atb sponsors the kuwait investment and joint venture forum
ATB Partners acted as the Exclusive Legal Sponsor of Kuwait Investment and Joint Venture Forum. The 2-day forum connected international companies seeking expansions in Kuwait with prospective Kuwaiti business partners.
Attached is legal setting out the initiatives that have been taken by the Kuwaiti government recently to liberalize the Kuwaiti market to foreign investors and increase its competitiveness, In addition it will cover the Key challenges and concerns a foreign investor should take into consideration prior to initial market penetration.
A key element that plays a role in the success of Foreign Kuwaiti partnership is the historical entrepreneurial nature of Kuwaitis. Kuwait is home to some of the leading businesses in the region in sectors such as telecom, retail, logistics, financial services, aviation, construction designing, animation, art etc, demonstrating the strong business acumen and commercial mindset of Kuwaiti businessmen in establishing and growing scalable businesses.
This has resulted in the creation of deep-rooted relationships between foreign and local entities spanning for several decades and making these local partners a pivotal part of this larger foreign business entity. This is fairly evident in commercial agencies which are the most common form of foreign partnerships in Kuwait.
Main factors that play a role in making the Kuwaiti Market an attractive market to foreign investors
- The Substantial government resources and record high surpluses in government budget from oil exports.
- Significant infrastructure development as Kuwait is promoting unprecedented levels of infrastructure development activity aimed at realizing its long term vision of diversifying the economy and transforming Kuwait into one of the leading hubs for financial trade and logistics in the region.
- Kuwait is cost competitive in terms of power, water, land and labour. Power tariffs are subsidized by up to 86% by the Government.
- It has one of the highest GDP with a diverse community.
- Ranked as the world’s 6th most attractive tax regime with benefits including no personal income tax, low corporate tax for foreign companies (15%), limited restrictions on imports and exports, unrestricted movement of funds, including repatriation, a strong and stable currency supported by an independent monetary policy.
- Increasing the involvement of the private sector has been a key priority for the Government under its diversification program. The Government’s initiatives such as the PPP program, privatization law and opening of 14 key sectors for 100% foreign investment are aimed at increasing the share of private sector in GDP