KUWAIT: Executive bylaw of the 2013 law that regulates investments
has been issued and is in effect, said the Director General of Kuwait
Direct Investment Promotion Authority Sheikh Dr Mehsaal Al-Jaber
Al-Ahmad Al-Sabah. The executive bill had been issued after it was
endorsed by the Deputy Prime Minister, Minister of Commerce and Industry
Dr Abdulmohsen Al-Mudej and published in the official Gazette, thus
turning effective as of December 14th, he said yesterday.
The authority staff have been recently preoccupied with drafting the
executive regulations, along with relevant decisions, with respect of
the abovementioned law, in coordination with a special commission of
experts.
The 45 provisions of the law, which concern both the local and
foreign entrepreneur, have been worded in a simple and explicit manner.
They tackle permits, privileges, concessions, complaints, legal
procedures and registration.
Sheikh Meshaal said the authority is tasked with luring direct
foreign enterprise, nationalizing local businesses, improving the
business environment, providing procedural facilities and removing
obstacles for businesses. Sheikh Meshaal indicated that the law, in some
parts, endorses the foreigner’s right for a 100 percent stake in
enterprises, namely in shareholding, limited and individual’s companies.
The exact legal details of foreign ownership, however, remain unclear.
Kuwait ranked 141 out of 144 countries in the World Economic Forum’s
Global Competitiveness Report 2014/2015 in terms of foreign direct
investment and technology transfer. It has one of the lowest rates of
FDI in the MENA region and in fact Kuwaiti investors are among the
highest in terms of investing abroad. The new enterprise laws are an
effort to turn this around and help improve FDI figures for Kuwait.
Other concerns for investors include lack of transparency, high rates of
government corruption and an opaque legal system.
– With material from KUNA
– With material from KUNA
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