Kuwait Opens for Business: Foreign Companies Granted 100% Ownership
KUWAIT CITY, Kuwait: In a significant move to boost foreign investment, Kuwait has expanded its regulations to allow foreign companies to complete ownership of their branch offices within the country. This eliminates the previous requirement of partnering with a Kuwaiti entity holding at least 51% of the shares.
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Previously, foreign companies seeking to establish a presence in Kuwait, outside of the dedicated free zone with existing 100% foreign ownership allowance, had to collaborate with a local agent or partner. This regulation acted as a barrier for some foreign businesses.
The revised policy aims to attract a wider range of foreign companies and investors to Kuwait. It simplifies the process of setting up shop and fosters a more attractive business environment. While the specifics of the application process are still forthcoming from the Kuwaiti government, the core change represents a major step towards a more open and investment-friendly economy.
In a significant shift in Kuwait’s business landscape, foreign companies can now establish fully-owned branch offices in the country. This eliminates the previous requirement of having a Kuwaiti partner with a majority stake in the venture. This reform is expected to streamline the business setup process and make Kuwait a more attractive destination for foreign investment. However, details concerning the application process are still pending from the Kuwaiti government.
This policy shift signifies Kuwait’s commitment to economic diversification and positions the nation as a more competitive destination for international investment.
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