KDIPA Law
Law No. 116 of 2013
Regarding the Promotion of Direct
Investment in the State of Kuwait
Having reviewed the Constitution;
- and Decree No. (3) of 1955 regarding Kuwaiti Income Tax as amended;
- and the Criminal Law promulgated by Law No. (16) of 1960 as amended;
- and the Criminal Procedures and Trials Law promulgated by Law No.
(17) of 1960 as amended;
- and Law No. (4) of 1962 regarding Patents, Industrial Diagrams and
Designs as amended by Law No. (4) of 2001;
- and Law No. (30) of 1964 on the Establishment of the Audit Bureau as
amended;
- and Law No. (33) of 1964 regarding Expropriation and Temporary
Possession in the Public Interest as amended;
- and Law No. (36) of 1964 regarding the Regulation of Commercial
Agencies;
- and Law No. (37) of 1964 regarding Public Tenders as amended;
- and Law No. (32) of 1968 concerning Currency, the Central Bank of
Kuwait and the Organization of Banking Business as amended;
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- and Law No. (32) of 1969 regarding the Licensing of Commercial Stores
as amended;
- and Decree Law No. (31) of 1978 regarding the Rules for Preparing
Public Budgets, Monitoring their Execution and Final Accounts as
amended;
- and Decree Law No. (15) of 1979 regarding the Civil Service as amended
and the Decree regarding the Civil Service System issued on 4 April 1979
as amended;
- and the Commercial Law promulgated by Decree Law No. (68) of 1980
as amended;
- and Decree Law No. (105) of 1980 regarding the Properties of the State
as amended;
- and Decree Law No. (5) of 1981 regarding the Practicing in the Auditing
Profession as amended;
- and Decree Law No. (20) of 1981 on the Establishment of a Division in
the Court of First Instance for Adjudicating Administrative Disputes as
amended by Law No. (61) of 1982;
- and Law No. (26) of 1995 regarding Free Trade Zones;
- and Law No. (81) of 1995 on Approving the Agreement Establishing the
World Trade Organization;
- and Law No. (56) of 1996 regarding the promulgation of the Industrial
Law;
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- and Law No. (19) of 2000 regarding the Support and Promotion of
National Labour to Work in the Non-Governmental Entities as amended;
- and Law No. (8) of 2001 regarding the Regulation of Direct Investment
of Foreign Capital in the State of Kuwait;
- and Law No. (5) of 2003 on the Approval of the Unified Economic
Agreement between Gulf Cooperation Council Countries;
- and Law No. (10) of 2003 on the promulgation of the Unified Customs
Code for the Arab Gulf Cooperation Council Countries;
- and Law No. (46) of 2006 regarding Zakat and the Contribution of Public
and Closed Shareholding Companies in the State’s Budget;
- and Law No. (10) of 2007 regarding the Protection of Competition as
amended by Law No. (2) of 2012 ;
- and Law No. (7) of 2008 on the Regulation of the Operations of Build,
Operate and Transfer and Similar Systems and the Amendment of some
Provisions of Decree Law No. (105) of 1980 regarding the Properties of
the State;
- and Law No. (9) of 2010 on the Issuance of the State Developmental Plan
for the Years 2011-2012/2013-2014;
- and Law No. (37) of 2010 regarding the Regulation of Privatization
Programs and Operations;
- and Decree Law No. (25) of 2012 regarding the Companies Law as
amended by Law No. (97) of 2013;
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- and Law No. (98) of 2013 regarding the National Fund for the
Enhancement and Development of Small and Medium Enterprises;
- The National Assembly has approved the following law which we have
ratified and issued :
Article 1
Definitions
The following terms and phrases shall bear the meanings corresponding to
each of them:
Relevant Minister of Commerce and Industry.
Minister:
Authority: Direct Investment Promotion Authority.
Board: Board of directors of the Authority.
Chairman of the Relevant Minister.
Board:
Director Director General of the Authority.
General:
Regulations: Executive Regulations to this Law.
Investor: Natural or legal person of any nationality.
License: Investment license issued in accordance with this Law.
Investment Is an economic enterprise or activity that is licensed in
Entity: accordance with this Law by virtue of an investment
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license which grants such enterprise or activity legal
existence in the State of Kuwait.
