Decision No. (329) of 2019 on Scoring Mechanism (PSM) for Evaluating

Kuwait Direct Investment Promotion Authority (KDIPA) ismandated with the task to attract, promote and encourage both foreign and local direct investments into the State of Kuwait.KDIPA also provides all needed services and aftercare to facilitatelicensing procedures and granting incentivesfor interested investors, as well as addressing potentialobstacles to ensurea favorable investmentclimate. In a broader sense, KDIPA coordinates national efforts with variousgovernment entities, the private sector, and civil society organizations, tostreamline needed reforms to improve legal and regulatory business environment.

KDIPA overarching goal for attracting direct investmentsis added value investments that contribute to enhance the transfer, settlementand utilization of modern and state-of-the art innovative technologies, meansof production and operation, management method, technical and marketingexpertise, the creation of employment opportunities for the national workforce,and increasing productivity and personal skills in accordance with the bestinternational standards adopted in this regard to the State of Kuwait.

Based on Law No. 116 of 2016 Regrading the Promotion ofDirect Investment in Kuwait, and in view of Kuwait’s NationalVision 2035, the Director Generalof KDIPA issuedDecision No. (329) of2019 regarding the Scoring Mechanism for Evaluating Investments Licensing andGranting Incentives Applications.

Decision No. (329) of 2019 provides a transparent criterion for assessing the licensing and granting incentives applications based on 5 main criteria, with a total of 15 sub-criteria, equally weighted, to include:

I. Transfer and settlement of technology:

  1. Innovative tangible technology
  2. Innovative intangible technology
  3. Research & Development (R&D) for enabling Knowledge creation
  4. Modern management methods.

II. Human Capital:

  1. Job Creation for nationals
  2. Certified training programs related to specialization or core activity
  3. Corporate scholarship programs

III. Market Development

a. Domestic Market needs
b. Use of national products and services
c. Product Accreditation and Quality Management Systems

IV. Economic Diversification:
a. Contribution of non-oil sectors to GDP
b. Industry, innovation & infrastructure
c. Fostering competitiveness

V. Sustainable Development:

  1. Corporate Social Responsibility (CSR)
  2. Environmental sustainability