The first thing to look at while deciding to invest in any country is its positional advantages. Kuwait, in this case, is ideally located in the northern Arabian Gulf, which borders 3 major markets KSA, Iraq and Iran. These are 3 major markets. There is scope to expand trade in different directions, including Eastern Asia, Turkey, and Central Europe. Kuwait also offers several industrial areas and a Free Trade one located at Shuwaikh port. This Zone offers facilities for the import and export of cargo. Therefore where location is concerned, Kuwait definitely is an attractive place to consider investing. In most cases, access to markets other than the destination country is not always good. Kuwait, however, offers a very useful locational advantage. Access to 3 of the biggest Middle East markets is definitely an attractive proposition. Therefore investing in Kuwait is definitely worth considering.
The next point is definitely political stability. A politically unstable country and subject to frequent changes in government is a high-risk destination for investments. New governments may mean changes in law, and these can adversely affect the business. Kuwait, however, has a very low political risk and enjoys strong sovereign grade ratings from major international rating agencies. Therefore in this aspect, Kuwait would be a food investment destination. Since Kuwait is the producer of oil, the 10th largest producer, it has the financial strength to invest in large projects. This is a plus, as the government is financially sound and is not likely to suddenly impose taxes.
The great plus point is that the Kuwaiti government has embarked on a plan to attract foreign investment. They have approved a law that allows foreign investors to hold a majority stake in their entities, up to 100% of equity in certain cases. This makes it a good place to invest in. The holding of majority equity means that the investor has control over the company's capital and plans. A major advantage for anyone investing in Kuwait.
Kuwait also offers a culture that is hospitable. There is modernism mixed with traditional culture, blended seamlessly. Modernisation has also modified the traditional culture. The population is young and are good consumers of products and services. This means that there is a large internal market to work with. An immediate advantage in the initial stages, as hunting for foreign markets takes a while. Domestic sales can underwrite the investments for securing foreign markets. The youth being interested is an added advantage in foreign brands, especially western brands and high technology products. All in all, the domestic market in Kuwait is strong, and consumption is high. This could be stated to be a strong advantage for investing in Kuwait.
Kuwait also offers power, water, land at advantageous rates. The government subsidises power tariff, and the subsidy can be as high as 85%. The government offers support for land acquisition, which is critically important for any industry-related investment. The low power tariff means lower production costs, leading to better profit margins.
Then there is the financial sector. Kuwait has an extremely well regulated and stable banking systems. The government has made regulations that make banking safe. There are big banks that offer a whole host of services. These banks offer seamless digital transactions, among other services. Therefore one of the important factors in doing business in any country, financial factors, is very good for those investing in Kuwait. And since investment is basically about finances, Kuwait definitely is an attractive destination.
Kuwait has already become a destination for sectors such as telecom, retail logistics, financial services and aviation designing, among others. The investment opportunities which are attractive in Kuwait are many. The first important sector is infrastructure. The government has a plan to expand the power, water, transport and ports etc. These are areas where it would be beneficial to consider investing in Kuwait.
There is also the area of Chemical manufacture. Kuwait is interested in increasing the production of ethylene and polyethylene. This means that there are opportunities for investments. These can be in strategic alliances with local partners, who can provide local knowledge and expertise.
There are several sectors where investment is beneficial Kuwait is looking to move forward in its banking and insurance sectors. Any investment relating to these sectors is a good idea. Then there is the air and rail system improvement, where investment can be profitable. Since the Kuwaiti government is well supplied with funds from its export of oil, funding is never a problem.
Investing in hotels and tourism is also a profitable sector to consider when investing in Kuwait. There are opportunities to invest in these sectors. Education and training, healthcare, housing projects, and other infrastructural projects are among other areas. These are large projects, and the government is in a position to fund them. Therefore investment in these areas is well worth a look.
Exports using Kuwait as a manufacturing base have shown good results. Exports have shown an increase. There are exports to European countries, among others. Therefore this should indicate the benefits of investing in Kuwait.
Therefore Kuwait offers all the advantages and benefits which make it an attractive destination for investment. It has locational advantages, financial security and also a stable government.