Ever since the creation of Authority for the Promotion of Direct Investments - whether they were internal investments from inside the State or foreign, Kuwait has been cautiously opening up for Foreign Direct Investments (FDI).

Prior to the amendment introduced earlier this month, the practice was as follows:

• Branches of Foreign Companies (Art. 24 of the Commercial Code). Foreign companies, who wished to operate their business or open branches in Kuwait, were not able to do so unless such business operation was done via a local agent.
• Participation in Public Tenders (Art. 31 of the Public Tenders Law). Foreign companies were not allowed to participate in public tenders. If the participation was ever accepted, it would be on a very exceptional "case by case" basis. The general rule was that only local companies or national individuals can apply and submit proposals for public tenders.

What is the situation now?

Both requirements: (i) the "local agent" and (ii) being a "national" company or individual to participate in  public tenders are now lifted. They no longer apply to foreign companies.

This amendment is a clear emphasis of Kuwait's policy and commitment to attract more foreign direct investment into the country. In addition, allowing foreign companies to participate in public tenders will enhance competitiveness and the quality of services and product provided to customers.