Capital: What is employed or used directly for purposes of Direct
Investment through an Investment Entity that is subject
to this law, including:
1. Funds, financial and commercial securities, be they
local or foreign
2. Machinery, tools, equipment, transportation means
and other technological devices.
3. Raw materials and intermediate goods required for the
commencement of actual production or operations by
the Investment Entity.
4. Intangible rights such as patents, trademarks, licenses,
registered trade names and industrial and
technological designs.
5. Profits and proceeds of the invested capital if used for
the increase of the capital or if it is employed or used
for the purposes of Direct Investment through an
Investment Entity licensed in accordance with this
Law.
Direct An investment where the Investor, individually or with
Investment: the participation of another investor, employs his capital
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directly through an Investment Entity in the State of
Kuwait licensed in accordance with this Law.
Application: The application submitted by the Investor to obtain, as
applicable, the License or incentives or to merge
Investment Entities, in accordance with principles and
rules relevant to each case.
Article 2
Establishment of the Authority
A public authority with legal personality shall be established under the name
"Direct Investment Promotion Authority" to be attached to the Relevant
Minister.
The headquarters of the Authority shall be in the State of Kuwait, and it shall
have the right to establish offices within the country and abroad.
Article 3
Aims of the Authority
The Authority aims to attract and promote and encourage both foreign and
local Direct Investment in the country, which shall include the following:
1. Developing and improving the investment environment, the facilitating
of procedures and the removal of hurdles encountered by investors as
well as the provision of various means of assistance and support to
encourage Direct Investment in the country.
2. Raising awareness regarding the importance of Direct Investment,
especially foreign investment, and the promotion of the Kuwaiti
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investment environment and the available Direct Investment
opportunities by all means of marketing, orientation and promotion.
3. Encouraging investors to transfer, settle and use modern and
sophisticated technologies, means of production and operations,
management methods, and technical and marketing expertise and to
encourage partnerships between Kuwaiti and foreign investors that foster
the objectives of development.
The Authority shall perform its activities in light of the public policy of the
state, the approved economic development plans, the development of
production sectors, the diversification of national revenue sources in the State
of Kuwait, the creation of employment opportunities for the national
workforce, and increasing its productivity and professional skills by
implementing the latest technology in accordance with the best international
standards adopted in this regard.
Article 4
Tasks of the Authority
The Authority shall perform all tasks necessary to achieve its objectives, and
the following in particular:
1. To screen possible Direct Investment opportunities in the country,
promote such opportunities and present the incentives, exemptions and
guarantees granted to investors, in addition to preparing any necessary
studies, research and statistics and providing available information,
clarifications and statistics to investors.
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2. To receive and assess investors' applications and to take the necessary
actions regarding them in accordance with this law and its Executive
Regulations.
3. To establish economic zones and suggest their locations within the
general structural plan in coordination with the concerned authorities.
4. To establish or contribute to the capital of companies specialized in the
establishment or management of business incubators for projects that
meet the objectives of the Authority, following the approval of the
Council of Ministers, and in accordance with the principles and rules
established by the Board in this regard.
5. To coordinate with all relevant and competent authorities to simplify and
facilitate the procedures and services required to improve and streamline
the investment environment in the State of Kuwait and enhance its
competitive advantage and monitor the competitive position and
performance indicators in the investment field on the basis of
international standards and reports, so as to ensure the encouragement of
Direct Investments in the State of Kuwait.
6. To organize conferences, seminars, exhibitions, and workshops as well
as provide services and training programs in line with its objectives, and
to participate in internal and external events, and prepare, print and
publish on all topics relevant to its work and activities.
7. To secure potential financing and credit facilities, in coordination with
concerned parties, in order to encourage investments needed by the
country.
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8. To oversee and monitor the performance of Direct Investments in the
country and identify any hurdles they may encounter and attempt to
overcome such hurdles in coordination with the competent authorities.
9. To implement the tasks and mandates assigned by the Council of
Ministers or the Relevant Minister that relate to its objectives or that
would encourage Direct Investment in the country.
