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Law No.116 of 2013 regarding the Promotion of Direct Investment in the State of Kuwait.

Country
Type of law
Legislation
Source

Abstract
This Law consisting of 38 articles aims at (i) creating an improved business environment; (ii) encouraging more direct investment; and (iii) making it much easier for investors to obtain a license. Article 2 establishes the Kuwait Direct Investment Promotion Authority (KDIPA), an independent public authority managed by a Board of Directors that is composed of representatives from the public and private sectors and is chaired by the Minister of Commerce and Industry. The main goals of the KDIPA are (i) facilitate the procedures and remove the hurdles encountered by investors, as well as provide various means of assistance and support to encourage Direct Investment in the country; (ii) raise awareness regarding the importance of Direct Investment, especially foreign investment, and promote Kuwaiti investment environment and the available Direct Investment opportunities; and (iii) encourage investors to transfer, settle and use modern and sophisticated technologies, means of production and operations, management methods, and technical and marketing expertise and to encourage partnerships between Kuwaiti and foreign investors that foster the objectives of development. Its main tasks are (i) screen possible Direct Investment opportunities in the country, promote such opportunities, and present the incentives, exemptions, and guarantees granted to investors, in addition to preparing any necessary studies, research, and statistics and providing available information, clarifications, and statistics to investors; (ii) receive and assess investors' applications ; (iii) establish economic zones and suggest their locations within the general structural plan; (iv) establish or contribute to the capital of companies specialized in the establishment or management of business incubators for projects that meet the objectives of the Authority; (v) coordinate with competent authorities to simplify and facilitate the procedures and services required to improve and streamline the investment environment in Kuwait and enhance its competitive advantage; (vi) organize conferences, seminars, exhibitions, and workshops as well as provide services and training programs in line with its objectives; (vii) secure potential financing and credit facilities in order to encourage investments needed by the country; (viii) oversee and monitor the performance of Direct Investments in the country and identify any hurdles; and (ix) implement the tasks and mandates assigned by the Council of Ministers or the Relevant Minister that relate to its objectives or that would encourage Direct Investment in the country. The Board has the powers necessary to achieve the objectives of the Authority, formulates its general policy, and supervises the implementation of the same. Article 14 provides for the issuance of licenses.
An administrative unit is established within the Authority called the "One-Stop Shop" to resolve upon the licensing procedures and the establishment of the Investment Entity in order to ensure the completion of the procedures within the period set out in this Law. Article 19 states that no Investment Entity, that means an economic enterprise or activity that is licensed in accordance with this Law by virtue of an investment license that grants such enterprise or activity legal existence, shall be confiscated nor be deprived of its property except in the public interest and only against compensation equivalent to the true economic value of the expropriated project at the time of expropriation. Article 27 deals with incentives and tax exemptions. Article 30 establishes that a special Investment Register will be prepared and in it, all Investment Entities licensed are recorded, as well as all applications, licenses, incentives, exemptions, and penalties connected thereto, and all documents and related data shall be attached to the register.
Date of text
Entry into force notes
This Law enters into force 6 months after its publication in the Official Gazette.
Notes
Law No.8 of 2001 regarding the Regulation of Direct Investment of Foreign Capital in the State of Kuwait is repealed.
Repealed
No
Source language

English

Legislation Amendment
No
Original title
116 2013