The annual report from the Kuwait Direct Investment Promotion Authority has revealed that the total value of approved direct investments from 2015 until March 2023 stands at approximately 1.47 billion dinars.
This includes investments from 69 entities representing 26 different countries. Notably, investments totaling over 195 million dinars were attracted in the past year, with contributions from Ireland, the Netherlands, India, Egypt, Bahrain, and Lebanon.
The Director General of KDIPA Sheikh Dr. Mishal Jaber Al-Ahmad Al-Sabah, highlighted the Authority’s ongoing efforts to bolster cooperation with relevant government bodies, forge partnerships with approved offices and consulting firms to expedite processes and facilitate support for existing and prospective investors.
Furthermore, an increase in investments in the national economy, totaling about 795.5 million dinars from 2015 to 2021, was reported. This marked a 15.2% increase compared to the period from 2015 to 2020.
The Authority’s regional influence has grown through enhanced economic diplomacy, with active participation in official delegations, bilateral, regional, and international meetings. For the second consecutive year, the Authority has held the position of Regional Director for the Middle East and North Africa (MENA) region in the steering committee of the International Association of Direct Investment Promotion Agencies (WAIPA).
The report also highlights the Authority’s commitment to maintaining quality in performance, fostering digital transformation, and enhancing employee capabilities through professional training programs. These endeavors aim to enhance Kuwait’s competitive standing on the global investment landscape.
In terms of recent developments, the report mentions the attraction of new approved inward direct investments during the reporting period. These investments, totaling 195,374,769 dinars, were contributed by entities from Ireland, the Netherlands, India, Egypt, Lebanon, and Bahrain. They span sectors such as information systems, insurance, and oil and gas services, with several entities requesting to open foreign branches in Kuwait.
The economic and social impact of direct investment increased, providing job opportunities, training programs, and technology transfer in various fields, such as medical research, clean energy, artificial intelligence, and machine learning.
Furthermore, efforts to support local content were underscored through partnerships with local providers for digital transformation and software development. Additionally, the report notes the participation of investment entities in various social, cultural, sporting, and environmental activities, including awareness campaigns and sponsorship for community events.
The report also emphasizes the diversification of sources for approved inward direct investments, with 69 entities representing 26 different nationalities. The European continent contributed the most at 66.7%, followed by Asia at 22%, North America at 8.94%, and Africa at 2.21%.
Multiple legal entity types were established for approved inward direct investments, with 71.01% establishing Kuwaiti companies and 28.99% opening local branches.
Lastly, the cumulative economic impact of direct investments increased significantly, with a 15.2% rise in spending by licensed investment entities. The majority of spending was allocated to goods and services, followed by advanced technological devices and equipment, taxes, government fees, salaries of national workers, training programs for national workers, and social responsibility activities.
The report concludes with references to the issuance of preliminary written warnings to 21 investment entities, the withdrawal of customs exemption benefits from one entity, and the issuance of three referral decisions canceling licenses.
Additionally, preparations for the Abdali Economic Zone license bid, the award of the contract for designing the Wafra Economic Zone, and the request for a project study in the Naayem area are mentioned. The Municipal Council also approved the transfer of the Nuwaiseeb Free Zone site sale to the Authority from the Ministry of Trade and Industry.
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