Article 5
Board of Directors of the Authority
The Authority shall have a board of directors chaired by the Relevant Minister
and a membership of:
1. Three experienced members specializing in the matters assigned to the
Authority who shall be appointed by a resolution of the Council of
Ministers, upon the proposal of the Relevant Minister. The resolution
shall designate a vice-chairman from amongst them who shall be granted
the powers of the Chairman of the Board in his absence.
2. Three members representing the ministries and the government agencies
related to the activities of the Authority who shall be nominated by a
resolution of the Council of Ministers, upon the proposal of the Relevant
Minister provided that their seniority is at least that of an assistant
undersecretary or equivalent.
3. The Director General who shall attend the meetings of the Board with no
right to vote.
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The term of the Board shall be four years, subject to renewal. The Board
members' remuneration shall be determined by a resolution of the Council of
Ministers.
The Chairman of the Board or his authorized signatory shall sign on behalf of
the Authority and shall represent the Authority in its relations to third parties
and before the courts.
Article 6
Meetings of the Board
The Board shall convene at the invitation of the Chairman of the Board or
vice-chairman and such meeting shall be valid if attended by the majority of
its members including the Chairman of the Board or the vice-chairman.
The Board shall have a secretary appointed by the Chairman of the Board and
selected from the Authority's staff. The secretary shall undertake the
preparation of the meetings of the Board and record its minutes and follow up
on the issued resolutions. The Board may invite to its meeting any individual
to participate in the discussion of any particular matter without having the
right to vote.
The resolutions of the Board shall be passed by the majority of the votes of its
members. Where the votes are equal, the side favored by the Chairman shall
prevail.
The Board shall issue the necessary resolutions regulating its affairs, defining
the rules, procedures, and the scheduling of its meetings, the terms of
implementation of its resolutions and the organization of the work of its sub-
committees.
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Article 7
Conflict of Interest
Members of the Board, employees of the Authority including their respective
spouses or relatives of the first degree are prohibited from having any direct or
indirect interest in any project or services provided by the Authority and shall
be bound to disclose their interests and abstain from participating in
discussions about, or the decision making regarding any project. In the event
of a violation of this provision, the relevant resolution shall be void including
all its effects and shall be considered nonexistent.
Article 8
Powers of the Board
The Board shall have all the powers necessary to achieve the objectives of the
Authority and shall formulate its general policy and supervise the
implementation of the same, including the following in particular:
1. To define the principles, rules and standards upon which basis various
investors' applications are assessed in accordance with this Law and its
Executive Regulations.
2. To define the principles and rules for the use of land, real estate and plots
allocated to the Authority or those which are subject to its supervision or
management.
3. To set the bylaws and organizational structure of the Authority and to
issue the administrative, financial and technical regulations that are
required in conducting its business.
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4. To approve the proposed annual budget of the Authority and its final
account prior to referring them to the relevant authorities.
5. To resolve upon merger applications as set forth in this Law.
6. To impose the administrative and disciplinary penalties as set forth in
this Law.
7. To approve the opening of offices of the Authority within the country
and abroad.
8. To set the criteria for benefitting from tax incentives and exemptions in
accordance with this law.
9. To issue the resolution regarding the recommendations submitted by the
competent committees in respect of the implementation of the provisions
of this Law.
10.To issue resolutions necessary for the fulfillment of the objectives of this
Law in accordance with its provisions and its Executive Regulations.
The Board may delegate some of its powers to the Chairman of the Board or
to the vice- chairman.
Article 9
Director General
The Authority shall have a Director General who shall hold at least the
position of undersecretary, appointed, pursuant to a decree upon the proposal
of the Relevant Minister for four years and subject to renewal.
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The Director General shall implement the resolutions of the Board and shall
supervise the technical, administrative and financial functions of the
Authority. The Director General shall further prepare an annual statistical
report, which is submitted to the Council of Ministers, regarding the activity
of the Authority including the number of projects submitted, the projects
approved and the projects rejected with the reasons for such rejection.
The Director General shall be assisted by one or more assistants holding at
least the position of assistant undersecretary appointed by decree upon the
proposal of the Relevant Minister for four years and is subject to renewal. The
Director General may delegate some of his powers to any of his assistants.
