{"id":125002,"date":"2026-01-09T11:09:56","date_gmt":"2026-01-09T11:09:56","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=125002"},"modified":"2026-01-12T12:48:39","modified_gmt":"2026-01-12T12:48:39","slug":"kuwait-project-finance","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/kuwait-project-finance\/","title":{"rendered":"Kuwait: Project Finance"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-125002","comparative_guide","type-comparative_guide","status-publish","hentry","guides-project-finance","jurisdictions-kuwait"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Al Tamimi &amp; Company<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/01\/Al-Tamimi-Company-Logo-Blue-DMS-GEN34298-452771085-4371-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Al Tamimi &amp; Company<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/01\/Al-Tamimi-Company-Logo-Blue-DMS-GEN34298-452771085-4371-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Project Finance laws and regulations applicable in Kuwait<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the typical ownership structures for project companies in your jurisdiction? Does this vary based on the industry sector?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Kuwait, project companies are typically separately established and created solely to develop, own, and operate a specific project. Their ownership structure is primarily determined by the applicable legal framework, the procurement route adopted by the government, and sector-specific regulatory requirements.<\/p>\n<p>Project companies may be established using the corporate forms available under Kuwait Law No. 1 of 2016 (the \u201cKuwait Companies Law\u201d), most commonly as limited liability companies (WLLs) or, for larger or more strategic projects, as closed or public joint stock companies (KSC(C) or KSC(P)). Where a project is procured as a public-private partnership, the ownership structure is largely prescribed by Law No. 116 of 2014 on Public-Private Partnership Projects (\u201cPPP Law\u201d). A PPP project is defined as an activity through which the State of Kuwait seeks to provide or improve a public service of economic, social, or service importance, or to enhance its efficiency or reduce its cost. For PPP projects with a total cost exceeding KWD 60 million, the project must be implemented through a Kuwaiti public joint stock company. In these cases, the law mandates a specific shareholding allocation: between 6% and 24% must be allocated to public entities, at least 26% must be allocated to the successful private investor (subject to any allocation to an initiative proposer), and 50% must be offered for public subscription to Kuwaiti nationals through an initial public offering.<\/p>\n<p>Foreign ownership of project companies in Kuwait is subject to general restrictions under the Kuwait Companies Law, which, as a default position, limits non-GCC foreign ownership in Kuwaiti companies to 49%. However, this restriction can be relaxed where a foreign investor is licensed by the Kuwait Direct Investment Promotion Authority under Law No. 116 of 2013 on the Promotion of Direct Investment. Where such approval is obtained, foreign investors may own up to 100% of the project company, depending on the nature of the project and the sector involved.<\/p>\n<p>Electricity generation and water desalination projects are governed by Law No. 39 of 2010 concerning the incorporation of Kuwaiti joint stock companies to undertake the building and execution of electrical power and water desalination plants in Kuwait. Under this law, such projects must be implemented through public joint stock companies with prescribed ownership allocations, typically comprising up to 24% government ownership, up to 26% allocated to qualified private investors, and 50% reserved for public subscription by Kuwaiti citizens.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any corporate governance laws or accounting practices that foreign investors in a project company should be aware of?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Corporate governance is primarily governed by the Kuwait Companies Law, which sets out rules on how companies are managed and controlled. These include requirements on board composition, shareholder meetings, quorum and voting thresholds, conflicts of interest, related-party transactions and statutory reserves.<\/p>\n<p>Limited liability companies and shareholding companies are required to appoint one or more licensed auditors, subject to strict independence and eligibility requirements, and to maintain proper accounting records. The accounting standard applied in Kuwait is the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB). Financial statements must be audited annually and approved by the shareholders, with additional filing and disclosure obligations applying to joint stock companies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If applicable, what forms of credit support from sponsors or host governments are typically provided?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Credit support in project financings is commonly provided by sponsors rather than the host government. Typical forms include sponsor guarantees, equity injections\/shareholder loans, and shareholder support undertakings. In limited cases, there may be host government support in PPP projects such as government payment undertakings or guarantees, subject to statutory approvals.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of security interests are available (and suitable) for a project financing in your jurisdiction? Are direct agreements used?\u00a0<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Common forms of security include pledges over shares in the project company or the sponsor holding company, assignments of receivables and contractual rights under key project documents, pledges over bank accounts and cash flows, and security over movable assets owned by the project company.