionof towards allrelevantparties. copy ofsuchcertificate,whichshallbeconclusiveevidence operations. TheMinistryofFinanceshallbeservedwitha of theActivityanddatecommencementactual tax exemption.Suchcertificateshalldeterminethescope operations, delivertotheinterestedpartyacertificateof (13) oftheseRegulationsandthecommencement of theparticularsnotificationprovidedforinArticle of receiptnotification,followingverificationthevalidity The DirectorGeneralshallwithinfifteendaysfromthedate Article (24) the implementingexemption. documents, dataorclarificationsrequestedforthesakeof with regardtothesubmissionoftaxreturnsandany instructions issuedbytheMinistryofFinance,especially The Investorshallcomplywiththefinancialandtax regard. principles, rulesandstandardsitdeemsappropriateinthis of Article(29)theLaw.TheBoardshalldevelop provisions with thecompetentauthorities,inaccordance value shallbedeterminedbytheAuthority,incoordination Application shallbesubmittedandtheexemptionperiod Authority ontheformspreparedforthispurpose.The The taxexemptionApplicationshallbesubmittedtothe Article (23) )Theimportedmaterials,intermsofquantityand 2) Theimportationshall bemadeinthenameof 1) the ActivityofInvestment Entity. quality areconsistentwiththe natureandneedsof Investment Entityorforitsaccount. the purposesofInvestmentEntity,including: obligations. merged entitiesandshallsubrogatethemintheirrights new mergedentityshallbethelegalsuccessorof two ormoreInvestmentEntitiesmaybemerged.The After obtainingtheapprovalofcompetentauthorities, Article (31) Fifth ConversionoftheInvestmentEntity applicant, andthemannerofallotment. determination oftheareasthatcanbeallottedtoan by theAuthority,shallbeassessed,aswell and realestateallocatedto,supervisedadministrated on thebasisofwhichApplicationforusageland The Boardshallsetouttheprinciples,rulesandstandards Article (30) Fourth AllotmentofLandandRealEstate supplies, materialsandgoodssubjecttothesaidexemption. equipment, devices,meansoftransport,spareparts, commit tomaintainaregisterrecordallmachinery, The InvestmentEntityenjoyingcustomsexemptionsshall Article (29) decision bytheconcernedperson.. thirty daysfromthedateofnotification orknowledgeofthe The grievanceshallbesubmitted tothecommitteewithin regarding decisionsissuedby theAuthority. shall becompetenttoreceive grievancesfromstakeholders be designatedastheheadof thesaidcommittee,which consisting ofatleastthreemembers, fromwhomoneshall The Boardshallformacommitteetoreceivegrievances, Article (35) Chapter VII:Grievances the Investor,orbonafidethirdparties. affect therightsandobligationsofInvestmentEntity,or form toanotherform;theconversiondecisionshallnot another, orifthelicensedcompanyconvertsfromalegal In casetheInvestmentEntityconvertsfromoneformto Article (34) resolution. entity inaccordancewiththeprovisionsofdivision the rightsandobligationsdevolvedtheretofromdivided subrogate itinitsrightsandobligations,withinthelimitsof shall bethesuccessorsofdividedentityand Investment Entities,theentitiesarisingfromsuchdivision In caseofanInvestmentEntity’sdivisionintotwoormore Article (33) Article (27)oftheLaw. incentives tocompletetheten-yearperiodprovidedforin for thereceiptofotherexemptionsand The newentitymaysubmittotheAuthorityanApplication to anyofthemergedInvestmentEntities. remaining durationofanyexemptionandprivilegesgranted The newentityshallautomaticallybeentitledtotheshortest Article (32) )Intermediategoods,rawmaterials,partially 3) Sparepartsandnecessarymaintenancesuppliesfor 2) Machinery,tools,equipment,meansoftransport, 1) materials andsupplies. manufactured goods,wrappingandpackaging what hasbeendescribedintheprevioussubsection. and othertechnologicaldevices. Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 72 73 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Article (41) competent authoritiesinthisregard. with theMinistryofCommerceandIndustryother the Authority;providedthatAuthorityshallcoordinate regulations andsupervisoryinstructionsprescribedby All InvestmentEntitiesshallbesubjecttotherules, Article (40) Chapter VIII:JudicialOfficers and shallbefinal. confidential anditsdecisionsshallbepassedbymajority, of itsregistration.Thecommittee’sdeliberationsshallbe of areasoneddecisionwithinthirtydaysfromthedate The committeeshalldecideonthegrievancebasis Article (39) clarifications anddocumentsitrequires. committee mayaskrelevantstakeholderstosubmitthe person, orbyanagentthrougharepresentative.The grievance therewith,toattendbeforethecommitteein of thematterandshallnotifypersonsubmitting committee, whoshalldeterminethedateofhearing The grievanceshallbereferredtotheheadof Article (38) the registrationnumberanddateofgrievance. submitting thegrievanceshallreceiveareceiptindicating the registerpreparedforsuchpurpose,andperson upon thereceiptthereof.Grievancesshallberecordedin Board, whoshallnotifytheDirectorGeneraltherewith Grievances shallbesubmittedtothesecretariatof Article (37) documents, inparticular,thefollowing: The grievanceshallbeaccompaniedbysupporting Article (36) performing theirduties: of judicialofficersshallcomply withthefollowingwhen The employeesoftheAuthority whohavethecapacity Article (42) shall havetherighttotakefollowingactions: order toperformtheirdutiesofsupervisionandfollow-up, The personswhohavethecapacityofajudicialofficer,in the Regulationsandimplementingdecisions to monitortheimplementationofprovisionsLaw, employees whoshallhavethecapacityofjudicialofficers The RelevantMinistershallissueadecisiondeterminingthe officers andprovidethemwith theforegoingasrequired. The InvestmentEntityshallfacilitatethetasksofjudicial )Thesubjectofthegrievanceandreasonsupon 3) Thedateofissuancethedecisionthatissubject 2) Thename,designation,addressandcontactdetails 1) )The supervisionandfollow-upshall bedonein 2) Thedutiesofthejudicialofficershallbeperformed 1) Preparingwrittenminutes documentingviolations 3) Accesstoallrequested documentsanddata, 2) Accessallpremises ofInvestmentEntities. 1) which ithasbeenbased. submitting thegrievance.. or knowledgeofsuchdecisionbytheperson of thegrievanceanddatenotification of thepersonsubmittinggrievance. premises ofan InvestmentEntity. during theofficial workinghours,andatthe at theAuthority. and referringthesametocompetentauthorities of datastorageorprocessing. tapes andcomputersystemsanyothermeans in particular,records,books,exhibits,documents, required therefor. the registrationthereinaswelldocumentsanddata up oftheregister,contentthereof,mechanism The DirectorGeneralshallissuethedecisionsforsetting documents anddatashallbeattachedtosuchregister. and theirassociateddatashallberecorded.Allrelevant all Applications,Licenses,incentives,exemptions,sanctions licensed inaccordancewiththeprovisionsofLaw,and maintained bytheAuthority,inwhichallInvestmentEntities A specialregistercalled“InvestmentRegister”shallbe Article (44) Chapter IX:InvestmentRegister this regard. his opinionontakingthenecessarydecisionsoractionsin the DirectorGeneral,whoshalltransmitittoBoardwith of theirworkimmediatelyafterthecompletionthereofto judicial officersshallsubmitadetailedreportontheresults The employeesoftheAuthoritywhohavecapacity