Article 10
Financials of the Authority
The Authority shall have an annexed budget. The financial year commences
and ends with the financial year of the state. The first financial year shall
commence on the date this law comes into force and shall end at the closing of
the following financial year.
The Authority's resources shall consist of the following:
1. Financial funds allocated to it in the annual state budget.
2. Returns, revenues or allowances resulting from the Authority's activities,
services, organized events, workshops or training programs for those
involved in the affairs of Direct Investment, as resolved by the Board in
this regard.
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3. Returns or revenues resulting from the investment of the funds allocated
to the Authority or that are subject to its supervision or management.
Article 11
Negative List
Within the limits of Articles 152 and 153 of the Constitution, the Council of
Ministers shall prepare a list of Direct Investments that will be excluded from
the scope of this Law and which shall be updated in light of the general policy
of the state and its plans and the proposals of the Board in this regard.
The Council of Ministers shall set the principles and rules regarding the
investments of foreign corporate entities in the State of Kuwait.
Article 12
Type of Investment Entity
The Application for the License shall be submitted in accordance with the
provisions of this Law by an Investment Entity specified according to the
following cases:
1. A Kuwaiti company having one of the legal entity forms of companies
set forth in the Companies Law promulgated by the aforementioned
Decree Law No. (25) of 2012, which will be incorporated for the purpose
of Direct Investment. Foreign participation in such company may amount
to 100% of the capital of the company in accordance with the principles
and rules set forth under the Companies Law.
2. A branch of a foreign company licensed to operate within the State of
Kuwait for the purpose of Direct Investment. The Relevant Minister shall
issue, upon the proposal of the Board, a resolution clarifying the
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principles and rules regulating the relationship between the branch of the
foreign company and the official authorities with respect to the necessary
procedures for the commencement of the operation.
3. Representative offices having the sole purpose of preparing market
studies and production possibilities, without engaging in a commercial
activity or activity of commercial agents. The Board shall set the
principles and rules in this regard.
Article 13
Rules of Application
The Executive Regulations shall establish the principles, rules and procedures
for the submission and registration of Applications to obtain the appropriate
License in the cases set forth in this Law. They shall further set out the
information and statements that must be contained in, or attached to the
Application and the conditions to be met by the applicant, the appropriate
methods of notice and notification and the fees for the issuance of Licenses.
Article 14
Issuance of Licenses
The License shall be issued pursuant to a decision of the Director General, if
the Application fulfills the criteria, principles and assessment rules established
by the Board regarding each of the cases set forth in this Law, and the
Investor shall be notified of such requirements prior to the submission of the
Application to the Authority.
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This License shall not be subject, with regards to foreigners, to the provisions
of paragraph 1 of Article 23 and the provisions of Article 24 of the
aforementioned Commercial Code.
The License for the incorporation of foreign banks and their branches shall be
subject to the provisions of this Law, without prejudice to the provisions of
Law No. (32) of 1968, and to the decisions and instructions issued in
implementation of its provisions.
In all events, the Authority shall coordinate with the Ministry of Commerce
and Industry on the incorporation and issuance of Licenses and supervision of
companies, branches and representative offices, which are subject to the
provisions of this Law.
Article 15
Term for Decision on Application
A decision on the merits of the Application shall be rendered within thirty
days from the date of submission of a complete Application with the data,
documents and conditions set by the Authority.
Article 16
Rejection of Application
In the event the Application is rejected, the rejection shall be reasoned and in
writing. The applicant may appeal the rejection. In the event there is no
response to the appeal thirty days following the date of receipt of the appeal,
such lack of response shall be deemed a rejection of the appeal.
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Article 17
One-Stop Shop
An administrative unit shall be established within the Authority called the
"One-Stop Shop" which shall include employees designated by the relevant
government authorities to proceed with resolving upon the licensing
procedures and the establishment of the Investment Entity in order to ensure
the completion of the procedures within the period set out in this Law.
The Board shall establish the principles and rules necessary to identify the
mentioned government authorities and the method to be adopted for calling
upon their employees and coordinating between them and the Authority.
The applicant may appoint specialized companies or qualified consulting
firms that are approved by the Authority in accordance with the principles and
rules set by the Authority.
