2022 Kuwait Investment Climate Overview and Project Analysis
2022 Kuwait Investment Climate Overview and Project Analysis
January 5, 2022 Source: Global Impression Investment Analysis Kuwait Division
Kuwait is a monarchy located in the northeastern Arabian Peninsula and the northwestern Persian Gulf, bordering Saudi Arabia and Iraq respectively. Kuwait is rich in oil and natural gas resources. The oil and natural gas industry is the backbone of the national economy, and its output value accounts for 45% of the GDP. Kuwait's climate is not conducive to agriculture, and almost all agricultural products need to be imported. In recent years, the country has begun to develop a diverse economy and reduce its dependence on oil. So how about the Kuwait investment climate analysis report? What are the strategies for the investment environment in Kuwait? What are Kuwait's investment environment policies? Global Impression Investment Analysis Kuwait Division systematically analyzed the Kuwait investment environment and projects in 2022 based on years of field research experience in the Kuwait market.
Kuwait's overall low tariff level is conducive to attracting foreign investment, but import controls are still implemented on some products. The Kuwaiti currency, the dinar, is freely convertible and the exchange rate is directly pegged to the US dollar.
Kuwait has a low taxation practice. There is no income tax for wholly-owned companies of Kuwaitis or citizens of the Gulf countries, while income tax is levied for foreign companies, with a tax rate of up to 55%. Kuwait is currently considering reducing the tax rate to 25%.
Kuwait became the first Gulf Arab country to establish diplomatic relations with China. Since the establishment of diplomatic relations 47 years ago, China-Kuwait economic and trade relations have developed rapidly. At present, China is Kuwait's largest non-oil trading partner, and Kuwait is one of China's most important crude oil suppliers.
The Kuwait government proposed the "National Vision 2035" development plan, which intends to build Kuwait into a financial and trade center to change the economic pattern that has long been dependent on oil. Since then, the Kuwaiti government has packaged the development of the "Silk City" and the "Five Islands" in the north into one project to connect with China's "One Belt, One Road" initiative.
According to the "Report on Kuwait's Investment Environment and Development Potential in the Post-epidemic Era 2022-2026" written and released by the Kuwait Division of Global Impression Investment Analysis, Kuwait and China have been committed to promoting the development of bilateral relations, and both sides are willing to consolidate and deepen this relationship. It has a good relationship and has broader development prospects, especially in the fields of trade, investment and financing, energy, e-commerce and infrastructure construction.
The formation of a company in Kuwait can take the form of a joint stock company (registered capital of 3,000 dinars), a limited liability company and a partnership (registered capital of 500 dinars). The institutions responsible for business registration in Kuwait are the Kuwait Ministry of Commerce and Industry Business Registration Bureau and the Kuwait Chamber of Commerce and Industry. Prepare the registered capital. If the registered capital of the overseas registered company itself is not enough, you can take a loan from the bank.
There are many channels for foreign companies to finance their trade and projects in Kuwait, including world-class commercial banks, investment companies and Islamic financial institutions. Foreign companies can directly access Kuwaiti bank financing facilities as long as they provide their financial statements or a reputable bank guarantee. In response to customer entrustment requirements, Kuwaiti banks can adopt different financing methods, including direct payment, cash in advance, document collection, letter of credit and letter of guarantee. Commercial banks under the supervision of the Central Bank of Kuwait meet the standards of international banks, and three specialized government banks provide medium and long-term financing.
