{"id":125504,"date":"2026-01-12T09:37:47","date_gmt":"2026-01-12T09:37:47","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=125504"},"modified":"2026-01-12T09:37:47","modified_gmt":"2026-01-12T09:37:47","slug":"kuwait-investing-in","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/kuwait-investing-in\/","title":{"rendered":"Kuwait: Investing In"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-125504","comparative_guide","type-comparative_guide","status-publish","hentry","guides-investing-in","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 Investing In 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\">Please briefly describe the current investment climate in the country and the average volume of foreign direct investments (by value in US dollars and by deal number) over the last three years.<\/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 has recently engaged in a number of reforms in an attempt to bolster the total amount of FDI into Kuwait. However, FDI inflows in Kuwait in 2024 were estimated to be of US$614 million, which is down significantly from 2023, which were estimated at US$2.1 billion.<\/p>\n<p>The Government of Kuwait has been actively encouraging FDI and we have seen a number of major participants enter the Kuwaiti market, such as BlackRock and Goldman Sachs.<\/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 the typical forms of Foreign Direct Investments (FDI) in the country: a) greenfield or brownfield projects to build new facilities by foreign companies, b) acquisition of businesses (in asset or stock transactions), c) acquisition of minority interests in existing companies, d) joint ventures, e) other?<\/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, FDI is not limited to one particular form or mechanism, rather foreign investors enter the Kuwaiti marketplace in a variety of ways, including vis-\u00e0-vis projects (whether greenfield or brownfield), direct acquisitions, acquisition of minority interests, entering into partnerships or establishing onshore entities.<\/p>\n<p>The form of FDI typically depends on the interest of the investor seeking to enter into the Kuwaiti market, their general business globally and their strategy as it relates to the Middle East and Kuwait. There is no one form of FDI which is preferred by foreign investors. Rather, this decision is guided by commercial interests and the opportunities available in Kuwait to those foreign persons. However, recently, there does seem to be an increasing interesting amongst foreign companies and investors in establishing an onshore entity through the Kuwait Director Investment Promotion Authority (\u201cKDIPA\u201d). KDIPA reported attracting US$725 million in new FDI during the 2024-2025 fiscal years.<\/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 foreign investors allowed to own 100% of a domestic company or business? If not, what is the maximum percentage that a foreign investor can own?<\/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, under Kuwait Law No. 116 of 2013 (the \u201cFDI Law\u201d), a foreign investor may obtain 100% ownership of a Kuwaiti investment entity if they obtain the approval of KIDPA. Otherwise, no foreign investor may own in excess of forty-nine percent (49%) of the shares in a Kuwaiti company.<\/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 foreign investors allowed to invest and hold the same class of stock or other equity securities as domestic shareholders? Is it true for both public and private companies?<\/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, it is generally true for both public and private 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\">Are domestic businesses organized and managed through domestic companies or primarily offshore companies?<\/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, domestic businesses are mostly managed through domestic companies. However, the organization and management of domestic business by foreign companies via franchising and distributorships is not uncommon.<\/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 the forms of domestic companies? Briefly describe the differences.   Which form is preferred by domestic shareholders? Which form is preferred by foreign investors\/shareholders? What are the reasons for foreign shareholders preferring one form over the other?<\/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 primary forms of incorporation are: (1) a shareholding company (\u201cKSC\u201d); (2), a limited liability company (\u201cWLL\u201d); and (3) a single person company (\u201cSPC\u201d) (for the avoidance of doubt, an SPC is merely a WLL that only has one (1) owner).<\/p>\n<p><strong>Which form is preferred by domestic shareholders?<\/strong><\/p>\n<p>A WLL or SPC is generally the preferred option, as a KSC is subject to more extensive regulatory and governance requirements. For examples: (i) a KSC must have a minimum of five (5) shareholders; (ii) it is subject to higher minimum capital requirements, which must be paid up over a five-year period; and (iii) the shares of founding shareholders are subject to a mandatory two-year lock-up period.<\/p>\n<p><strong>Which form is preferred by foreign investors\/shareholders?<\/strong><\/p>\n<p>For the same reasons stated above, a WLL or SPC structure is generally the preferred option. For majority or full foreign ownership via the approval of KDIPA, the FDI Law allows commercial entities to be established in the form of a KSC, a WLL, an SPC or a branch (i.e., a legal extension of the foreign investor\/parent entity, which is not a separate juridical body apart from its parent).