The Business environment in KUWAIT

The Business environment in KUWAIT
Prepared by the CCEF Section of Kuwait
March 2015
1
2
Disclaimer
The State of Kuwait is engaged in a vast development program of more than USD 100 billion over the next
years in various sectors like infrastructure, Health , Education, Energy…. sustained by strong
macroeconomics and budget surplus. This investment program is achievable thanks to high and sustainable
revenues generated mainly by the oil sector.
Accordingly, Kuwait offers huge opportunities for foreign companies looking to expand in the Middle East.
The objective of this presentation is to introduce the business environment in Kuwait, providing information
to companies for a better understanding of the main features of the market.
This presentation shall not be considered in any circumstances as an official document nor will it replace the
prevailing rules and regulations of the State of Kuwait. Any specific request should be addressed to the
relevant governmental entity and reputable law and audit firms capable of handling specific requests in a
changing regulatory environment.
This is an informal document prepared by the CCEF section of Kuwait without any responsibility to its
members and does not represent the views of any Kuwaiti governmental, regulatory or financial authority.
This document does not constitute legal, regulatory or financial advice and should not be relied on by any
investor or business. Each investor or business interested in Kuwait should undergo their own analysis and
assessment and engage financial and legal advisors to do so.
3
Contents
Macroeconomics and bilateral relations between France and Kuwait
Chapter 1 Doing Business in Kuwait
A. Establishment of a company ……………………………………………………………..
B. The employment law ………………………………………………………………………
C. Advices to foreign investors in Kuwait ………………………………………………….
(7)
(15)
(22)
Chapter 2 The Stakeholders in the Projects
A. Kuwait Petroleum Company (KPC) & Subsidiaries ………………………………….
B. Ministries …………………………………………………………………………………….
C. PTB and CTC ………………………………………………………………………………..
(23)
(28)
(35)
Chapter 3 The Kuwait Offset Program
A.
B.
C.
D.
Objectives, tasks and strategy of the NOC ………………………………………….
Organizational structure …………………………………………………………………
Benefits of the NOC ………………………………………………………………………
The Offset milestones ……………………………………………………………………..
(37)
(39)
(40)
(40)
Chapter 4 Main Industry Sectors and Significant Projects in Kuwait
A. The industry sectors ………………………………………………………………….….
(43)
Hospitality & Tourism ………………………………………………………………..
Retail & Fashion ……………………………………………………………………..
Banking …………………………………………………………………………….…
(43)
(45)
(53)
B. The significant projects in Kuwait …………………………………………………...
(55)
•
•
•
Key Contact Information ………………………………………………………………………..
(59)
Conclusion ………………………………………………………………………………………….
(60)
4
"Economic and financial situation of Kuwait and bilateral relations with France"
Kuwait is a rich rentier State with huge incomes from oil production (2.9 to 3 Mb / d) but also important
investments abroad that helped the Kuwaiti population to enjoy a high standard of living (with GDP
per capita exceeding $ 50,000, the second largest in the area) with a particularly generous welfare state.
The hydrocarbons sector (5th world reserves and 3.5% of the World oil-production) which accounts for over
60% in the composition of the GDP in 2013 (66% in 2012) and 95% of the exports means that evolution in
economic growth is closely correlated to the price of the barrel of crude (around 100$ in 2013/2014). It is
also driven by services (the country serves as a logistics base for the American military) and real estate. The
currency in the country is the Kuwaiti dinar, which value is anchored since 2007 on a basket of
currencies reflecting the composition of the external trade of the country.
Over the past five years, Kuwait has accumulated over 230 billion dollars of current account
surpluses largely invested abroad. The public accounts show every year very large surpluses (35
billion € for 2013/2014 fiscal year). These figures do not include the employer's contribution from the Fund for
Future Generations (25% of gross revenues). In addition to that, the amount of assets managed by
the Kuwait Investment Authority sovereign fund (KIA) would be between 400 and 700 billion dollars.
Important amount of money that are ready to be used both for intern or extern investments.
1. 2013/2014 economic developments
With nearly 110 bn$ investment made between 2010 and 2014 and the announcement by the government
in October 2014 of a new five-year plan with annual investments that should be around 11.8 bn KD (32 bn €),
Kuwait seems more than ever to be a strong and one of the most dynamic economy of the Gulf.
First of all, Kuwait has these last years benefited from the upward trend of crude production but also
from the high price of Oil, about 105$ per barrel in 2013 and 100$ in 2014. Moreover, the dynamism of nonhydrocarbon business represents also a new asset with revenues that rose from 2 billion KD (5.5 billion €) in
fiscal year 2012/2013 to 2.5 billion KD (7 billion €) in 2013/2014 against, an increase of 23.6% y/y.
In addition to that, most of the economic indicators are positive with an economic growth of 2.3% in
2013 (for a nominal GDP of 185.3 billion $) and a reasonable level inflation (2.7% in 2013 and around 3%
in 2014). 2014 should be in line with 2013, with a GDP growth rate estimated between 2.5 and 3% (around
190 billion $), a moderate inflation (around 3%) and with comfortable internal and external
surpluses (projected budget surplus of 25 billion euros in 2014/2015; about 20% of GDP).
With a satisfactory economic and financial performance these last years, the absorption capacity of the
Kuwaiti market is very interesting and opportunities for French companies numerous.
2. Bilateral relations between France and Kuwait
After two very good years (1 billion euros in 2012 and 1.8 billion in 2013, an increase of 87% over a year), the
total value of our trade is down for 2014.
After the first eight months of 2014, French exports amounted to 277M€ and largely consist of metal products
(24% to 68M€), mechanical and electrical equipment (19% to 52M€), perfumes and cosmetics (13%
to 35M€), textiles (12% to 34 M€) and food products (12% to 32M€). An amount which decreased by 51%
compared to the first eight months of 2013 (497M€). According to forecasts, France’s market share is
estimated to be around 2.34% in 2014 against 4.59% in 2013.
With imports (comprising over 95% of refined petroleum products) for the first eight months
of 2014 amounted to 514M€, down by 14.6% compared to the first eight months of 2013 (602M €),
the bilateral trade continued to widen with a large deficit of nearly € 237M (against 110M€ in 2013).
To conclude, it appears very clearly that the Kuwaiti market is largely too much under-estimated by the
French companies despite a very good business environment, which offers many opportunities. In other
words, a chance not to be missed!
5
Macro and micro economic indicators
2012
2013
2014
GDP (Billion$)
184,5
191
196
GDP per capita ($)
48 681
49 100
49 237
Economic growth (%)
6.20
3.50
2.60
Inflation rate (%)
3.20
2.70
3.00
Exports (M€)
382
858
277*
Imports (M€)
619
920
514*
Market share (%)
2.11
4.59
2.34*
* Figures issued by the Customs Directorate for the eight first months of the year 2014
6
Chapter 1 DOING BUSINESS IN KUWAIT
A. Establishment of a company
1.
2.
3.
4.
5.
6.
7.
8.
9.
Overview
Business Vehicles
Foreign Investment
WLL Company Formation
Legal Due Diligence
Incorporation Document Checklist
Steps to Incorporation
Post Incorporation Checklist
Tax Implication – General Overview
B. The Employment Law
1.
2.
3.
4.
5.
Employment contract
Visa types
Remuneration
Official holidays
Leaves
C. Advices to Foreign investors in Kuwait
A. Establishment of a company in Kuwait
1. Overview
Kuwait is a small oil-rich country nestling at the top of the Gulf, flanked by large or powerful neighbours Saudi Arabia to the south, Iraq to the north and Iran to the east.
The country is often described as the most liberal country in the region while is the eighth richest country
in the world per capita.
Kuwait is a leading trading partner in the Gulf Cooperation Council (GCC) countries. Recent reports
have ranked Kuwait first in the Middle East for retail expansion and development.
Kuwait City serves as the country’s political and economic capital.
Kuwait has a civil law system, which is based on the Egyptian and French legal codes. Additionally,
Sharia Law is an important source of law. Kuwait has also incorporated various international regulations
and standards into its laws.
•
•
The Commercial Companies Law No.15 of 1960 was replaced by the new Companies Law
Decree No.25 of 2012 (as amended by Law Decree No.97 of 2013) (Company Law)
The Foreign Direct Investment Law No.8 of 2001 was replaced by the Promotion of Foreign Direct
Investment Law No.116 of 2013 (FDI Law)
With a strong domestic market, growing disposable income, plus a favourable long term economic
outlook, Kuwait’s retail sector is flourishing and poised for continued expansion.
7
2. Business Vehicles
The Commercial Companies Law provides information and support for the establishment of following
types of commercial legal entities and other business structures:
A person or entity can enter the Kuwait market and do business in one of the various ways, subject to
certain restrictions:
a) Companies
•
Enter into a joint venture agreement
As per Part Five of the Commercial Companies Law, a joint venture is a company incorporated by
two or more persons. The company shall be limited to the relation between partners and shall not be
valid with respect to third parties.
•
Establish a corporate entity, that is a :
o
o
o
o
o
o
Sole Proprietorship Company;
Professional company;
Non-profit organisation;
Limited liability company (referred to as a WLL);
Public joint stock Company;
Closed joint stock company (KSCC).
A limited liability company (WLL) being the most favourable and appropriate vehicle for long - term
foreign investors in Kuwait, the focus of this guide is limited to a limited liability company (WLL). A
limited liability company (WLL) is an entity where the liability of its members is limited to the extent of
their share capital contribution and also attractive as it provides investment security. This is the most
common corporate entity in Kuwait and the main route adopted by foreign companies or investors
to enter the market, also due to its relatively simple shareholding structure as follows:
•
•
Local Kuwaiti Shareholder(s): 51% (fifty one percent)
Foreign Investor: 49% (forty nine percent)
b) Commercial Agency
Foreign persons or entities interested in conducting commercial activities in Kuwait have the option
to appoint a Kuwaiti Agent (as foreign company cannot establish a branch in Kuwait, pursuant to
Article 24 of the Commercial Law).
Commercial Agencies in Kuwait are governed by Law No.36 of 1964, regulating commercial
agencies, and Commercial Code No.68 of 1980.
The 3 types of Commercial Agencies are as follows:
1. Agency Contract
2. Distributorship Agency
3. Commission Agency
8
3. Foreign Direct investment licence
Foreign persons or entities may apply for a licence under the new FDI Law to incorporate a company in
Kuwait, with or without a local partner.
Features of Foreign Investment Licence under the new FDI Law.
•
A Kuwaiti Company in accordance with the Companies Law with up to 100% foreign equity
•
A licensed branch of a foreign company; or
•
A representative office that exclusively is limited to marketing studies and does not engage in any
commercial activity.
Foreign Investment Licence may be granted for certain types of business activities, to permit 100%
foreign equity ownership of Kuwaiti Companies (FDI Law). The Kuwait Direct Investment Promotion
Authority (KDIPA) is facilitating the filing of applications for foreign investment licences.
Although the new FDI Law aims to facilitate foreign investment in Kuwait, the KDIPA has still to pass the
executive regulations of this law and it is therefore yet to be seen what change this will bring about to
the influx of FDI.
Key Advantages
The following incentives can be offered to foreign investors (Foreign Investment Law):
•
Income Tax exemptions for a maximum ten-year period.
•
Benefits under double tax treaties and bilateral treaties, to encourage and protect investments.
Kuwait has entered into double tax treaties with about 27 countries, including the UK, Germany,
France and Canada.
•
Total or partial exemption of customs duties on the import of specific goods.
•
Recruitment of foreign employees for investment projects.
9
4. WLL COMPANY FORMATION
Time frame for registration and formation
A WLL can be registered in about three months’ time.
Articles of Association
The limited liability company (WLL) is incorporated through an Articles of Association, which sets out its
objectives, capital, members, management, and other details.
Duration
The duration of a WLL company is determined by its founders and is not restricted by law.
Trade Name
The company may choose its own name derived from its objective or the name of one or more partners.
Number of shareholders and shareholder’s liabilities
The maximum number of members in a WLL is 50. The proportion of Kuwaiti shareholder’s capital
contribution should not be less than 51%.
Capital
The minimum capital required for a WLL Company is KWD.10, 000. There is no limit on the maximum
capital. However, the capital requirements of a WLL are subject to the objects of the Company.
A share of a WLL Company in Kuwait is referred to as units or portions and not as shares. The whole of a
company’s capital must be paid at the date of incorporation. Payment of capital shares may be in
cash or in other assets valued at their fair market value.
No share certificates are issued to certify ownership
Day to day management
A limited liability company is normally managed by one or more managers with or without remuneration.
Foreign persons can act as managers or as members on the board or the supervisory committee of the
Company. If manager(s) are not named in the Articles of Association, they are appointed by the
members in a general meeting.
Statutory reserve
Annual transfers of at least 10% (ten percent) of net profit must be made to a legal reserve until the
reserve amounts to 50% (fifty percent) of the capital of the company, at which time the Partners’
General Meeting is free to decide whether to increase the reserve.
