Why Kuwait?

  • Strategic Location:

    Kuwait is a sovereign Arab nation situated in the north-east of the Arabian Peninsula in western Asia, It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Arabian Gulf.

  • 2nd Most Free Economy in the region:

    Kuwait has the second-most free economy in the Middle East.

  • 4th Richest Country in the world:

    Kuwait is the in terms of per capita income.

  • West European practice:

    The rules of commerce are in general similar to West European practice.

  • No Prejudice:

    The Kuwaiti Constitution states that Islam is the main, official religion of Kuwait. Islam and the Islamic Sharia (Islamic law) are the main sources of the Kuwaiti Laws and Legislations. Most of the Kuwaiti population embraces Islam. Majority of the Kuwaiti Muslims are Sunnis and the rest are Shia'a. Adherents of other religions are given the complete freedom to practice their own rituals provided that provided that no prejudice may occur against Islam. Christian families practice their own religious rituals with complete freedom in the churches found in Kuwait. This freedom is endorsed by the Kuwaiti government, a matter which enhances the coherence and interdependence of the nation.

  • Press Freedom:

    Kuwait is one country in the Middle East that encourages press freedom as a matter of fact; the country is ranked as having the freest press in the whole of the Middle East region.

  • 2nd Largest Stock Exchange in the Middle East:

    Kuwait can also boast of having the second largest stock exchange in the whole of the Middle East and the oldest sovereign wealth fund (Kuwait Investment Authority – KIA) in the whole of the world, it was established in 1953.


to enter the Kuwaiti Market?

  1. Establishment of a company

  2. Appointment of a local commercial agent & distributor

  3. Appointment of a commercial representative

  4. Entering into a joint venture agreement

  • You must have a good knowledge of the region.

  • Be prepared to undertake extensive research into the business sector you aim to operate within.

  • You must have a viable business plan, which includes a study of the market conditions, the competition and your forecast results.

  • You must be prepared to find the necessary investment from your own resources or through your bank and preferably by other means than applying locally, particularly if you’re new to the region and without a track record.

  • A credible plan might attract local support, possibly government support

Important Notes

  • A foreign company cannot establish a branch in Kuwait and it may not engage in commercial activities in Kuwait except through a Kuwaiti agent.

  • Non-Kuwaitis cannot engage in commerce in Kuwait without having a Kuwaiti partner whose equity holding is at least 51 percent.

  • B.O.T.

  • Tender Regulations & Procedures

  • Tax System

  • Offset Program

  • Labor & Industrial Relations

  • Corporate Governance

  • Shareholding Companies & IPO

  •  Custom Duties & Tariffs, Import and Export

  • Intellectual Property Laws in Kuwait


There is no personal income tax system prevail in Kuwait either on salaries or on income from business activities. Moreover there are no other taxes of any consequence, such as sales or value added taxes, property taxes etc.


Foreign Direct Investment F.D.I

Foreign Direct Investment (FDI) Law allowing for 100% foreign ownership in a number of sectors, though only as approved by the Council of Ministers.

These business activities include the following:

  • Industries except for enterprises related to Oil or Gas exploration or production.

  • Construction, operation and management of Infrastructure enterprises in the fields of water, power, drainage and communications.

  • Banks, Investment Corporations and Foreign Exchange Companies which the Central Bank of Kuwait may agree to incorporate.

  • Insurance companies which the Ministry of Commerce & Industry agrees to incorporate.

  • Information Technologies and Software Development.

  • Hospital and Medicines manufacturing.

  • Land, sea and air transport.

  • Tourism, hotels and entertainment.

  • Culture, information and marketing except for issuance of newspapers and magazines and opening of publishing houses.

  • Integrated housing projects and zone development except for real estate speculation.

  • Real estate investment through foreign investor subscription to the Kuwaiti shareholding companies as per the provisions of law No. 20/2002.

The privileges 

that are offered to foreign investors

  • Total or partial exemption from other export and import restrictions.

  • Allocation of land and real estate.

  • Total or partial exemption from customs duties on import of specified terms such as equipment, machinery, spare parts, raw materials, semi manufactured goods, packaging materials etc.

  • Tax exemptions for a maximum period of ten years.

  • Benefits arising under double taxation treaties and encouragement and protection of investment.

A) Incorporating different forms of business:

  • Limited Partnership

  • Closed Shareholding Company

  • Company with Limited Liability

  • Partnership Limited by Shares

  • Joint Venture

  • Partnership

  • Sole Proprietorship

B) The agency business in Kuwait:

  • Contract Agency Agreement.

  • Distributorship Agency Agreement.

  • Commission Agency Agreement.

  • Commercial Representation.

C) Direct Investment:

Direct Investments are those that provide an investor with a significant degree of influence on the operation and management of a targeted enterprise.

© 2017 by Investment In Kuwait.