<\/p>\n<p>In PPP projects governed by the PPP Law, there are important limitations. Project land and core project assets built on state-owned land cannot be mortgaged. However, the law expressly permits the pledging of investor shares in the project company and the assignment or pledge of amounts payable under the PPP agreement, subject in some cases to the approval of the Higher Committee.<\/p>\n<p>Direct agreements are commonly used in Kuwaiti project financings, particularly in larger infrastructure and PPP transactions. Note however that direct agreements are not technically seen as a security interest (unless a valid Arabic Kuwait law assignment agreement is entered into) and will be enforced as a contract.<\/p>\n<p>Sponsor guarantees are also commonly given as part of project financing. Guarantees are a debt claim under Kuwait law; they are not a form of security. The exact amount and duration of the guarantee must be stated in the guarantee documentation for any guarantee to be properly enforceable and valid against a guarantor in Kuwaiti courts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the above security interests perfected?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Perfection of pledge documents entail notarising the security agreement (which should be in Arabic and subject to Kuwait law) at the Kuwait Notary. Additional registration might be required depending on the type of asset being secured (real estate assets, for example, are also required to be registered at the Land Registration Department in Kuwait). A pledge over listed and unlisted shares should be registered with the Kuwait Clearing Company and the Kuwait Ministry of Commerce &amp; Industry respectively to complete perfection. Furthermore, for any assignment of rights or obligations to be valid against third parties under Kuwaiti law, the debtor must be duly and lawfully served with a notice of such assignment through the process server of the Kuwait Ministry of Justice, or the date of the acknowledgment of and consent to the assignment signed by the debtor must be date stamped at the Kuwait Ministry of Justice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify how security is enforced (notably the enforcement options available for secured parties) both pre and post insolvency\/bankruptcy of the project company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Kuwait, the enforcement of security interests is largely court-driven, both before and after the commencement of insolvency or bankruptcy proceedings, as self-help remedies are generally not recognised under Kuwaiti law, except under limited circumstances.<\/p>\n<p>Outside formal insolvency proceedings, a secured creditor may enforce its security upon the occurrence of a contractual default or upon maturity of the secured obligations. Enforcement typically requires the creditor to obtain a court judgment confirming the debt and the validity of the security, followed by execution proceedings against the secured assets. Depending on the nature of the security, this may involve the judicial sale of pledged movable assets, enforcement of share pledges through court-supervised sale procedures, or the collection of assigned receivables once notice has been validly served on the relevant obligors. Limited exceptions exist for pledged securities governed by the Capital Markets Authority regime, where sale without prior court proceedings may be permitted if expressly agreed, but these are narrowly construed. Additionally, where receivables or contractual rights have been validly assigned as security, lenders may, upon default, step in and collect payments directly from counterparties, provided that the assignment has been properly notified and acknowledged.<\/p>\n<p>Once insolvency or bankruptcy proceedings are opened under Kuwait Law No. 71 of 2020 on the Issuance of the Bankruptcy Law (the \u201cBankruptcy Law\u201d), enforcement options become more constrained. Secured creditors rank in priority to the claims of any unsecured and un-subordinated creditors but below certain government and customary claims. The Bankruptcy Law recognises the rights of secured creditors to enforce their security interests over the debtor&#8217;s assets. However, the law also imposes certain restrictions on the enforcement of security interests by secured creditors, in order to protect the debtor&#8217;s interests and the collective interests of the creditors. For example, secured creditors cannot enforce their security interests unless they obtain the permission of the court. Additionally, the trustee, the debtor and other creditors may object to a request for enforcement in certain circumstances. The court may also order the invalidity of mortgage or security rights prescribed on the assets of a bankrupt debtor if the recording of such security rights is made after the date of suspension of payments by the debtor, provided the creditor was aware of such suspension.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are other important considerations in relation to the security regime in the jurisdiction that secured parties should be aware of?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In addition to enforcement mechanics, secured parties should be aware of a number of practical features of the Kuwaiti security regime that can materially affect structuring and recoverability.<\/p>\n<p>Security (except for assignments) must be held through a local security agent acting for the benefit of the financing parties as in practice foreign lenders have generally not been permitted to hold Kuwait law security themselves directly. As a result, the appointment, authority and capacity of the security agent must be carefully documented to ensure that security can be validly created, perfected and enforced on behalf of the lenders.