Article 18
Accounts of the Investment Entity
Each Investment Entity, licensed in accordance with the provisions of this
Law, shall maintain regular accounts supervised by an auditor or more among
the legal auditors. Where the Investor is granted licenses for more than one
Investment Entity, each Investment Entity shall be dealt with separately.
Article 19
Compensation for Expropriation
No Investment Entity, licensed in accordance with the provisions of this Law,
shall be confiscated pursuant to this Law nor be deprived of its property
except in the public interest and only in accordance with the applicable laws
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and against compensation equivalent to the true economic value of the
expropriated project at the time of expropriation, estimated in accordance with
the economic situation prior to any threat of expropriation. The due
compensation is to be paid as soon as the said decision is taken.
Article 20
Disposal of the Investment Entity
The Investor has the right to transfer or relinquish the ownership of the
licensed Investment Entity, or dispose over it in whole or in part, for the
benefit of a foreign or a Kuwaiti investor. The Board shall establish the
principles and regulations in this regard.
In the event of transfer or relinquishment of ownership of the Investment
Entity, in whole or in part, the new owner or assignee shall replace the
original owner in rights and obligations.
Article 21
Merger of Investment Entities
The merger of two or more Investment Entities can be carried out with the
consent of the Board, following a joint request submitted to the Authority in
this regard, and the new entity resulting from the merger shall be a legal
successor to the merged entities and shall replace such entities in their rights
and obligations.
The new entity shall automatically enjoy the shortest periods remaining for
exemptions and incentives granted to any of the merged Investment Entities.
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Article 22
Transfer of Monies Abroad
The Investor shall have the right to transfer abroad his profits, capital or
proceeds resulting from the disposal over his shares or participation in the
Investment Entity or the compensation set forth in this Law. Moreover,
employees in the Investment Entity shall have the right to transfer their
savings and entitlements abroad.
Article 23
Confidentiality of Information
By virtue of this law, the Investor shall be entitled to the basic principles of
confidentiality in respect of the technical, economic and financial information
relevant to his investment and to safeguard initiatives in accordance with the
provisions of the laws and regulations in force in the country.
Without prejudice to a more severe penalty provided for in any other law, a
person shall be punished with imprisonment for a term not exceeding one year
and a fine not less than one thousand dinars and not exceeding ten thousand
dinars or either one of these two penalties, who divulges or benefits from any
information that he might have gained knowledge of as a result of his
employment or due to his participation in an activity initiated by the Authority
or any of its divisions, relating to investment initiatives or the technical,
economic or financial aspects of an investment that is subject to the provisions
of this Law, except where permitted by law or pursuant to a judgment or an
order issued by a judicial authority.
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Article 24
Legislative Framework of Direct Investments
Unless there is a special provision in this Law, the laws and regulations
applicable in the country shall govern Direct Investments falling within the
purview of this Law, and all international conventions in force in the country
related to investments and the avoidance of double taxation shall be observed.
Article 25
Scope of the Law's Application
The provisions of this Law shall apply to existing Direct Investments and
those investments that were licensed prior to this Law coming into force,
without subjecting such Direct Investments to any damage, provided that the
incentives, exemptions and guarantees granted under this Law shall be no less
than what was granted before its implementation. Investors may apply for
privileges provided for in this Law for the Authority's consideration.
The provisions of this Law shall apply to any expansion or modification of an
existing Investment Entity if the expansion or modification occurs following
the date on which this Law comes into force. The Board shall establish the
regulations in relation to expansions and modifications and how to license the
same.
Article 26
Competent Courts
The Kuwaiti courts are the ones solely competent to consider any disputes
arising between investment projects and third parties, whoever they may be.
The parties may also agree to refer such disputes to arbitration.
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Article 27
Incentives and Exemptions
The Investor shall be entitled to some or all of the following incentives:
1. 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.
2. 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.
3. Without prejudice to the provisions of Law No. (10) of 2003
promulgating the Unified Customs Code for the Gulf Cooperation
Council Countries, the following shall be wholly or partially exempted
from taxes, customs duties or any other fees that may be payable on
imports required for the purposes of Direct Investment:
a. Machinery, tools and equipment and means of transport and other
technological devices.
b. Spare parts and necessary maintenance supplies for what has been
described in the previous subsection.
c. Merchandise, raw materials, partially manufactured goods,
wrapping materials and packaging.
