This step has been taken to encourage foreign direct investment and therefore invigorate the economy.
Kuwait is going to issue some new laws which are aimed to loosen the tight grip on foreign investment and thus quicken the process for various projects. This will stimulate the influx of funds and capital and hence accelerate its economy, which is dependent on the oil industry.
All the officials and authorities in Kuwait, which is OPEC’s fifth largest oil exporting country, are getting ready to come up with new laws. The first draft of these laws would be proposed for approval in the parliament when the new session resumes in October post the summer break.
Not only are new laws being worked upon, the existing and currently applicable regulations are also being amended so that they are suitable to invite more and more foreign investment. The report also said that the purpose of the new laws is to appeal to the new investors and draw in more overseas assets and capital, motivate the citizens of Kuwait to also keep investing in their country, take measures to curb capital going out and simplify the procedures to set up new enterprises and projects in Kuwait.
Some official sources also confirmed that the new laws were required in the existing economic situation in Kuwait so as to enhance the scope of businesses for overseas investors and increase the ratio of foreign capital to overall investments in the country. This means that the process of company formation in Kuwait will become easier.
The report was coupled with government data that showed that the overseas capital in the country stood at only about 1 percent of the total investment in Kuwait in 2017 and the overseas direct investment flowing into the country was only around $301 million.