<\/p>\n<p><strong>What are the reasons for foreign shareholders preferring one form over the other?<\/strong><\/p>\n<p>This is factually dependent on the type of business that the shareholders intend to conduct in Kuwait. Generally, a WLL\/SPC is a simpler form compared to a KSC. KDIPA-licensed entities are treated as Kuwaiti nationals for most legal purposes, which can be particularly advantageous for foreign companies that are interested in participating in public tenders and\/or public-private partnerships.<\/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 the requirements for forming a company? Which governmental entities have to give approvals? What is the process for forming\/incorporating a domestic company? What is a required capitalization for forming\/incorporating a company? How long does it take to form a domestic company? How many shareholders is the company required to have? Is the list of shareholders publicly available?<\/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><strong>Which governmental entities have to give approvals?<\/strong><\/p>\n<p>Generally, the approval of the Kuwait Ministry of Commerce and Industry (the \u201cMOCI\u201d) is required to form a company in Kuwait. Other regulatory approvals may be necessary depending on the nature of the business that the company will be engaging in.<\/p>\n<p><strong>What is the process for forming\/incorporating a domestic company?<\/strong><\/p>\n<p>Typically, formation requires the submission of an application to the MOCI, supported by various documentation (such as the corporate documents of the founders). Once all necessary approvals are obtained, the founders must execute a memorandum of association for the company and obtain the company\u2019s commercial\/trading license.<\/p>\n<p>The process described above applies to companies for which special activity approval is not required or restricted. Certain commercial activities may be restricted from foreign ownership (e.g., certain aspects of the oil and gas industry) or may require special approval (e.g., the sale, promotion, offering or management of securities, which requires the approval of the Kuwait Capital Markets Authority (the \u201cCMA\u201d)).<\/p>\n<p><strong>What is a required capitalization for forming\/incorporating a company?<\/strong><\/p>\n<p>For WLLs and SPCs, the minimum capital is 1,000 Kuwaiti Dinars (\u201cKWD\u201d). For a KSC, the minimum is typically KWD 10,000, but the minimum may be higher depending on the nature of the commercial activities the KSC will be involved in.<\/p>\n<p><strong>How long does it take to form a domestic company?<\/strong><\/p>\n<p>It generally takes around four (4) to five (5) weeks from the time of submission of the incorporation application, assuming that no special approvals are required from supervisory\/regulatory authorities.<\/p>\n<p><strong>How many shareholders is the company required to have?<\/strong><\/p>\n<p>For KSCs, there must be a minimum of five (5) shareholders. WLLs must have at least two (2) shareholders, but not more than fifty (50). An SPC may only have one (1) shareholder.<\/p>\n<p><strong>Is the list of shareholders publicly available?<\/strong><\/p>\n<p>Only for listed companies. For WLLs, SPCs and non-publicly listed KSCs, there is no public register of shareholders. However, ownership information for WLLs and SPCs is provided in a commercial registration extract that can be obtained from the MOCI.<\/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 the requirements and necessary governmental approvals for a foreign investor acquiring shares in a private company? What about for an acquisition of assets?<\/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 approvals depend on the nature of the activities of the private local company and whether it requires approvals from a supervisory\/regulatory authority. If the company in question is an SPC or WLL, the process generally involves the approval of the MOCI and the Kuwait Ministry of Justice (for the purpose of executing the amendment contract to the memorandum\/articles of association before the notary). If the company in question is a KSC, all approval and transfer processes are conducted through the Boursa Kuwait.<\/p>\n<p>The approvals necessary for the acquisition of assets depends on the nature of the assets in question. However, for commercial assets, in most cases a foreign investor will not be able to acquire the assets directly; it will typically be necessary for the foreign investor to establish a commercial entity in Kuwait in order to be eligible to own and operate the assets in question.<\/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\">Does a foreign investor need approval to acquire shares in a public company on a domestic stock market? What about acquiring shares of a public company in a direct (private) transaction from another shareholder?<\/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>No, a foreign investor typically does not require approval to acquire shares in a company listed on the Boursa Kuwait. However, the foreign investor must open a brokerage account with a broker that is licensed by the Boursa Kuwait.<\/p>\n<p>For the acquisition of shares in a company listed on the Boursa Kuwait in a direct (private) transaction from another shareholder (in what is considered an \u201coff-block\u201d transaction), a special approval from the Boursa Kuwait and the Kuwait Clearing Company is required. The approval of the CMA might also be required depending on the percentage of shares in the target company that are being acquired.