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The Investor is prohibited, for a period of five years as of the date
notifying him of exemptions from the duties described in this article,
from disposing in any manner over the goods described in this clause,
including by way of sale, swap or assignment. During the same period,
the Investor may not utilize the goods in any other manner than for the
purpose for which they were imported, except in accordance with the
principles and rules decided by the Board in this regard, and shall pay
the taxes and fees that would have been due for the importation at the
time of disposal.
4. The use of land and real estate allocated to the Authority or that is subject
to its supervision or management, in accordance with the principles and
rules established by the Board in this regard.
5. The employment of foreign labor required for the investment, in
accordance with the principles and restrictions established by decision of
the Council of Ministers in respect of the minimum proportion of national
employment that must be provided.
6. The Council of Ministers may decide to grant some cases and groups
certain advantages and exemptions, which are not mentioned in this
article.
Article 28
Applicability of Incentives and Exemptions to Partnerships of the Public
and Private Sectors
The provisions of the previous article shall apply to all types of partnerships
between the public and private sectors established for the purpose of Direct
Investment, including companies and projects stipulated in Law No. (7) of
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2008 and Law No. (37) of 2010 provided that the Board establishes the
relevant rules and principles.
Article 29
Application and Criteria for Granting of Incentives
The Investor shall apply to the Authority for all or part of the incentives
provided for in this Law, simultaneously or following the application for the
License, for consideration by the Authority with the goal of ensuring that it
satisfies the principles, rules and procedures established by the Board in this
regard in line with the approved general policy of the state and economic
development plans.
The value, type and duration of incentives and exemptions granted for
investments, each according to its type and nature, shall be connected to all or
some of the following criteria:
1. The transfer and settlement of technology and modern management
methods as well as practical, advanced technical and marketing
experience into the State of Kuwait.
2. The amount and quality of the products and services offered.
3. The need of the local and Gulf market for Direct Investment and its
contribution to economic diversification.
4. Increase in national exports.
5. Creation of job opportunities for, and training of the national workforce.
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6. Contribution to the development of areas that lack similar projects or
activities.
7. Favorable environmental impact.
8. The extent to which the project offers services to the community that are
outside the framework of the specific project or economic activity that is
being practiced.
9. Use of national products.
10.Use of national technical, professional and consulting services.
The Board may amend or add other criteria to the aforementioned criteria, in
accordance with the public policy of the State and the approved economic
development plans.
Article 30
Investment Register
A special register called the "Investment Register" shall be prepared in which
all Investment Entities licensed in accordance with the provisions of this Law
are recorded, as well as all Applications, Licenses, incentives, exemptions and
penalties connected thereto, and all documents and related data shall be
attached to the register.
The Director General shall issue any decisions required for specifying the
method of setting up the register and its content as well as the mechanism for
registration and the required documentation and data.
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Article 31
Annual Report
The Relevant Minister shall submit to the National Assembly a copy of the
annual report issued by the Authority and a copy of the statistics relevant to its
activities and the projects, within 30 days from the date of submission to the
Council of Ministers.
Article 32
Sanctions in Case of Violation of the Law or the License
In case of a violation by the Investor of the provisions of this Law or the
requirements of the License, the Board may impose one of the following
sanctions:
1. Written warning and a more severe sanction can be decided in the event
three warnings have been addressed to the same Investor or the same
Investment Entity within one year of the first warning.
2. Partial or total withdrawal of incentives and exemptions granted. The
decision of withdrawal may be reconsidered if the violation has been
addressed.
3. Temporary administrative detention.
The License shall be considered null and void by force of law in the event the
Investment Entity ceases its activities and business for more than a year
without acceptable justification, or in the case of a delay of more than one
year from the date set for actual operations to begin according to the timetable
provided by the Investor to the Authority at the time of the request of the
License Application, without acceptable justification. The Executive
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Regulations shall set out the principles and rules necessary in this regard. In
other cases, the License may not be revoked or the Investment terminated
except according to an order issued by the President of the Court of First
Instance based on a petition submitted by the Authority providing justification
for the request.