<\/p>\n<p>Proper perfection and registration of security interests is also critical. Security is generally ineffective against third parties unless it is registered with the relevant authority, and security must be asset-specific, as Kuwaiti law does not recognise floating charges or general security over all present and future assets. In PPP and other regulated projects, additional statutory restrictions apply, including limitations on mortgaging project assets.<\/p>\n<p>Creditors should also be mindful that while government entities may be sued, state-owned assets are generally immune from attachment or seizure, and enforcement is therefore limited to contractual remedies and monetary claims rather than execution against public property.<\/p>\n<p>Finally, secured parties should be mindful of insolvency-related risks, particularly the risk of voidable or clawback transactions. Under the Bankruptcy Law, certain transactions entered into during the statutory suspect period prior to insolvency, including the granting of security for existing indebtedness or preferential payments, may be challenged and set aside.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What key project risks should lenders be aware of in project financings in your jurisdiction? This may include, but may not be limited to, the following risks: force majeure, political risk, currency convertibility risk, regulating or permitting risk, construction\/completion risk, supply or feed stock risk or legal and regulatory risk).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While political risk is generally low given Kuwait\u2019s stability, changes in policy, budgetary pressures and oil price volatility can affect project timelines and government counterparties. Currency convertibility risk is limited, as there are no foreign exchange controls, but payment risk may arise where revenues are KWD-denominated and financing is in foreign currency, noting however that the Kuwaiti Dinar is pegged to a basket of currencies. Force majeure risks (including supply chain disruptions) and feedstock or offtake risk are addressed contractually, while legal and regulatory risk remains relevant due to evolving PPP, insolvency and enforcement frameworks. In this context, lenders should also have regard to the general immunity of state-owned assets from attachment or seizure as discussed above.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any governmental \/ regulatory consents required and are any financing or project documents requirement to be filed with any authority in order to be admissible in evidence in a court of law, valid or enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Financing\/lending documents do not generally require any filing or registration. Security documents are required to be perfected, with perfection requirements depending on the type of asset over which security is being created.<\/p>\n<p>While project agreements themselves are not generally required to be filed with any authority, project finance transactions typically require a range of governmental and regulatory approvals, particularly where the project is structured as a PPP or operates in a regulated sector. The scope of these approvals depends on the type and scale of the project. By way of example, PPP projects are subject to a formal procurement and approval process, including approvals from the Kuwait Authority for Partnership Projects and the Higher Committee established under the PPP Law. In addition, projects must obtain the necessary sector-specific permits, such as commercial registrations, construction and operating licences, and environmental approvals from the relevant authorities. Where a project involves state-owned land or public resources, further approvals may be required to ensure compliance with applicable laws and government policy. Therefore, project agreements may need approval from relevant governmental bodies, especially if they involve state-owned assets or public services.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there are any specific foreign exchange, royalties, export restrictions, subsidies, foreign investment, that are relevant for project financings (particularly in the natural resources sectors)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Kuwait generally has no foreign exchange controls and allows repatriation of profits and offshore accounts, subject to AML\/CTF compliance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please set out any specific environmental, social and governance issues that are relevant. For example, are project companies subject to certain ESG laws, reporting requirements or regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Environmental matters are regulated under Law No. 42 of 2014 on Environment Protection, as amended by Law No. 99 of 2015, which requires projects to carry out environmental impact assessments before commencement, obtain approvals before production n or handling specified chemical substances or before manufacturing, using or importing certain controlled products as well as to comply with ongoing environmental, health and safety standards during operation. In addition, listed companies are subject to ESG-related disclosure and reporting requirements issued by the Capital Markets Authority.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has any public-private partnership models or laws been enacted in the jurisdiction, and if so, are they specific to certain industry sectors?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Kuwait has enacted a comprehensive PPP framework under the PPP Law. This law provides the legal basis for procuring, structuring and implementing PPP projects and applies across a wide range of sectors. While the PPP law itself is sector-agnostic, certain industries are subject to additional sector-specific legislation that overlays the PPP framework.