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Foreign Investment

Al-Hossam Legal regularly advises foreign and international corporations on setting up their business in Kuwait, or about forming business relationships with Kuwait. Doing business in Kuwait by foreign client (non-Kuwaiti or GCC) can be set up in the form of a contractual business relationship by appointing a local agent, distributor, or franchisee. Foreign corporations can also own up to 49% of a shareholding interest in a new or existing Kuwaiti corporate entity, or freely invest in public shares traded on Boursa Kuwait either directly through their own trading account or via a securities portfolio operated by a CMA licensed asset manager. Kuwait also offers a direct investment law allowing foreign companies to incorporate an investment entity that is owned 100% by foreign investors or a branch in Kuwait through the Direct Investment Promotion Authority (KDIPA). This arrangement is allowed for the purpose of direct investment upon satisfying certain scoring and evaluation criteria that assesses the transfer and settlement of technology, human capital, market development, economic diversification, and sustainable development. Under the direct investment scheme the investment entity will enjoy certain incentives, guarantees, and exemptions from income tax, and from customs duties on imports, for ten years.

Al-Hossam Legal is accredited by KDIPA to apply for a direct investment license on behalf of investors.

The firm focuses particularly on the following services:

  • Advice on all aspects of doing business with or in Kuwait.
  • Background information on all legal aspects affecting the client’s investment and local parties to the business relationship.
  • Advice on the most efficient legal and tax structures.
  • Reviewing and assessing concepts and business plans for direct investment projects to be licensed by KDIPA.
  • Liaising with KDIPA for the investment license.
  • Incorporation of entities and registration with local authorities (corporate file, labour file, import and export license, and other activities licenses).
  • Review and advice on tenders and auctions requirements by the Central Agency for Public Tenders (CAPT) and other tendering ministries, public agencies, companies, contracts, sub-contracts, documentations, and local laws.
  • Advice on rules relating to import, export, foreign exchange, remittance of funds, and employment.
  • Drafting all business operation and procurements contracts.