KUWAITNEW INVESTMENT

ENVIRONMENT

LAW 116 /2013 ?

JUSTIFICATIONS

Lack of Real & Effective Powers of KFIB

Lack of cooperation from stakeholders

on

Raising Awareness of the DI

Highlights

, .

Establishes a

Investment Entry and Market Access;

Licensing Procedures;

Institutional Frame Work ;

Investor Protection/Treatment;

Investment Incentives.

Entry Mode

Except investment in:1) a natural resource or public utilities2) a monopoly shall not be granted except by law

2. Automatic Entry with a Simple Registration:

License Automatically Issued once the application fulfills the criteria , principles and rules established by the Board

III- Institutional frame work 1- Establishment of a new Investment Public

Authority KDIPA

2- KDIPA’s Governance: - Board of Directors overseeing KDIPA is to be

comprised of representatives from both the public and private sectors

- The authority is chaired by the Minister of Commerce and Industry

- Director General is non voting member in Board

3- Reliance on the One-Stop Shop concept:

- 116 adopts the OSS approach overseen by KDIPA

- OSS aims to coordinate with the relevant government authorities, with a view to completing all procedural steps with in the timeline.

1- No Nationalization or Expropriation :

Kuwait Membership in WTO guarantees national treatment.

• The Investor has the right to transfer or relinquish the ownership of the licensed Investment Entity, or dispose over it in whole or in part, for the benefit of a foreign or a Kuwaiti investor.

The investor entitlements the basic principles of confidentiality in respect of:

- The technical,- economic and financial

information relevant to the project,

- and to safeguard initiatives.

• Investor will benefit from :1- Exemption form for a maximum

period of 10 years;2- Exemptions;3- Employment of Foreign Labour;4- and real estate;5- International related to investment

and the avoidance of double taxation;

The Council of minsters may decides to grant certain advantages and exemptions which are not mentioned in 116

Criteria for Granting Incentives

116 introduces a list of non exhaustive criteria upon which the value ,type and duration of incentives and exemption granted for investors.

The Incentives shall be linked to all or some of the following Criteria:

• Transferring and settlement Technology …..• Amount and quality of products and services• The needs of Domestic and Gulf Market for

direct investment and its contribution to economic diversification.

• Increasing the national Exports • Job Creation & training for national workforce

• Developing of areas which lacks similar projects or activities.

• Favorable environment impact.• Offering services to Community• Using national products.• Using national technical , professional and

consulting services

Amr WageehLegal Counsel