- Fifth largest oil reserves in the World, 8% of world’s total.
- wide fiscal and external current account surpluses.
- Substantial net foreign asset Position.
- Domestic political stability and Strong international relations.
- Strategic location in the Gulf and a gateway to the significant underdeveloped markets of Iraq and Iran.
- Modern infrastructure.
- Low country risk.
- Favorable tax regime.
- A sizable foreign direct investment potential.
- A growing banking sector although foreign entities can own only up to 49%.
- Excellent opportunities in oil upstream production and petrochemicals.
- A benign real estate industry with immense opportunities.
Main Challenges
The main challenge facing Kuwait now is producing heavy oil and the
gas reserves needed for the energy sector in Kuwait.
Major Opportunities
- Banking sector
- Oil production
- Oil refining capacities
- Vocational and educational training
- Health
Doing Business in Kuwait
- Establishing a company
- Concluding a joint venture agreement
- Appointing a Kuwaiti commercial agent
- Appointing a commercial representative
using an agent/distributor
According to Kuwait’s Commercial
Agencies Law of 1964, only Kuwaiti nationals and corporations may act as agents
and distributors for foreign companies and exporters.
Establishing an office
As per the Kuwaiti Law, foreign individuals or entities may
establish permanent presence in Kuwait through forming and investing in the
following Kuwaiti companies:
- Limited Liability Company (WLL)
- Closed Joint Stock Company (KSC Closed)
- Joint Stock Company
Joint
ventures/licensing
- Registration of Commercial agencies is required to be enforceable.
- Kuwaiti law is the governing law in all public policy matters.
- The principal may not terminate the agreement without proving violation of the contract by the agent. If contract violation is not proved, the principal should compensate the agent.
- The principal may not decline to renew the agency agreement upon its expiration without paying the agent equitable compensation for the non-renewal, provided that the agent provides evidence that he is not at fault and that his activities successfully promoted the principal’s products.
- The agent may file a suit against both the principal and the new agent appointed in Kuwait, if the principal colludes with another agent, and, for this reason, the agency contract is terminated.
Selling to the government
Foreign companies cannot sell directly to the Government nor participate in public tenders except through a local agent. In the oil sector, for instance, supplying companies should be approved by an internal committee and placed on a list of ‘pre-approved’ companies. For major projects, international companies are usually invited to pre-qualify.Distribution & sales channels

Electronic
commerce
- To continue leading the business- to -business online marketplace in the emerging world.
- To transform regional economies into internet-based trading environments.
- To create outstanding value for customers and increased returns for investors.
- To help customers get the most out of e-commerce.
- To empower our customers to do business with undreamed- of numbers of new clients.
- To become the leading e-commerce provider in emerging markets the world over.
- To introduce solutions spirit into emerging markets, enabling and encouraging trade within this new world.
- To lead the way as the focus in modern trade shifts towards the emerging world.
- To make borders a thing of the past by increasing transparency and fluidity between nations and companies.
Openness to foreign investment
Right to
private ownership & establishment

Business
customs
- Since Kuwaitis prefer to do business with those with whom they have a personal relationship, they spend a great deal of time on the getting-to-know-you process.
- You must be patient since impatience is viewed as criticism of the culture.
- Kuwaitis judge on appearances so dress and present you well.
- They respect education, so carefully mention if you have an advanced degree, especially if it is from a prestigious university.
- Try to schedule meetings in the morning when meeting with government officials, since they are restricted to a 6-hour day.
- Many businessmen prefer to meet in the early evening.
- Do not try to schedule meetings in July and August as many Kuwaitis leave the country during the worst of the summer heat.
- Meetings may be interrupted if they interfere with prayer time’s.
- Meetings are generally not private unless there is a need to discuss matters confidentially.
- Expect frequent interruptions. Others may wander into the room and start a different discussion. You may join in, but do not try to bring the topic back to the original discussion until the new person leaves.
- Titles are important. Use the honorific "Mister" and any academic or political title and the first name.
- Do not use only the first name until expressly invited to drop the titles.
- The title "Sheikh" denotes that someone is a member of the royal family. It is also used for old men.
Local time, business hours, & holidays
- Muslim
festivals are timed according to local sightings of various phases of the
moon and the dates given above are approximations.
- During the
lunar month of Ramadan that precedes Eid al-Fitr, Muslims fast during the
day and feast at night and normal business patterns may be interrupted.
- Many
restaurants are closed during the day and there may be restrictions on
smoking and drinking.
- Some disruption may continue into Eid al-Fitr itself. Eid al-Fitr and Eid al-Adha may last anything from two to 10 days, depending on the region. (b) If a holiday falls on a Friday, a day is given in lieu.
Fact Facts
Population
|
3,566,437
|
Capital
|
Kuwait city
|
Area
|
17,820 km2
|
Ethnic Groups
|
33.9% Kuwaiti Arabs
45.9% Other Arabs 13.5% South and East Asian 1.9% Iranian 4.8% Europeans and Americans |
Religions
|
Muslim (official) 85%
Christian 6%
Hindus 5%
Sikhs 2%
Buddhist 2%
|
Major Language
|
Arabic (official), English (widely spoken)
|
Monetary Unit
|
1 Kuwaiti dinar = 3.60815 U.S. dollars
|
Major Industries
|
Oil refineries, small
manufacturers, large water desalination, ammonia, desulphurization,
fertilizer, brick, block, and cement plants.
|
Major Export
|
oil, natural gas, Petrochemicals
|
Major Imports
|
most products, including most food and
manufactured goods.
|
GDP
|
US$136.495 billion
|
GDP per capita
|
US$ 37,848
|
References:
- http://www.kwintessential.co.uk/resources/global-etiquette/kuwait-country-profile.html
- Kuwait Investment and Business Guide, Ibp Usa, USA International Business Publications
- Kuwait Land Ownership and Agriculture Laws Handbook, Ibp Usa, USA Int'l Business Publications
- Kuwait Starting Business (Incorporating) In....Guide, Ibp Usa, USA International Business Publications