A license may be given by order of the minister upon the recommendation of Investment committee to incorporate Kuwaiti companies where the share of foreigners therein shall be 100%
of their capital, in accordance with the conditions and circumstances placed by the Council of Ministers.

THE COMMITTEE
A committee called The Foreign Capital Investment Committee shall be formed under the chairmanship of the minister, the formation of which shall be issued pursuant to a decree by the council of ministers. Committee members shall include experts representing the private sector as well as representatives of Kuwait Chamber of Commerce and Industry.

The head of the (KFIB) shall act as General-Secretary of the committee. The committee's functions shall be regulated pursuant to an order to be issued by the minister, while the remuneration of its members shall be determined by a Council of Ministers decree.

The investment committee shall be engaged in the following :

• Studying applications for investment and submit recommendations about them.

• Promoting investment opportunities available in the country and taking the initiative to attract foreign investments.

• Granting privileges to encourage the foreign investor and Kuwaiti private sector to make investments, with special emphasis on the latter. This should be coordinated with relevant authorities.

• Facilitate the project's license and registration procedures and eliminate obstacles that may encounter its accomplishment.

• Impose a method for monitoring, follow up and assessing the performance of foreign investments in the country, to identify any obstacles facing such investments and to surmount them.

• Investigate the complaints raised by foreign investors and other concerned parties as a result of implementing the provisions of this law, and submit its reports thereon to relevant authorities.

• Impose the penalties stipulated in the law.

• Prepare draft regulations required for the implementation of the provisions of this law.

• Consider matters referred to it by the minister relating to the implementation of the provisions of this law.

• Prepare periodic statistical reports, on foreign investment activities, as well as an annual report on licensed investment projects indicating obstacles facing the entry of foreign investment into the country, and ways to overcome them. Such report shall be submitted to the council of ministers within a period not exceeding the end of March of every year.

A bureau called Kuwait Foreign Investment Bureau-(KFIB) shall be set up to act as the executive arm of the Foreign Capital Investment Committee, to be formed pursuant to an order issued by the minister. This order shall also specify the functions of the Bureau. The head of the bureau shall be nominated by the Minister and appointed by a Council of Ministers decree. The KFIB shall receive applications and fulfill what necessary procedures they require with relevant authorities, conduct studies related to them and submit suggestions or recommendations to enable the investment committee to take decisions within a period not exceeding four months, for valid reasons, by order of the minister.

The KFIB shall act on all matters related to foreign capital investment, particularly the following:
1. To inform international markets about the projects placed for investment, and highlight the benefits enjoyed by the foreign capital investment in the country.

2. To provide all necessary information, clarification, and statistics requested by foreign investors.

3. To follow up execution of licensed products and eliminate the obstacles and difficulties which may face such projects.

4. To coordinate with the concerned authorities in order to facilitate the foreign investor's entry and residence in the country alongwith his foreign dealers (those having business connections with him).

GUARANTEES
Foreign projects licensed under the provisions of this law cannot be confiscated or nationalized. Expropriation may only be effected for public interest in accordance with the laws applicable and against a compensation equivalent to the project's real economic value at the time of expropriation. Such value should be estimated according to the economic situation prior to any threat of expropriation. Further, the due compensation will be paid without any delay.

Without prejudice to the provisions, this law should apply to existing investments belonging to a foreign capital in conformity with the provisions of this law, provided that the privileges, exemptions, and guarantees accorded to such investments under the provisions of this law shall not be less than those previously granted to the existing investments. Applications with regard to benefiting from the privileges indicated herein should be submitted by the foreign investor to the Investment Committee for due consideration.

The interests of the foreign investor having a license in accordance with this law shall not be affected or disadvantaged by any amendments to this law. Nevertheless, expansion in the investment taking place after amendments in the law are effected, will be subject to amendments.

The foreign investor has the right to transfer his investments in full or in part to another foreign investor, or to a national investor, or relinquish to his national partner in case of partnership, in accordance with law and license conditions. In case a foreign investor transfers all or part of his investments to another foreign investor, the latter should assume the position of the former commensurate with the share transferred to him.

The foreign investor has the right to transfer abroad his profits, capital, and compensation stipulated in this law. Non-Kuwaiti workers in the project, and its foreign dealers who operate from outside the country may also transfer their savings and due abroad.

