Kuwait is rich with strategic oil resources. – According to the Organization of Petroleum Exporting Countries (OPEC) database, Kuwait has approximately 101.5 billion barrels of proven oil reserves (including the Kuwaiti share of proven reserves in the Divided Zone). 

Democracy – Kuwait has one of the most vocal and vibrant democracies in the region, as enshrined in Article 6 of its 1962 Constitution which stipulates that “The System of Government in Kuwait shall be democratic under which Sovereignty resides in the people the source of all powers”. It has a single chamber “The National Assembly” which is composed of 50 elected members every 4 years, through a free and fair electoral process. 

Open market economy – Kuwait has always enjoyed an open economy with a thriving merchant class and extensive trade relations even before the oil discovery era. It continues to practice a relatively liberal trade with open markets for foreign trade and flexible policies. It has no quantitative restrictions on its imports, but there are a few restrictions on importing goods relating to health, religious and security considerations. Kuwait is committed to trade facilitation with the aims to continuously improve efficiency while safeguarding legitimate regulatory objectives. Furthermore, Kuwait enjoys a free convertibility and total transferability in its currency exchange market; there are also no restrictions on capital or remittances transfers.

Strategic location – Kuwait has a strategic geographic location in the northern Gulf, with a total area of 17,819 sq. km. Its strategic location makes Kuwait a thriving trading center in the region adjacent to three major markets (Iraq, Saudi Arabia, and Iran) and beyond.

Strong MacroEconomics – Kuwait enjoys sound macroeconomic conditions, reflected in a moderate but sustainable economic growth, financial stability, curtailed inflationary pressures maintaining a balance in both its “internal” budgetary balance, and its “external” current account balance. Kuwait’s GDP per capita  classifies it within  the group of very high-income countries. Furthermore, according to UNDP classification, Kuwait belongs to the very High Human Development group.

Services in Kuwait –

Telecommunications – Kuwait has several telecommunications providers, Zain Kuwait, VIVA, and Ooredoo, along with a number of internet providers Fastelco, Zajil, and Mada

Kuwait has one of the highest mobile phone penetration in the world at 220% and is on the rise Moreover, the country’s internet penetration rate reached 82.08% in 2015, positively affected by its smart phone savvy youth, who makes up 60% of the total population (age groups 5-34 years old), and with  high purchasing power.

Fuel – Fuel costs in Kuwait is one of the cheapest in the world.

Fuel price, till to date, are as follows:

• Octane-91 (Premium): 85 fils per liter
• Octane-95 (Super): 105 fpl
• Octane-98 (Ultra): 165 fpl

Trade relations – Kuwait is a founding member of WTO. It is a member of the GCC and its  Customs Union; a member of  the Arab League and its Greater Arab Free Trade Area (GAFTA).

Kuwait enters with 80 other countries in  bilateral treaties for protecting & encouraging investments and avoidance of double taxation (see: Kuwait BITs).

The U.S. and Kuwaiti governments signed a Trade and Investment Framework Agreement (TIFA) in 2004. Kuwait as a member of the  GCC signed a regional free trade agreement with Singapore in 2008 and signed  the European Free Trade Association (EFTA) in 2009 with the European Union.

High degree of deepening integration into the Global Market – Kuwait is considered highly integrated in the global economy because of the following :

• Kuwait trade (exports + imports) represents 95% of its GDP.
• Kuwait Sovereign Wealth Fund manages a US$ 592 billion investments portfolio in world financial markets.
• Migrant laborers in Kuwait are approximately 2.4 million, with an estimated of Kuwait outward workers’ remittances range of more than US $ 15 billion in 2015 annually transferred to various countries designated as pools of human resources in the far East and Arab countries. In 2014, the amount was $ 18.1 billion the highest level since the availability of the data in 1975.
• Kuwait is an active member of almost all international organizations and is part of several regional and sub-regional groups with a network of 100 + bilateral agreements and other trade arrangements.
• Kuwait participated actively in the process of creating global partnerships for development.
• Kuwait is classified as a world center for humanity and His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah was given the title the ‘Humanitarian Leader’ in 2014 by the United Nation because of his remarkable acts of human kindness and generosity and exemplary humanitarian leadership.
• Kuwait enjoys one of the highest rates of official assistance to GDP (1.3%) which is more than the United Nations target of 0.7 %.
• Through Kuwait Fund for Arab Economic Development (KFAED) the State of Kuwait provides grants and soft term loans to 105 countries in the world with a total estimated value of $ 19.3 billion.

Incentives

Exemption from income tax or any other taxes for a period not exceeding ten years from the date of the actual commencement of operations of the licensed investment entity.

Exemption of any expansion of an Investment Entity, licensed in accordance with the provisions of this Law, from the taxes set forth in the preceding paragraph, for a period of no less than the duration of the exemption granted to the original Investment Entity as of the date of commencement of production or actual operation of the expansion.

Low tax  Foreign companies engaged in commercial activities in Kuwait, directly or indirectly, are liable to pay corporate tax on their earnings at a  low flat rate of 15% in accordance to Law no. 2 of 2008 that replaced Kuwait Income Tax Decree no. 3 of 1955 whereby the corporate tax rate followed a progressive system reaching up to 55%.

There is no individual income tax nor any other taxes in Kuwait. However it is been widely considered to introduce such taxes under the current Financial & Economic reform Program for the medium term in the State of Kuwait.