<\/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 there a requirement for a mandatory tender offer if an investor acquired a certain percentage of shares of a public 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>Yes, if an acquirer purchases thirty percent (30%) or more of the listed stock of a company, the requirement to submit a mandatory acquisition offer to all shareholders will be triggered.<\/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 is the approval process for building a new facility in the country (in a greenfield or brownfield project)?<\/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>This depends on the nature of the facility. Generally, the approval process for constructing a new facility begins with confirming land allocation and zoning approval from the competent authority. The developer must then obtain preliminary planning approvals and, where applicable, environmental clearance from the Environment Public Authority. Detailed designs are submitted to the Kuwait Municipality for issuance of a building permit, following approvals from the Kuwait Fire Force and other relevant authorities. This is a complex process and subject to restrictions from the time to time by the authorities.<\/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\">Can an investor do a transaction in the country in any currency or only in domestic currency? a) Is there an approval requirement (e.g. through Central Bank or another governmental agency) to use foreign currency in the country to pay: i. in an acquisition, or, ii. to pay to contractors, or, iii. to pay salaries of employees? b) Is there a limit on the amount of foreign currency in any transaction or series of related transactions? i. Is there an approval requirement and a limit on how much foreign currency a foreign investor can transfer into the country? ii. Is there an approval requirement and a limit on how much domestic currency a foreign investor can buy in the country? iii. Can an investor buy domestic currency outside of the country and transfer it into the country to pay for an acquisition or to third parties for goods or services or to pay salaries of employees?<\/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>Contracting parties may conduct transactions in any currency of their choosing provided the chosen currency does not violate any rule, regulation, law or public policy. For example, Kuwait has a general embargo on Israel and transacting in Israeli shekels would be deemed a violation of Kuwait law and public policy.<\/p>\n<p><strong>Is there an approval requirement (e.g. through Central Bank or another governmental agency) to use foreign currency in the country to pay:<\/strong><\/p>\n<p><strong>in an acquisition, or<\/strong><\/p>\n<p>The purchase price for WLLs and SPCs does not get disclosed to the authorities. For KSCs, while the parties may agree to value the purchase price in any currency of their choosing, the payment itself must be conducted in KWD through a broker licensed by the Boursa Kuwait.<\/p>\n<p><strong>to pay to contractors, or<\/strong><\/p>\n<p>There is no restriction on payments to contractors, unless the contractor is a government entity.<\/p>\n<p><strong>to pay salaries of employees?<\/strong><\/p>\n<p>While the employer and the employee may agree to value the salary of the employee in any currency of their choosing, the salary itself must be paid into a Kuwait bank account in KWD as per the regulations of the Public Authority for Manpower.<\/p>\n<p><strong>Is there a limit on the amount of foreign currency in any transaction or series of related transactions?<\/strong><\/p>\n<p>No, there are generally no limitations. However, transfers of large sums of currency are likely to attract scrutiny from the Central Bank of Kuwait (the \u201cCBK\u201d) and the transferor might be subject to questioning therefrom. Kuwait also has rules and regulations regarding anti-money laundering and financial stability standards that must be adhered to.<\/p>\n<p><strong>Is there an approval requirement and a limit on how much foreign currency a foreign investor can transfer into the country?<\/strong><\/p>\n<p>No, there are no limits on the transfer of foreign currency into Kuwait by foreign investors.<\/p>\n<p><strong>Is there an approval requirement and a limit on how much domestic currency a foreign investor can buy in the country?<\/strong><\/p>\n<p>No, there is no approval requirement or limit on the amount of domestic currency (KWD) that a foreign investor may purchase in Kuwait.<\/p>\n<p><strong>Can an investor buy domestic currency outside of the country and transfer it into the country to pay for an acquisition or to third parties for goods or services or to pay salaries of employees?<\/strong><\/p>\n<p>Yes, an investor may purchase KWD outside of Kuwait and transfer it into Kuwait via customary exchange and banking methods.<\/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 approval requirements for a foreign investor for transferring domestic currency or foreign currency out of the country? Whose approval is required? How long does it take to get the approval? Are there limitations on the amount of foreign or domestic currency that can be transferred out of the country? Is the approval required for each transfer or can it be granted for all future transfers?