<\/p>\n<p>Electricity generation and water desalination projects are governed by dedicated legislation that mandates specific ownership structures. As a result, while the PPP law provides the overarching framework, its application in practice varies by sector, with strategic and regulated industries subject to more prescriptive requirements in terms of ownership, governance and state participation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Will foreign judgments, arbitration awards and contractual agreements to arbitrate be upheld?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The courts of Kuwait will uphold the contractual choice of law between Kuwaiti companies and foreign parties, except where such law is contrary to Kuwaiti public policy and morality, where the relevant Kuwait law provision(s) would be applied instead.<\/p>\n<p>The courts of Kuwait will recognize and enforce as a valid judgment a final and conclusive judgment obtained in the courts of another jurisdiction, and a judgment based thereon could be given (without re-trial or examination of the merits of the case), provided that the following procedural requirements outlined in Article 199 of the Kuwaiti Law No. 38 of 1980, as amended (\u201cCode of Civil and Commercial Procedures\u201d) are satisfied:<\/p>\n<p>(A) the courts of the jurisdiction in which the judgment was issued must afford reciprocal treatment to judgments issued by the courts of Kuwait;<\/p>\n<p>(B) the judgment was issued by a court of competent jurisdiction according to the law of the jurisdiction in which it was issued;<\/p>\n<p>(C) the parties were duly summoned to appear and were duly represented at the proceedings;<\/p>\n<p>(D) the judgment is res judicata according to the law of the jurisdiction of the courts in which it was issued;<\/p>\n<p>(E) the judgment does not contradict any prior judgment or other rendered by the Courts of Kuwait; and<\/p>\n<p>(F) the judgment does not contain anything in conflict with the general morals or public order of Kuwait.<\/p>\n<p>We are not aware of any country (other than certain Arab countries) that have been found to have reciprocal relationships with Kuwait with respect to enforcement of judgments. As such there is uncertainty regarding the position of the courts in Kuwait concerning court judgments\u2019 satisfaction of the reciprocity requirement referenced herein from countries other than those selected Arab countries.<\/p>\n<p>Additionally, even if an agreement is subject to the jurisdiction of foreign courts, the courts of Kuwait may still accept jurisdiction in any suit, action or proceedings filed against or by a Kuwaiti entity as per Articles 24 and 26 of the Code of Civil and Commercial Procedures. These Articles provide that a Kuwait court may still accept jurisdiction: (i) the defendant in the proceedings expressly or impliedly accepted the jurisdiction of the Courts of Kuwait; (ii) the defendant is resident, domiciled, or has a place of business or a chosen domicile in Kuwait; (iii) if the legal proceedings relate to: (a) a property (movable or immovable) located in Kuwait; or (b) an obligation created, executed or were to be performed in Kuwait; or (c) a bankruptcy declared in Kuwait; or (iv) if one of the defendants is a Kuwaiti citizen or a foreigner who is resident, domiciled, or has a place of business or a chosen domicile in Kuwait.<\/p>\n<p>In light of the above, foreign parties contracting with Kuwaiti entities tend to opt for arbitration for settlement of disputes. Pursuant to Article 200 of the Code of Civil and Commercial Procedures, the courts of Kuwait will recognise and enforce arbitral awards if the subject matter of the award is considered arbitral under Kuwait law. Furthermore, the arbitral award can be enforced in Kuwait where it is in enforceable in the jurisdiction in which it was rendered and upon satisfaction of the same requirements in Article 199 of the Code of Civil and Commercial Procedures, outlined above. In terms of the reciprocity requirement, Kuwait is a signatory to the New York Convention and the Courts of Kuwait will, subject to Articles 199 and 200 of the Code of Civil and Commercial Procedures, recognise and enforce arbitral awards rendered in jurisdictions which are also signatories to the New York Convention.<\/p>\n<p>A waiver of immunity is generally recognised under Kuwaiti law, allowing a government entity to be sued provided however that state assets used for public purposes cannot be seized or attached, even where a waiver has been given.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is submission to a foreign jurisdiction and waiver of immunity effective and enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A waiver of immunity is generally recognised under Kuwaiti law, allowing a government entity to be sued provided however that state assets used for public purposes cannot be seized or attached, even where a waiver has been given.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify what you consider to be (a) the key current issues for project financing in your jurisdiction; and (b) any emerging trends or topics which should be considered or focused on by project financing stakeholders in this jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key current issues for project financing in Kuwait include regulatory and procedural complexity, particularly for PPP and government-related projects, restrictions on security over land and state assets, the requirements around security perfection and limitation on security enforcement and the difficulty in enforcing foreign judgements. Emerging trends include greater focus on ESG and compliance standards and the use of hybrid conventional and Islamic financing structures to broaden funding sources.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify in your jurisdiction what key legislation, subsidy regimes or regulations have been implemented (or will \/ plan to be) for projects in connection with the energy transition and\/or specific projects due to energy security?