PRIVILEGES AND OBLIGATIONS
The investment committee may grant foreign investors all or some of the following privileges:
1. Exemption from income tax or any other taxes for a period not exceeding ten years from starting the actual operation of the project, as well as exempting every new investment in the same project from such taxes for a period equivalent to that granted to the original investment when the project was established.

2. Benefit from the privileges supplied under double taxation avoidance. Agreements as well as investment encouragement and protection agreements.

3. Total or partial exemption from customs duties on the following imports:
Machineries, equipment, and spare parts required for construction, expansion and development. Raw material, semi-processed goods, wrapping and packaging material and other material required for production purposes.

4. Allotment of lands and real estates required for investment purposes in accordance with the laws and regulations applicable in the state of Kuwait.

5. Recruitment of required foreign labor in accordance with the laws and regulations applicable in the country.

The council of ministers shall determine, by decree, the percentage of national laborers to be employed in the project. Granting of the privileges indicated in this article shall be in line with the economic development plans, and the number of Kuwaiti laborers in the project, and with due observation of the provisions of Law concerning employment of national labourers .

The foreign investor is obligated to protect the environment, comply with the public and moral order as well as the rules relating to security and public hygiene and not to jeopardize the lives of others.

PENALTIES
In case the foreign investor breaches the provisions of this law, license conditions, laws and rules of the country then investment committee may apply one of the following penalties against him:
1. Serve a notice to draw his attention to the violation.
2. Warning him not to violate this law.
3. Deprive him of some or all of the benefits granted to him, and if he amends he can petition the Committee to reconsider its decision.
4. Administrative suspension of the project for a certain period.

Further, the court may, upon the request of the Investment Committee, rule on cancelling the license and liquidating the investment.

Without prejudice to the foreign investor's right to resort to courts, the foreign investor may complain to the Council of Ministers against the penalties indicated in the clauses 3 and 4 above, within thirty days from the date he is notified of the penalty. In case of rejecting the complaint, the reasons for its rejection should be mentioned and should be in writing.

The complaint, not officially replied to within sixty days from the filing date, shall be deemed as rejected. Enforcement of the penalty shall not relieve the foreign investor from the civil and penal liability whenever applicable.

CONCLUDING PROVISIONS
Any disputes arising between foreign investment projects and third parties shall be under the jurisdiction of Kuwaiti Courts. Nevertheless, the parties may agree to refer such disputes to arbitration.

The foreign investor shall be treated equally with the national investor and all technical, economical, and financial information pertaining to the project, as well as investment initiatives, shall be treated with confidentiality in accordance with the existing laws and regulations. Without prejudice to any severe penalty stipulated by any other Kuwaiti law, any person divulging information, related to the investment initiative, technical, economic or financial aspects of the foreign investment, made under the provisions of this law, shall be punished by imprisonment for a period not exceeding one year and a maximum fine of ten thousand Kuwaiti Dinars, or by either penalty, except in such cases wherein disclosure of information is permitted by law.

The minister shall submit to the national Assembly a copy of the annual report within 30 days from the date of presenting it to the Council of ministers. Further, the minister shall submit to the National Assembly every six months a periodic statement comprising all the applications submitted in accordance with this law.

EXECUTIVE REGULATIONS
The following terms in these regulations shall have the meaning corresponding to each.

Minister: The minister of commerce and industry.
Committee: Foreign capital Investment Committee.
Bureau: Kuwait Foreign Investment Bureau KFIB
Head of Bureau: Head of KFIB & Secretary General of Foreign Capital Investment Committee.
Law: Law No. 8 of 2001 regulating foreign direct investment in the State of Kuwait.

Invested Foreign Capital:
1. Foreign bank notes, securities and commercial papers remitted to the country.

2. The machineries, equipment, means of transport, raw material and necessary commodities bought from abroad for investment purposes

3. Incorporeal moral and intellectual rights, such as: patents, trademarks, licenses, registered commercial names, and engineering and technological designs.

4. Profits and gains of foreign invested capital - if it is needed to foreign capital or employed in the construction of new investment projects.

Foreign investor: The person who holds a non-Kuwaiti nationality.

Foreign Investment: The employment of foreign capital in a business that is licensed in accordance with the provisions of the law.

Project: Any economic activity or project conforming to the provisions of the law.

