Law No. 116 of 2013 regarding the promotion of direct investment in the State of Kuwait, aims to both local and foreign investors alike. As of encouraging foreign investors, this law allows foreign investors to obtain an ownership up to 100% through the establishment of a Kuwaiti company within the types of companies according to Companies Law No. 1/2016, whether it is a Joint Stock Company, a Limited Liability Company or a Single Person Company.
Kindly visit the Investment Licensing Procedures page to view the steps and procedures.
Kuwait Direct Investment Promotion Authority grant the investor all or some of the Incentives and exemptions that are set under the Law No.116 of 2013 on the promotion of direct investment in the State of Kuwait which Includes:
- Exemption from income tax or any other taxes for a period of no more than ten years of the actual operation date of the licensed entity.
- Total or partial exemption from taxes and customs duties or other charges that may be due on the imports that are necessary for the purpose of direct investment, including raw materials , manufactured goods, in part, and packaging materials , packaging , machines, tools, equipment and means of transport , spare parts and maintenance requirements and intermediate goods
- utilization of land and real estate that is allocated to KDIPA or subject to supervision or management in accordance with the principles and rules in this regards.
- The use of foreign labor needed for investment, in accordance to the rules and regulations in this regards.
Based on the Law No. 116 of 2013 on the promotion of direct investment in the State of Kuwait, to grant incentives and exemptions from KDIPA, and the amount, type and duration and in accordance with all or some of the following criteria:
- Transfer of modern technology and advanced management methods of technical and marketing expertise.
- The quantity and the quality of products and services of the project.
- Local market needs.
- Economic diversification.
- Increase in national exports.
- Creating job opportunities and training for national labor.
- Contribution to the development of areas that lack projects or similar activities.
- Positive environmental impact·
- Providing services to the community outside the framework of the project.
- Use of national products.
- Use of local technical, professional and consulting services.
The investor may invest in all economical activities in Kuwait under Law No.116 of 2013 except for the activities stated in the Council of Ministers Decision No.75 of 2015 which includes:
1. Extraction of crude petroleum (Class 0610)
2. Extraction of natural gas (Class 0620)
3. Manufacture of coke oven products (Class 1910)
4. Manufacture of fertilizers and nitrogen compounds (Class 2012)
5. Manufacture of gas; distribution of gaseous fuels through mains (Class 3520)
6. Real Estate (Level L), excluding privately operated building development projects
7. Security and investigation activities (Division 80)
8. Public administration and defense; compulsory social security (Level O)
9. Activities of membership organizations (Division 94)
10. Activities of hiring labor including domestic labor
Law 116 of 2013 permits foreign investors to benefit of the usage of land and real estate allocated and managed by KDIPA, however, this law does not allow a foreigner to own land or real estate in the State of Kuwait, due to the provisions of Article (8) of the Decree Law No. 74 of 1979 in regards to foreign real estate ownership.
Shareholding companies that have foreign shareholders and is not among its purpose to deal in real estate, has the right to own real estate or land for the purpose of the company if a decree was issued in its regard.
Law No. 116 of 2013 does not apply a minimum value for investment projects. Project approvals depends on the extent of how the investment fulfills KDIPA’s criteria’s and meets KDIPA’s goals, rules and regulations.
Law No. 116 of 2013 regarding the promotion of direct investment in the State of Kuwait provides a number of guarantees to the investment entity which includes:
• No investment entity shall be confiscated nor be deprived of its property except in the public interest and only in accordance with the applicable laws and against compensation equivalent to the true economic value of the expropriated project at the time of expropriation, estimated in accordance with the economic situation prior to any threat of expropriation.
• The Investor shall have the right to transfer abroad his profits, capital or proceeds resulting from the disposal over his shares or participation in the Investment Entity or the compensation set forth in this Law. Moreover, employees in the Investment Entity shall have the right to transfer their savings and entitlements abroad.
• The right to transfer or relinquish the ownership of the licensed Investment Entity, or dispose over it in whole or in part, for the benefit of a foreign or a Kuwaiti investor.
• The Investor is entitled to the basic principles of confidentiality in respect of the technical, economic and financial information relevant to his investment and to safeguard initiatives.
• Taking advantage of all international agreements and conventions in force in the country related to investments and benefiting of the avoidance of double taxation.
Local investors, natural or juridical persons, as well as foreign investors alike, may invest in the available economic activities and enjoy the benefits of exemptions and guarantees granted in the provisions of this law.
Yes, there are fees for the services provided by KDIPA according to the approved fees list.
Stated Fees Schedule for Services Rendered by Kuwait Direct Investment Promotion Authority (KDIPA) according to Ministerial Decision No. (503) of 2014
|No.||Service||Fee in Kuwaiti Dinar|
|1||License application for a Kuwaiti company|
|2||License application for a foreign company branch|
|3||License application for a representative office of a foreign company|
|4||Application for Incentives & Exemptions|
|5||Application for modifying the investment entity|
|6||Issuance of the investment license|
|7||Renewal of the investment license|
|8||Replacing Lost/damaged investment license|
|9||Offprint (copy) of the investment license|
|10||Issuing the customs exemption certificate|
|11||Modifying the customs exemption certificate|
|12||Renewal of the customs exemption certificate|
|13||Replacing Lost/damaged customs exemption certificate|
|14||Certificate of record in the investment register|
|15||Replacing Lost/damaged certificate of record in the investment register|
|16||Offprint (copy) of certificate of record in the investment register|
|17||Reference in the investment register|
|18||Cancellation or deletion of record in the investment register|
|19||Certificate conferring the cancellation or deletion of record in the investment register|
|20||Other off prints (copies) and certificates|
In accordance to clause (1 ) of Article 12 of Law No. 116 of 2013 all investment entities that are licensed where ( a limited liability company – one person company – a contribution ) are considered Kuwaiti companies and then they can register and participate in the government tenders without a Kuwaiti agent and would have to these entities to register with the Central Tenders Committee in accordance with the provisions of the public Tenders Law No. 49 of 2016.
Investment Entities (branches of foreign companies) which are licensed in accordance with the provisions of subsection (2 ) of Article (12 ) of Law 116 of 2013. May register and participate on the government tenders if they have a partner or a Kuwaiti agent under a formal contract duly authenticated by a notary
A- Kuwaiti company a license application form with the granting of the advantages
B- license branch of a foreign company with a request to grant.