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The State of Kuwait Direct Investment Promotion Authority (KDIPA) has taken steps to attract technology companies to the Gulf country as technology plays a central role in the 2035 New Kuwait Vision.
Incentives, including waived taxes and priority in government bids, have been given to technology companies by KDIPA, the government arm responsible for promoting foreign companies.
Kuwait’s Vision 2035 is the country’s roadmap to diversify its economy away from oil through creating an attractive investment environment. The small Gulf country is looking to transform into a leading financial and commercial hub.
The country is currently dependent on oil for around 50 percent of their overall GDP. In 2020, the country recorded negative inbound foreign direct investment inflows, and the country’s ease of doing business ranking – standing at 83 out of 190 – is one of the lowest in the GCC.
In 2021, non-oil growth is expected to reach 3.1 percent, and by 2022 it should hit 4.7 percent. But Kuwait, under its Vision 2035 has streamlined its regulations to attract foreign capital to invest in the non-hydrocarbon sectors, which is expected to help the country to diversify and if successful will attract more foreign capital in the future, analysis from KPMG found.
Those streamlined regulations have paved the way for technology giants, like General Electric and Huawei, to open their doors in Kuwait.
General Electric partnered with Kuwait’s Ministry of Electricity and Water to provide solutions for the electronic upgrade of Kuwait’s largest power station. Huawei Technologies-Kuwait executed a number of projects with local partners to complete the countries 5G networks in fiscal year 2019-2020, according to KDIPA, KUNA reported.
KDIPA approved foreign direct investment with 99.6 percent in services; 37.3 percent in information systems; 24.5 percent in oil and gas; and 20.4 percent in training, health, investment, energy and water.