Article (43) which shallberecordedintheInvestmentRegister. decisions orproceedingsreferredtointheprecedingclause, Any stakeholdershallnotifytheAuthorityofanyjudgments, continuation. that wouldaffecttheInvestmentEntity’sActivityorits in writingofanyjudgments,decisionsorproceedings of theLawandtheseRegulations,shallnotifyAuthority incentives orexemptionsinaccordancewiththeprovisions The InvestmentEntitylicensedbytheAuthorityorgranted Article (45) Regulations andimplementingdecisions. proper applicationoftheprovisionsLaw,its The goalofsuchactivitiesshallbetoverifythe respect oftheactivitieslicensedbyAuthority. of currenciestoavoidinflationfromtheweakenedUSdollar. it againrevertedtopeggingtheKDanundisclosedbasket to peggingitscurrencytheUSdollar,however,post2007 the USdollarhadlargestweight.In2003,Kuwaitshifted currencies, representingitsmaintradingpartnersofwhich controls. Over1975-2002,theKDwaspeggedtoabasketof currency whichisfreelyconvertibleandhasliberalexchange divided into1,000unitscalledfils.Kuwaithasastable The Kuwaitiunitofcurrencyisthedinar(KD),which Monetary indicators Exchange rates (KDvs.USD) Exchange Monetary Indicators network. integrated housingdevelopments,ametroandnationalrail of existingroads,portsandairportinfrastructure,largescale infrastructure anddevelopmentprojectssuchasexpansion USD In 2014,theGovernmentearmarkedinvestmentsof distinction ofsurplusfunds. foreign investmentinnon-oilsectorsandmoreequitable by encouragingprivatesectorparticipation,promotingof to achievegreatereconomicdiversificationbeyondoil Additionally, thereisarenewedeffortbytheGovernment Key EconomicInformation APPENDIX 3: Economic Information for thecountry. between 2014and201 record anaverage Government expenditure.ItisanticipatedthatKuwaitwould sustained surplusesfortheGovernmentdespiteincreasein (60% ofnominalGDPin201 Oil revenueremainsakeydeterminantofKuwait’seconomy Source: TheIslamic FinancialServices Board(IFSB),CBK Source: CentralStatistical BureauAnnualStatisticalAbstract, EIU 103 Bnforthesecond nominal 9 providingarobusteconomicoutlook GDP growthof Kuwait DevelopmentPlanon 4) andhascontributedto over 3.5 % which isexpectedtoincrease4. In 2014,Kuwaitrecordedaninflationrateof2. remained fairlystableover2013and2014atKD0.284. to aweightedbasketofcurrencies. Dollar asthecurrencypegwasswitchedfromUS 2007, whentheKDroseto0.273from0.289againstUS Consequently, theKDwitnessedasuddenappreciationin for investmentsintheeconomy. stable interestrateregimeleadingtofurtherencouragement On theinterestratefront,CBKensuredarelatively positive developmentsinthisarea. Kuwait adoptsproactivemonetarypoliciesandresultant their investmentsagainstforeignexchangevolatility. Kuwaiti Dinarisattractiveforinvestorslookingtosafeguard much intherecentyears.Therelativelystrongandstable regime, however,thevalueofcurrencyhasnotfluctuated The monetarysysteminKuwaitisbasedonthefloatingrate Nominal GDP and economic growth economic GDP and Nominal 4% by2019. Theexchangeratehas Appendices 9 percent
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 74 75 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: MOE,PAHW, MOH universities inUS,UKandEurope. educational programsinalliancewithvariousinternational A numberofprivatepost-secondarycollegesexist,offering nationals. University butadmissionsaregenerallyrestrictedtoKuwaiti The apexofthepubliceducationsystemisKuwait educational systems. of British,American,French,Indian,Pakistaniandother serve thegrowingexpatriatepopulationofferingcurriculum Several internationalschoolshavebeenestablishedto heavily subsidizedbytheGovernment. all Kuwaiticitizens.EvenprivateinstitutionsinKuwaitare tertiary level,arefullyfinancedbythestateandfreefor to fourteenyears.Alllevelsofeducation,includingthe Education ismandatoryforallchildrenagedbetweensix involving fouryearsofstudy. intermediate, andsecondarylevels,witheverylevel In Kuwait,educationisdividedintoelementary, towards advancementofthesystem. education infrastructureandvariousGovernmentincentives over recentyearsowingtolarge-scaleinvestmentsin The educationsysteminKuwaithasdevelopedsignificantly Education APPENDIX 4: Living Education andHealth education ofwomenacrossthecountry. numerous initiativeshavebeenimplementedtofurtherthe Women aregrantedequalrightstoeducation,and include developmentofeightadditionalhospitalsby2016. improve Kuwait’shealthcarestandards.Governmentplans Kuwait ispartneringwithworldleadinghospitalstofurther package. health-care plansaspartoftheircompensationandbenefit Employers usuallyofferexpatriateemployeesprivate developed publichealthcaresystem. hospitals andninespecialisthospitalunits,Kuwaithasawell With morethanseventyprimarycarecenters,sixregional Health waiting periods. and clinics,whichofferwidermedicalservicesshorter schemes, whichallowsfortheuseofprivatehospitals Expatriates generallyprefertobeapartofprivateinsurance which providefreeorlow-costhealthcaretoallresidents. accessible throughalargenumberofclinicsandhospitals, in 1960to Life expectancyratioinKuwaithasimprovedfrom59years over 78 yearsin2013 . Publichealthcareiseasily Source: MOP,MOFA being issuedandarevalidforthirtydays.Visitvisaswhere Visas andentrypermitscanbeusedwithinninetydaysof Foreign Ministrywebsiteforadetailedcountrylisting). nationalities entryvisasuponarrival(pleaserefertoKuwait entry permitforKuwait.Since2004,Kuwaithasgranted34 All visitors,exceptforGCCnationals,requireavisaor Entry visasandworkpermits living inthecountry. others whichformapartofthesociallifeexpatriates Westerners-Arab Relationscenter,IndiansinKuwaitamong support servicesincludingassociationslikeAdvocatefor Kuwait alsohasanumberofexpatriatecommunity ranges isparticularlypopularamongyouthinKuwait. Jet-Skis, diving,Quad-bikesandshootingonspecialized competitors. number ofstadiumscapablehostinginternational There isawellequippedsportsinfrastructureandlarge generously, makingitanintegralpartofKuwait’ssociety. The Governmentsupportsthedevelopmentofsports as popularAsiansportslikecricketandhockey. sports ofWesternsocieties-footballandbasketballaswell camel andhorseracingfalconry-withcontemporary Kuwait’s sportsculturecombinesthetraditional- Museum, DicksonHouse,SaduHouse). history, theArabcultureandtraditionalarts(e.g.National There areseveralmuseumswhichfocusonKuwait’s Park arealsopopularfamilydestinations. outdoor themeparksliketheEntertainmentCityandShaab is particularlypopularamongchildren.Notwithstanding, Kuwait offersazoologicalparkandanaquarium,which Failaka andWarbaIsland. located tothemainland–Kuwait’smostpopularislandare enjoy visitinganyofKuwait’snineislands,whichareclosely During thespringandautumnmonths,peopleparticularly sports forsportenthusiasts. from welldevelopedfacilitiesforfamiliestoadventure Kuwait offersawidearrayofrecreationalfacilities,ranging Recreational activities Recreation andvisas terrorism orviolence. potential criminals.Kuwaitdoesnotsupportanykindof a strongpoliceforce,andstrictcriminallawwhichdeters crime rateslowerthanmostwesternsocieties.Kuwaithas Kuwait strivestomaintainsafetyforitsresidentswith Security either acceptanceordenial,anddulyinformtheinvestor. authorities