Director-General of the Kuwait Direct Investment Promotion Authority (KDIPA) Sheikh Dr. Meshaal Jaber Al-Ahmad Al-Sabah is scheduled to hold a series of talks with Japanese government officials and business leaders this week, in a move that will help enhance Kuwaiti-Japanese cooperation on investment.
In a reflection of Kuwait's keen interest in sharing Japan's expertise, during his stay here, Sheikh Dr. Meshaal will also make inspection tours to newly developed urban areas, Tokyo Metro and commercial areas and attend a business seminar. The Kuwaiti government established KDIPA as an independent public authority in 2013, as it issued a new Foreign Direct Investment (FDI) Law regarding the promotion of direct investment in Kuwait. KDIPA is tasked with creating an attractive environment for FDI into Kuwait streamlining business environment, facilitating procedures and resolving obstacles, in order to achieve the aspired economic and social goals. According to the new FDI Law, investments can take one of three forms -- A Kuwaiti company with up to 100 percent foreign equity, a branch of a foreign company licensed to operate in Kuwait for the purpose of direct investment, or a representative office having the sole purpose of preparing market studies and production possibilities without engaging in a commercial activity or activity of commercial agents.
The new FDI Law also provides for the establishment of a "one-stop shop" within KDIPA in coordination with the relevant government authorities, to complete procedural steps within the timeframe mandated by the new FDI Law. KDIPA issued details about incentives and exemptions and how to apply for them in Executive Regulations last December, such as the ability for investing entities to apply for exemptions from corporate income tax for a maximum period of 10 years.