When a related law is implemented in practice, foreign companies establishing branch offices in Kuwait will be able to be 100% foreign owned. Currently, foreign companies must operate through a local agent in collaboration with a Kuwaiti partner or entity owning at least 51% of the company’s shares unless they are located in the Kuwait Direct Investment Promotion Authority free zone, which allows 100% foreign ownership. These changes will remove barriers for foreign companies conducting business operations in the country, making Kuwait more attractive to foreign companies and investors. Further details are expected to be issued by the Kuwaiti government which will outline the process and requirements to establish foreign-owned branches.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
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