toassesstherequestandobtainresponse, Upon receipt,KDIPAwillcoordinatewiththecompetent should sendacopyoftherequireddocumentsbye-mail. the issuanceofvisitor’svisaintoKuwait.Theinvestor with KDIPA’sstatedcriteriaandconditions,canapplyfor foreign investors,whohavecredibleprojectsthatcomply granted undertheDirectInvestmentLaw.Inthisregard, in theStateofKuwait,orinquireaboutincentives more closelyinformedaboutthebusinessenvironment would liketopresenttheirinvestmentproposals,orbecome visitor’s visapermitforinterestedforeigninvestors,who KDIPA providesacomplimentaryserviceofissuing residency visaisissuedoncetheexpatriateentersKuwait. who isthenissueda“NoObjectionCertificate”.Theactual apply fortheresidencyvisaonbehalfofexpatriate, Government organization.TheKuwaitiemployerhasto employment offerfromaprivatecompanyorKuwaiti visa, whichcanbeissuedonthebasisofavalid Working inKuwaitrequiresaworkpermitandresidency company duringtheirstayinthecountry. immigrants havetobesponsoredbyaKuwaitinationalor Kuwait’s immigrationsystemisbasedonsponsorship- involve anominalcostofUSD10.7(KD3). required areusuallyissuedwithintwoworkingdaysand Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 76 77 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: http://us.practicallaw.com, ICDT’sMemberStates BusinessGuides:www.icdt-oic.org • • • • aspects ofthenewCompaniesLawinclude: replacing theCommercialCompaniesLawof1960.Key profitability andtoencourageforeigninvestmentinKuwait, practices intheprivatesector,improvecompetivenessand as amendedbylawNo.97/2013)toenhancebusiness Law (NewcommercialcompaniesdecreelawNo.25/2012 In December2012,KuwaitintroducedanewCompany APPENDIX 5: Important legislations in Kuwait to franchiseagreements. payments. Provisionsregardingagenciesmaybeapplicable laws donotprescribeafixedformorlimitofroyalty conditions astheydeemfitandappropriate,Kuwait’s The partiesarefreetonegotiatethecommercialtermsand the parties. agreements asperthetermsandconditionsagreeduponby 67/1980). Royaltypaymentsarestructuredinthefranchise Franchise agreementsaregovernedbytheCivilCode(No. Franchise agreements Franchise agreements and exchangecontrols The CompanyLaw stock companies,introducinggreaterflexibilityintermsof security sharesformembersoftheBoardDirectors Elimination ofminimumshareholdingrequirementsand commercial entities; more transparent,fairandrobustmanagementof Managers andDirectors,whichisexpectedtoencourage Management andanexpansionofthepowers Separation oftheBoardDirectorsfromExecutive governance; Adherence tobestpracticesrelatedcorporate (KDIPA); namely theKuwaitDirectInvestmentPromotionAuthority department attheMinistryofCommerceandIndustry, incorporation andlicensingofacompanythroughsingle Introduction oftheconcepta‘onestopshop’for • • • out ofKuwaitwithoutanyrestrictions. fees, personalsavingsandothercanallbetransferredin Equity, loancapital,interest,dividends,profits,royalties, licensed foreignexchangedealer. exchange purchasesneedtobemadethroughabankor transactions inKuwait,beyondarequirementthatallforeign There arenorestrictionsoncurrentorcapitalaccount reflecting Kuwait’stradeandcapitalflows. exchange rate,whichisbasedonabasketofcurrencies, The KuwaitDinarisfreelyconvertibleattheprevailing transferability applies. restriction; theconceptoffreeconvertibilityandatotal Exchange regulationsinKuwaitdonotimposeanyparticular Exchange Controls advantages fortheIslamicfinancesector; convertible bonds,whichisperceivedtocreate Corporate regulationsregardingSukuks,bondsand limited liabilitycompanies;and Simplification ofthetransfermembershipinterestsin of Boardmembers; Adoption ofthecumulativevotingsystemforelection shareholding; young adultsaswellcreatejobopportunities. sector andexpectedtopromoteentrepreneurshipamong new lawisexpectedtodrivedevelopmentoftheprivate 98/2013 tosupportandpromoteSMEdevelopment.The Kuwait enactedaSmallandMediumEnterpriseslawNo. • • • • • • operations. similar and transfer(BOT) and operate build, regulating of 2014 Law 116 in Kuwait iscovered law in PPP sector The Public PrivatePartnerships(PPP) Public PrivatePartnershipsandPrivatizationLaw SME Law Source: DLAPiper Middle EastLLP,KAPP,UnitedNationsDevelopment Programme,business-anti-corruption.com from thedateofcompletionconstruction. The maximumtermofaPPPcontractwillbe50years on behalfofcitizensKuwait;and The PPPAuthoritymaysubscribetosharesintheprojects 250 Mn); projects withatotalcostnotexceedingUSD880Mn(KD The CouncilofMinisterswilladvisethestructurePPP project; process andaninvestorcanholdtheentirecapitalofsuch (KD 60Mn)willbeofferedthroughacompetitivetender PPP projectswithatotalcostnotexceedingUSD210Mn the newAuthority; with thefunctionsandpowersofBoardDirectors A SupremeCommitteeonPPPprojectswillbeformed “Partnerships TechnicalBureau” A newPublicAuthoritywillbecreatedtoreplacethe • • KSE orcompaniesapprovedbytheSCP; At least35%needstobeofferedcompanieslistedonthe such companyisallocatedasfollows: manages theprojectgoingforward.Theshareholdingof company, whichholdstheassetstobeprivatisedand The PLrequirestheestablishmentofashareholding with theprivatisation. sought fromtheCouncilofMinisterspriortoproceeding for Privatization(SCP),afterwhichanapprovalneedstobe Projects needtobefirstselectedbytheSupremeCouncil framework fortheprivatisationofpublicenterprises. The PrivatisationLaw,Law37of2010,definesabroad The PrivatisationLaw • • bodies nominatedbytheSCP; No morethan20%shouldbeallocatedtoGovernmental established. SCP, maybidforsharesintheprojectcompanybeing include foreigninvestorswho,onceapprovedbythe the publicinterest.Privatesectorparticipationmayalso the boardandgeneralassembly,inordertoprotect the statevotingrightstoobjectanyresolutionsof ownership oftheshareholdingcompany,whichwillgrant The Governmentwillretainamajorityshareinthe by Kuwaiticitizens. No lessthan40%shouldbeofferedforpublicsubscription employees transferredtotheshareholdingcompany;and No morethan5%shouldbeallocatedtoKuwaiti Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 78 79 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: Kuwait TaxAuthority, www.ecbg-kuwait.com, www.state.gov, www.ecbg-kuwait.com, www.knowyourcountry.com Source: www.kuwaitlaborlaw.com, www.arabtimesonline.com, www.kuwaitiah.net to theextentofforeignownership. companies withforeignownershiparesubjectedtotaxation Kuwaiti/GCC citizensarenotsubjecttotax.However,GCC GCC citizensorbycorporationswhicharefullyowned Bahrain, UAEOmanandQatar)fullyownedbyKuwaiti/ Council (GCC)countries(comprisingofKuwait,SaudiArabia, Kuwait. EntitieswhichareregisteredinGulfCooperation only toforeignentitiescarryingontradeorbusinessin Executive by-lawsandcirculars.TheDecreeisapplicable of 1955andthenewTaxLawNo.22008,alongwithits Income taxcomplianceisgovernedbyAmiriDecreeNo.3 Corporate IncomeTax the practicesofKuwaitTaxAuthority. The Kuwaittaxenvironmentisconstantlyevolvingthrough Ministerial OrderNo.44of1985. with theLawisenforcedbyMinistryofFinancethrough There isnowithholdingtaxinKuwait,however,compliance from businessactivities. income taxesdonotapplyeitheronsalariesor Kuwait taxratesareamongthelowestworldwide.Personal Taxation employees