KUWAIT: Under the directives of His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, Kuwait is pursuing an ambitious strategy to enhance the role of foreign investment as a key driver of economic growth. This includes a series of measures aimed at improving the investment environment and increasing the attractiveness of the Kuwaiti economy. In this context, Kuwait is intensifying efforts to strengthen international economic partnerships and attract major global companies while marketing promising investment opportunities on an international scale as part of its plans for sustainable, comprehensive, and balanced economic development.

The economic openness agenda has taken precedence in discussions held by His Highness the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah on the sidelines of the 79th session of the United Nations General Assembly in New York at the end of September. During these discussions, the Crown Prince conveyed the Amir’s desire to enhance the presence of global companies in Kuwait and make use of their expertise.

Additionally, in recent weeks, Kuwait has accelerated steps to activate seven agreements signed with China during the Amir’s visit to the country in September 2023. These agreements aim to expand economic partnerships and boost investment appeal in Kuwait. Kuwait has welcomed several Chinese delegations, engaging in meetings with Kuwaiti ministers and officials to explore cooperation avenues and implement agreements, including those concerning free trade zones and economic areas. Cabinet is monitoring discussions about these agreements while working to enhance the investment climate to position the country as a hub for value-added investments that foster innovation.

In line with these objectives, Cabinet has tasked various agencies with completing studies to involve the private sector in developmental projects and determining ways to market these projects locally and internationally, including the development of a plan for the Gulf of Sulaibikhat project and the Jahra Waterfront project. Finance Minister and Minister of State for Economic Affairs and Investment Nourah Al-Fassam has emphasized the importance of maintaining financial stability through diversifying non-oil sources of revenue and attracting foreign investments while promoting local employment.

In August, Kuwait introduced new rules aimed at enhancing the investment climate for foreign investors, allowing investment entities operational for at least a year to apply for benefits and exemptions under specified conditions. Notably, in September, British company Joseph Gallagher established a single-person entity in Kuwait, and Google Cloud opened new offices in July to support the country’s digital transformation.

Kuwaiti authorities are closely monitoring local economic trends and global investment dynamics while utilizing various tools to develop performance and provide studies that encourage investment. The country is also intensifying regional cooperation within the Gulf Cooperation Council (GCC) to enhance trade and investment relations and expand partnerships with friendly nations through memorandums of understanding for promoting direct investment.

Efforts to improve the investment environment and competitiveness are ongoing, leveraging Kuwait’s economic and geographical advantages to achieve significant progress in this area. Key initiatives in the 2024/2025 development plan include establishing a special international economic zone with attractive laws and regulations, ensuring transparency in financial resource management, and fostering long-term partnerships with regional and international business communities. In August, a memorandum of understanding was approved with Oman to enhance direct investment cooperation, and a similar agreement with South Korea was established to strengthen economic ties and mutual investments.

Kuwait’s Direct Investment Promotion Authority (KDIPA), established under Law No. 116 of 2013, aims to facilitate business operations in Kuwait through a unified window and promote opportunities for value-added investments. From January 2015 to March 2024, cumulative foreign direct investment in Kuwait reached approximately KD 1.7 billion (about $5.55 billion), with KD 206 million (about $675 million) of incoming direct investments recorded during the 2023/2024 fiscal year. According to the Direct Investment Promotion Authority, these investments were made by 95 entities from 34 different countries, with Europe accounting for 59.98 percent, Asia 28.50 percent, North America 9.52 percent, and Africa 1.9 percent. — KUNA