Audit & accounting requirements
International Accounting Standards (IAS), later changed to International Financial Reporting Standards
(IFRS), is mandatory in the preparation of the financial statements in the State of Kuwait. This mandate is
made in accordance with the Ministerial Resolution No. 110 of 1991.
Exchange control
There are no significant restrictions on foreign currencies movements except for safeguards to counter
money laundering as stipulated and strictly implemented by the Central Bank of Kuwait (CBK)
10
5. Incorporation Document Checklist
I.
The originals lease and rent receipt of the new company’s office premises. In this regard, please
note that the lessee must be one of the proposed shareholders (i.e. either the local shareholder
or foreign shareholder) and the premises must be eligible for licensing by the Municipality and
subject to no current commercial license being issued for the same address. It is preferable to
provide a valid rent receipt for 3 months to cover the incorporation period.
II.
For local shareholding company, copies of the formal Arabic Articles of Association (as well as all
amendments thereto), Commercial Registration of the company, the Civil Number Certificate
issued by the Public Authority for Civil Information, the Social Security Certificate issued by the
Public Authority for Social Security, authorised signatory certificates, a copy of the authorised
signatory’s civil ID, the authorised signatory’s Social Security Certificate and Trading License
issued by the MOCI.
III.
Notarised, legalised and authenticated copy of the constitutional documents (i.e., Articles &
Memorandum, Certificate of Incorporation and Certificate of Authorised Signatory) of the
foreign shareholder and all amendments thereof. These constitutional documents must all be
notarised in the jurisdiction where they are executed/issued. The authority of the Notary to
notarise same must then be authenticated by the relevant authority or body in said jurisdiction.
Once notarised and authenticated, the documents must then be legalised by the Kuwaiti
Embassy or Consulate nearest to the place where they were notarised.
•
After legalisation at the Kuwaiti Embassy or Consulate, the documents must be sent to the
Kuwait counsel to be translated (if needed) and legalised at the Ministry of Foreign Affairs in
Kuwait.
IV.
A certificate of good standing, in its standard form, issued by both local shareholder’s and
foreign shareholder’s banks. Such certificate must also confirm that such shareholder’s bank
account has funds in excess of the pro rata portion of the share capital in the New WLL. In this
regard, please note that the transfer receipt of each shareholder must be submitted to the
MOCI with a bank statement to be issued by each shareholder’s bank confirming the transfer
transaction.
V.
Notarized, legalized and authenticated (up to the Kuwait embassy as above) power of attorney
(POA) to the authorized signatories or external Kuwaiti counsels to be issued by the foreign
shareholder.
VI.
A Shareholders or Board resolution of the foreign shareholder giving authority to the individual or
external Kuwaiti counsel signing the POA on behalf of the foreign shareholder before the Kuwaiti
authorities. Any such document (if provided) should also be notarized and authenticated up to
the Kuwait Embassy in the jurisdiction where they are executed / issued Notarized, legalized and
authenticated (up to the Kuwait embassy as above) power of attorney (POA) to the authorized
signatories or external Kuwaiti counsels to be issued by the foreign shareholder.
•
VII.
A Shareholders or Board resolution of the foreign shareholder giving authority to the individual or
external Kuwaiti counsel signing the POA on behalf of the foreign shareholder before the Kuwaiti
authorities. Any such document (if provided) should also be notarized and authenticated up to
the Kuwait Embassy in the jurisdiction where they are executed / issued.
The individual signing the Articles on behalf of the local shareholder will need to be able to
establish his/her authority to do so. This can be done through a board resolution, POA or similar
means.
•
•
•
Copy of the Kuwaiti Civil ID of the WLL’s manager.
Draft form of Articles of Association.
Shareholders’ Agreement between the local shareholder and the foreign investor /
corporate entity.
11
6. Legal Due Diligence
Compile the constitutional documents of the Corporate / Individual Shareholders.
Real Estate Property viz. office, retail stores, storage to be leased for the business activities. Need to
validate the assignment clause and other provisions in the Lease Agreements of real property, if
operated by another entity and will be transferred to the new WLL entity.
Intellectual Property Rights related to all material patents, copyrights, trademarks, service marks, logo,
designs, trademarks registered in Kuwait. If the company will use a registered Trademark as its trade
name, it is important to obtain the necessary Authorisation Letter along with original Trademark
Registration Certificate duly legalised up to the Kuwaiti Embassy in the country of the Trademark Owner.
7. Post Incorporation Checklist
12
8. TAX IMPLICATION – General Overview
a) Applicable Laws
Taxation related matters in the State of Kuwait are governed by the following rules :
I.
II.
III.
IV.
Decree No. 3 for the year 1955 regarding the Kuwaiti income-tax and Law No. 2 for the year 2008
amending certain provisions of said decree
Ministerial resolution No. 29 for the year 2008 concerning the issue of executive by-laws to the
decree and the amendment
Executive Rules to the decree and the amendment issued in 2008, and
Executive Rules to the decree and the amendment dated 2010 which appear to be issued by
the Ministry of Finance on January 2011.
(Hereinafter referred to together as the “Law”).
b) Understanding of Facts
To start with it is important to note that there is no personal income tax system prevailing in Kuwait either
on salaries or on income from business activities. Moreover,
There are no other taxes of any consequence, such as sales or value added taxes, property taxes etc.
which means that individuals (Kuwaiti or expatriates) and Kuwaiti companies (with full Kuwaiti
ownership) are not subject to any tax.
The Kuwaiti companies with non-Kuwaiti partners or shareholders are not coming within the purview of
income tax law, unless those shareholders or partners are foreign companies, in which case the tax is
imposed on the foreign company's share of earnings only; consequently, a foreign company engaged
in commercial activities in Kuwait, directly or indirectly is liable to pay income tax.
13
Consequently, a foreign company wishing to conduct business in Kuwait under the structure of a
“Limited Liability Company (W.L.L.)” must do so with a Kuwaiti national/entity in a Kuwaiti-registered
company, provided that the foreign participation in such company shall not exceed 49 per cent.
Having said so, the tax will be levied exclusively on the profit of such 49% equity share participation.
Exceptionally, corporate income tax is not levied on the income of companies incorporated in the Gulf
Cooperation Council (GCC) countries, wholly owned by GCC nationals from their operations in Kuwait.
However, GCC companies with foreign ownership would be subject to taxation to the extent of the
foreign ownership.
In relation to personal income tax, it is fairly safe to say that at the moment there is no income tax
payable by individuals in Kuwait, be they foreign or local, whether the income is from salaries or
commercial activities. However. Kuwaiti employees are required to make social security contributions
amounting to 5% of their salaries.
The Law stipulates a flat taxation rate of 15% imposed on the income of any entity carrying on a trade or
business in Kuwait, regardless of where the company is incorporated; the Law adds more specific
provisions as to what are the taxable heads of income; therefore, earnings from any of the following
activities are subject to taxation:
•
•
•
•
•
•
•
•
Profits derived from a contract executed partially or fully in Kuwait;
Income derived from the sale, lease or granting franchise to use or exploit any trademark, patent
or copyright;
Commissions due or received from representations or trade brokerage;
Profits derived from industrial and commercial activities;
Gains derived from the disposal of assets;
Profits from property leasing;
Profits derived from the provision of services.
Profits derived from the purchase and sale of goods or property or rights thereto and from the
opening of a permanent office in Kuwait where contracts of sale and purchase are executed.
Additionally, the Law includes clear guidance for foreign entities to assessing the sources of taxable income.
The Law further clarifies that taxable income is determined after deducting all expenses and costs incurred,
including the following:
•
•
•
•
Salaries, wages, bonuses and end-of-service indemnity, etc.;
Taxes and fees, except for income tax due under the Law;
Depreciation of assets in accordance with the rates specified in the executive regulation;
Grants, donations and subsidies paid to public or licensed private Kuwaiti entities according to
the rates specified in the executive regulation; and Head office’ expenses as specified in the
executive regulation.
The following are non-deductible expenses:
•
•
•
Personal and private expenses and any charges not related to the taxable activities or not for
the purpose of generating profits;
Penal fines;
Reimbursed losses.
It must be noted the prescription of tax claims under the Law stating that actions claiming taxes due to the
State will not be heard after the lapse of a five-year period from the date of submission of tax returns by the
entity or from the date when the tax authorities become aware of the facts, not disclosed or hidden by the
entity to evade its tax obligation. Further, the period of limitation will expire upon advising the incorporated
entity of payment of tax or of the resolution of tax objections committee by registered mail indicating the
tax amount.
14
c) Customs duties
Based on the Customs Union formed on 01 January 2003 between the GCC nations, it was agreed that
a uniform custom duty will be levied among all members’ nations, customs will not be levied for trade
among GCC nations and regulations which restrict trade between GCC nations would be eliminated.
As a result Kuwait levies a unified customs tariff of 5% on CIF invoice price subject to certain exceptions.
As per the Customs Union a unified list of goods comprising 400 items including basic foodstuffs, personal
effects and used household items has are exempt from customs duties.
1. THE LAW OF LABOR in the private sector No. 6 OF 2010 Issue N0 963 - 21 February 2010
If you are planning to work in Kuwait, it is best to know their Labor Code. Knowing the do’s and don’ts in
a country will allow you to take advantage of the benefits.
Kuwait Labor Law contains all essential rules and regulations that an employee and employer need to
know before signing the contract. It also contains significant guidelines and procedures that the
employer should follow to make sure that an individual is a competent worker and is authorized to work
in Kuwait. Kuwait Labor Law is subject to a variety of amendments, decrees and deletion.
B. The employment law
1. EMPLOYMENT CONTRACT
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
1.13
Work Contract Content
Work Contract Copies
Work Contract Language
Term of Contract
Working Hours
Overtime
Weekend
Renewal of Contract
Probation Period
Transportation & Accommodation
Penalties
Deduction
Employee’s Right to terminate the contract
2. VISA TYPES
2.1
2.2
2.3
2.4
2.5
Visit visa
Residence Visa
Work Visa
Dependent Visa
Domestic Visa
3. RENEMURATION
4. OFFICIAL HOLIDAYS
5. LEAVES
5.1
Paid Leave
5.2
Sick Leave
5.3
Maternity Leave
5.4
Haj Pilgrimage
5.5
Compassionate Leave
6. TERMINATION OF THE CONTRACT
7. END OF SERVICE BENEFIT & COMPENSATION
-----------------------------------------------------------------------------------------------
15
1. EMPLOYMENT CONTRACT
1.1 Work Contract Content
Work contract needs to be in writing and must contain:
a)
b)
c)
d)
e)
Signing/effective dates of the contract
The amount of remuneration
The term of the contract if applicable
The nature of work (Article 28)
Probation period (Article 32)
Note: Needs to be in writing, but even if it is not written it is deemed to exist.
1.2 Work Contract Copies
3 copies should be signed (Article 28). One for each of:
a) Employee
b) Employer
c) The Ministry
1.3 Work Contract Language
All employee contracts shall be written in Arabic. Any other language may be translated, but in
case of dispute Arabic will prevail. (Article 29)
1.4 Term of Contract
Can be:
a) Not specified
b) Specified, if so should not exceed 5 years (Article 30)
1.5 Working Hours
The employees are not allowed to work more than 48 hours a week or 8 hours a day. (Article 64)
Workers cannot work more than 5 hours without a 1 hour break minimum that is not included as a
working hour. (Article 65)
1.6 Overtime
The overtime hours shall not exceed:
a) 2 hours a day
b) 3 days a week
c) 180 hours a year or 90 days a year. The employee shall be entitled to a 25% increase pay for the
overtime hours. (Article 66)
1.7 Weekend
The employee is entitled to a paid weekend which is equal to 24 continuous hours after 6 working
days. (Article 67)
16
1.8 Renewal of Contract
If the contracts term is specified and both parties continue to implement it, then the contract is
renewed for the same period with the same conditions. (Article 31)
Note: Renewal does not affect the workers entitlement under the previous contract and will still
deserve his entitlements. (Article 31)
1.9 Probation Period
Needs to be written in the contract and must not exceed 100 days, either party may terminate
without notice throughout the probation period. (Article 32)
Note: If the employer is the terminating party then they must pay end of service benefits.
1.10 Transportation & Accommodation
An employer in general is not responsible for transportation or accommodation. An employer is only
responsible for transportation or accommodation free of charge if:
a) The employees are working in a remote area
b) If the employees are working on the execution of a government project. (Article 34)
1.11 Penalties
Penalties cannot be imposed on an employee unless he/she have been informed in writing of the
act attributed to him/her, an investigation is held and their defense is heard. (Article 37)
1.12 Deduction
An employee’s penalty should not exceed more than five days deduction in one month. If the
original punishment exceeds five days, then it is attributed to the next month. (Article 38)
Note: The employer shall keep the proceeds of all deductions from remunerations of workers in a
fund allocated for use in the social, economic and cultural matters that benefit the workers. (Article
40)
1.13 Employee’s right to terminate the contract
The employee shall have the right to terminate his contract without notice and still be entitled to end
of service benefits if:
a) The employer is not abiding by the terms in the contract
b) If the worker was assaulted
c) If continuing to work will endanger safety of the employee
d) If the employer cheats, commits a crime or does something morally unacceptable.(Article
48)
17
2. VISA TYPES
2.1 Visit Visa
A Kuwait visit visa must be sponsored by a Kuwait company or by a relative that is a resident
foreigner staying in the country. Before travelling to Kuwait, a visitor can have his visa processed and
passport stamped to a Kuwait embassy. A person in Kuwait on a visit visa may not take up
employment, for which he or she must have a residence visa.