beforemakinganypaymentstoothercreditors. any outstandingsalariesandterminationbenefitstohis In caseofbankruptcy,theemployerisobligedtopay per monthisspecifiedforexpatriates. Kuwait. However,aminimumsalaryofUSD890(KD250) There isnominimumwageforKuwaitiemployeesin Remuneration andDeductions such ashealthcare. not encouragedtoworkatnights,apartfromcertainsectors accordingly equallyappliestomenandwomen.Womenare The lawdoesnotdistinguishbetweengender,and origin applies. case thelabourlawgoverninginemployer’scountryof of Kuwait,withouthavingabranchofficeinwhich employees whoseemployer’sheadofficeislocatedoutside The privatesectorlabourlawsalsodonotapplyto contracts, andthosewithatenureoflessthansixmonths. which applytoallemployeesexceptforthoseontemporary labour lawsintheprivatesector,(LabourlawNo.6/2010) Kuwait’s MinistryofSocialAffairsandLabourregulates Labour lawsandregulations Taxation Labour laws • • • corporate incometax: The followingcategoriesofincomearesubjecttothe entities. resulted insignificantdecreaseoftaxliabilityforeign maximum taxrateof55%wasapplicable.Theflat direct investmentinthecountry2008,priortowhicha Kuwait Taxationlawwasamendedtoboostforeign They areliabletopayincometaxataflatrateof15%. shareholder inalocallyregisteredshareholdingcompany. either throughanagentorjointventureasaminority Foreign companiescancarryonbusinessinKuwait disputes arereferredtothelabourcourt. to helpresolvelabourdisputedamicably.Failingthis, The MinistryofSocialAffairsandLabouractsasamediator Individual LaborDisputes based onlastdrawnsalaryandnumberofyearsservice. lump sumpaymentcalledterminationindemnitycomputed Upon employmenttermination,anemployeeisentitledtoa Employment terminationbenefits their inabilitytowork. days giventhattheypresentamedicalcertificatestipulating Thereafter theymaybeabsent,beingunpaid,forupto100 of 30dayspriortodeliveryand40afterdelivery. Women areentitledtomaternityleaveofupamaximum Maternity leave periods arenotincludedinthecalculationofworkinghours. must beallowedafterfiveconsecutivehoursofwork.Rest day and48hoursaweek.Arestbreakofatleastone-hour The standardworkinghoursarelimitedtoeighta Standard workinghours attributable toforeigncorporatepartners. The proportionofthenetprofitaKuwaitijointventure entity attributabletoforeigncorporateshareholders;and The proportionofthenetprofitaKuwaiticorporate with, orrelatedtoitsoperationswithinKuwait; outside Kuwaittotheextentthatprofitsareconnected The netprofitsofaforeigncompanyoperatingwithinor Source: KuwaitTax Authority,www.ecbg-kuwait.com,www.state.gov, www.ecbg-kuwait.com, www.knowyourcountry.com tax oncashdividendsreferredtoabove. portfolios fortheircustomersarerequiredtodeduct15% Kuwait, InvestmentTrusteesandFundsManagersmanaging KSE areexemptfromtax.Accordingtocurrenttaxlawin by aforeigncompanyfrommeretradinginshareslistedon (KSE) issubjectto15%tax,however,capitalgainsderived entity asaresultofinvestmentinKuwaitStockExchange under thetaxlaw.Acashdividendreceivedbyanyforeign assets andsharesaretaxableasnormalbusinessprofits Gains derivedbyaforeigncompanyonthedisposalof provision ofaTaxClearanceCertificate. 5% fromcontractorandtoreleasetaxretentiononlyonthe by documentation.Contractownersarerequiredtoretain incurred outsideKuwait,providedtheyarefullysupported income tax,withadeductionforthedirecttechnicalcosts Kuwait, incomefromthewholecontractissubjecttoKuwait technical work,designorresearchisperformedoutside onshore activity.Inthecaseofcontractswherepart out outsideKuwaitunderacontractwhichalsoinvolves Place ofperformanceisinterpretedtoincludeworkcarried place ofperformancetheservicesiswithinKuwait. The sourceofincomeisconsideredtobeinKuwaitifthe without limitationsastoperiod,butcannotbecarriedback. be carriedforwardanddeductedfromsubsequentprofits management fees,technicalservicesorinterest.Lossescan taxation, includesanyamountsreceivableforroyalties, The foreignparty’sproportionofnetprofit,subjectto paid asonedeposittogetherwiththeTaxDeclaration. possible topaythetaxdueinfourequalinstalments,ifnot is taxableincomelessthanUSD18,700(KD5,250).It through subsidiarycompanies,incomefromallactivities line ofbusinessinKuwait,eitherdirectlyorindirectly If aforeigncompanyhasmorethanoneactivityinsimilar and The DirectorofIncomeTaxesrequiresthatthedeclaration statements andotherspecifieddocuments. in aspecifiedformat,accompaniedbyauditedfinancial to besubmittedinArabictheDirectorofIncomeTaxes to amaximumperiodof18months.Ataxdeclarationis approval foraperiodshorterorlongerthan12monthsup first andlastaccountingperiods,itispossibletoobtain consecutive monthsasthefirstaccountingperiod.For A taxpayermayfollowonecalendaryearcomprising12 Taxes within30daysandapplyforaTaxCard. required toregisterthemselveswithDirectorofIncome Upon commencementofbusiness,foreigncompaniesare • • • considering theintroductionofavalue-added-taxsystem. as partofaregion-wideGCCplan,theGovernmentis of profits)andNationalLaborSupportTax(NLST).However, required topayZakat(areligioustithewhichisonepercent the country.Localshareholdingcompaniesarehowever Sale Tax/ValueAddedTaxandStampDutyisnotleviedin assessed valueofthegoods. are liabletocustomdutyataflatrateof5%theinvoice/ France andCanada.Further,goodsimportedintoKuwait significant numberofcountries,includingtheUK,Germany, The StateofKuwaithasDoubleTaxationTreatieswith of CommerceandIndustry. in practiceKuwaitwhoisalsoregisteredwiththeMinistry • groups: Income Taxlawdividesallowabledeductionsintofourmain expenses shouldbewellsupportedanddocumented.The legitimate, necessaryandreasonable.Legitimatecosts incurred outsideKuwait,aredeductible,providedthey All expensesincurredbyabusiness,including Deductions the trade. destruction orlossofinventoryotherpropertyusedin against thetaxpayer,andlossesduetodamage, include, inparticular,baddebts,claimsfordamages covered byinsurancepaymentsorotherwise.These Losses sustainedinthetradeorbusinessthatarenot equipment; and depreciation andobsolescenceofproperty,machinery A reasonableamountineachtaxableperiodfor establishment expenses; in Kuwaitsuchasadministrative,overheadand Other expensesthatrelatetothetradeorbusiness Cost ofgoodssoldorservicesrenderedbythetaxpayer; the supporti ng statements are certified by an accountant Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 80 81 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: http://uk.practicallaw.com trade, oraredetrimentaltofreetradeinKuwait. in Kuwaitorabroad,whichrestrictcompetitionandfree Law No.10of2007appliestoviolationsthatarecommitted • • dominant market/monopolyposition,if: Under LawNo.10of2007,companiesaredeemedtoholda • • • • The keypillarsaresummarizedunderneath: and Industry. of acompetitioncouncilundertheMinistryCommerce addition, theamendedlawNo.2/2012ledtoestablishment was enactedtofurtherregulatecompetitioninKuwait.In Law No.10of2007(asamendedbylaw2/2012)which detrimental tofreetradeorcompetitionareprohibitedby All agreements,contractsandpracticeswhichare transactions andtradeagreements. illegal competition,aswellmonopoliesincommercial Kuwait’s CommercialLawaimstoregulateunfairand Competition regulation competition There isnocompetition,ineffectiveorsmall-scale