Investment License: A license granted by ministerial order pursuant to the recommendations of the committee, after obtaining the approval of the concerned authorities, whereby the holder will have the right in accordance with legal and technical conditions, to practice economic activities in the manner specified by the law.

Investment Register: The register in which are recorded information about the investment projects and whatever changes they undergo.

In the context of foreign investment, all issues not particularly provided for herein shall be subject to the provisions of the laws and regulations of the State of Kuwait, provided they do not contradict the provisions of this law.

The provisions of this law shall be applied to the economic activities and projects owned by the national investor having no foreign partner whenever they fall within the activities and projects determined by the Council of ministers.

The Minister shall issue the executive regulations and necessary orders required for the implementation of the provisions of this law within six months of issuing this law.

The Prime Minister and the ministers, each within his own competence, shall implement this law.

INVESTMENT LICENSES
The owner of the project or his legal representative submits an application for an investment license for a new project or modernizing and extending existing ones. This application should be addressed to the Bureau attached to the following data:
1. Capacity of the applicant (foreign investor or his legal representative) and his partners in the project.
2. The contact details (Postal address, telephone and fax numbers, and email if any).
3. Type of investment activity and its purpose.
4. Headquarters and management center of project.
5. Official copies of the contract of association of the company and its organizational chart and manual of administration.
6. Business plan, including details about sources of finance, total and paid up capital, raw materials, local and foreign marketing, the economic, environmental and social impact of the project on the State of Kuwait.
7. Special timetable for completion of the project.
8. Qualifications and capabilities of the investor to execute the project.
9. Statement of the employment of national and foreign manpower viewed from the perspective of the project's needs.
10. Import orders relevant to the requirements of the project.
11. An indication whether or not the foreign investor will resort to arbitration in case of any dispute related to the project that may arise between the foreign investment projects and third parties.

The license, applicant will receive, from the bureau, a receipt indicating the number and the date of the application. The date of submitting the application will be considered as the date when these data and documents are completed.

Taking the provisions of articles 3 and 7 of the law into account, the KFIB must study the application for license submitted to it, and it must submit necessary recommendations about it to the committee within a period of maximum one month from the date the application is submitted. The Committee then should decide on the matter within a period of not more than four months from the date of submission of application. However this period may be extended for a similar period of time by a ministerial order citing the reasons for extension.

Taking into account the provisions of the law and the resolution of the Council of Ministers to implement it, the investment licenses will be granted to projects by ministerial order and in accordance with the provisions of the law.

The investment license for the construction of any new project, or making any changes to currently existing projects to improve them, will be issued by Ministerial order which will include the data relevant to the license and duration of the project.

In case the application for investment license is approved, the KFIB will advise all concerned authorities of the order issued in this respect. But if the application for the license is rejected , the rejection must be justified and in written form. In all cases the applicant must be advised whether the application is approved or not, or if the period required for final decision is extended. This should be informed to the foreign investor within fifteen days from the date the order is issued.

The owners of the licensed projects are obligated to adhere to the conditions and the objectives stated in the investment licenses. No amendments or changes may be made to such projects unless pursuant to the recommendation of the Committee and the approval of the Minister.

If the application for the investment license to establish a project has been rejected, the applicant cannot re-apply for the same project till after the lapse of one year from date of rejection.

INVESTOR REGISTER
All licenses are recorded in the investment register. Application to record the license or its deletion from the register or recording the suspension of the investment activity must be entered in the register using the forms already prepared for this purpose. The supporting documents and statements must be attached to the application and the applicant must receive a receipt containing entry number and its date.

The application to record information related to the investment license in the investment register must be submitted within one month from the date of obtaining the license; the application must include the following documents and information:
1. Name, address and nature of the project, and its management head office.
2. Name of the owner and manager of the project.

All details already entered in the investment register in addition to its entry date and number, as well as legal actions pertaining to the project, shall be published in the official gazette (Kuwait Al-Yaum) within one month from the date of recording them in the investment register.

The project owner must inform the KFIB about court rulings and legal restrictions and resolutions effected on him (or the project) within one month of knowing about them, these court rulings, legal restrictions, and resolutions are as follows:
1. The judgment declaring bankruptcy or cancellation of it as well as rulings specifying the date when the foreign investor stopped paying his debt.
2. Court rulings relating to rehabilitation (rehabilitation from bankruptcy)
3. Court rulings and resolutions relating to garnishment on the project or removal of such garnishment.
4. The court judgements and resolutions relating to cancellation of the license, liquidation of the
project, appointment of liquidators, and their dismissal.