It takes approximately 2 working days to obtain a visit visa. Hotels can arrange visit visas for business
and it takes around 7 days.
Immediate family members and other relatives who reside in other country can visit family members
currently living in Kuwait. No eligibility or criteria is required. As long as you have a proof of
relationship, you can definitely come and visit.
2.2 Residence Visa
To live in Kuwait, an expatriate other than GCC citizens must have a Kuwait residence visa, or
iqama. There are three main types of Kuwait residence visa: work visa, domestic, and dependent
visa. These three visas require a sponsor.
a) Work Visa
Work visas are iqamas granted for public and private sector employees under articles 17 and 18 of
the immigration regulations. An employment offer must first be accepted to obtain Kuwait
residence visa on a work visa. A Kuwaiti employer sponsor shall apply for the work permit from the
Ministry of Social Affairs & Labor. Requirements for the work permit are employee’s passport and noobjection certificate from the General Administration of Criminal Investigation at the Ministry of
Interior or Police Clearance certificate.
The Ministry of Foreign Affairs in Kuwait will send a copy of the work permit to the Kuwaiti Embassy in
the country where the employee lives for endorsement. The sponsor or employer must also send a
copy of the work permit to the employee to take to the embassy. Employees for private sector
companies require NOCs and a copy of the employer’s authorized signatory as registered for
business purposes.
If the employee lives in a country without a Kuwait Embassy, the sponsor will have to submit the work
permit and NOC to the Ministry of the Interior to get an entry visa. Most nationalities are required to
return to their own country for medical tests and endorsement from the country’s Kuwait Embassy.
If an employee is on a visit visa in Kuwait when he accepted the employment, he must leave Kuwait
and return on the new entry visa. A person discovered without a valid iqama is fined and deported.
b) Dependent Visa
Upon obtaining residency in Kuwait, an employed man can bring his wife and children to Kuwait to
live with him. In order to do that, it is mandatory that he earns at least 450KD monthly (in case of
possessing a 17-visa) and at least 650KD monthly (in case of possessing a 18-visa). If both man and
wife work in Kuwait, they have the possibility to sponsor their children there but only if their salaries
combined exceed 350KD monthly.
c) Domestic Visa
Domestic servant visa is issued to resident expatriate’s full-time servant sourced from a country
outside Kuwait. The resident will be the sponsor for this type of visa. Expatriate families are usually
allowed to bring a maid in the country.
18
3. REMUNERATION
•
Workers with a monthly remuneration shall receive their remunerations at least once a month.
Other workers shall receive their remunerations at least once every two weeks. (Article 56)
•
Payment of remunerations shall not be delayed for more than seven days after the due date
thereof. (Article 56)
•
The employer, who employs his workers in accordance with the provisions of this Law, shall pay
the workers' entitlements to their accounts at local financial establishments. He shall also send a
copy of statements submitted to these institutions in this regard to the Ministry of Social Affairs
and Labor. (Article 57)
•
It is not allowed to deduct more than 10 percent of the worker's remuneration for the payment
of loans or debts due to the employer who shall not impose any interest thereon. (Article 59)
•
Not more than 25% of the remuneration due to the worker may be attached, waived or
deducted for the debt of alimony or the debt related to food, clothes or other debts including
debts toward the employer. (Article 59)
4. OFFICIAL HOLIDAYS
a)
b)
c)
d)
e)
f)
g)
h)
Hegeira New Year: 1 day
Isra’ and Mi’raj day: 1 day
Eid Al-Fitr: 3 days
Waqfat Arafat: 1 day
Eid Al-Adha: 3 days
Prophet’s Birthday (Al-Mawlid Al-Nabawi): 1 day
National Day: 1 day
Gregorian New Year: 1 day (Article 68)
In the event where the worker is required to work during any of the above mentioned holidays, he
shall be entitled to a double remuneration and an additional day off. (Article 68)
5. LEAVES
5.1 Paid Leave
Every employee is entitled to 30 days paid leave after working for 9 months. (Article 70) Official
holidays and sick leaves during the year shall not be counted as annual leave.
The worker shall have the right to accumulate his leave entitlements provided that they do not
exceed two years and he shall be entitled to take his accumulated leave all at once subject to the
approval of the employer.
The worker shall be entitled to a cash consideration for all his accumulated annual leaves upon the
expiry of his contract.
5.2 Sick Leave
The worker shall be entitled to the following sick leaves during the year:
• 15 days – at full pay
• 10 days – at three quarters of the pay
• 10 days – at half pay
• 10 days – at quarter pay
• 30 days without pay.
The worker shall provide a medical report from the doctor appointed by the employer or the doctor
of the government medical center. (Article 69)
19
5.3 Maternity Leave
A pregnant working woman shall be entitled to a paid maternity leave of 70 days, not included in
her other leaves, provided that she gives birth within this period. (Article 24)
5.4 Haj Pilgrimage
The worker who spent two continuous years working for the same employer shall be entitled to 21
days leave with pay to perform Al-Hajj provided that he had not performed hajj before. (Article 76)
5.5 Compassionate Leave
In the event of a first and second degree relative’s death, the worker shall be entitled to a three-day
fully paid leave. The Muslim working woman, whose husband has died, shall be entitled to a fully
paid “Iddat” leave for four months and ten days from the date of death. During this leave, the
working woman shall not be entitled to work for another employer.
The non-Muslim working woman, whose husband has died, shall be entitled to a paid leave of 21
days.
6. TERMINATION OF THE CONTRACT
In the event where the term of the work contract is not specified, both parties shall have the right to
terminate the same by means of a notice to the other party as follows:
a) Three months prior to the termination of the contract for the workers earning a monthly
remuneration.
b) One month prior to the termination of the contract for other workers.
c) In the event where the notification of termination is issued by the employer, the worker shall have
the right to be absent one day or 8 hours per week in order to search for other work. (Article 44)
In the event where the term of the work contract is specified and the contract was unrightfully
terminated by either party, the terminating party shall compensate the other party for damage
provided that the amount of the compensation shall not exceed the remuneration of the worker for the
remaining period of the contract. (Article 47)
The employer shall have the right to terminate the service of his/her employee without notice,
compensation or benefit in the event where:
a) The employee has committed a mistake.
b) If the employee cheats and found guilty of a crime.
c) If found to have repeatedly violated the instruction of the employer.
Note: In such events, the decision of dismissal shall not result in the deprivation of the worker of his end of
service benefit. (Article 41)
20
7. END OF SERVICE BENEFIT & COMPENSATION
The worker shall be entitled to an end of service benefit as follows:
•
The worker shall be entitled to 10 days remuneration for each of the first five years of service and
15 days remuneration for each year thereafter. The total of the end of service benefit shall not
exceed one-year remuneration for employees who are paid on daily, weekly, hourly basis.
•
The worker shall be entitled to a 15 days remuneration for each of the first five years of service
and one month remuneration for every year thereafter. The total of the end of service benefit
should not exceed one and a half year remuneration for employees who are paid on a monthly
basis. (Article 51)
In the event where the worker is imprisoned due to an accusation by the employer and placed in
preventive detention or is detained in execution of a non-final court verdict, he shall be deemed
suspended from work. If the verdict acquitted him from the accusation of the employer, the latter shall
pay the remuneration of the worker for the period of suspension and pay him a fair compensation that
shall be assessed by the court. However, the employer shall have no right to terminate his contract,
unless he has been convicted with a final judgment. (Article 43)
In the event where the party wishing to terminate the contract does not abide by the period of notice,
he shall be obliged to pay the other party a compensation for the notification period equal to the
remuneration of the worker for the same period. (Article 44)
The worker or the beneficiaries through him shall have the right to claim compensation for the work
injury or occupational disease in accordance with the list issued by means of a resolution of the Minister
after considering the opinion of the Minister of Health (Article 94). The amount of the compensation is
based on the severity of the injury. When the injury results to dead, the compensation is equivalent to
the total amount of 1500 days salary or more. The current legal blood money is KD 10,000. For employees
with permanent disability, a compensation equivalent to the total amount of 2000 days salary or more
will be given. One and one-third times the legal blood money will also be provided.
Key Contact Information
Ministry of Social Affairs & Labor
Tel: (+965) 22480000
Website: www.e.gov.kw, www.kuwaitlaborlaw.com
21
C. Advices to Foreign investors in Kuwait
There are three main factors one will need to take into consideration before investing into Kuwait
•
•
•
You must have a good knowledge of the region. Be prepared to undertake extensive research into
the business sector you aim to operate within. You must have a viable business plan, which includes
a study of the market conditions, the competition and your forecast results. You must be prepared to
find the necessary investment from your own resources or through your bank and preferably by
other means than applying locally, particularly if you’re new to the region and without a track
record. A credible plan might attract local support, possibly government support.
The law requires that you have a local partner who holds the majority interest and can therefore
control the business (as well as close it, if he feels like it…). The local partner, be it a company or an
individual, doesn’t need to contribute to the start-up investment or participate financially at all. As
with self-employment, there are various ways that a partner can be remunerated. The local partner
requirement is currently under review in some states, however, in order to encourage foreign
investment.
When the business is registered, you must show the Ministry of Commerce that you have a
substantial sum of money to invest. And is regarded as a guarantee against liabilities, although you
may withdraw the money shortly afterwards!
The process is complex and financially risky, meaning that local knowledge is crucial. You must also
consult a good lawyer from the outset. An experienced lawyer will guide you through the registration
complexities and his help will be vital in protecting your interests. This applies whether you’re opening a
modest shop or a major enterprise. As is the case all over the world, there are unofficial businesses
operating in the region, but if anything goes wrong or you’re ripped off, you have no legal recourse
whatsoever.
Don’t let these warnings put you off. All isn’t doom and gloom, and many people have developed
successful, highly profitable businesses in Kuwait. New operations are encouraged by the authorities and
your local partner might be enthusiastically supportive (or he might be a severe liability). Export and
manufacturing industries are especially strongly supported by government, particularly as regards the
acquisition of land on which to construct a factory. If you set up such a business in a free trade zone, of
which there are several in the region, it’s granted exemptions from import and export duties,
commercial taxes, building and property license fees, land tax and restrictions on the transfer of capital
invested in the zone.
An alternative to starting a new business is to buy a going concern, which is a more straightforward
process, as it doesn’t involve lodging capital, obtaining sponsorship or registration; all you have to do is
agree a price and transfer the ownership of the business.
Local Chambers of Commerce can advise about start-ups and are adept at cherry-picking potentially
profitable newcomers to the region. Winning the confidence and support of a Chamber of Commerce
will help your cause. Contact details are as follows:
Kuwait Chamber of Commerce and Industry, PO Box 775, Safat 13008, Kuwait (Tel. 965-243 3864)
When doing business with Arabs, you will probably meet with hard but polite bargaining and find them
expert at it. You need to be completely confident about the contents of your contractual agreement.
The experience of doing business with them is likely to be pleasant and friendly, and the trust built up on
both sides will be long-lasting.
Incidentally, Arabs rarely say a direct ‘no’ to a proposition, so you must listen and observe carefully. If
the response is ‘Leave it with me’ or ‘I’ll think about it’, there’s a good chance that the project will go
nowhere.
The potential gains of starting and running your own business are great, but it isn’t for the faint-hearted.
You need to remember that you aren’t a citizen of the country and when the time comes to leave and
sell your interests; your partner has time on his side, while you might not.
22
Chapter 2: The stakeholders in the projects
Summary
A. Kuwait Petroleum Company (KPC) & Subsidiaries
1. Organization and structure
2. Upstream
3. Downstream
B. Ministries
1.
2.
3.
4.
5.
Ministry of Health
Ministry of Public Works
Ministry of Electricity and Water
Public Authority for Housing Welfare
Ministry of Defence
C. PTB and CTC
A. Kuwait Petroleum Company (KPC) & Subsidiaries
Kuwait Petroleum Corporation was founded in 1980 as an umbrella organization to manage the
country’s diversified oil interests through various group subsidiaries. It is fully owned by the State of Kuwait.
Activities cover all aspects of the hydrocarbon industry chain, from E&P to marine transportation and
marketing of oil, gas and products.
The Chairman is the Ministry of Oil (HE Dr Ali Saleh Al Omair)
23
1. Organization and Structure
a. The Group in a snapshot
KPI
Ref. & Mark.
KOTC
Transport
PIC
Chemicals
KNPC
Refining K
KOC
E&P K
KAFCO
Aviation
KUFP
EC
KGOC
Divided Zone
OSSC
Oil Services
ODC
Inactive
Oil Development
Co.