Prices arecontrolledand/orcompetitionisevaded;and three aforementionedareasoffocus Competition, whichinvestigatesanycomplaintsaboutthe Establishment oftheAuthorityforProtection Supervision ofmergersandacquisitions; Prevent theabuseofdominantmarketpositions; Free tradeandfaircompetition; • • • • • • maximum ofthreeyears. and suspensionoftheproductsfrommarketfora confiscation ofgoods,adoublefineforrepeatedoffences, include (Articles19to22,LawNo.10of2007):fines, Criminal penaltiesassociatedwithviolationofthislaw Penalties • as prohibitive: Law No.10of2007).Thefollowingpracticesareregarded engaging infurtherpracticesthatlimitcompetition(Article4, more than35%ofthemarketshareisalsoprohibitedfrom the marketpriceofaproductorservicethroughcontrol Any naturalorartificialpersonwhoiscapableofinfluencing the intention Selling productsatapricelowerthantheiractualcostwith Concealing goodsandservicesavailableinthemarket; commercial activityinthemarket; Preventing orimpedingapersonfrompractisingany an artificialmarketpricewhichaffectsothercompetitors; Creating asuddenabundanceoftheproduct,resultingin without justification; goods byconcealingorwithholdingtherelevant Totally orpartiallycontrollingthefreedomofflow to competition; decreasing, orfixingpricesbyanyothermeansharmful Limiting thefreeflowofgoodsorservicesbyincreasing, distribution ormarketingprocess. Totally orpartiallysuspendingthemanufacturing, of causing harm tocompeting of causing producers; and producers; Source: www.e.gov.kw terms (Article42). for fiveyearsandrenewabletwoadditionalconsecutive Department (Articles36and37).Theregistrationisvalid registration needstobesubmittedtheTrademarkControl Industrial Designs&ModelsRegisterandanapplicationfor Similarly, industrialdesignsmustberegisteredinthe be renewedforanadditionalfiveyearterm(Article12). date oftheapplication(Articles10and12).Thepatentmay right tousethatpatentbyanymeansfor15yearsfromthe Once registered,theownerofpatentisvestedwith • • • to: For patentstobeeligibleforregisteringtheinventionsneed patents inKuwait(Article5). as companiesandotherjuristicpersonalities,toregister in countrieswhichprovideKuwaitreciprocity,aswell The lawpermitsforeignerswhoarenationalsoforlive Ministry ofCommerceIndustry(Article4). Patents OfficeattheTrademarkControlDepartmentof Patent protectionisobtainedthroughregisteringwiththe Patents (1962). intellectual properties,whicharegovernedbyLawNo.(4)of acknowledges thenecessitytosupportandprotect Kuwait aimstodevelopaknowledgesociety,andhence Property Rights(TRIPS)agreement. (WTO), andsignedtheTradeRelatedAspectsofIntellectual Kuwait isamemberoftheWorldTradeOrganization Intellectual property rights methods. Be newapplicationsofexistingindustrialprocessesor Relate tonewindustrialprocesses/methods;or Relate tonewindustrialproducts;or • • 20 and50years,dependingonthekindofcopyright. The periodofcopyrightprotectiontypicallyrangesbetween • Copyrights fornon-Kuwaitisarelimitedtothefollowing: for copyrightinfringement. which providescopyrightprotectionanddefinespenalties Copyrights inKuwaitaregovernedbyLawNo.(64)of(1999) Copyrights years accordingArticle(77)oftheLaw. application isapproved.Itmayberenewedforanother10 The trademarkwillbeprotectedfor10years,assoonthe registration ofhistrademarkattheRegisterTrademarks. According toArticle(64),anypersonmayapplyforthe (1980) asamendedbyLawNo.1of2001. governed bytheCommercialCode,whichisLawNo.(68)of Trademark registrationandpenaltiesforinfringementare Trademarks countries; and provided thattheirworksarepublishedinanyofthose the ArabAgreementforProtectionofAuthor’sRights, Works ofArabauthors,whoarecitizensanycountry Works thatarepublishedforthefirsttimeinKuwait. states. their worksarepublishedforthefirsttimeinoneofthose the WorldIntellectualPropertyOrganization,providedthat Works ofauthors,whoarecitizensmemberstates Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 82 83 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Source: EIU,www.bryancave.com • • • • • following: protection. ThemainobjectivesoftheKEPAare necessary activitiesandfunctionstoensureenvironmental Public Authority(KEPA),withtheaimtocarryoutall the lawNo.16/1996toestablishKuwaitEnvironment In 1995,thelawNo.21/1995wasissuedandamendedby Kuwait Environment PublicAuthority Environmental protection law affairs. and internationalconventionsrelatedtoenvironmental Study andreviewaccessiontoratificationofregional society asawhole;and sustainable developmentoftheenvironmentand Set andimplementstrategiesactionplanstoensure safety, protectionanddevelopment; and promulgateregulationstoensureenvironmental organizations todraftlaws,setenvironmentalstandards, Cooperate andcoordinateactionswithallrelevant Combat andcontrolenvironmentalpollution; safeguard theenvironment; Set andimplementstrategies,policiesplansto resident companiesneedtocomplywith. areas. Industrialareasmayhavefurtherregulations,which Industrial areasaregenerallyseparatedfromresidential may notonlyfaceajailterm,butalsoseizureoftheirassets. have tocarryoutremedialactionattheirownexpenseand particular groundwater,areevenmoresevere.Offenders Regulations regardingthepollutionofnaturalresources,in damages athisexpense. of uptothreeyears.Thepolluterisalsoobligedrectify face finesofuptoUSD35,600(KD10,000)orajailterm that violatesenvironmentalstandards,andoffendersmay The KEPAhasthepowertosuspendworkonanyproject environmental impactassessmentmonitoredbytheKEPA. if itperceivesnecessary,newprojectsneedtoundergoan Kuwait’s Municipalityscreensalllicensingprocesses,and some provisionsofthatlawthroughLawNo.992015. environmental protectionLawNo.42of2014andamended record keepingandreporting. requirements, aswellnewstandardsforenvironmental emission limits,settingnewoperatingstandardsand March 2012,withtheprimaryfocusondefiningnew The KEPAissuedsomerevisedairqualityregulationson New andrevisedairqualityregulation which willbesignedandratifiedglobally. taken onDecember2015underPOC21orCMP11and 2005 andagreedonParisGlobalEnvironmentAgreement Kuwait isasignatoryofKyotoProtocolonenvironmentin Kuwaithasadoptedanew 31