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Kuwait\u2019s energy transition and energy security agenda is driven by national policy and sector-specific legislation rather than a single dedicated framework. Kuwait Vision 2035 underpins this approach, alongside the PPP Law and Law No. 39 of 2010 (power and water projects). In addition, Law No. 116 of 2013 on the Promotion of Direct Investment empowers the Kuwait Direct Investment Promotion Authority to grant qualifying projects incentives, which may include tax holidays, customs duties exemptions on machinery, equipment and raw materials, facilitation of foreign labour, and other benefits, and may be relevant for energy and infrastructure projects meeting the applicable criteria.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify if there are any material tax considerations which need to be taken into account for a project financing in your jurisdiction, and if so, how such tax issues can be mitigated.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign corporate shareholders are subject to a 15% corporate income tax on Kuwait-source profits, and contractors are typically subject to a 5% retention on payments, with potential tax incentives or exemptions available for qualifying foreign investments under Law No. 116 of 2013 and, in some cases, under the PPP framework. Kuwait does not impose withholding tax and has not implemented VAT, although top-up tax obligations may arise for in-scope multinational groups under the global minimum tax (Pillar Two) regime.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of funding structures (e.g. debt, equity or alternative financing) are typical for project financing in your jurisdiction. For example, are project bond issuances, Islamic finance and \u2013 in the context of mining deals \u2013 streams or royalties, seen as attractive (and common) options for stakeholders? Are you seeing private credit in project financing in your jurisdiction or other alternative financiers? If so, what types of projects are they looking to finance and what are the key structuring issues of such financings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Project financings in Kuwait are typically funded through sponsor equity and senior bank debt from local, regional and international lenders, with Islamic finance commonly used alongside of conventional debt. Funding structures, particularly for PPP projects, are often tightly prescribed by tender documents and usually require fully amortising debt and capped leverage. Project bonds, royalties and similar alternatives are uncommon at the project level. On the debt side, the market is still predominantly bank-led: local Kuwaiti banks, regional banks and (for larger transactions) international banks may all participate. Islamic tranches are also used (either as a full Islamic package or alongside conventional debt), particularly where the sponsor\/investors prefer Shari\u2019a-compliant structures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please explain if there are any regional development banks or export credit agencies, and if so, what is their role in project financing in your jurisdiction and beyond.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Kuwait hosts the Arab Investment &amp; Export Credit Guarantee Corporation (Dhaman), which provides political and commercial risk guarantees for Arab trade and investment. In addition, major Kuwaiti banks such as National Bank of Kuwait SAKP and Kuwait Finance House KSCP regularly participate in project financings and work alongside international ECAs where imported equipment or foreign contractors are involved.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please explain if there are any important insurance law principles or considerations in connection with any project financing in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurance contracts are regulated by the provisions of the Insurance Law No. 125 for the year 2019 (\u201cInsurance Law\u201d) and supervised by the insurance regulatory unit. The Insurance Regulatory Unit operates under the supervision of the MOCI to regulate the insurance market and ensure compliance with laws and regulations related to insurance activities. The provisions of the Insurance Law address what risks are insurable, what stipulations will be considered null and void, in what circumstances insurance contracts will be valid or invalid, the obligations of the insured and the insurer, subrogation rights, and the transfer and lapse of rights and obligations. In particular, the term of the insurance must be written in a conspicuous manner in the policy and the insured has a statutory obligation to pay the premiums. Despite the fact that the general preference of the Government is for insurance to be placed locally, insurance may be placed locally or internationally by both Kuwaiti companies and non-Kuwait companies operating in Kuwait. Additionally, reinsurance is permitted.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please explain if there are any issues with entering into any hedging arrangements in this jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Hedging arrangements (including interest rate and currency hedging) are generally permitted and are commonly used in project financings, particularly under English law ISDA arrangements. However, Kuwait currently has no separate netting law. A such, parties should be mindful that close-out netting and contractual set-off provisions may not be effective following the commencement of insolvency or bankruptcy proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3984<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/125002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=125002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}