(North Fields)
24
KPC SUBSIDIARIES CEO’S
•
•
•
•
•
•
•
KOC (E&P Kuwait):
KGOC (E&P Divided Zone):
KUFPEC (E&P Abroad):
KNPC (Refining Kuwait):
KPI (Refining Abroad):
PIC (Chemicals):
KOTC (Transport):
Hashem Hashem
Ali Al-Shammari
Sheikh Nawaf Al-Sabah
Mohammad Al-Mutairi
Bakheet Al-Rashidi
Asaad Al-Saad
Sheikh Talal Al-Sabah
KUWAIT KEY OIL DATAS
Oil Production: 2.9 Mboe/d
Consumption: 300 000 boe/d
Refining cap.: 950 000 b/d
Investment plan 2014-2020: 140 B$ of which 40 already approved by end-2014
b. Geography of the crude oil in Kuwait
Mina Al-Zour
Al-Khiran
Oil Fields
Oil Show
Al-Hazaim Area
Gas
Areas (Explo.)
Shadaf
Humma
Arq
Al-Khafji
Area
Al-Maashi
Area
SAUDI ARABIA
25
Kuwait Downstream Expansion Plans
Facility
Date
Current
commission Capacity
ed
(b/d)
Planned
Capacity
(b/d)
Mina alAhmadi
1949
466 000
346 000
Mina Abdulla 1958
275 000
454 000
Al-Shuaiba
1968
215 000
-
Al-Zour
new project -
Total capacity
956 000
615 000
415 000
2. Upstream (KOC)
Kuwait Oil Company's responsibilities under the KPC's Umbrella involve the exploration, drilling and
production of oil and gas within the State of Kuwait. The Company is also involved in the storage of
crude oil and delivery to tankers for export.
The history of oil exploration in Kuwait dates back to the mid 30’s where oil seepage has been
discovered in North Bahra area. In 1938 Burgan well–1 was discovered. During the following years,
eight exploration and appraisal wells were drilled which established “Burgan” as one of the largest
producing oil fields in the world marking a new era of Kuwait prosperity. In 1951, exploration
operations were extended into Magwa and Ahmadi ridge area, oil was discovered and production
began from the Magwa field in 1953. Exploration activities continued in the following years leading
to the discovery of Raudhatain field in north Kuwait and Minagish field in west Kuwait in 1955. The
period between 1960 and 1990 was characterized by increase in development and production
activities. Following the liberation of Kuwait in 1991, KOC carried out what was at that time the
largest single seismic exploration survey ever carried out globally. The entire country and its shallow
waters offshore were covered by 2D seismic. Since 2013, KOC has launched a complete 3D
coverage of the country, onshore and offshore, that should last until 2015.
Kuwait Oil Company manages the production and export of oil and gas with the associated
facilities from more than twelve developed oil fields in the state of Kuwait. The oilfields spread over
the State and split off into four main parts of North Field, West Field, South and East Field that are
locally administered at the site headquarters. Approximate distance from Ahmadi: North Field is 70
miles (112 Km), West Field is 38 miles (60 Km) and South East Field is 12 miles (20 Km).
KOC is also operating the Export & Marine Operations which consists of receiving, mixing, storing
and exporting crude oil, as well as the marine operations at all the oil terminals in the State of Kuwait.
These operations are the gateway for the country’s entire hydrocarbon production. KOC owns 29
different marine crafts and provide exportation via 5 loading terminals and the KNPC refineries.
26
Upstream (KUFPEC)
Established by its parent company KPC, Kuwait Foreign Petroleum Exploration Company is an
international oil company, engaged in exploration, development and production of crude oil and
natural gas outside Kuwait, active in Africa, Middle East, Asia, UK, Norway and Australia.
KUFPEC participates in joint ventures with similar companies in E&P of Oil and Gas both as an
operator and partner.
Major Assets comprise of:
•
•
•
Offshore and onshore exploration leases
Oil and Gas properties and appraisal and development
Oil and Gas producing properties
The corporate structure is divided into single corporate head office and 6 area offices in Egypt,
Tunisia, Indonesia, Australia, Pakistan and Norway.
A Chief Executive Officer and 3 Vice Presidents – Finance and Admin, Business Development and
Operations lead the head office with 11 managers and 6 non-executive Board members.
The area offices are headed by country managers reporting directly to the regional managers at
the head office
3. Downstream (KNPC)
KNPC is responsible for Refining and Gas Processing activities IN KUWAIT. It supplies the fuel for
Kuwait’s power and desalination plants, and operates a chain of filling stations across the country
World refiners ranking (2012): #17 (7th largest NOC). Within the Middle East, KPC ranks 3rd in refining
capacity, trailing just Saudi Aramco and Iran’s NIOC
With around ~2.8 Mbd of crude production in 2013, and just 1.1 Mbd of equity refining capacity (85%
of which located in Kuwait – 950 kbd, 15% in Europe – 150 kbd) KPC’s upstream and downstream
operations are unbalanced.
With an eye to addressing this imbalance and add value to its crude output, KPC has plans to
stream ~900 kbd equity of additional capacity via three grassroots refineries in Kuwait (al-Zour),
China (Zhanjiang) and Vietnam (Nghi Son). If these projects move forward, KPC’s equity refining
capacity would be just less than 2.0 Mbd, equivalent to ~70% current crude production and to 50%
of its objective 2020 of 4 Mbpd productions.
Given the location of KPC’s planned refinery projects, it is clear that the company is shifting away
from Europe and is targeting the Asian market to secure demand outlets for equity upstream
volumes via refined product sales.
PIC: THE PETROCHEMICAL ARM OF KPC
PIC mission is to maximize the added-value of Kuwait hydrocarbons resources & increase the
Petrochemicals contribution in KPC’s turnover.
PIC has diversified its position in Petrochemicals with local & International investments.
27
B. The Ministries
1. Ministry of Health
Key Contact Information
Website: www.moh.gov.kw
Email: [email protected]
Water networks projects department:
Accounting department:
Water networks maintenance & operation department:
Electricity networks department:
Electrical wiring department:
Consumers Affairs:
(+965) 25371541 ext. 4169-8216
(+965) 25371570 ext. 8012-2220
(+965) 24848044 ext. 117
(+965) 25371810 ext. 8109-8110
(+965) 25371821 ext. 2167-2168
(+965) 2537191 ext. 8026-2027
The Ministry of Health in Kuwait is responsible for the supervision of health care and hospitals in both
the public and private sectors, procurement of medical equipment and pharmaceuticals, licensing
of doctors and private clinics, drug certification and control; Provides medical training services;
ownership and operation of clinics and general hospitals.
The government of Kuwait has over the recent years embarked on a far reaching and ambitious
health care reforms aimed at benefit not just its citizens but to the numerous foreign expatriates living
and working there. The Ministry of Health and other key health stakeholders have been working on
an ambitious health reform as part of the 110 billion USD, 5 year (2010- 2014), Development Plan,
The first annual plan of the Development plan (2010- 2011), more than 40 health care projects were
initiated and or completed, and are categorized into the following three classes.
•
•
•
Creation of new companies: this involved the creation of joint ventures between state and
private companies according certain established framework such as the Privatization Law of
2010.
Strategic Public Private Partnership: Such as the Build Operate Projects (BOTs).
Typical Tenders for services such as government contracts.
Some of the new health infrastructures that have been established in the recent past include, The
New Physical Medicine and the Rehabilitation Hospital (NPMRH). The project involved the design,
construction and maintenance of a 500- bed Hospital in Al Andalus Area (Oxford Business group,
2013). The project will also include the offering of health facilities management services. The project
is co- managed with the partnership technical bureau (PTB) of Kuwait.
NPMRH project was conceived with the following objectives:
•
•
•
Constructing a centre for excellence for provision of the physical medical care and
rehabilitation services
Promoting Kuwait as a renowned regional centre for physical medical care and
rehabilitation services
Enhance and increase the type and quality of medical services rendered by the Health
Ministry
It is estimated that the Kuwait government will add 3,334 hospital beds into the public hospitals by
2016. The target is evident from the already established policies aimed at fast tracking the current
hospital projects through the utilization of precast structural concrete and other sophisticated
modular systems in development of the public sector healthcare infrastructure. Other than this, the
Kuwait government has over the last few years boosted the available hospital beds by adding to
the country, 21 private and 20 public hospitals.
In March 2013, the government of Kuwait began the process of overhauling the access to public
medical care through the allocation of separate hospital hours for both Kuwaiti nationals and
expatriates as well. Under the scheme, Kuwaiti nationals are allocated morning hours, while
foreigners are allocated afternoon. There are however, exceptions for emergency cases.
28
2. Ministry of Public Works
Key Contact Information
Khaled Al-Khazi
Under-secretary at the Ministry of Public Works
Website: www.mpw.gov.kw
Tel: (+965) 2530 4000
Email: [email protected]
The ministry of public works is responsible for the supervision of infrastructure developments including
sewerage projects and roads; overlooks maintenance works and operations of water stations and
pumping; maintenance of public buildings, bridges, hospitals and key infrastructure.
Accomplishments under the MPW include the following:
•
•
•
The Amiri Diwan
The Diwan of His Highness the Prime Minister
The Telecommunication Centre
In 2010, the development plan was launched in Kuwait and the MPW announced that it would
spend KD 3.1 bn ($11 bn) on new projects over the next 5 years. Below is the most prominent under
the development plan:
•
•
•
Sheikh Jaber Hospital
Bubiyan Port Project
Jaber Bridge Development
The MPW is also assisting in the development in the new Kuwait Airport terminal estimated at KD
219.5 mn ($775 mn).
The ministry of public works and that of water and electricity heavily rely on energy as the main input
for majority of their projects. The two ministries are also labor intensive in the sense that they require
larger numbers of employees. The higher committee approves project presented by the PTB. The
committee is comprised of the minister of finance as the chairman, the president of the partnerships
technical bureau, two experienced specialists and representatives from the relevant ministries. The
existence of the committee has registered high level of advancements in the economy as a result of
the collaborations and fair allocation of investment opportunities to the Kuwaiti nationals and the
foreign investors.
The integration of the ministry of electricity and water and that of public works in the higher
committee has been an instrumental achievement by the Kuwaiti government since it is possible to
bring together resources from the public and the private sector for a common course.
29
3. Ministry of Electricity and Water
Key Contact Information
Mohamed Boshehri
Director of Planning
Website: www.mew.gov.kw
Tel: (+965) 2537 1000
The MOEW overlooks the power and water sector in the country; provides power generation,
transmission and distribution; water desalination and distribution.
According to Capital Standards, 2013, Kuwait is one of the leading per capita energy consumers in
the world. One of the main reasons for this is that the energy sector is highly subsidized. In order for
the government to match this demand, it has embarked on serious development plan to boost
energy production. The lists of recent water and energy products which are currently ongoing or
have been recently completed include:
•
The Ministry of Electricity and Water has established a 2,000 MW gas turbine power plant at
Subahiya Power plant at a cost of KD 654million.
•
Another power plant has been set up at Zour power plant site at a cost of KD 400million. The
scope of the project has also involved the setting up of new water desalination plants as well
as augmenting the existing ones.
•
In 2012, the water sector the ministry embarked on a project of boosting water supply in
residential cities of Al Khiran and Sabah al Ahmad. This involved the installing of new
pumping equipment, laying of pipeline, and drilling of wells (Kuwait times, 2013).
ABB, a Swiss specialised group in power has won orders worth $160 million from the MEW for
substations in Kuwait’s northern Rawdatain region. The project includes the design, supply,
installation and commissioning of two 300/ 132kv gas-insulated switchgear substations as well as the
extension of three existing 132kV GIS substations. The project is said to be completed by 2016 and will
help strengthen the country’s power grid and support its growing infrastructure.
New desalination projects have been started with the aim of keeping pace with rising demand of
drinking water in the country.
30
4. Public Authority for Housing Welfare
Key Contact Information
Ahmed Atwa
Civil Engineering and Contracts Department
Website: www.housing.gov.kw
Email: [email protected]
Tel: (+965) 2537 1000
Kuwait’s Public Authority for Housing Welfare (PAHW) has emerged as one of the biggest clients for
the construction sector in recent years.
Kuwait’s population is projected to grow to 5.3 million by 2020 from 3.2 million in 2012 which will fuel
the demand for new housing developments.
The PAHW has been tasked with the construction of a series of new residential schemes, which will
add hundreds of thousands of new homes over the next decade. In 2011, it awarded an estimated
$1.1bn of deals:
•
$448m infrastructure package for the new Sabah al-Ahmed housing scheme.
The project, which is located 50 kilometers south of Kuwait City, will provide more than 9,000 housing
units to Kuwaiti citizens. The Public Authority for Housing Welfare indicated that housing demand has
been witnessing a yearly 8% increase. By 2020, demand will have reached around 175,000.
PAHW is also planning four major new township developments:
I.
II.
III.
IV.
Jaber al-Ahmed
Saad al-Abdullah
Mutlah
Khiran
This will add more than 50,000 new residential units to total supply.
Bidding on the construction contracts for the new housing schemes and subscription to share issues
for the new development companies are open to both international and local firms. International
firms, however, cannot hold listings on the KSE if they want to participate in any new offering. Plans
include the formation of joint-stock companies for new project developers have 40% of shares held
publicly through a listing on the Kuwait Stock Exchange.
