Business Opportunities in Kuwait for the Western World
Kuwait is known for having a strong economy and currency. The Kuwaiti dinar is acknowledged as the highest-valued currency worldwide. Industries that contribute to the country’s economic progress are oil and gas sector, agro-allied like fertilizer, stock exchange, financial and real estate. The Kuwaiti government is currently focused on economic diversification to engender non-oil development.
Right now, there are numerous platforms for overseas investors, entrepreneurs and start – up enterprises to flourish in this Middle East nation. It also takes pride in owning the second –biggest stock exchange in the entire region as well as oldest sovereign wealth fund globally. This is the Kuwait Investment Authority which was formed in 1953.
As a result, here are some opportunities that Westerners can take into consideration:
· Kuwait is known for its booming stock exchange market. It will be lucrative to start a stock brokerage service if you are an experienced and licensed broker. In fact, many Kuwaitis are investors in this type of commerce.
· Agro allied manufacturing also prospers in Kuwait simple due to the massive petroleum industry. The country is one of the leading manufacturers and exporters of fertilizer in the Middle East.
· Government data disclosed that migrant workers surpass Kuwaiti nationals in the country’s work force. A human resource or job consultancy company can be quite profitable. There are many local businesses that will be willing to outsource their recruitment and employee trainings to your business.
· Gas refilling outlets are easy to set up. Besides, numerous households use cooking gas. All you need to do is rent a small space, purchase and install equipment to refill gas cylinders, and identify a reliable source of supply.
· Real Estate is also a good prospect provided you have sufficient capital. Therefore, it is possible to build accommodations such as hostels that migrant workers can rent on a temporary basis.
· One stop technology hubs are not well-known in Kuwait although these can be very gainful. This outlet sells technology-related commodities and gadgets such as mobile phones, tablets, flash drives, software, and memory cards. Services like configuration of personal computers and gadgets are also available in these facilities.
· English Language Schools offer very good prospects especially because this is the second official dialect for businessmen in Kuwait.
· Business consultancy will be a worthwhile business in Kuwait since this is a country where foreign corporations or investors are not allowed to own a company alone without a local partner. It will be a good idea to put up a business consultancy outfit.
Incentives for Enterprises
What else makes Kuwait a viable place for people from the Western World to launch a business? The system of operations is very simple. There are no taxes for private citizens although companies pay duties. Negotiations are open and the lifestyles of business proprietors are relatively good quality.
However, business competition is also very intense. Ironically, decision-making in the business sector is disreputably slow. Likewise, Kuwait is full of rules and regulations that can trigger confusion and frustration. What are the rules for overseas investors?
Overseas business owners and corporations are not permitted to own real property in Kuwait. Foreign equity contribution in local enterprises is also limited to a marginal interest of 49 percent. Foreigners cannot obtain commercial licenses under their own names. The alien individual or company engaged in business must always be represented by a Kuwaiti national or organization. The subsidiary of an international conglomerate should always be represented locally by a service agent in Kuwait. All overseas firms can only bid for contracts in the government through a resident representative. Only foreign businesses are taxed but the rates are fairly excessive.
Kuwaiti Domestic Enterprises
These restrictions are intended to ensure that local domestic businesses are retained by Kuwaitis. However, majority of these controls can be avoided nowadays. At present, the Kuwait Free Trade Zone or KFTZ makes available solely owned foreign business entities to be started with minimal time and worries.
Huge global corporations planning to invest in Kuwait and the entire Middle East have to comply with several policies. There are also guidelines covered by Kuwait’s law on direct foreign investments. Then again, this will entail approval of the Council of Ministers which will take some time.
All told, there are obstacles for Western nations and individuals who want to conduct business deals or invest in Kuwait. Among these are language and cultural stumbling blocks. The truth is the people of Kuwait look at the world different from Americans, British, Europeans, Canadians, and Australians. All these are reflected in the country’s political, economic, religious, and socio-cultural foundations. People from the West as well as the East must understand the traditions of Kuwaitis. Otherwise, it will be difficult for them to do business successfully in this country.