All parties concerned can inform KFIB of the previously mentioned court rulings and this information will be entered in the investment register.

The project owner, or his legal representative, or his heirs, or the legal liquidators, as the case might be, may apply for deletion of the investment license entry from the investment register under the following circumstances.
1. Permanent suspension of work in the project.
2. Liquidation of the project.
3. Cancellation of the license.

The application for deletion from the register must be made within one month from the date the project stops operation, or is liquidated, or license is cancelled. The application must include the following details:
1. Name, nationality, and domicile of the applicant.
2. Name and entry number of the project in the register.
3. Reason for deletion and necessary substantiating documents.

The applicant will be granted a certificate indicating that the deletion was made, and it will be published in the official gazette within one month from the date of deletion.

FOLLOW-UP AND CONTROL
When the foreign investor is informed about the approval of license he shall immediately start work on the project in accordance with the timetable provided to the KFIB, and shall provide KFIB with detailed progress reports every six months. These reports shall include information about phases accomplished, and description of obstacles encountered during execution of works. KFIB, in turn shall prepare periodic reports about licensed investment projects under the name of the committee.

If the foreign investor puts forth acceptable reasons that prevent him from accomplishing the project in accordance with the timetable, the committee in such a case can extend the period for accomplishing the project to a maximum of one year.

The owner of the project must provide an audited copy of its balance sheet with a profit and loss statement for the previous year to the KFIB within three months from the start of every fiscal year.

GUARANTEES, PRIVILEGES, FACILITIES AND EXEMPTIONS
In case the foreign investor desires to transfer the capital or profits of the project, or the compensation stipulated in article 8 of the law, then all applicable laws and resolutions in this respect will be applied to him.

Applications for granting all, or some privileges stipulated in the law must be submitted to the Bureau, with the starting of production or practicing the business indicated. Following verifications of these facts the KFIB must prepare a report stating its opinion and pass it on to the Committee to take its decision about that in accordance with the provisions of the law.

When considering the privileges and exemptions to be granted to the project, the Committee can take the following into account:
1. Modern technology and management as well as experience, technical and marketing expertise.
2. Expanding and activating the role of the Kuwaiti private sector.
3. Creating job opportunities for the national workers and training them.
4. Economic development plans and targeted sectors.
5. Location of the project.

PENALTIES
In case the foreign investor violates the provisions of the law and its executive regulations, or the conditions of the license, or the applicable laws and regulations of the country, the KFIB will prepare a report in this respect and present it to the committee along with its opinion.

The committee may impose any of the penalties stipulated in the law, if it finds the foreign investor in violation of the laws. If the committee finds that the issue entails the cancellation of the license and liquidation of the investment, it can present it to the court which may rule that the license should be cancelled and the investment liquidated.

Petitions against two penalties indicated in clauses 3 and 4 (under penalties) of this law should be presented in written form by the foreign investor, stating the subject of the petition, the grounds on which it is based , and his demands. This should be done within the period prescribed in the law and as per stated procedures. The KFIB must convey the petition to the committee which will study and report it to the council of ministers, who in turn will look into the matter and pass a resolution concerning the petition.

FINAL PROVISIONS
The national investor who does not have a foreign partner and so desires to obtain the privileges already prescribed in the law can apply for it to the KFIB. The KFIB must prepare a report stating its opinion regarding its application, and pass the report on to the committee which will put appropriate recommendations and send it to the minister for approval.

The foreign investor, owner of an already existing project, who wishes to benefit from the privileges stipulated in the law must apply for that purpose to the KFIB. The KFIB in turn shall study the application, and put down its recommendations and pass it on to the investment committee which will study it and put forth appropriate recommendations in this respect within a period of four months from the date of submitting the application. After that the application must be presented to the Minister for approval. However, the privileges, exemptions, and guarantees granted to him under the provisions of the law must not be less than those already allotted to him.

The owner of the project who has obtained an investment license prior to issuing this law can apply for registration in the investment registrar before his license expires, or within a period of one year from the date of having this executive regulations in effect.