Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Kuwait’s complex business environment requires flexibility, patience, and persistence. Many U.S. exporters and investors in Kuwait face challenges that exist in other GCC countries, such as inconsistent, sometimes contradictory policies, lack of transparency in decision-making, reversal of tenders once awarded, and a judiciary that heavily favors the local population. Careful planning and personal relationships are crucial for success in Kuwait. Matters of concern to U.S. businesses include less than transparent regulations pertaining to industrial standards, highly bureaucratic time-consuming procedures, insufficient intellectual property rights protection, and cumbersome public contracting and procurement procedures. These challenges are not unique to Kuwait or GCC member states. Kuwait is an expensive place in which to do business. Reasons include a requirement for most business entities to have a Kuwaiti agent, as well as widespread aversion to risk. In the past, uncertainty about taxes owed has been a major deterrent to exporters, and hidden costs of delayed contracts and prolonged negotiations have added to the cost of doing business. Terms and conditions on tenders can also be onerous. Kuwait’s laws stipulate that Kuwaiti courts alone are responsible for adjudicating any disputes involving a foreign investor and other parties, although arbitration is permitted.  The World Bank ranks Kuwait last in the GCC and 96th in the world in the ease of doing business.  The Government of Kuwait has been taking steps to improve this ranking and ease business requirements.  While generally speaking Kuwait is a fairly comfortable place to live for most western expats, hindrances for western expat workers and families include extreme difficulties in obtaining driver’s licenses for some spouses or non-professional employees.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.