Al Tamimi & Company, KDIPA host joint seminar in Dubai
DUBAI: Well-received Presentation on Kuwait’s New Direct Investment Law Al Tamimi and Company, the largest law firm in the Middle East, along with the Kuwait Direct Investment Promotions Authority (“KDIPA”), the relevant governmental authority whose main function is to attract and encourage foreign and local direct investment in Kuwait, organized and held a seminar in Dubai this month at the prestigious Jumeriah Emirates Towers to highlight the recent landmark changes in the State of Kuwait regarding direct investment law.
A large audience of representatives of well-known multi-national companies based in Dubai had an opportunity to hear about the developments in the State of Kuwait that have made it substantially easier for them and other global companies to do business there. Specifically, Law 116 of 2013 Promulgating the Direct Investment Law allows foreign companies to apply for an investment license to establish a 100 percent foreign owned commercial entity; a branch of a foreign company licensed to operate within Kuwait or a representative office whose main purpose is limited to the study of markets and production. In addition, the aforementioned new law also offers other incentives and exemptions, such as tax and customs exemptions, in order to encourage more direct investment into Kuwait.
Investment license
Alex Saleh, Partner and Head of Office for Al Tamimi and Company in Kuwait, presented a detailed discussion on the various investment entities allowed to obtain an investment license to own 100 percent of the capital of a company in Kuwait, the rules and procedures for the submission and registration of the application process to obtain an investment license, and the various incentives and exemptions offered to approved applicants under the Direct Investment Law. Saleh also discussed the different sectors which are not eligible for an investment license set out in the recently issued Negative List.
Alex Saleh, who first arrived to Kuwait in 1994, commented that, “these new changes to the direct foreign investment laws, as already implemented, are a game changer with respect to how the foreign global companies will perceive Kuwait from an investment standpoint. I sincerely believe you have seen and will see a renewed interest by these multi-nationals towards investing in Kuwait.”
Direct investment
KDIPA representatives, Sheikh Abdullah Al Sabah, Head of Licensing and Investment Registry and Amr Wageeh, Senior Legal Counsel, presented at the seminar and provided an overview on the goals and services of KDIPA to promote and support direct investment by both local and foreign investors in order to meet the objectives of Kuwait’s development plan to transform Kuwait into a world class financial and commercial center.
They also responded to incoming questions from the audience on several issues including the OneStop-Shop, the Negative List, KDIPA’s Economic Zones, KDIPA engagement with all key stakeholders, and their insight on principal-agent issue.
Sheikh Abdullah stated that “the on-shore companies that these foreign entities will establish in Kuwait will be treated as a Kuwait companies in every regard and will receive the same benefits as such.”
Amr Wageeh stated that “Reducing cost of doing business and services efficiency are KDIPA’s concern. Kuwait is fostering a competitive environment and KDIPA is here to make this happen.”
Al Tamimi and Company’s Kuwait office is led by Partner and Head of Office, Alex Saleh and operates through its joint venture with Yaqoub Yousef Al Munayae. Al Tamimi and Company was established in 1989 and is the largest regional law firm, with fourteen fully-owned offices or through partners in Bahrain, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates and employs over 600 staff and over 320 lawyers.