31
5. Ministry of Defence
Key Contact Information
Undersecretary of the Ministry of Defence
Website: www.mod.gov.kw/
Email: [email protected]
Tel: (+965) 2487752 ext. 34000
Phone secretarial office assistant undersecretary for Foreign Procurement: 24.822.187
The Kuwaiti Ministry of Defense is composed by a Joint general staff, the Army, the Navy and the Air
Force. There is also an administrative undersecretary regrouping the functional services as Legal,
Finance, Administrative affairs and the Procurements.
We can add that the Amiri Guard is a brigade linked to the MOD for training and equipment. Each
armed force part of the ministry of defense has its own Commander who reports to the Chief of Staff
and a dedicated Headquarters.
His Excellency, the Minister of Defense is Vice Prime Minister.
The contract process has to be fully respected to have a chance to deal with this Ministry. The companies
must have contact with only one Procurement Bureau”.
•
•
The Foreign Procurement if their act by their own (under Government to Government
agreement)
The Local Procurement if they have a Kuwaiti Company as a sponsor.
Whatever, in the formal process, the technical needs have to be expressed by the end-user. Then a request
for proposal is issued. A Committee opens the answers (under seals bags) and requests the approbation of
the technical part by the end user. In parallel, the finance and legal bureau are working on the commercial
part of the tender.
32
After the full process inside the ministry of defense, the tender is submitted to the Audit Bureau for
verification of the total respect of the full process. This is only after the Audit Bureau Agreement that the
MOD is allowed to signed the contract. Usually, it is requested to issue Bank Guarantees (Advance payment
and Performance bond) before the signature.
The Kuwait MOD intents to modernize its Operational Capacities as for its Effective Readiness. In term of
equipment’s, Army, Navy and Air Force have to replace their main assets within the next coming years.
(Helicopters, Fighters, Vessels, Artillery, ISTAR -Intelligence, Surveillance, Target Acquisition &
Reconnaissance- means and Communication).
Kuwait Naval Force
The Kuwaiti navy or Kuwait Naval Force is the sea-based component of the Military Of Kuwait. The
headquarters and sole naval base is Ras al-Qulayah Naval Base, located in the south of Kuwait,
approximately 35 miles (56 km) south of Kuwait City. The Kuwait Naval Force numbers consists of over 2,200
officers and enlisted personnel,. In historical operation, the Kuwaiti Navy supersedes in seniority and is older
than the Hereditary Constitutional Monarchy of Kuwait, the Constitution of Kuwait and the National
Assembly of Kuwait.
The principal material used:
•
•
8 Combatants BR-42 fast attacks craft (Umm Al Maradem class) - 245 tons full load - 4 Sea Skua SSM commissioned 1999-2000 (so called Patrol Boat P37).
10 Mk 5 Fast Patrol Craft, 1 TNC-45 fast attack craft (Al Sabouk class) - 255 tons full load - 4 MM40 SSM - commissioned 1984.
Kuwait Air Force
The Kuwait Air Force is the air arm of the State of Kuwait. The Air Force headquarters is located at Al
Mubarak Air Base, with the remaining forces stationed at Air Defense Brigade, Ali Al Salem Air Base and
Ahmed Al Jaber Air Base. The Kuwait Air Force numbers approximately 2,500 officer and enlisted personnel.
In founding age and historical operation, the Kuwaiti Air Force supersedes in seniority and is older than the
Hereditary Constitutional monarchy of Kuwait, the Constitution of Kuwait and the National Assembly of
Kuwait.
The principal material used:
McDonnell Douglas F/A-18 Hornet, Boeing C-17 Globe master III, Boeing AH-64D Apache Longbow,
Aerospatiale SA-342 Gazelle, Eurocopter AS-332 Super Puma, Aerospatiale SA-330 Puma.
33
Kuwait Land Force
The Kuwaiti army consists of 11,000 active duty personnel organized into three armored brigades, two
mechanized infantry brigades, a mechanized reconnaissance brigade, an artillery brigade, a combat
engineering brigade, a reserve brigade, a commando battalion, air defense command and a Special
Forces unit. Its main bases are in Kuwait City (HQ), Al Jabah and Mina Abdullah. The brigades are small by
western standards, roughly the equivalent of small regiments or large battalions. They are "cadre forces",
kept up to 80 percent of full strength, with the balance made up of reserves in case of war.
The principal material used:M1A2 Abrams, M-84AB, Desert Warrior, BMP-3, BMP-2, M113A2, M577, Desert
Chameleon, Shorland S600, M88 Hercules, M-84A, Humvee, PLZ-45, M-109A1B, TOW M-901, TOW II, BM-30
Smerch.
M-84A Tanks
M1 Abrams
Humvee
34
C. Partnership Technical Bureau and CTC
1. Partnership Technical Bureau
Key Contact Information
Website: www.ptb.gov.kw
Email: [email protected]
Tel: (+965) 24965900/ 24965902
Public-Private Partnerships (PPP) is set up between a government or public sector consultant who
enters into a long-term agreement with the private sector for the provision of a public service. This is
part of an effort to promote and incentivise private sector entities into state projects and drift away
from funding by surplus oil revenues.
The Partnership Technical Bureau is a body that was set up in 2008 with the objective of streamlining
the tendering and procurement of strategic government projects. The establishment of the PTB is
also to oversee a number of public-private projects and to help privatise state assets under plans to
boost the role of the private sector in Kuwait. This would ease the tension created by the heavy
involvement of the government in economic activities, which is said to scare foreign investors. The
partnerships are expected to increase the number of investment opportunities not only for the
Kuwaiti locals but also for the foreign investors who are interested in venturing into the oil-rich state of
Kuwait. Additionally, despite the fact that the program is a government flagship, the key players will
come from the private sector with only a handful coming from the public sector. This would go a
long way in opening doors to foreign trade which had been characterized by mainly imports with no
corresponding exports.
PTB’s Objectives
•
•
•
•
•
Promoting Kuwaiti nationals through job opportunities and human development
Promoting scientific research and technological development
Encouraging private sector involvement with development projects
Improving quality of the public sector services
Increasing Kuwait’s GDP and diversifying its sources
If projects move beyond the design and feasibility stage, the PTB overseas tenders for consultancy
contracts and design studies. Eventually it tenders the deals to build and operate new schemes.
Major Projects Overseen by PTB
•
•
•
•
•
Development of Failaka Island into a tourism resort; total cost of $3 bn
Development of Kuwait’s railway system; total cost $10 bn
Redevelopment of Kuwait International Airport
Privatization of Kuwait Airways
Tasked with finding a new private sector partner to run the countries postal service
Projects Procured Through PPP Framework
•
•
•
•
•
•
•
Metro System for Kuwait City
Heavy Rail Network
New Hospitals
Series of New Schools
Wastewater Project
Labour City
Postal, Telecommunication & Park Services
35
Kuwait has acknowledged that by partnering with the private-sector, it can explore private sector
skills, innovation, knowledge and technology that it might not otherwise have access to. The
collaborations between the higher committee and the PTB in Kuwait create a favourable
environment where business can thrive well. This is the reason behind the agitation from both the
government and the private sector.
2. Central Tender Committee
Key Contact Information
Website: www.ctc.gov.kw
Tel: (+965) 22401200
In 2005, the Central Tenders Committee was formed to regulate the tendering and auctioning
procedures in Kuwait. The committee was charged with the responsibility of releasing and following
up government tenders until they are awarded. The committee also issues contractors classification
certificates as well as safeguarding the welfare of the citizens by offering food items and animal
feeds to them at subsidized prices. These combined efforts by the Central Tendering Committee are
aimed at not only improving the environment for domestic investment opportunities but also
encouraging foreign investors. The move by the Kuwaiti government to set up this committee went a
long way in lowering the country’s overreliance on imports. The amendment of the law under which
the committee was formed in 2008 was another move to further better the economic conditions for
investors in Kuwait as it allowed companies to apply for tenders regardless of their status.
Contractors, state ministries and institutions who are participating in the tendering process must
qualify on the CTC’s system which is based on five key elements:
I.
Financial Overview
II.
Previous Work Experience
III.
Organizational Structure of the Company or Institution
IV.
Equipment and Workforce owned/ operated by the Company or Organization.
V.
Field inspection on existing projects, which under implementation
The conditions to be met for a company or organization requesting classification
I.
The applicant must be a Kuwaiti company or institution.
II.
The applicant must be a member of the Chamber of Commerce of Kuwait.
III.
Have been moving to establish a company or organization for three years.
IV.
Professional specialists for the classification are required.
V.
All employees are ensured by the institution.
VI.
The applicant must be registered with the Central Tenders Committee.
VII.
The company's capital:
• Category IV (fifty thousand dinars).
• Category III (one hundred thousand dinars).
• Category II (two hundred thousand dinars).
• Category I (five hundred thousand dinars).
VIII.
To have developed prior experience in the field of classification.
36
Chapter 3: The Kuwait Offset Program
A.
B.
C.
D.
Objectives, tasks and strategy of the NOC
The NOC evolved organizational structure
Benefits of the NOC and application principles
The Offset Milestones
Latest News
Kuwait’s Council of Ministers has passed a resolution suspending the offset program on all government
defence and civil procurements, current and future. The decision reflects the council’s recognition that the
Kuwait Direct Investment Promotion Authority (KDIPA) is not ready to manage the offset program, and won’t
be for some time.
Sources tell us that the Ministry of Finance has cancelled its contract for offset management with the
National Offset Company (NOC).
The resolution authorizes the KDIPA to carry out a review of the offset policy and assess its viability before
deciding whether to continue. The council formally approved a proposal to move the offset program to the
KDIPA only three months ago, although the intention was revealed in CTO 3 dated February 10th, 2014.
An initial decision to suspend just the civil offset policy, revealed in CTO 14 dated July 28th, has been
reconsidered. It seems that the council has opted instead for a complete strip down by the Council of
ministers decree no 890 decided on July 07th 2014 announced to public only 2014/09/14.
Kuwait’s offset program was established in 1992 and the National Offset Company was set up as the
management authority in 2006, reporting to the Ministry of Finance.
The Kuwait Offset Program
Contact us:
Kuwait Direct Investment Promotion Authority
Headquarter
Dr Meshaal Jaber Al Ahmad Al Sabah
Courier address PO Box 3690 Safat 13037 KUWAIT
Mailing address: Sharq Khalid bin alwaleed street City tower, state of Kuwait
Tel: +965 22240700
Fax: +965 22240718
Airport Branch: Departure hall
Email: info@ kdipa.gov.kw or secretary: [email protected]
The recently approved $ 125Bn five year Economic Development Plan has brought forward major projects
in a number of areas, so there will be a number of opportunities for foreign participation in the energy sector,
infrastructure, telecoms and transport fields.
Furthermore Kuwait has taken steps to expand the role of the private sector in the economy asserting a new
philosophy based on the qualitative transition from government dominance over the national economy to
the private sector playing a greater role in building the national economy to create sustainable growth and
development; the intention is to secure the transfer of technology and know-how of international offset
obligors to development projects and to achieve added value for Kuwait’s economy.
37
A. Objectives, tasks & strategy of NOC
Objectives
•
•
•
Transfer & settlement of appropriate modern technology.
Creation of high-skill jobs for Kuwaiti nationals.
Advancement of education & training opportunities for Kuwaitis.
Tasks
•
•
•
•
Manages optimally the Full Cycle of the Offset Program dealing with both the foreign obligors
and relevant government entities.
Identifies and assesses potential offset investment opportunities.
Facilitates the establishment of Offset business ventures (OBVs).
Raises awareness of the Offset Program among various stakeholders.
NOC strategy
SERVICES & MARKETS
Market Penetration& Concentration
New Product/service development
Market development & Diversification
•
•
•
•
Stronger corporate brand image & Awareness.
Stronger working relations with GOK, FCs, and CSI.
Active Matchmaking.
Facilitation of OBV implementation (Fast Track).
Impact of NOC business plan strategy
Consolidating core business through:
•
•
•
•
•
Defining Key Performance Indicators (KPIs)
Utilizing CRM
Upgrading staff internal capabilities
Improving contract & Project management
Matchmaking
Enhanced capabilities through the Evolved Organizational Structure:
•
•
•
•
Introducing Lead Generation (CR, business opportunities development, FastTrack)
Establishing Planning Department (strategic planning, market intelligence, Media & Marketing
activities).
Forming Obligor committee (ongoing) & Transition committees (temporary)
Introducing Government Relations section (Fast Track)
38
B. NOC evolved organizational structure
•
•
•
•
•
Providing Matchmaking services between obligors and Kuwaiti private sector companies.
Accelerating process of issuing licenses and government approvals for offset projects(FastTrack).
Providing Market Intelligence.
Assisting offset obligors in identifying Third Party offset performers.
Assisting obligors in identifying potential financing sources to partially participate in financing the
offset project.
39
C. Benefits of the NOC and application principles
I.
NOC creating a win-win formula
Foreign Contractors
•
•
•
•
Establishing and developing new business relations.
Benefiting from various opportunity prospects in the State of Kuwait.