transaction projects. cooperation, monetaryinvestment andcompensatory (public andprivate),fieldsof international economic assumes supervisiononthepublic treasury,statedomains The MOFisresponsibleforKuwait’s publicfinance.It Source: KuwaitDirect InvestmentPromotionAuthoritywebsite Ministry ofFinance(MOF) Ministry ofCommunications(MOC) Ministry ofPublicWorks (MPW) Industry (KCCI) Kuwait ChamberofCommerce and (MOCI) Ministry ofCommerce andIndustry Public AuthorityforIndustry(PAI) counseling andbusinessnetworkingservices. participation ofpromotionaleventsandexhibitions,business business andmanufacturingopportunities,organization development throughtheidentificationandpromotionof The KCCIplaysanactiveroleintheeconomicandindustrial commercial registration. research andpolicyrelatedadvisory,promotionalevents development, includingthecollectionofinformation, The MOCIperformsanumberoftasksrelatedtoindustrial national incomesources. national andnutritionalsecurity,aswelldiversifying and expandingtheproductionbaseofgoodsrequiredfor objectives includeencouraginglocalindustries,protecting and supervisingindustrialactivityinKuwait.PAI’skey The PAIisthecentralbodyfordeveloping,promoting APPENDIX 6: Main Stakeholders services inKuwait. functioning oftelephone,postal,wirelessandcommercial The MinistryofCommunicationsisresponsibleforthe cost housing. It alsopursuesprojectsbasedonpublicneedsuchaslow of Kuwait’sinfrastructureincludingroads,portsandairports. MPW isresponsibleforthedevelopmentandmaintenance Established throughtheWorksDepartmentin1945, and Governmentalorganizations. also executesalldecisionsissued fromKuwait’sministries established inKuwait,which handles allcustomswork,and KGAC isoneofthefirstGovernmental departments (KGAC) Kuwait GeneralAdministrationofCustoms industrial andeconomicdevelopmentofthecountry. demand fortechnicalskilledemployees,drivenbythe developing andupgradingmanpowertomeetthegrowing PAAET hasbeenestablished,withtheobjectiveof Ministry ofElectricityandW Kuwait PortAuthority(KPA) facilities. (commercial maritime),andundertakesinitiativestoupgrade operating Kuwait’sShuwaikh,DohaandShuaibaports KPA operatesonacommercialbasis,managingand supply. meet Kuwait’sincreasingdemandforelectricityandwater desalination, licensingandinfrastructuredevelopmentto generation, theirtransmissionanddistribution,water across thecountry.Itsprincipalactivitiesincludepower MEW isresponsiblefortheprovisionofpowerandwater information technology,media,anddesign. sector. TheFundiscomprisedoffourhubs-manufacturing, productive jobsforKuwaitiprofessionalsintheprivate Development wasestablishedtosupportthecreationof Law No.98/2013,theKuwaitNationalFundforSMEs Established undertheSmallandMediumEnterprises (KNF) Kuwait NationalFundforSMEsDevelopment services toaddressthehealthcareneedsofresidents. healthcare system,alongwithprovidinghealthrelated MOH isresponsiblefordesigningandgoverningKuwait’s Ministry ofHealth(MOH) and Training (PAAET) Public AuthorityforAppliedEducational ater (MEW) Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 84 85 Investing in Kuwait: A guide for Investment Opportunities in Kuwait exploitation ofnaturalresources. regulates industrialandbuildingexpansion,includingthe defining environmentalandemployeehealthstandards, development inKuwait.Theauthorityisalsoresponsiblefor as strategieswiththepurposetoachieveasustainable public policyfortheprotectionofenvironment,aswell KEPA hasbeeninstitutedforinstitutingandapplying Kuwait Environment PublicAuthority(KEPA) Assembly fordiscussionandapproval. plans forKuwait,whicharethenforwardedtotheNational This Governmentbodyfocusesoncreatingdevelopment Planning &Development General Secretariat ofSupreme Council for controlling thebankingsysteminKuwait. progress, assistingthegrowthofnationalincome,and directing ofcreditpolicytoassistsocialandeconomic objectives includetheissuanceofKuwaitiDinar, monetary financialsysteminKuwait.TheCBK’smain The CBKofKuwaitaimstomaintainaflexibleandstable Central BankofKuwait(CBK) like BP,CitibankandDaimler. under management,withprominentstakesincompanies KIA hascurrentlyaroundUSD290billionworthofassets Minister ofFinance,forandonbehalftheStateKuwait. Fund (FGF),aswellanyotherfundsentrustedtoitbythe General ReserveFund(GRF)andtheFutureGenerations oversees themanagementandadministrationof The KIAisanautonomoussovereignwealthfund,which Kuwait InvestmentAuthority(KIA) required educational,religiousandsocialservices. citizens, aswellexpatriates,alongwithprovidingall providing housingandsettlementstoaccommodateKuwaiti The PublicAuthorityforHousingWelfareisresponsible Public AuthorityforHousingWelfare (PAHW) related safetystandards. and meteorology,includingthesupervisionofcivilaviation for internationalairnavigation,suchastelecommunications of aviationrelatedfacilities,providingnecessaryservices furthermore supervisestheconstructionandmaintenance operation ofKuwaitInternationalAirport.Theauthority The GDCAoverseesthemanagement,supervisionand Directorate GeneralofCivilAviation (DGCA) Source: Sovereign Wealth FundInstitute,KuwaitDirectInvestment PromotionAuthoritywebsite with theentitytowhichproject isaffiliated. the projectsandhelpovercomeobstaclesincollaboration performance ofprojects,followuptheimplementation determine methodsforfollowingupandevaluatingthe studies andproviderecommendationsforpotentialprojects, and studies,evaluateeconomictechnicalfeasibility KAPP assiststheGovernmenttocarryoutinitialsurveys various megaprojectsinKuwaitthroughthePPProute. bodies andtheGovernmentforimplementationof objective ofprovidingassistancetothevariouspublic known as“PartnershipsTechnicalBureau)withthe The KuwaitiGovernmentestablishedtheKAPP(formerly (KAPP) Kuwait Authority For Partnership Projects Projects inKuwaitandthelocalregion. and DirectInvestmentstoinitiatestimulateTechnology investment toolssuchasPrivateEquity,VentureCapital of aTechnologyProjectsDevelopmentcompanyutilizing with theirtechnologyneeds.NTEC’sbusinessmodelisthat play avitalroleinservicingmajorstakeholdersKuwait the KuwaitInvestmentAuthority(KIA)andwascreatedto Established in2002,NTECisafullyownedsubsidiaryof (NTEC) The NationalTechnology EnterprisesCompany oil companiesworkinginthecountry. Petroleum Corporation,theaffiliatedcompanies,foreign companies, programsandactivitiesrepresentedbyKuwait oil Oversight andcontrolovertheoilsectorplansrelated Ministry ofOil(MOO) efficiency andfairness. increasing foreignparticipationthroughbettertransparency, enhancing marketperformance,investorprotectionand and securitiesbusinessinKuwaitisresponsiblefor The CapitalMarketsAuthorityregulatescapitalmarkets Capital MarketsAuthority(CMA) related toinformation,broadcastingandpressmedia. formulation andadministrationofrules,regulationslaws The MinistryofInformationisresponsibleforthe Ministry ofInformation(MOI) security matters,aswellsocialandculturalpromotions. other countries,suchaspoliticalrelations,economicaffairs, responsibility toconductKuwait’sforeignrelationswith The MinistryofForeignAffairsbearsthemandateand Ministry ofForeign Affairs (MOFA) Useful addresses Directorate General Ministry Kuwait Customs Kuwait Ministry Ministry Development Kuwait National Industry Kuwait Central Kuwait Investment Ministry Public Authority Authority Kuwait Name of Port Authority General Administration of Chamber of Commerce & Direct Investment Promotion Bank of Kuwait entity of Public Works of Electricity and Water of Finance of Commerce & Industry for Industry Fund for SMEs Authority of Civil Aviation Kuwait City Safat 13001 Al Assimah, P.O. Box 12 13001 P.O .Box 17 Safat - Postal Kuwait Airport Kuwait. 6th Ring Road Ministries Ministry Safat 13001 - Kuwait Postal Shuwaikh, Gamel South Ministry PO Box 9 Safat 13001, Ministries Complex, 9th Street, Shuhada Sharq, Tower, Floor, Global Safat 13008 Kuwait Ali Salem Street P.O.Box. 775 Kuwait P.O. Box 526 - Safat - 13006 Salem Al Mubarek Street, Kuwait P.O. Box. 64, 13001 Ministries Complex, Kuwait P.O. Box 2944 - Safat - 13030 Block 1/ 2 Ministries Complex, 6th Ring Road, Ministries Public Authority Abdulaziz AlSaqrStreet,Sharq Al Address Kuwait Ports P.O Nasser StreetShuwaikh Area 3874, Kuwait Hamra Business Tower, .
