Criteria for Incentives Eligibility as PDIK Law
As we have discussed in the previous article the incentives granted to the foreign investors in Kuwait according to PDIK Law, however that the applicability of said incentives is based on certain eligibility criteria as listed in Article 29 of PDIK Law, which stipulated that the Investor shall apply to the KDIPA for all or part of the incentives provided for in this Law, simultaneously or following the application for the license, for consideration by the KDIPA with the goal of ensuring that it satisfies the principles, rules and procedures established by KDIPA board in this regard in line with the approved general policy of the state and economic development plans. The value, type and duration of incentives and exemptions granted for investments, each according to its type and nature, shall be connected to all or some of the following criteria:
1. The transfer and settlement of technology and modern management methods as well as practical, advanced technical and marketing experience into the State of Kuwait.
2. The amount and quality of the products and services offered.
3. The need of the local and Gulf market for Direct Investment and its contribution to economic diversification.
4. Increase in national exports.
5. Creation of job opportunities for, and training of the national workforce.
6. Contribution to the development of areas that lack similar projects or activities.
7. Favorable environmental impact.
8. The extent to which the project offers services to the community that are outside the framework of the specific project or economic activity that is being practiced.
9. Use of national products.
10. Use of national technical, professional and consulting services.
KDIPA board may amend or add other criteria to the aforementioned criteria, in accordance with the public policy of the State and the approved economic development plans.
Furthermore, the PDIK Law was flexible in many aspects related to the operations of the companies established according PDIK Law and we will discuss the aspects of such flexibility within the next article.