Developing a better position in & understanding of domestic business market.
Strengthening and integrating international production chains in a new and promising market.
Local Entities
•
•
•
•
•
•
II.
Diversifying the economic base
Strengthening local productive capacity and export potential for goods and services.
Enhancing R&D capability
Enhancing technical, administrative & managerial local skills.
Encouraging the development of local SMEs.
Increasing private sector
New Offset guidelines NO. 9-2007
Supply Contracts which are subject to Offset
•
•
Defense Contracts ≥ KD 3 Million
Civil Contracts ≥ KD 10 Million
When is Offset not applicable?
•
•
•
Contracts for non-industry related construction works
All Public-Private-Partnerships (PPP) contracts signed with any Kuwaiti governmental entity.
Foreign Suppliers of goods on F.O.B. basis, directly or through a local agent/distributor.
Offset Obligation 35% of Monetary Value of the Supply Contract
D. Offset Milestones
1.
2.
3.
4.
5.
6.
7.
8.
9.
Contract stage Pre-tender -short listed
Signing of MOA Signing of Supply Contract
Offset obligation starts
Bank Guarantee 30 days from date of Signing SC
Implementation stage Concept Paper
Tentative multiplier & Business Plan &Final Multiplier
OBV starts within one year of Signing supply contract &Offset Credits & OFC
Follow Up
Deductions from Supply Contract :
•
The total value of the Supply contract to Offset minus the total value of sub contracts assigned
to national companies
40
Deductions from Offset Obligation:
•
Total Value of Offset Obligation
Minus
•
Expenses incurred by obligor in attaining Bank Guarantee.
Minus
•
Expenses incurred in assessing the value of Technology Transferred to OBV
Minus
•
Off-contract purchases of goods & services of national origin.
10. Pre-requisites
•
•
•
Submitting the Project Concept Paper prior to Signing the Supply Contract by short- listed
foreign contractors participating in GOK Contracts
Signing an MOA with NOC prior to signing the supply contract.
Providing a Bank Guarantee: 6% of the value of the Supply Contract.
11. OFFSET INVESTMENT OPTIONS
•
•
•
NOC Pre-Approved Director Indirect Offset Projects.
Own-Proposed Director Indirect Offset Projects with NOC Post-approval.
Participation in Offset Funds developed or approved by NOC.
12. Schedule of Offset Multiplier Values
41
13. Types of Offset Projects Joint Ventures
•
Greenfield FDI projects
•
Brownfield investments
•
Direct Contribution
•
Procurement of National Goods & Services
•
Acquisition of existing OBV
•
Others
•
Third Party arrangements
•
Offshore
14. Potential Earning of:
•
Future Offset Credits
•
Pre-Emptive Offset Credits & Both to Transfer & Sale of Offset Credits
15. Granting of Offset Fulfillment Certificate:
•
Submitting First Year financial statement of the OBV.
•
Bank statement confirming transfer of obligor’s investment funds.
•
Proof of offset obligor equity ownership in the OBV.
•
Copy of OBV registration at Kuwait Ministry of Commerce &Industry.
•
Statement of members of the Board of Directors for shareholding companies
Special Offset Fulfillment Mechanism
NOC Board of Directors has the authority to provide offset facilities to limited number of special government
Contracts, subject to the approval of the Minister of Finance
42
Chapter 4: The main industry sectors and significant projects in
Kuwait
A. The industry sectors
1. Kuwait Hotel Industry
a. The development of the sector
Both the government and private sector have taken important strides to improve the country's tourism
infrastructure, with the expansion of Kuwait International Airport and the planned addition of 1,500 new
hotel rooms by 2015. The Kuwaiti government launched a 20-year tourism plan in 2005 to allow for the
development of the travel and tourism sector, with a key focus on business tourism growth, so as to
diversify Kuwait's national income. This plan was developed together with the World Tourism
Organization and includes the development of new hotels and resorts.
Kuwait’s tourism relies on regional visitation, specifically on Saudi tourists, which accounted for more
than 40% of arrivals in 2013 and are expected to grow. Other important source markets of visitation are
Egypt (roughly 12%) and India (roughly 14%, but a source of cheap leisure rather than tourists). Air travel
is predominantly international in nature. The hotel demand in Kuwait City is generated primarily by
Commercial sources.
Tourism seasonality in Kuwait is determined primarily by the local climate (in July and August), Ramadan
(which changes from year to year as it is based on the lunar calendar) and the timing of significant local
events and exhibitions. February is one of the busiest months because of events such as the Hala festival
(celebrating spring), the Kuwaiti National Day (25 February) and Liberation Day (26 February). Other
events that take place throughout the year in the Kuwait International Fairground and various other
venues include the Ramadan Food Exhibition, Gift Exhibition, International Perfumes and Cosmetics
Exhibition, Gold and Jewellery Exhibition, and the International Trade Fair. The low season generally falls
in the summer months.
The five-star hotels operated by international hotel chains dominate the market supply. However, it is
worth noting the recent opening of the Ibis Salmiya (2008) and Ibis Sharq (2010) as a portent of an
emerging trend. Investors appear to divert their focus away from luxury properties in recognition of the
potential of alternative asset types in Kuwait City, such as lower priced hotels and extended-stay
properties.
The performance of quality hotels in Kuwait surpassed their results year-on-year. It is estimated that fivestar hotels achieve occupancy levels of roughly 55% and average daily rates of about US$260. Year-onyear average occupancy levels reflect double-digit growth for new entries in the market, partly
compensated by moderate occupancy decreases for older properties. Average daily rates increases
by roughly 3 to 4%.
43
b. An increasing offer
The table below shows the supply of rooms that is considered most likely to materialize in the near future
and hotels that have opened in 2013 up to date.
Tale 1 New Hotel Supply – Kuwait
Hotel
Rooms
Location
Star Rating
Opening
136
Mahboula
4
Open May 2013
Best Western Salmiya
60
Salmiya
4
Dec 2014
Jumeirah Messilla Beach Hotel
447
Salwa
5
Open May 2013
Best Western Mahboula
Gulf Rose Hotel
90
Mirqab
3
Open May 2013
Mercure Hotel
200
Kuwait city
4
May 2015
Business Hotel Sharq (No Name Yet)
120
Sharq
4
Q2 2015
Radisson Blu Hotel (Renovated)
224
Salwa
5
Re-Open Sept 2013
160 + 246
Kuwait City
4
Open Oct 2013
Millennium Hotel Salmiya
Four Points By Sheraton (Extension)
300+
Salmiya
5
Jan 2015
InterContinental
225
Salmiya
5
Q4 2015
City Tower Hotel
128
Sharq
4
Open May 2014
2015
Crown Plaza Hotel (Extension)
300 +216
Farwaniya
5
Carlton Tower (Partly renovated)
110
Kuwait City
3
2014
Sarah Hotel
50
Salmiya
4
2015
Un-named hotel on Balajat St., Ras Salmiya
180
Salmiya
4
TBA
Dalal City Hotel (Dalal Complex)
40
Salmiya
4
Soft opening August2014
200 + 70 Apts
Salmiya
5
TBA
Hilton Olympia
Bastaki Hotel (Extension)
Bravo Suites Hotel
Salmiya Casa Apartment
Residence Inn By Marriott
20+40
Sharq
4
2015
50 Suites
Ras Salmiya
Apart Hotel
Open March 2014
27 Apts
Salmiya
Apart Hotel
Open May 2014
143
Sharq
Apart Hotel
Q4 2014
Lagoona Hotel Apartments
51
Salmiya
Apart Hotel
Open Sept 2013
Al Muhanna Plaza Apartments
90
Salmiya
Apart Hotel
Open Aug 2013
The above list does not include hotels that are planned to open later than three years from now or
properties for which there is no sufficient recent evidence.
c. Outlook and Opportunities
Tourism in Kuwait faces challenges related to a very strong local currency that makes it less attractive as
a business or leisure destination. Anecdotal evidence suggests that even Kuwaiti investors invest in
tourism overseas more than inside their country. The relatively high cost of vacationing in Kuwait makes it
unlikely to become a mass-tourism destination. Strong Islamic traditions make this country a very
attractive destination to Arab heritage tourists, despite intense competition from other states in the Gulf.
In future, Kuwait needs to implement new tourism strategies to increase its appeal as an international
destination and expand its demand base beyond the Arab world. While business tourism remains the
most attractive segment to pursue, Kuwait’s tourism potential could only be achieved by a better
definition of the country’s tourism profile and by developing the necessary leisure tourism attractions.
The country could capitalize on the strength of its culture and heritage tourism but also increase focus
on spa tourism, and sea and sun activities such as yachting, diving and trips to the islands
44
2. The Retail & Fashion sector
Introduction:
The food retail market includes the retail sales of all food products, both packaged and unpackaged,
as well as beverages. The Kuwaiti food retail industry had total revenues of $2.2bn (640 million KD) in
2013, representing a compound annual growth rate (CAGR) of 4.2% between 2009 and 2013.
Convenience stores account for the largest proportion of sales in the Kuwaiti food retail industry in 2013,
sales through this channel generated $1.1bn (320 million KD), equivalent to 48.8% of the industry's overall
value.
The performance of the industry is forecast to decelerate, with an anticipated CAGR of 3.5% for the fiveyear period 2013 - 2018, which is expected to drive the industry to a value of $2.7bn (770 million KD) by
the end of 2018. Leading company profiles reveal details of key food retail market players’ global
operations and financial performance. One of the key actors is Co-op.
Co-op society stores are department stores put up by the Kuwaiti Government. Comprising 62-65% of
the retail trade in the country, the legal basis for consumer cooperatives was established in 1962.
Kuwait Hypermarkets
The main other actors are the following: Sultan, City Centre, Lulu, Geant and Carrefour…
Modern retail is composed by 19 Hypermarkets up to 6000 m2 (including 5 whole sales for Sultan) inside
large Malls (Carrefour Avenues Mall, Geant 360, City Centre Salmiya...).
In addition, some branches opened Supermarkets and convenient stores, 18 express Sultan, 6 Geant
Easy, 18 Gulf Mart …
1) The Sultan Centre TSC
The Sultan Centre born in 1981 was the launch of Kuwait’s first self-service store in Shuwaikh.
They opened first overseas retail store in Oman in 1999 then in 2003 in Jordan , 2008 in Lebanon
and Bahrain in 2010.
Branches are 14 hyper + 14 convenient stores and express.
Branch
Ahmadi
Al kout
Fahaheel
Jabriya
Hawally
Salmiya
Boulevard Opening
soon
Size
719sqm
2350sqm
2321sqm
1564sqm
5461sqm
16071sqm
Branch
Sharq
Dajeej
Jahra
Mangaf
Shuwaikh
Sulaibiya
Size
10055sqm
5069sqm
9598sqm
6016sqm
8256sqm
7689sqm
8000sqm
Salwa
1489sqm
HO Telephone details: +965 2434-3155
Number of staff: 7000 staffs.
Market share: TSC holds an approximate 10% share of the retail market in Kuwait.
45
2) LU & LU Hypermarket
It is one of the largest retail chains in Asia and the biggest in Middle East with 119 outlets in the
Gulf Cooperation Council (GCC), Lulu opened its first supermarket in Abu Dhabi in 1995,
Kuwait branch was opened in 2007.
Branches are 5:
Branch
Al Qurain
Dajeej
Al Rai
Fahaheel
Salmiya Opening soon
Size
48000sqm
6000sqm
HO Telephone details: +965 24759333
Number of staff: Lu & Lu group has over 1200 employees of various nationalities
Market share: Almost 6 % in Kuwait from the key account.
3) Geant Hypermarket
First store in Kuwait was opened in 2005.
Branches are 7:
Branch
Farwaniya
Salmiya
Souk Al Jleeb
Al Liwan Mall , Fintas
Center
Sulaibikhat
Hawally
360 mall
Size
24000sqm
11000sqm
HO Telephone details: + 965 25361111
Number of staff: Geant has almost 400 employees.
Market share: almost 2 % from the key account.
4) City Centre Mega-Mart
City Centre is a hypermarket group based in Kuwait since 1999.
City Centre is now being expanded with new hypermarkets in Kurdistan.
Branches are 4:
Branch
Salmiya
Jahra
Shuwaikh
Dajeej
Size
40000sqm
HO Telephone details: +965-1805222
Number of staff: about 610 employees
Market Share: Almost 4 %
46
5) GULF MART
Gulf mart it is a division of the UAE based renowned retail conglomerate, Opened in Kuwait in
1999.
Branches are 18:
Branch
Shuwaikh
Jleeb Al-Shuyoukh 1
Jleeb Al-Shuyoukh 2
Hawally 1
Hawally 2
Fahaheel 1
Fahaheel 2
Fahaheel 3
Khaitan
Size
400sqm
500sqm
500sqm
300sqm
400sqm
500sqm
400sqm
30sqm
350sqm
Branch
Farwaniya 1
Farwaniya 2
khaitan 2
Jahra shop
salmiya 1
salmiya 2
Salwa
Salmiya 3
Abu Halifa
Size
700sqm
800sqm
300sqm
700sqm
450sqm
300sqm
400sqm
300sqm
300sqm
HO Telephone details: +96525361111
Number of staff: over 450 employees.
