Top Reasons You Should Invest in Kuwait

An oil-producing country like the State of Kuwait should be among the top countries you should tick on your list when looking for a country to invest in.  Despite Kuwait being situated in Western Asia, it has grown in prominence as it continues to grow various investments. 

The country has a strong preference for high-tech items, western labels, and imports. Compared to other countries, Kuwait has good electricity, water, land, and labor costs. The government provides subsidies of up to 86% on power tariffs, with different prices for different types of consumers (including households and businesses).

With this effect, investors from all parts of the world are traveling/migrating to Kuwait to grow their businesses. While you look through this article, you'll see reasons to invest in Kuwait.

Why Invest in Kuwait? 

You should invest in Kuwait because it's regarded as the country in the world with the third lowest overall tax burden, the second highest level of gross national savings, and the third most favorable macroeconomic climate. 

This reason has made Kuwait a good place for every investor; even though its strict laws still favor foreigners.

For the last several years, the government of Kuwait has been concentrating its efforts on the New Kuwait Vision 2035, a significant commercial and infrastructural development initiative. 

This is a strategic plan to transition the Gulf state away from its dependence on the petrochemical sector and develop an economy that is both more mature and more diverse.

How Can You Invest in Kuwait?

Investing in a country that's not yours has to be done following the right channel so as not to violate any of that country's laws. Below are ways you can invest in Kuwait and become a successful investor.

1. Money Market Fund

This is a fantastic place to start. A money market fund delivers high liquidity by investing in different and high-quality money market products. This is a form of mutual fund that is also defined as a low-risk investment. Because of the minimal risk, this is an excellent place for a new investor to begin.

2. Equity Funds

They invest primarily in equities and are also known as stock funds. Since they invest largely in stocks that are based and listed in Kuwait—banks have a variety of equity funds that provide strong, long-term capital appreciation. 

In addition, Kuwait has open-ended debt funds that are registered there and are licensed and regulated by the Capital Market Authority. They expose you to fixed-income securities issued or guaranteed by governmental bodies, quasi-governmental organizations, or businesses with regional headquarters in the MENA area.

3. Starting Your Business

The expansion of a nation gives investors several options. So, creating a company is another method of investment. If you want to establish a company overseas, Kuwait is a perfect location. 

The Kuwait Direct Investment Promotion Authority (KDIPA) enacted a new commercial law in 2013 that permits foreigners to control up to 100% of corporate companies. This encourages international investors to invest in Kuwait and take advantage of its 15% flat CIT (Corporate Income Tax). Moreover, banks facilitate access to financing and provide several forms of assistance to entrepreneurs.

FAQs

What makes Kuwait a rich country?

Kuwait is a small nation near the top of the Gulf. Its strategic position and enormous oil reserves make it one of the world's richest countries per capita, surrounded by powerful neighbors Saudi Arabia, Iraq, and Iran.

What are the good things about Kuwait?

This country lets you experience the Arabian culture, its endless deserts, rich history, and food. High-end resorts and entertainment centers showcase the country's modern and luxurious environment.

What is not allowed in Kuwait?

Drugs are forbidden in Kuwait. Sanctions might include large fines, imprisonment, or the death penalty. Alcohol is unlawful to purchase, sell, import, carry, and drink. Fines, jail, and deportation are also penalties.