The Kuwait Direct Investment Promotion Authority has adopted a new resolution regarding the regulations for investment entities to obtain the benefits and exemptions provided by the authority to foreign investors who are licensed to operate in Kuwait.

The resolution states:

Article One: "An investor may apply for an investment license and grant of benefits according to the provisions of Law No. 116 of 2013 referred to, provided that the investor seeking to establish an investment entity meets the criteria issued in the mechanism for evaluating licensing applications and granting benefits approved by the authority."

Article Two: "Investment entities licensed according to the provisions of Law No. 116 of 2013 referred to, which have been in operation for at least one year, may apply to the authority for the grant of benefits and exemptions according to the following conditions and regulations:

1. The mechanism for evaluating licensing applications and granting benefits approved by the authority shall apply.

2. Submission of periodic reports indicating the licensed investment entities' compliance with the commitments and standards specified within the submitted business plan according to the timeline.

3. Submission of a detailed business plan highlighting the achievements made since the actual start of operation of the licensed investment entity, along with specifying future objectives.

4. The exemption shall start from the date of submission of the benefits request, after fulfilling the required documents and paying the stipulated fees. This exemption does not cover any amounts previously paid for taxes and customs duties.

Article Three: The specific provisions and regulations for investors and investment entities applying for benefits and exemptions according to the provisions of Law No. 116 of 2013, whether simultaneously with the investment license application or subsequently, and which have contracts or projects for which bids were submitted before the application, whether from the government or the private sector.

* Compliance with the authority's standards regardless of the commitments made by the investor or investment entity in the contract terms.

* The exemption granted by the authority will not cover ongoing contracts or projects for which bids were submitted before the application, and furthermore, the exemption does not apply to these contracts and projects even if they are transferred or assigned to another entity later.

* The investment entity, which obtains the investment license and benefits, is required to maintain separate financial accounts for the investment entity, independent of any signed contracts.

*The benefits and exemptions granted by the authority will not include any contracts exempt from taxes and fees.

Article Four: Companies and investment entities committed to the offset program in Kuwait are not allowed to benefit from the advantages and exemptions issued under Law No. 116 of 2013 during the commitment period.

*Benefits:*

The Direct Investment Promotion Authority Law provides several advantages and guarantees to foreign entities to encourage investment in Kuwait, including:

1. Taking advantage of the available investment opportunities by establishing a Kuwaiti company with up to 100% ownership, as a licensed branch of a foreign company, or as a representative office with the sole purpose of conducting market studies or production feasibility assessments.
 
2. Tax incentives for up to ten years concerning the share of non-Kuwaiti shareholders in the profits from eligible projects.
 
3. Exemptions from customs duties.
 
4. Allocation of land for proposed projects.
 
5. Guaranteeing the protection of investors from expropriation or confiscation without compensation that equals the real economic value of the expropriated project at the time of expropriation, ensuring the free transfer or conversion of capital and profits, and allowing disposal of ownership in the investment entity at any time without restrictions.
 
6. Avoidance of double taxation and interest under bilateral agreements for the protection and promotion of investment.
 
7. Classification of investment entities licensed by the authority within the Central Agency for Public Tenders, accounting for their global experience level.
 
8. Utilizing the necessary foreign labor for the investment according to the principles and regulations determined by a decision of the Council of Ministers, regarding the minimum percentage of national labor that must be available.