Why investment in Kuwait?

• Unique and strategic location.
• World class infrastructure and communications.
• Qualified and competitive human resources.
• International aggreements accessing a market of one billion customers.
• Free zones and industrial estates.
• World wide investment opportunity.
• Strong economy.
• Economical freedom incompliance with constitution.

Kuwait, in view of its distinctive geographical location, was the meeting point of the civilizations of the old world and recorded along its long history sacrifice and dignity attitudes to keep its lands and heritage safe.

Kuwait is a country of safety and security as there are no internal disputes or fronts arising seditions and wars as the relation between the ruler and the citizens is close and strong.

Governance in Kuwait is considered a hereditary one from the offspring of the forgiven Sheikh Mubarak Al-Sabah. The State of Kuwait has got familiar with consultation (Mashoura) system as a basis of governance since 1920 when the first Consultative Council was established in the Gulf and Arabian Peninsula area. This Council was a historical indicator to a serious attempt to create a democratic atmosphere till the modern parliamentary life started in 1961 through electing members for the Constituent Council who laid out the Country Constitution. There are constitutional texts provided for segregation of authorities as the existence of the executive, judicial and legislative authority in Kuwait does not mean the independence of each of them, but this means that each of them moves in a specific orbit with full freedom and that they, at last, integrate with each other in order to run the society in a sound democratic way.

The Kuwaiti Political Society has been acquainted with modes of governance that drew it bit by bit near the democratic system. Since the beginning of the formation of the Kuwaiti Political Society, and the settlement of the rule with the family of Al-Sabah, the rulers adopted the consultation system for the elites of this community as the modern democratic community is based on a political participation and a constitution that determines the relation between the ruler and the citizens as well as the powers, rights and duties.

The legislative authority in Kuwait is occupied by the Emir and the National Assembly (Article 51 of the Constitution) that means Kuwait adopts the principle of the sole council of the legislative authority. This council consists of fifty members (according to article 80) to be elected through direct public secret election in accordance with the provisions stated by the Elections Code and article 56 of the Constitution stipulates that the number of Ministers shall not exceed one-third of the members of the National Assembly i.e. (16 minister including the Prime Minister). The appointment of Ministers shall be from the members of the National Assembly and others. The features of the political participation have been determined by the Elections Code as the constitutional period of the Council will be 4 years (unless it is dissolved before that time).

The Foreign policy of Kuwait is characterized by clarity, candor, and quiet diplomacy, which aims to boost the constructive cooperation with all countries on the basis of mutual respect, equality, solving the disputes amicably and maintain Kuwaits independence and sovereignty on its lands and wealth and freedom of its political decision.

Kuwait has practically translated this policy which is based on constants and principles established in the international laws and treaties.

The State of Kuwait is distinctive with the Municipal Council that controls the management of a number of public services. The Kuwaiti Municipal Council was established in 1932. During the last eighty years, the government has undertaken some tasks that were controlled before by Kuwait Municipality, but the Municipal Council is still reserving some important responsibilities. This local administration provides a wide range of public services including paving and maintenance of roads, cities planning, public health, disposition of wastes and ensuring the validity of foodstuff and granting licenses.

The Kuwait economy is based on the openness and funds-free movement concept and the steadiness of the local currency.

The Kuwaiti economy is in a settled position as the population is few with a growth rate of 3.5%, the oil reserves are huge, oil production is high and the governmental foreign investments are great. Its budget during the last years achieved surpluses in the trade balance and the current account. "The Kuwait Investment Authority" acts, to manage the public reserve and the assets of "Coming Generations Fund" in addition to other funds managed by it under the supervision of the Minister of Finance. The financial and banking sector in the State of Kuwait is strong and the Kuwaiti Dinar exchange rate is steady against other currencies with the complete freedom to transfer the capitals and the profits outside the State of Kuwait.

The State of Kuwait has absorbed the Free Trade System since its inception about 350 years before as the relation between trade and Kuwait was not only an economical tie, but also a destined historical connection. Trade in the past was the main source of living for Kuwait population and a method of communication and connection with the global ancient civilizations.

The future expectations are auspicious and promising. Data refers to the fall of the inflation rate to less than a half percent and the total surplus in the state budget is Kuwaiti Dinars 660 million, which is equivalent to (US$ 2,250,000,000) for the fiscal year 2002/2003 as many indicators go in the right direction. The Kuwaiti economy is considered to distinctive model among the Arab economies in terms of its implementation of the scientific and practical rules and standards that provide it with the complete protection from the conditions and variants global economies. The Kuwaiti economy strength emerged in many features, one of them is the Dinars maintenance of is strength in the monetary markets in addition to the Kuwait Exchanges strong recovery of its activities.

Kuwait is not obliged to any foreign debts but we see it extends aids and loans, which are under the supervision of Kuwait Fund for Development in order to support the developmental efforts in different developing world counties to mitigate poverty in such countries as raise the standard of living of their peoples.

On  22nd of January 2008, a decree was  issued of  law No.2/2008 regarding amendment of Kuwaits income tax  on some decree provisions  determining the income tax on foreign commercial institutions in the country from 55 to 15 percent.

The State of Kuwait enjoys a strategic location that looks upon the Arabian Gulf. It is situated in the northern eastern corner of the Arabian Peninsula on the Arabian Gulf and it is bound on the south by Kingdom of Saudi Arabia and on the north by Republic of Iraq.

Kuwait has limited natural capabilities as it depends only on oil as it is a desert country. But its geographical location grants it great strength as it is situated between the Asian and European continents at the top of the Arabian Gulf. It is the northern-eastern gate of the Arabian Peninsula.