Box Al Sourra Street, State Code M.B 16 Kuwait
City
3690 of Public Works Building of Electricity and Water of Kuwait Authority BuildingJamal
Safat for Industry Building Abdul Nasser Str. 13037, Safat, AlMurqab AlMurqab, AlMurqab, Kuwait Ministries Area Floor Cose Area. 4690, Kuwait Kuwait City, Kuwait 44, South Surra 8. Building City Area Kuwait Kuwait Abdul Website: www.dgca.gov.kw Fax: Tel :24319829 www.cbk.gov.kw 2402715 +965 Fax: 1814444 +965 Tel: www.kia.gov.kw 22454059 +965 Fax: 22485600 +965 Tel: Email: Fax:+965 Tel: +965 22415563 www.pai.gov.kw 2190 530 2 +965 Fax: 2222 2530 +965 Tel: Contact Website: www.kpa.gov.kw Fax: Telephone: NA www.kuwaitchamber.org.kw E-mail: Fax: Tel: +965 2433854/5 Website: Email: Fax:+965 2224 Tel: Website: http://www.mew.gov.kw/en/ 2537-1422 Fax: Tel: +965 2537-1000 Website: www.customs.gov.kw Fax: Tel: 24843490(965) http://en.mof.gov.kw Email: Tel: +965 2480000 www.mpw.gov.kw E-mail: Fax: Tel: +965 2538 5530 +965 24744396 +965 4819714 +965 2404110/2460693 +965 2537-1420, +965 2537-1421, (965)24838056 +965 2538 0829 [email protected] [email protected] [email protected] Website: details [email protected] pr@ mpw.gov.kw Website: 22420207 http://www.KDIPA.com.kw 2205 4050 +965 4812622, +965 0735 Appendices 4812712 +965
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 86 87 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Enterprises The National Technology Public Authority Council General Secretariat Kuwait Environment Public Ministry Ministry Ministry Ministry Education and The Public Projects Kuwait AuthorityforPartnership Name of entity for Planning & Development of Information of Foreign Affairs of Health of Communications Authority Company Training for Housing Welfare of Supreme for Applied Authority 13023 Building Kuwait Chamber of Commerce & Industry Serra Public Authority Kuwait P.O Box 15 Safat – Postal Next to the Grand Mosque Sharq Kuwait P.O. Box 193 - Safat - 13002 Salhiya, Arabian Area 5. Kuwait Abdul Ministry Shuwaikh Jamal Ministry P.O Box 23167 - Safat Code 13092, Kuwait Adailiya Address Al-Jahra Street 2nd Floor, Al-Shuwaikh Administrative Zone, Touristic Enterprises Company Kuwait Authority for Partnership Projects P.O. Box Abdul Kuwait Port StreetMinistries – Arabian Gulf Street – Nasser Street, Al Solaibeykhat Nasser Street , Shuwaikh Kuwait Abdul Nasser Street Gulf St Kuwait City, Kuwait Al Soor Street, Media Complex - 8th Floor, P.O.Box – Block 4 Opp. Third Ring Road 243950 of Health of Communications Complex , 318. Kuwait Authority Building, Housing Welfare Building Al . Safat (13104), Kuwait Building Area, 23385, Kuwait Code JJamal 2294 Building, 130001 Jamal Safat - www.moh.gov.kw/ Email: Fax: Tel: +965 4 862541 http://www.ptb.gov.kw/ Website: Fax: Tel: www.epa.org.kw Website: Tel: +965 2483 9971 Contact details www.scpd.gov.kw Website: Fax: Tel: + 965 22428200 Website: www.ntec.com.kw Fax: Tel: +965 2223 0300 Website: www.media.gov.kw Fax: 2464460 Tel: 2431682 Website: http://www.paaet.edu.kw Fax: Tel: +965 1806611 www.mofa.gov.kw Fax: Tel: + 965 2242 2041 www.moc.kw +965 24814448 Website: Tel: +965 24840606 www.housing.gov.kw Fax: Tel: + 965 2530-1000 +965 +965 4 863714 +965 +965 22427588 +965 2259 8572 +965 22528915 + 965 245 7476 Website : +965 2538-7464 [email protected] Website: 2496 2496 5901 - Tlx : 46151 5900 Fax: Website: APPENDIX 7: Glossary KAPP GDP GCC GAFTA F FM FDI FCIC ETFs EPA EIA EFTA DSA DGCA DFCIL DCC CMA CIF CBK bpd BOT Bn BFSI B2C B2B AUM AM ADR KIC KIA KDIPA KFH KEPA KD KCCI KAC IWPP IPO IMF ILO HRC HNWI GLA GIC GHG T A Kuwait Authority for Partnership Projects Build Billion Banking Financial Services Business-to-consumer Business-to-business Assets Under Management Asset Management Average Daily Rate Kuwait Insurance Company Kuwait International Airport Kuwait Direct Kuwait Finance House Kuwait Environment Kuwait Dinar Kuwait Chamber of Commerce & Industry Kuwait Airways Corporation Integrated Initial public International Monetary International Labor Human Rights Committee High Net-Worth Individuals Gross Leasable Area Gulf Insurance Company Green House Gases Gross Domestic Product Gulf Cooperation Council Greater Arab Free Trade Area Free Trade Agreement Facilities Foreign Foreign Capital Investment Exchange Environment Public Energy Information European Free Direct Sales Agents Directorate General Direct Foreign Digital Capital Cost, insurance Central barrels Operate Transfer Content Creation per day Markets Authority Bank of Kuwait Direct Investment Management Traded Funds Water and Power Plants offering Investment Promotion Capital Investment Trade Association and Organization Administration Authority freight of Civil Aviation Public Fund Insurance Committee Authority Law Authority Mn MOPW MOH MOFA LEED KUCAS MoC MOCI MEW MENA MCI KSA KUCAS KSA KSE KPC WTO WIC USD UNEP UN TRIPS TIR TIFA TEU TER sqm SCP P PPP PM PJSC PET PE PAI PAAET OPEC OPD OIC NTEC NPL NOC NLST MW T A Million Ministry Ministry Ministry Leadership in Kuwait Conformity Ministry Ministry Ministry Middle Ministry Kingdom Kuwait Conformity Kingdom Kuwait Stock Exchange World Trade Organization Warba Insurance Company United United United Trade Related Technical Trade and Twenty-foot Technical Square Supreme Council Purified terephthalic Public Private Property Public joint Polyethylene Private Public Authority Public Authority Organization of Petroleum Exporting Out Patient Department Organization of National Non-performing No Objection Certificate National Labor Mega Watt Kuwait Petroleum Corporation States Dollar Nations Environmental Program Nations Equity East and North Africa meter Management of Public Works of Health of Foreign Affairs of Communications of Commerce and Industry of energy and water of Commerce & Industry Technology of Saudi Arabia of Saudi Arabia Inspection Evaluation Investment Framework stock company Equivalent terephthalate Energy and Partnership Aspects Support Tax the Islamic Conference for Industry for Applied loan for Privatization Assurance Assurance acid Report Report Enterprises of Intellectual Property Rights Unit Environmental Education and Scheme Scheme