<\/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>Generally, there are no approval requirements and no statutory limits for a foreign investor to transfer either domestic currency (KWD) or foreign currency out of Kuwait. However, some banks have internal regulations that impose limits on the transfer. Additionally, transfers of large sums of currency are likely to attract scrutiny from the CBK and the transferor might be subject to questioning therefrom. Kuwait also has rules and regulations regarding anti-money laundering and financial stability standards that must be adhered to<\/p>\n<p><strong>Whose approval is required?<\/strong><\/p>\n<p>Not applicable, but the transfer of a large sum of money is likely to attract the scrutiny of the CBK and the transferor might be subject to questioning therefrom.<\/p>\n<p><strong>How long does it take to get the approval?<\/strong><\/p>\n<p>Not applicable.<\/p>\n<p><strong>Are there limitations on the amount of foreign or domestic currency that can be transferred out of the country?<\/strong><\/p>\n<p>There are generally no limits that are applicable, but the transfer of a large sum of money is likely to attract the scrutiny of the CBK and the transferor might be subject to questioning therefrom.<\/p>\n<p><strong>Is the approval required for each transfer or can it be granted for all future transfers?<\/strong><\/p>\n<p>Not applicable.<\/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 there a tax or duty on foreign currency conversion?<\/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>No such tax exists, however, the person performing the currency conversion onshore in Kuwait is free to charge reasonable fees in connection with the provision of such service.<\/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 there a tax or duty on bringing foreign or domestic currency into the country?<\/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>No such tax exists.<\/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 there a difference in tax treatment between acquisition of assets or shares (e.g. a stamp duty)?<\/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>No, in Kuwait there is no differential tax treatment between the acquisition of assets as against an acquisition of shares.<\/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\">When is a stamp duty required to be paid?<\/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>Not applicable. Kuwait does not impose stamp duties.<\/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 shares in private domestic companies easily transferable? Can the shares be held outside of the home jurisdiction? What approval does a foreign investor need to transfer shares to another foreign or domestic shareholder? Are changes in shareholding publicly reported or publicly available?<\/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>Except for compliance with foreign ownership restrictions, and depending on the target company\u2019s own transfer and governance rules (e.g., sometimes board or shareholder-level approvals are necessary), shares in private domestic companies are generally freely and easily transferrable, although requisite transfer processes can sometimes be time consuming (e.g., transfers of shares in WLLs and SPCs tends to take three (3) to five (5) weeks to complete). Also, if control of a Kuwaiti target entity is going to change as a result of the transaction, the approval of the Kuwait Competition Protection Agency (the \u201cCPA\u201d) may be required, which tends to take two (2) to three (3) months to obtain and can be quite costly in some instances.<\/p>\n<p><strong>Can the shares be held outside of the home jurisdiction?<\/strong><\/p>\n<p>Although foreign entities may hold ownership of shares in Kuwait companies, the official corporate records evidencing share ownership (e.g., share registries, memorandums of association, share certificates, etc.) must all be held in Kuwait.<\/p>\n<p><strong>What approval does a foreign investor need to transfer shares to another foreign or domestic shareholder?<\/strong><\/p>\n<p>The requisite approval depends on the domestic entity in which the shares being transferred. In general, the approval of the MOCI will be necessary in respect of transfers of shares in WLLs and SPCs. The transfers and approval processes for shares in KSCs are conducted via licensed brokers at the Boursa Kuwait. Other special regulatory approvals may be required depending on the commercial activities of the target entity or the regulators that exercise jurisdiction thereover (e.g., KDIPA). If a change of control is taking place, the approval of the CPA might be required. Board and\/or shareholder-level approvals are typically necessary as well, depending on the corporate governance rules applicable to the target entity.<\/p>\n<p><strong>Are changes in shareholding publicly reported or publicly available?<\/strong><\/p>\n<p>Changes in shareholding for listed companies are reported on the Boursa Kuwait website (www.boursakuwait.com.kw). Otherwise, such information is generally not publicly available.<\/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 there a mandatory FDI filing? With which agency is it required to be made? How long does it take to obtain an FDI approval? Under what circumstances is the mandatory FDI filing required to be made? If a mandatory filing is not required, can a transaction be reviewed by a governmental authority and be blocked? If a transaction is outside of the home jurisdiction (e.g. a global transaction where shares of a foreign incorporated parent company are being bought by another foreign company, but the parent company that\u2019s been acquired has a subsidiary in your jurisdiction), could such a transaction trigger a mandatory FDI filing in your jurisdiction? Can a governmental authority in such a transaction prohibit the indirect transfer of control of the subsidiary?