If the business is in the form of a Kuwait commercial entity, the Kuwaiti partner(s) must own at least 51% of the company. Alternatively, if a foreigner will not engage with a Kuwaiti partner to establish a commercial entity, that foreigner may only do business in Kuwait through the use of a Kuwaiti agent.  Such agents receive favorable treatment under the Commercial Law in respect to termination of the agency relationship and other matters which can act as a disincentive for foreign investors. 

The Foreign Investment Law 

In 2001 Kuwait passed the Foreign Direct Investment Law No. 8 of 2001(the “FDI Law”) to encourage and secure direct foreign investment into the Kuwait market.  The FDI Law was established as part of the Kuwait 2035 Plan which seeks to transform Kuwait into a financial and commercial regional hub by diversifying the economy, reducing its dependence upon the oil industry and inviting the private sector to drive economic activities.