Market share: Almost 1 % from the key account.
6) CO-OP
Co-op society stores are department stores put up by the Kuwaiti Government. Comprising of
65% of the retail trade in the country, the legal basis for consumer cooperatives was established
in 1962.
Branches are:
60 Hypermarkets and almost 250 Express Stores – 220 000 sqm sales area – 750 million KD turnover
per year.
There is no main telephone number; each branch has its own management and telephone.
Number of staff: 18926 in total (2322 Kuwaiti and 16604 other nationalities).
Market share: Almost 65 % from the traditional trade.
7) Carrefour
Carrefour branch was opened in May 2007. It belongs to of one of the main actors in the region,
Majid Al Futtaim group, also present in UAE, Qatar, Egypt…
Store size is 11000 m2.
The store is located in the largest mall in Kuwait : The Avenues
HO Telephone details: +965 22598222
Number of staff: 290
Market share: 1.5% of the modern retail.
8) Saveco
Local brand opened in February 2014.
Size approximately 11 000 m2.
HO Telephone details: +965 22253842
Number of staff: 200
Market share: unknown
47
Shopping Malls in Kuwait
One of the main activities in Kuwait is shopping. There are about 12 important malls in Kuwait ready to
welcome you daily from almost 9.00 am to midnight.
1) Al Mohalab Mall
Al Mohalab Mall is located on Muthana Street in Hawally, behind the
Park. Al Mohalab Mall is also known as The Titanic Mall due to its shape
that looks like the deck of the boat. Few of the renowned international
brands are Ajmal, Tom Taylor, Benetton, Bebe, Bimba & Lola, The Body
Shop, Ninewest, MAC.
Contact details of Al Mohalab Mall, Hawally, Muthana Street
Phone:+96522662020
Hours: 10:00 – 22:00
2) Sharq Mall
Many outlets are present in this mall: Debenham's, Next, River Island,
Mango, Oasis, Arbash Diamonds,
El Taher, Racing Green, Milano, Steps, Zara, Boots Pharmacy, Body Shop
and much more… including the hypermarket Sultan Center.
Phone: +96522410975
Sat to Fri. 10am – 10pm
3) Marina Mall
Marina World, a large shopping and entertainment complex in Kuwait is
located along the beachfront in the shopping district of Salmiya. Also
present in the vicinity is the Marina Yacht Club, an exclusive club
offering integrated services from well-equipped servicing yard with wellqualified maintenance team and shore launching capabilities.
Phone:+96525722299
Hours: 10:00 – 22:00
4) Al Kout Mall
Al-Kout Mall is located in the district of Fahaheel outside Kuwait, on the
waterfront. Almost 150 stores and restaurants. The well-known outlets at
the Mall are the Calvin Klein, Italiana, Springfield, Nautica, Oasis, Mango,
Next, Debenham’s, Arbash Diamonds, Racing Green, Steps, E1 Taher,
Milano, Body Shop, Steps, Zara and more.
Contact Details
Al Kout Mall, Fahaheel Waterfront, Kuwait
Phone: + 965-393-0394 Website: www.alkoutmall.com
Mall Hours Sat to Fri. 10am – 10pm
48
5) Laila Gallery Complex
The Laila Gallery Complex is located at the Salem Mubarak Street, near
Salmiya. It is best known for its Laila Theatre, so after watching a good
movie, you could catch-up with some shopping that the mall has to offer
by choosing from the wide range of jewellery, optical, garments,
perfumes, clothes and cosmetics from reputed brands.
Contact Details
Phone: +9655748524
Hours: 10:00 – 22:00
6) Al Hamra Tower Mall
Al Hamra Tower, the super tall skyscraper, in downtown Kuwait City, The
tower’s commercial space also includes a five-storey retail mall,
spreading across 250,000 square feet of space, high-end retail shops,
restaurants, cafes, food courts, entertainment areas, spread across four
levels of the tower and an eleven storey Car-park. The fashion stores in
the tower shopping mall are:Yves Saint Laurent, Hermes, Gucci, Harry
Winstone, kate spade, Bottega Veneta, Carolina Herrera, Martin
Margiela, Mont Blanc, Samsonite, Mouawad Jewelry, Al Jazeera
perfumes, Korloff, Eden Park, Beidoun, Officine Panerai, Behbahani
luxury, Vera Wang, Shoebox, L’ Argentina…
Contact details:
PO Box: 2248 Safat, 13085, Kuwait
Email- [email protected]
Tel-(+965) 1829000
Website: www.alhamra.com.kw
7) Al-Fanar Shopping Mall
Located on the Salem Al-Muharak Street of Salmia, Al-Fanar is an
attractively designed shopping complex, which has a distinct look
compared to several other complexes in the area.The mall houses few
of the world’s renowned fashion chains, restaurants, a hypermarket,
coffee shops and showbiz venues.
Some of the international fashion brands are: Ralph Lauren, Nautica,
Zara, Karen Miller, Guess, NEXT
Contact Details
Mall hours Open daily, from 12 PM – Midnight Contact details P.O. Box
92 Dasman 15451 Kuwait
Tel: 25720289, 25720298. Fax: 25720327, www.alfanarmall-kw.com.
49
8) 360 Mall
Strategically located in a busy and rapidly growing residential area, the
retail and entertainment development provides a valuable addition to
the local community as well as visitors from further afield.
A hypermarket, two department stores and fabulous leisure and
entertainment arenas are just some of its major attractions.
The Grand Entrance is the first step to a wide variety of journeys possible at 360 MALL. The transition from
warm wood decking, lush landscaping and a reflecting pool at the entry bridge on to the high-tech
pixilated floor tiles and walls of the Grand Entrance's is the inspirational element. The Grand Entrance
includes a ground breaking giant LED screen well placed at the centre, greeting visitors with various
messages of merchandise offerings, information and product displays.
In this zone you will find European fashion and jewellery brands that include Cartier, Prada, GUCCI as
well as Burberry.
The Boulevard presents Haute Couture fashion such as Saint Laurent, Gucci, Miu Miu, Bottega Veneta
and IWC.
Contact Details
Mall Location: 360 MALL – Sixth Ring Road, South Surra
Al Zahra'a Area P.O. Box 29060, Safat 13151, Kuwait
Tel: +965 1800 360 Mail : [email protected]
9) The Avenues Mall
Located in the Al-Rai Industrial Area, along the Fifth Ring Road, the first
phase of the mall was official launched in April 2007. The mall is the
largest in Kuwait with over 850 stores and services, 12 anchors, and a
parking capacity for 12,000 vehicles.
The first Avenue has lot of international store such as Claire’s,
Debenhams, Camaieu, Etam, Caroll, I CITY store, Ajmal, Faces, Bobbi
brown, Austin reed, Henry Lloyd, Dorothy Perkins, Mango, Zara, Zara
home, TopShop/Topman, Monsoon, Oasis, bodyshop, I city, Jules,
Uterque, Ikea, Pottery Barn, Vavawoom, Cinescape and much more.
This district houses the first Carrefour Hypermarket in Kuwait and many of the renowned international
brands like Mont Blanc, Longchamp, Dupont, Shanghai Tang, Braccialani, Claire’s, Massimo Dutti,
Foular, Fuchia, Sony, Kiehl’s, Spa time, Magic planet, Mothercare, Boggi, Eden park, Basler, Diva, Evans,
Lily, Limelight, Calvin Klein, …
The Place of many high end renowned international brands with a two-storey luxurious department store
Harvey Nichols, Chanel Boutique, Louis Vuitton, Dolce & Gabbana, Christian Dior, Burberry, Fendi and
many others like Miu Miu, Prada, Celine….
There are first time stores opened in Kuwait like West Elm, Williams-Sonoma, Sarar, Pink, COS, Teavana,
Amouage, Jo Malone, Muji etc. and additional branches for existing stores such as Starbucks, MAC,
Juicy Couture, London, Victoria’s secret, Villebrequin, H & M, pinkberry etc.
Kidzania, the leading world brand in children’s entertainment and education, is available in this Mall.
Contact details:
Address: Al-Rai- 5th Ring Road- Between Ghazali Street & Mohammed Bin Alqasem Street, Kuwait
Phone: +965 22597777
Timings 10 AM to 10 PM
50
10) Salhiya Complex
The shopping complex is located along a spacious avenue and
comprises three levels – Ground Floor, Mezzanine 1 and Mezzanine 2.
At Salhiya Complex, shoppers can find things ranging from chic
fashion accessories, gizmos, exclusive jewellery and interior items.
Although, a bit expensive, visitors can find premium and high-street
retailers including Al Ostoura representing Chloe, Stella Maccartney..,
Sergio Rossi, Rolex, Versace, Fendi, Louis Vuitton, Chanel, Christofle,
Tiffany, Chopard, Cartier and Valentino, Christian Dior Couture,
Christian Louboutin to name a few.
Contact Details
Address: Salhiya complex, Fahad Al Salem Str. - Kuwait City
Tel No. +96522490888
Timings 10 AM to 10 PM without the afternoon breaks
11) Kuwait Magic Mall
Kuwait Magic Mall is a state-of-the-art retail mall in Kuwait, and is
located in Abu Haleefa, next to one of the best Sandy beaches in
Kuwait, in proximity to Fahaheel. The Abu Halifa Branch of the mall was
established in Aril 2000, and covers 2298 square metres in area.
Contact Details
Al-Saheleel Street, Abu Halifa
Phone: +96523710866
Opening Hours 9am – Midnight
12) Olympia Mall
The retail mall is located over 4 floors and provides a broad mix of
international fashion / accessories and food and beverage outlets.
Several of the food and beverage outlets will open outlets for the first
time in Kuwait including Planet Hollywood, Niranj Restaurant, Fashion
TV Cafe, Cafe Verghano, Cafe Pascucci and Rohr Cafe together with
popular international/local fashion brands many of which will open
their first outlets in the popular Salmiya district including Axara, Bebe,
Gerry Weber, CCDK, Pronovias, Meghan Fabulous, Bimba & Lola, La
Vie en Rose, United Colors of Benetton, Bodique, US Polo, Mango,
Ginger & Lace, Designers Lounge, Switcher, Women’s Secret, Plus IT
and Kayra
Contact Details
Al-Saheleel Street, Abu Halifa
Phone: +96523710866
Opening Hours 9am – Midnight
51
13) Arraya Commercial Center
Location: Sharq
The centre consist of an integrated environment that combines a top
class shopping mall, a corporate office tower, a 4-star hotel-Courtyard
by Marriot Hotel, a recreational plaza, a conferences and a
Ballroom/Conference Hall. The Arraya Commercial Centre is
conveniently accessible to the public through nine entrances,
including two air-conditioned pedestrian bridges that connect the
Mezzanine levels 1 and 2 to the car park. Shoppers can also enter
through a beautiful landscaped shaded plaza.
Contact Details
Phone: +96522997999
Hours: 10:00am – 1:00pm / 5:00pm – 10pm.
14) The Gate Mall
Gate Mall is a new mall that recently opened in Egaila
Location: Al-Fintas
Land Area m2: 15000
The mall has five floors and most of your favourite brands are there,
including Zara, Nike, Al Ostoura Multiband, Lime Light, Michael Kors,
Debenhams, H&M, Victoria Secret, and Sephora… Food wise there is
Starbucks, Pinkberry, Shake Shack, Tim Horten’s, Coldstone, Just Falafel,
Cafe Baza and Margherita and most of the Al Shaya’s brands.
Contact Details
Phone: +96522056100
Hours: 10:00 – 22:00
15) Al Salam Mall (Opening Plan Feb / 2015?)
Mall Location: Salmiya, next To E-Cite & old Souq
Mall contain Three Levels (Basement, with two floors)
Build-up area: 39185 m², leasable area 26680 m², basement (Lulu
hypermarkets) 6000 m²
Outlet Numbers: 134
Total Parking: 293 Cars
16) Boulevard Mall (Opening Plan September/ 2015?)
Mall Location: Salmiya Opposite to City Centre
Total area: 353000 m², build Area: 32000 m²
Number of outlet: 206
Included Sultan Hypermarket, total Space: 7200 m² total parking: 1110
cars
Contact Details
Phone: +9655716376
52
17) Gold Souk
The Gold Souks is one of the most favourite shopping attractions in
Kuwait. For those of you visiting Kuwait for the first time, Gold Souk will be
one of the amazing things to come across, as you will find shops that
both buy and sell gold. The shops display various jewellery styles,
particularly the Arabic, Indian and Italian. You can also buy gold and
silver bars.
18) Souk Al-Watiya or Al-Watiya Complex
It’s in the Watiya Abu Bakr Street, located beside the Sheraton Hotel
and 4 Point Sheraton. The ground and first floor is full with numerous
gold shops and the restaurant is in the second floor. Local Filipinos call
it as Adidas Building and it is situated close to churches. This is also a
good place to buy any gold or jewellery and the whole area can look
like a mini India Town and Filipino Town during Friday and Sunday.