<\/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 filing might be necessary depending on the form the FDI takes. If the target entity is licensed by KDIPA, then a change of ownership (whether change of control is taking place or not) must be reported to KDIPA. Also, all companies are required to report the identity of its ultimate beneficial owners (i.e., any individual who, directly or indirectly, owns 25% or more of the share capital or voting rights, or has the right to appoint or remove the majority of the directors) to the MOCI. Thus, such record must be updated if any change to an ultimate beneficial owner takes place.<\/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 typical exit transactions for foreign companies?<\/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 exit transactions available in Kuwait are typical of those available to companies globally. Foreign Companies may exit via: (a) sale of their ownership interests in the entity in question; (b) public offering of shares (on Boursa Kuwait or any other public exchange); or (c) dissolution\/liquidation.<\/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\">Do private companies prefer to pursue an IPO? i. on a domestic stock market, or ii. on a foreign stock market? iii. If foreign, which one?<\/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>Private Kuwaiti companies rarely engage in IPOs in comparison to most other jurisdictions. When they do engage in IPOs, they tend to prefer to list on the Boursa Kuwait. When they do list on foreign exchanges, the New York Stock Exchange, the London Stock Exchange and the Dubai Financial Market are the most common public exchanges that Kuwaiti companies seek to be listed on.<\/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\">Do M&amp;A\/Investment\/JV agreements typically provide for dispute resolution in domestic courts or through international arbitration?<\/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>This depends on intention of the parties themselves. For foreign parties, it is generally common and advisable to include arbitration as the dispute resolution mechanism and to select a foreign governing law in contractual arrangements. Arbitration offers a neutral forum, procedural flexibility, and enhanced enforceability of awards across jurisdictions under international conventions, thereby reducing exposure to unfamiliar local court systems. Similarly, the choice of a well-established foreign governing law provides greater predictability and certainty in the interpretation and enforcement of contractual rights and obligations. Together, these provisions help mitigate jurisdictional risk, promote efficiency in dispute resolution, and safeguard the interests of foreign parties when contracting in cross-border transactions. As long as the venue of arbitration is in a jurisdiction that is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), the awards issued by the tribunal will generally be enforceable in Kuwait (subject to compliance with various procedural requirements).<\/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 long does a typical contract dispute case take in domestic courts for a final resolution?<\/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>This depends on the nature of the dispute. Usually, it takes one (1) to three (3) years to issue a final verdict over a contractual dispute.<\/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 domestic courts reliable in enforcing foreign investors rights under agreements and under the law?<\/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>Kuwaiti courts are generally reliable in enforcing foreign investors rights under agreements and under the law. That said, foreign investors prefer to mitigate litigation risk by opting for foreign arbitration and foreign governing law, where permissible, due to greater neutrality and procedural flexibility.<\/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 instances of abuse of foreign investors? How are cases of investor abuse handled?<\/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>No, we are not aware of any instances involving abuse of foreign investors.<\/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 international arbitral awards recognized and enforced in your country?<\/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 is a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), which provides the legal basis for enforcing foreign arbitral awards issued in other signatory states. Kuwaiti courts generally recognize this obligation and will enforce arbitral awards subject to compliance with certain procedural requirements.<\/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 foreign investment protection treaties in place between your country and major other countries?<\/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 has entered into a great number of international bilateral and multilateral treaties and conventions with nations all over the world. Such treaties and conventions address issues related to trade and investment, taxation (including with respect to transfer pricing and base erosion), human rights, environmental regulation and cooperation in judicial affairs. These treaties have served to enhance confidence of international investors through the establishment of procedural safeguards.<\/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\">3954<\/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\/125504","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=125504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}