Appendices Company Agreement Countries Design Training
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 88 89 Investing in Kuwait: A guide for Investment Opportunities in Kuwait Japan Ethiopia Egypt Denmark Czech Republic Croatia China Bulgaria Bosnia and Herzegovina Belgium-Luxembourg Belarus Austria Armenia France Finland Poland Netherlands Morocco Mongolia Moldova, Republic of Malta Mauritius Macedonia, The former Yugoslav Republic of Lithuania Lebanon Latvia Italy Iraq India Hungary Hong Kong, China SAR Germany Portugal Serbia Russian Federation Romania Canada Iran Source: UNCTAD Treaties APPENDIX 8: Kuwait’s Bilateral Investment Country signature Date of 10-May-10 29-May-01 21-May-91 22-Mar-12 10-Mar-96 30-Mar-94 15-Mar-98 29-Mar-02 23-Nov-85 16-Nov-96 17-Dec-87 27-Nov-01 21-Nov-94 14-Sep-96 28-Sep-00 27-Sep-89 17-Jun-97 13-Jun-01 25-Jun-10 21-Jan-01 19-Jan-04 26-Sep-09 17-Apr-01 18-Apr-13 16-Feb-99 19-Apr-95 25-Oct-64 13-Feb-06 8-Mar-97 10-Jul-01 5-Mar-90 23-Jul-07 8-Nov-89 1-Jun-01 8-Jan-96 5-Jun-01 8-Apr-08 5-Oct-01 Date of entry into force 24-Jan-14 21-May-97 31-May-02 21-May-90 16-May-91 30-May-96 28-May-11 14-Mar-11 21-Mar-04 24-Dec-86 23-Dec-02 12-Nov-98 15-Nov-97 18-Dec-93 16-Sep-98 22-Sep-98 14-Sep-13 29-Jan-02 21-Jan-97 14-Jun-03 24-Jul-14 25-Jun-96 15-Jan-03 28-Jun-03 19-Feb-14 26-Apr-02 19-Apr-02 7-May-01 1-May-00 1-Mar-94 26-Jul-92 8-Dec-03 2-Nov-11 4-Sep-13 7-Jun-66 6-Apr-04 1-Apr-05 2-Jul-98 Uzbekistan Ukraine Turkey Tajikistan Syrian Arab Republic Switzerland Sweden Spain Slovenia Singapore Country signature Date of 16-Aug-01 19-Jan-04 12-Jan-02 18-Apr-95 26-Apr-02 27- 31-Oct-98 7-Nov-99 5-Nov-09 8-Sep-05 May - 10 Date of entry into force 10-May-02 23-Mar-04 17-Dec-00 11-Jun-13 12-Jun-98 08 15-Apr-13 6-Mar-06 8-Mar-08 28-Jul-04 - May - 13 Source: www.ibfd.org Hungary Bosnia &Herzevogina Benin Azerbaijan Austria Armenia Algeria Djibouti Malaysia Lebanon Latvia Korea (Rep.) Jordan Japan Italy Ireland Iran Indonesia India Hong Kong Greece Germany France Ethiopia Egypt Denmark Czech Republic Cyprus Croatia China (People's Rep.) Canada Bulgaria Brunei Belgium Belarus Albania Agreements APPENDIX 9: Kuwait’s Double Taxation Countries Thailand Zimbabwe Yemen Vietnam Venezuela Uzbekistan United Kingdom Ukraine Turkey Tunisia Syria Switzerland Sudan Sri Lanka Spain South Africa Slovenia Slovak Republic Singapore Seychelles Russia Romania Portugal Poland Philippines Pakistan Netherlands Morocco Moldova Mauritius Malta Serbia andMontenegro Senegal Tajikistan Appendices
Investing in Kuwait: A guide for Investment Opportunities in Kuwait 90 Kuwait Direct Investment Promotion
Authority This Investment Guide (“Guide”) has been prepared by KPMG Advisory W.L.L., Kuwait (“KPMG”) on behalf of the Kuwait Direct Investment Promotion Authority (“KDIPA”) for the sole purpose of giving investors an overview of investment opportunities in Al Hamra Business Tower, 44th Floor, Kuwait. The name and logos used are the respective trademarks of KDIPA and KPMG International, a Swiss cooperative. Abdulaziz Al Saqr Street, Sharq This Guide is intended for general guidance on matters of interest only, and does not purport to be all-inclusive nor to contain all the information that a prospective investor may require in deciding whether or not to invest in Kuwait. The Guide does not take P.O. Box 3690 Safat 13037, into account the specific purpose of any reader and is not intended to replace the need for professional advice. Before acting or relying on any information contained in the Guide, readers should consider whether it is appropriate for their circumstances with State of Kuwait regard to their objectives or requirements. Whilst every effort has been made to ensure the accuracy and completeness of the material in this Guide, KDIPA, KPMG and the Government of Kuwait give no warranty in that regard and accept no liability for any loss or damage incurred by using or relying on Tel. : +965 2205 4050 this Report or the information contained herein. Readers of this Guide are cautioned to carry out an in-depth research and obtain Fax : +965 2224 0735 professional advice prior to placing any reliance whatsoever on the information presented in this Report. This Guide does not constitute an offer or invitation for the sale or purchase of securities or any of the businesses or assets Email:[email protected] described herein or to invest any named sector and does not constitute any form of commitment or recommendation on the part of KDIPA or KPMG. The views expressed in this Report do not necessarily represent those of KDIPA, KPMG or the Government of Kuwait. www.KDIPA.com.kw RRD-280819