Kuwaiti Gold Souq The design of this souq is similar to the Dubai gold
souq. If you want to get a feel for what old Kuwait was like, this is the
place; this is a lovely atmospheric souq (traditional market) with so
much history mixed with new trends and especially after the new
renovations they just completed. Prices for things can be haggled and
you can find great values if you are smart in negotiating. It is nice to go there in the afternoon and just
stroll in the narrow streets, talk to the pleasant merchants, shop for souvenirs and look for the various
displ
Traditional Open air and Friday Markets
Despite the abundance of modern supermarkets and shopping
malls, the traditional markets still continue to attract business in
Kuwait. The souk area of Central Kuwait City retains some of its
labyrinths of covered streets, with the passageways lined with shops
and stalls. In the souk Al-Hareem, for instance, women sell their
wares sitting on a raised pedestal running down from the street.
Shopping here is a better bargain in comparison to the modern supermarkets and shopping malls, but
bargaining is essential to arrive at a good price. Traditional souks are seen particularly in the Jahra and
Fahaheel areas of Kuwait. Several of these souks have been re-formed and re-organized. Bargaining is
essential. Moreover, several open air Friday markets operate from early morning till evening on Fridays,
selling everything from second-hand furniture’s, to clothes, carpets, livestock of various types, and more.
Majority of such souks are at Al-Rai, located just off the 4th Ring Road in Fahaheel and Jahra.
Note:
A comprehensive list of Kuwait malls can be found on the following link:
http://mallsandstores-kwt.com/site/2013/05/25/malls/
53
3. The Banking sector
a. General Features of the Banking Sector
The banks in Kuwait are considered pioneers in the Arab world. Some, such as NBK appears on the
world’s top listing on several criterions (security, performance, key indices, etc.)
The leadership of these banks is witnessed in many aspects. The main are the followings:
- Stable growth and strong ratio of Assets to Equity (over 12%)
- Early adopters of technology and among the first to introduce innovative banking solutions
- (IVR, Online, Mobile, etc.)
- Leaders in Islamic banking. KFH was the setter and definer of Islamic banking in the world.
- Strong performance with its clients base (high satisfaction ratios)
- Stretch outside Kuwait through network of branches that covers the main Arab countries
and
key capitals of the world.
•
•
b. Foreign and National Banks
•
Kuwait became an English colony with the end of the Othman empire post the First World War. The
only bank that was operating in the region was the “Imperial Bank of Persia”. The first local bank was
opened in 1941 by British investors in affiliation with the Imperial Bank of Persia. With the rise of Arabic
Nationalism across Arabia with Nasser in Egypt, the British Bank became fully owned by Kuwaitis in
1971 and became the Bank of Kuwait and the Middle East which now became AUB.
•
The first Kuwaiti bank with pure local investors was opened in 1952. That is the National Bank of
Kuwait. Which is now the biggest conventional bank in Kuwait and among the top in the world?
•
With the independence of Kuwait in 1961, the state granted licenses to most of its vital business
sectors to only fully owned Kuwaiti entities. For decades only 7 Kuwaiti banks were monopolizing the
sector.
•
Only until recently, foreign banks were permitted to open branches in Kuwait. BNPParibas was the
first to be granted such a license in 2005. Other international banks followed and regional banks too.
•
Up today, each foreign bank has one location through which it operates. . Recently foreign banks
were permitted to open a network of retail branches in the country
c. Listing of the Banks
The banking system in Kuwait portrays high concentration in assets with a few large banks. A total of 22
banks including 10 local commercial banks. These are:
•
•
•
•
•
•
•
•
•
•
National Bank of Kuwait (NBK), main owners are merchant families
Gulf Bank (GB)
Commercial Bank of Kuwait (CBK)
Al Ahli Bank (ABK)
Burgan Bank (BB)
KFH (kuwait finance House): the first Islamic Bank in Kuwait
Al Ahli United Bank (AUB) Islamic Bank
Boubyan Bank (Islamic Bank)
Kuwait Interbational Bank (Islamic Bank)
Warba Bank , (Islamic Bank)
•
In addition, there are 1 specialized bank (Industrial Bank of Kuwait) and 12 foreign banks which
operate in the form of branches in Kuwait.
•
Out of the 10 local banks, 5 are Islamic banks, which mean they apply Islamic Sharia Law: instead
of interest, profit is shared.
54
•
Out of the 12 foreign banks 8 are from the GCC region.
•
The credit growth in the country is around 5% during over the past 5 years. This has increased in the
past two years due to government projects. In addition, the Kuwaitis salaries were increased
significantly post the Arab spring (2011). This in its turn increased in personal loans (the local citizens
are eligible for a maximum personal loan of up to KWD 70,000 or up to 15 times of their salary
whichever is lower). Another driver of the credit growth is the real estate sector.
•
To note, Kuwait has applied stricter risk management practices after the financial crisis in 2008.
Most banks have strong ratings granted by renowned international rating agencies such as
Moody’s and Fitch
List of the foreign banks in Kuwait
GCC BANKS
INTERNATIONAL BANKS
55
B. The significant projects in Kuwait
Following Kuwait development Plan initiated in 2011 and confirmed in 2014,
Kuwait Government has launched major projects for a total value
exceeding 30 Billion Kuwaiti Dinars.
Till early 2013 the rate of implementation was low but from mid-2013, we
have seen more tenders and awards in the market. This might be the start
of a construction boom in almost every sector of the economy. Below is a
list a significant Major Projects already or coming in the market.
Let’s note that recently many government projects have been taken over
by Diwan Emiri, private office of the Emir while Ministry of Public Works has been losing influence. Main
reason is that Diwan Emiri is able to drive the projects faster than any other ministries.
1. Oil & Gas
Two mega projects have to be noted:
Clean Fuel Projects: total budget of the project is over 3 billion KD and KNPC has already been
awarding it in 2014 to three consortium led respectively by Fluor (US) , JGC (Japan) and Petrofac
(UAE). Mobilization is starting and completion of the project is expected by 2020.
New Al Zour Refinery : the tender for this 615 000 bpd refinery is already
undergoing and award should be announced in the coming months.
Overall budget is over 4 Billion KD.
2. Kuwait International Airport
This project representing almost 1 Billion KD investment is out for tender
and is expected to be awarded by first half of 2015 for a completion by
2020. The project is driven by the Ministry of Public Works Special Projects
team; the architect is Norman Foster from UK.
3. Kuwait University
This project is one of the largest Education project in the world with total
budget exceeding 1.5 Billion KD. This campus will be tremendous, of the size
of Kuwait City downtown, and will replace all the small existing campuses in
Kuwait.
Already under construction are all infrastructure packages (Central Utility
Plants, roads, tunnels, parking) as well as 4 colleges: College of Engineering
& Petroleum (see below picture), College of Arts, College of Science and
College of Business. College of sharia and Social Sciences has been
awarded while Academic Support Facilities is under tender. Project full
completion will be 2020.
56
4. Hospitals
Numerous projects are under construction or have been recently
awarded due to under investment in that sector since liberation:
•
•
•
•
•
•
•
Jaber Al Ahmed Hospital (South Surra): 300MKD +, under
construction, managed by MPW special projects
New Jahra Hospital: 350MKD +, awarded to MAK Kharafi ,
managed by Diwan Emiri
New Al Sabah Hospital: 150MKD + , awarded to Shapporji
Pallonji , managed by MOH , design and build
New Farwaniya Hospital: 250MKD + , awarded to SHY
Behbehani , managed by MOH , design and build
New Adan Hospital: 200MKD + , award in progress , managed
by MOH , design and build
Kuwait Cancer Center Hospital: 150MKD + , awarded to Al Ghanim
International , managed by MOH , design and build
Several extensions are underway at Amiri Hospital, Al Razi Hospital
etc ….
5. Roads
Worth to mention two significant road projects in Kuwait
Jaber Al Ahmed Causeway (1Billion KD)
Jahra Motorway (300MKD)
6. Metro & Rails
Kuwait is suffering from traffic congestion and to overcome this situation,
hence it has been decided to invest heavily in a public transportation
system.
Metro project is driven by Ministry of Communication and is still in its
early stages. Below is original tentative map for that project. This consists
of 4 lines, totally 171km of network for an estimated cost of 1.3 Billion KD.
Another important project is the rail network, also driven by Ministry of
Communication. This is a 511km railway system over two key corridors.
57
7. New Cities
Housing is a very prominent issue in Kuwait for Kuwaiti and expats.
One of the main actors is PAHW (Public Authority for Housing Welfare) who is developing new cities
infrastructures, building villas and flats for Kuwaitis.
Main cities under development are:
•
•
Sabah Al Ahmed City , south of Kuwait
Jaber Al Ahmed City , north of Kuwait city
Kuwait has also put in his roadmap, the development of a new city ‘’ Silk City’’ close to Boubyan
Island, named Silk City. This is a somehow a “futuristic” project that still needs to be funded. Part of
the project is a one Mile high tower that will be higher than Burj Khalifa (818m) in Dubai and
Kingdom Tower (1000m), the one under construction in Jeddah.
8. Others
•
Sheikh Jaber Al Ahmed Cultural centre: also called Kuwait Opera. This cultural centre of 55000m2
will reflect Kuwait’s rich heritage and consists of an art exhibition Centre, a recital hall for music,
a library and a theatre. This is a 220MKD + project, awarded to Al Hani Construction and
managed by Diwan Emiri. Sheikh Abdullah Al Salem Cultural Centre, will house four world class
museums, a fine art centre, a theatre and two information centres.
This is 140MKD + project, awarded to Al Ghanim International and managed by Diwan Emiri
•
Avenues Phase 4: 3rd extension of the flagship mall of Kuwait
58
Key contact information
1. French Embassy/Economic Department:
Villa 24, Rue 13, Block 1, Mansouriah
P.O. Box 1037 Kuwait City
Phone: +965-2-258-2090
Fax+965-2-258-2099
Site web: www.tresor.economie.gouv.fr/se/koweit , www.ambafrance-kw.org
2. Capago
Capgao Kuwait operates a Visa Application Center
Al Raya Mall - Tower 1 - 26th floor- Alshuhad Street - Sharq, Kuwait City
Phone: +965 2227 0555
E-Mail : [email protected]
Website: http://www.capago.eu/FR-KW/index.php/en
3. UBI France . En cours de creation
4. Section des Conseillers du Commerce Exterieur de la France au Kuwait
President: M Lionel Levha Total Kuwait
Members
M Tarek Ammar ARA Marketing Research & Consultancy
Marie-Anne Benedetti Jumbo Tour & Travel BCD Travel
Jean-Paul Bonnel M. H. Alshaya - Retail Division - Middle East
Anthony Chalhoub Habchi & Chalhoub
Bruno Debray
ACCOR- IBIS KUWAIT
Michel Hamenthienne BNP PARIBAS KUWAIT
Pierre Yves Martin CARREFOUR Kuwait
Sophie Parou FAME Co François Retourné Otis Elevator Company Kuwait
Fabien Richard THALES Kuwait
Marc Roussel Defense Conseil International
5. French Business Council-Kuwait
Villa 24, Rue 13, Block 1, Mansouriah
P.O. Box 1037, Kuwait City
Phone: +965-2-258-2020
E-Mail: [email protected]
Website: http://www.fbck.net/index.html
6. UFE : Union des Francais de l‘etranger
P.O.Box 2367 Adan – 47375 Kuwait
Tel: (+965) 25.42.06.13
Fax: (+965) 25.41.24.81
Website: http://ufekoweit.org/accueil/
E-Mail: [email protected]
[email protected]
7. AFK: Amicale des Francais au Koweit
Website: http://www.afkoweit.org/
59
Conclusion
Kuwait’s modern economic history began with the discovery of oil in 1938, and soon after the end of
Second World War, Kuwait became a major oil exporter. Today, apart from the refining of oil and
petrochemicals, there is only a limited manufacturing industry in Kuwait.
Following the quadrupling of the price of oil in 1973, Kuwait experienced a construction boom that lasted
into the early 1980s. The boom provided opportunities for foreign contractors and investors, as substantial
amounts were expended on the creation of a modern infrastructure.
Notwithstanding the setbacks caused by the Iraqi invasion in 1990, Kuwait now has up–to–date ports, an
efficient network of roads, an international airport, an advanced telecommunication system, modern
hospitals, schools, and universities.
During the last decade Kuwait has historically underperformed. Despite its oil wealth and financial strength,
the Kuwait projects market has substantially underperformed when compared with its neighbours. But in
2015, Kuwait will be the best performing market in the region, way before UAE, Qatar and Saudi Arabia.
Kuwait has awakened and is in the process of launching its biggest ever investment plan, in infrastructures,
oil sector projects, roads, health and water projects.
An encouraging aspect of Kuwait’s projects market is the fact that of all the GCC states, it has the highest
growth potential when past activity is compared to indicative future contract award. In addition, Kuwait
benefit from a stable business environment based on strong rules and regulations applied and respected by
all.
Kuwait has the highest growth opportunity of any GCC state in the coming years in all its business and
industry sectors, from luxury to heavy construction projects. It is an opportunity that cannot be missed.
60
61