Kuwait Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in kuwait, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Investment Climate Statement
Last published date:

The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

•    Openness to, and Restrictions upon, Foreign Investment, 
•    Investment and Taxation Treaties,
•    Legal Regime,
•    Industrial Policies,
•    Protection of Property Rights,
•    Financial Sector,
•    State-owned Enterprises,
•    Corruption,
•    Labor Policies and Practices,
•    Political and Security Environment, and
•    U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad. These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors. 

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website.

Executive Summary - Kuwait

Kuwait is a major oil exporter whose economy is heavily dependent upon oil production and related industries. These industries are almost wholly owned and operated by the government. Kuwait possesses 6 percent of the world’s proven oil reserves and ranks seventh globally in terms of oil reserves. The energy sector accounts for more than half of GDP and more than 90 percent of government revenue.

Kuwait’s Public Authority for Civil Information and the Central Bureau of Statistics reported that Kuwait’s population in December 2024 reached 4.92 million people, including 1.55 million Kuwaiti citizens and 3.3 million expatriates. More than 80 percent of all Kuwaitis work in the public sector, receiving extremely generous salaries and benefits, as well as typically working short workdays. Key factors hindering private sector growth include:

  • a lack of incentives,
  • the high level of risk associated with diversifying Kuwait’s workforce,
  • a comparatively small market, and
  • regional competition.


In response to an evolving global energy market, Kuwait launched a national development plan in 2023 for economic reforms and diversification called New Kuwait Vision 2040. High oil prices reduce the incentive for economic reforms, while low prices limit the government’s ability to fund and implement reforms. A slow and overly complicated bureaucracy, inconsistent legal practices, and restrictive economic policies contribute to a challenging business environment.

To attract foreign investment, Kuwait passed a foreign direct investment law in 2013 permitting up to 100 percent foreign ownership of a business, for entities approved by the Kuwait Direct Investment Promotion Authority (KDIPA). According to the KDIPA’s annual report for fiscal year 2024, 95 companies are completely foreign-owned. In January 2024 Kuwait expanded its acceptance of foreign investment by reforming the law to allow foreign companies to open branch offices in Kuwait without a local agent. Overseas enterprises can now establish a presence and operate in Kuwait by opening a wholly owned branch in addition to the existing options of establishing a company with a majority Kuwaiti stakeholder, or appointment of a local agent.

Furthermore, foreign companies may now participate in government tenders directly and thereafter, if successful, may implement/execute the contract through their own branch in Kuwait. The National Assembly enacted this reform to encourage foreign companies to establish branches in Kuwait, with the hope that increased competition will expand the availability of higher quality and competitively priced products.

In 2024, the Ministry of Interior resumed issuance of visas for family members of expatriate workers. The new regulations stipulate a minimum income and a technical or university degree that aligns with the job in Kuwait.

View the 2025 Kuwait Investment Climate Statement. For further information see: Embassy of the State of Kuwait in Washington.  

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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