Kuwait has one international airport and there are three land ports: Al Abdally, Al-Salmi and Al-Nowaisib ports.

In view of the trend to liberate the trade and privatization policy, many developed and developing countries came to make the decisions and layout policies to expand the role of the private sector in the production of goods and services through the provision of the opportunities of Foreign Capital Investment to ensure and demonstrate the rights of investors in Kuwait.

Kuwait is distinguished by an integrated judicial system as an independent body. Courts are considered a source of pride to Kuwait whether with respect to the judges or the development witnessed by the courts in Kuwait and the seriousness in the judgments execution. The Kuwaiti legal system is a blend of the British Public Law, the French Civil Law, the Islamic Legal Principles and the Egyptian Law. The Kuwaiti Constitution (1962) guarantees the independence of the judicial system. The official language of the court is Arabic and other languages may be used. The court hearings are public unless maintaining the quietness of transforming them into a closed hearings. Some of the courts judgments are published in the official gazette.

The Judicial Higher Council confirms the constitutional and legal constants that guarantee the independence of the judicial authority and not to intervene in its activities in order to achieve the public interest and boosts justice in the framework of the constitutional and legal legitimacy.

There are protective laws such as Law No. 35/2002 with respect to the many laundering operations and Law No. 4/1962 with respect to the patents, charges and forms amended by Law No. 3/2001.

The population growth rate in the State of Kuwait is about 3.5% per annum as it is one of the highest rates in the world. The majority of the country expenditure will be concentrated to expand the infrastructure as the coming period will witness an activity in the projects of the new roads, schools, hospitals, public buildings and societies as well as upgrading the standard of the treatment of the sanitary lines and water pumping stations.
Kuwait is seeking to adopt B.O.T system with its benefits to the country and put it in a developed investment position.

Kuwait has modern infrastructure that is subject to continuous updating and maintenance and it has also a developed telecommunication system. It has three trade ports equipped with developed anchorages. 

The Kuwaiti experiment in the field of the educational planning, despite of its short term is considered good and effective and may form a basic pivot for the future educational studies in the GCC countries. The educational system in Kuwait is distinctive than other systems as the illiteracy rate is to its lowest levels according to the last statistics.

Kuwait is considered the lowest of the Middle East and North Africa countries in terms of unemployment rates, which reached at the end of the last year less than 1% in comparison with the region countries.

Kuwait is trying out to develop and improve the youth work and focus its efforts on the routes that serve humanity and societies through seeking to achieve many major objectives.

The roles of the Kuwaiti women is prominent in the work field. They ranked the highest positions as we see a high percentage of women in the workforce and grant woman the political rights in nomination and election of parliment and municipal council.

The State of Kuwait joined the World Trade Organization ( WTO) on January 1st, 1995 as it is commercially linked to the foreign organizations. They participated in raising the standards of living, ensuring the complete manpower, increasing production, trading in goods and services through eliminating the customs and other barriers between the member countries of the organization in a way matching the needs of each member country.

There are rights, duties and benefits that may be gained by Kuwait from its membership in the organization as it is like the government of the new world and the heir of GATT. Kuwait is the first Arab country to join GATT convention in 1963.

Kuwait encourages the external links represented in signing 29 conventions to avoid double taxation and 35 conventions to protect and encourage investment in addition to a free zones convention between Kuwait and (Morocco, Egypt, Sudan, Jordan, Tunisia, Lebanon, Algeria and Syria). The idea of the free Zone between Kuwait and USA will achieve an increase in the trade exchange and exports that will activate the Kuwaiti market.

• Constitutionally Kuwait is prohibited to expropriate business owned by foreigners in the state of Kuwait.
•  Free dissolution  of the original capital investment to another Party , as per the terms and conditions stipulated in the license granted to the foreign investor for such transfer. 
•  Free repatriation of foreign investors profits and capital without any restrictions. Any compensation paid on account of disinvestment may also be repatriated.

• Tax exemptions for a maximum period of 10 years.

• Total or partial exemption from customs duties on project’s imports  of manufactured goods, packaging materials, etc.  

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

• Allowing the recruitment of foreign labor as required for the project in accordance  with the laws and regulations of the State of Kuwait. 

• Benefits arising under Double Taxation Treaties (DTTS) and Bilateral Treaties for the Encouragement and Protection of Investment (BITs).

The Kuwaiti courts shall be solely competent to settle any dispute arising between foreign investment projects and third parties of whatever nature and the litigant parties may resort in this dispute to arbitration as the foreign investor, by virtue of this law, enjoys the principles of equality and confidentiality of the technical, economical and financial information related to the project and the projection of the investment initiatives in accordance with the provisions of the applicable laws and regulations. In the case of not violating any higher penalty provided in another law, shall be punished by imprisonment for a period not exceeding one year and a fine not exceeding Kuwaiti Dinars 10,000 or one of these two penalties anybody discloses any information that might reach his knowledge due to his work duties and is related to the investment imitative or the technical , economical or financial aspects of foreign investment that was conducted in accordance with the provisions of this law except for the cases permissible by law. The law provided that the foreign investment shall enjoy the basic principles that govern investment which are; information confidentiality and protecting the investment initiatives but it connected the same with the provisions of the laws applicable in the country and set out a criminal punishment to be imposed on anybody that disclose any confidential information. The term " Principle of Equality means the respect to the public rights and duties i.e. in the fields of technical information confidentiality related to the project and protection of the investment initiatives. The law confirmed that the Kuwaiti courts solely shall be competent to settle any disputes that may arise between the projects of the foreign investment and third parties and allowed as an exception to agree upon the reference of the dispute to a local or international arbitration tribunal. "Third parties" means the governmental bodies, natural persons and public and private corporate persons.