Companies from five countries accounted for 62.6% of foreign direct investment (FDI) in Kuwait, which totaled KWD 1.74 billion by the end of 2024.
The Netherlands came first, accounting for 27.95% of total investments, worth KWD 500 million. Chinese companies followed in second place, accounting for 12.5% of total investments, valued at KWD 218.6 million, with total investments amounting to about KWD 147.4 million.
Companies from the British Virgin Islands came in third place, accounting for 8.4% of total investments in the country according to the Direct Investment Law in recent years.
Irish companies came in fourth place, accounting for 7.8% of total FDI, followed by Canadian companies, whose entities’ capital in Kuwait amounted to about KWD 103.5 million, accounting for 5.9% of total FDI.
Investment Distribution
Spanish, Turkish, and American companies ranked sixth, seventh, and eighth in terms of foreign investments into the country, with investments valued at KWD 89.1 million, KWD 65.1 million, and KWD 62.9 million, respectively.
The list of sources of direct investments included about 34 countries from several continents, with Europe accounting for approximately 59.9% of total direct investments, followed by Asia with 28.5%, North America with 9.5%, and Africa with 1.9%.
Direct Investment Law
Most foreign investments in the country are concentrated in the services sector, particularly in information systems services, oil and gas, construction, health and environment activities, aviation, and insurance.
It is worth noting that the recent period has witnessed a significant influx of foreign companies investing in Kuwait, driven by the advantages provided by the Direct Investment Law for international companies.
This focus on Kuwait reflects the government’s efforts to attract foreign investors by establishing a new mechanism to evaluate investment requests. The goal is to encourage direct investment, transfer and localize modern technology in the country.
Efforts have also been made to prepare the administrative, regulatory, and legal environment for the private sector, offering necessary facilities, services, and investment incentives.
This includes simplifying procedures for issuing licenses for both local and foreign investors, as well as providing a unified electronic portal for obtaining government services quickly and efficiently.
Guarantees for Investors
The shuttle tours conducted by officials recently have helped attract a number of specialized companies, particularly Chinese firms that will be relied upon to implement major development projects such as ports, economic zones, and other government projects.
The government provides several guarantees to reassure investors, including the prohibition of confiscating or expropriating any investment entity licensed under the provisions of Law No. 116 of 2013.
In addition, investors have complete freedom to transfer profits, capital, or the proceeds of their shares in the investment abroad without any restrictions.
Tax Benefits and Exemptions
Direct Investment Law No. 116 of 2013 provides global companies with several advantages for investors, most notably:
- Exemption from income tax or any other taxes for a period not exceeding ten years from the date of actual commencement of operation in the licensed investment entity.
- Exemption, in whole or in part, from taxes and customs duties on imports of machinery, equipment, means of transportation, and other technological devices and materials required by these companies.
- Benefiting from lands and real estate allocated to the Direct Investment Promotion Agency or under its supervision or management.
Source: Al Qabas
