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Each foreign contractor must make a commitment equal to 30% of the relevant contract value. It is recognised that this investment flow must be absorbable, solidly based and that such investments are intended to be profitable for all parties involved. A planned schedule will be an integral part of the commitment in order to fulfill the obligations on time. A contractor's proposal should include transfer and training in the application of high technology, particularly in manufacturing and production techniques. Automated processes which are not labour intensive will be favourably viewed. In recognition of Kuwait Law, ownership between overseas and local parties must be in the ratio of 49 / 51 respectively. Prime investment projects would:-
Provide good export material. Provide improved local investment opportunities. Ensure long term commitment of the overseas party to successfully complete his agreement. Ensure better co-operation between the partners. Ensure faster approvals and registration for approved Joint Ventures. The contractor should view his participation as a means of earning additional profits, not as a cost to the contractor, nor as an additional cost to be added to the Supply Contract. The Government of Kuwait expects businesses to be profitable, it will however, not underwrite any Joint Venture, financially, commercially or otherwise. That is unless the Joint Venture or other commercial activity is strategic or sensitive. The program is designed to benefit the industrialisation of Kuwait and the development of high technology industries. |