The Investor may appeal against the sanctions set forth in subsections 2 and 3
of this article within thirty days from the date of notification of the sanction
decision. The appeal shall be decided within thirty days and in case of refusal
of the appeal, the decision shall be written and justified.
Sanctions imposed in accordance with this article and the date of notification
to the Investor shall be recorded in the Investment Register stipulated in this
Law in the section relevant to the Investment Entity associated therewith. The
imposition of such sanctions does not prejudice any civil or criminal liability.
Article 33
Appointment and Powers of Judicial Officers
Specialist employees, who are designated by the Minister by virtue of a
decision issued by him, shall be granted the capacity of judicial officers in
order to monitor the implementation of this Law and its implementing
regulations and decisions. The said employees shall perform their work with
honesty, integrity and impartiality and shall have the obligation not to disclose
the confidential information of Investment Entities received by them in the
course of the performance of their duties. They shall also take the following
oath before the Minister:
"I swear by Almighty God that I will perform my work with honesty,
impartiality, integrity and truthfulness, and I will safeguard the confidentiality
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of the information made available to me in the course of my duties even after
the end of my service."
The relevant employees of the Authority shall submit a detailed report on the
results of their work immediately following its completion to the Director
General, who shall refer it to the Board with his opinion in order to take a
decision in this regard.
Article 34
Obligations of the Investor
The Investor, who has been granted a License or whose investment was
granted incentives or exemptions pursuant to the provisions of this Law, shall
undertake the following:
1. Notify the Authority in writing of the date of the beginning of the
measures and operational steps necessary to start the work of the licensed
Investment Entity and the date of completion thereof, within a period not
exceeding thirty days from the date of each of them.
2. Notify the Authority in writing of the date of the start actual operation of
the licensed Investment Entity, within a period not exceeding thirty days
from the said date.
3. Comply with the rules and financial and tax regulations issued by the
Ministry of Finance, especially those related to the submission of tax
returns and issuing of the tax card.
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KDIPA Law
4. Provide any information, data, statistics or documents requested and
deemed necessary by the Authority in order to implement the provisions
of this Law.
5. Allow any of the Authority's employees authorized by the Director
General, to enter all buildings, sites and facilities associated with the
licensed Investment Entity, for the purpose of monitoring and following
up in accordance with the provisions of this Law as well as verifying the
content of the data, information, statistics and documents submitted by
the Investor against actual practices. The Authority's employees shall
submit a detailed report on the results of their work immediately
following its completion to the Director General, who shall decide what
he deems appropriate in this regard.
6. In all cases, the Investor is obliged during the performance of his work
not to violate the laws and regulations applicable in the country,
especially the duty to protect the environment and the regulations relating
to security, public health, public order and not to expose others to risk.
Article 35
Funds, Assets and Employees of the Authority
All funds, assets, obligations, rights and anything relevant to the Foreign
Investment Bureau established pursuant to Law No. (8) of 2001 shall be
transferred to the Authority.
Without prejudice to the provisions of Decree Law No. (15) of 1979 and the
decree concerning the civil service system issued on 4 April 1979, the
Authority shall have staff appointed according to the regulations set by the
Board of Directors, which shall include the rules of appointment and the
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KDIPA Law
remuneration granted in kind and in cash to employees. The Relevant Minister
shall issue, within six months from the date this Law comes into force, the
decisions necessary for the transfer of the employees he deems appropriate
from the aforementioned bureau to the Authority.
Article 36
Executive Regulations
The Relevant Minister shall issue the Executive Regulations to this Law and
take the decisions necessary for the implementation of its provisions within
six months from the date of its publication in the Official Gazette.
Article 37
Repeal of Law No. (8) of 2001
Law No. (8) of 2001 and any other article which is in breach of this Law is
repealed.
Article 38
Implementation of the Law
The Prime Minister and the Ministers, each in their respective capacity, shall
implement this Law which shall come into force six months following the
date of its publication in the Official Gazette.
Amir of Kuwait
Sabah Al-Ahmed Al-Jaber Al-Sabah
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