Decision No. 329/2019 issued by KDIPA:
Kuwait Direct Investment Promotion Authority (KDIPA) has issued a new decision no. 329 for the year 2019 ( the “Decision”) modifying the scoring mechanism for evaluating the investment licenses and granting incentives as per the authorities granted to KDIPA under the law no. 116 for the year 2013.
The modified scoring mechanism for evaluating the investment licenses (the “Evaluation Mechanism”) focused on the development of human resources for nationals and also the sustainable development which will affect positively the long term Kuwait National Development Plan 2035.
As per the Decision, there are five main categories for Evaluation Mechanism and fifteen sub-categories, those categories are:-
1- Transfer & Settlement of Technology
1. A. Innovative tangible technology
1. B. Innovative intangible technology
1. C. Research & Development (R&D) for enabling knowledge creation
1. D. Modern management method
2- Human Capital
2. A. Job creation for nationals
2. B. Certified training programs related to specialization or core activity
2. C. Corporate scholarship programs
3- Market Development
3. A. Domestic market needs
3. B. Use of national products and services
3. C. Product Accreditation and Quality Management System
4- Economic Diversification
4. A. Contribution of non-oil sector to GDP
4. B. Industry, innovation & infrastructure
4. C. Fostering competitiveness
5- Sustainable Development
5. A. Corporate Social Responsibility
5. B. Environmental sustainability
The Decision also categorized the outcome of the application Evaluation Mechanism and if the application:-
Also KPIDA is planning to increase the incentives which will be granted to the investors linking these incentives with the new subcategories listed in the Decision, as example the investors will be granted tax exemptions for the amounts spent on Sustainable Development and Human Capital.
It is clear that KDIPA is seeking to maximize the available human resources through Cooperating with international investors to support the long term economic plan which will require new well educated creative generation.
For any information or clarification do not hesitate to contact us.
Kuwait, on 31st July 2019