A recent questionnaire carried out by the Central Administration of Statistics (CAS) within the framework of the Direct Investment Survey in Kuwait 2021, shows companies want procedures and policies to be streamlined to stimulate and encourage investments in Kuwait, especially foreign direct investments, including granting permanent residence for a certain segment of investors, in addition to granting long-term residence to some investors, for a period of at least 10 years.
Al-Anba quoting sources said a government report calls for allowing expatriates to own real estate and based on this permanent residence permit should be given to some and others 10 years residence to attract talent and prevent local businessmen from taking their businesses elsewhere.
The companies’ proposals include abolishing the sponsorship system for the investors, softening the rules and requirements for visitor visas for investors, and reducing the percentage of the local partner or sponsor, in addition to ensuring non-discrimination between foreign and local companies to make them compatible with international law, and guarantee the right to freely make transfers related to investment and protection from arbitrary confiscation, as well as the privatization of government services and clarification of the state’s directions regarding taxes.
The companies taking part in the survey suggested many procedures and policies are required to stimulate and encourage investment in Kuwait, especially foreign direct investments, by giving broader powers and administrative and financial independence to the Direct Investment Promotion Authority, providing logistical support to investors, and providing investment tools that qualify for success, in addition to expanding the private sector circle and ensuring equal opportunities and encouraging fair competition.
The companies stressed the encouragement of investments that enhance competitiveness and the adoption of a policy of indicative planning for those investments, leading to the development of a strategy to focus on small and advanced industries and focus on strengthening international links between these projects, supporting them and stimulating them to export.
The companies demanded the development of professional skills to provide an opportunity for foreign and local investors in the era of the Fourth Industrial Revolution, enhance political and legislative macroeconomic stability, open markets, arrange the labor market and the financial system, enhance the efficiency of the health sector and develop skills, open markets and arrange the labor market, enhance work dynamism and develop the ability to innovate.
6 changes required to grant residency
1 – Abolishing the sponsorship system for the investor.
2 – Granting long-term residence to investors for a period of at least 10 years.
3 – Allowing expatriates to own real estate and granting them residence permits according to ownership.
4 – Granting permanent residence to a certain segment of investors.
5 – Facilitating the rules and requirements for visitor visas for investors.
6 – Facilitating the procedures for recruiting workers.
10 procedural requirements
1 – Reducing administrative bureaucracy and facilitating business.
2 – Adopting information and communication technology and enhancing its integration.
3 – The use of Arabic and English languages in government transactions.
4 – Providing a consistent and non-discriminatory regulatory environment.
5 – Remove useless administrative obstacles.
6 – Elimination of paperwork.
7 – The staff’s knowledge of foreign languages.
8 – Administrative facilities for the foreign investor.
9 – Simplifying government transactions.
10 – Stability on regulations and laws.
Economic claims
1 – Clarify the state’s directions regarding taxes and establish a friendly system.
2 – Privatization of government assets and consolidation of a partnership between the two sectors.
3 – Disengaging the state from many activities and liberalizing the economy.
4 – Giving foreigners the opportunity to own real estate and projects.
5 – Liberating industrial and commercial lands needed for new projects.
6 – Expanding the activities of the private sector to allow the practice of vital activities.
7 – Providing free land for large projects, especially industrial projects.
8 – Grant financial incentives and support for projects that serve the targeted sectors.
9 – Facilitating the procedures for allocating plots of lands needed for the establishment of projects.
10 – Exemption from customs duties on equipment.
11 – Increasing focus on alternative energy sources technologies.
12 – Improving the project financing mechanism.
13 – Develop strategic plans for a period of no less than 10 years for investment.
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