Kuwait - Country Commercial Guide
Market Entry Strategy

Generalizes on the best strategy to enter the market, e.g., visiting the country; importance of relationships to finding a good partner; use of agents

Last published date: 2022-09-13

The GCC has a 5% flat-rate tariff on imports. Kuwait’s corporate income taxes for foreign corporations are 15%. To be successful in the Kuwaiti market,  U.S. companies should identify, develop, and support a local agent, representative, or account executive to manage the marketing strategy for both the company and its products. Some companies prefer pursuing a Kuwait joint-venture partner rather than working with an agent; however, the market entry approach should be customized to fit the business objectives. Prior successful experiences in other GCC countries are helpful, but U.S.companies can rely on the local companies to share experiences and knowledge to effectively conduct their business in these markets. Familiarity with regulations and the general business framework is a difficult task without the support of a competent local agent or business partner. U.S. companies should seek a local business relationship, and the best representatives are already active in their particular sector with cultivated contacts in the public and private sectors.

The Commercial Service in Kuwait has a number of programs and services to assist U.S. companies in establishing a presence in this growing market. We highly discourage entry into the Kuwaiti market without the assistance of competent legal and tax counsel. To that end, we employ experienced Commercial Specialists with industry sector experts who can tailor your business approach to the right audience and advise your company in negotiating the bureaucratic procedures that are common in this part of the world. If you wish to learn more about the potential for your business in Kuwait, please contact your local U.S. Export Assistance Center (USEAC).

In summary, selecting the appropriate business partner who will work for you is the most important step a U.S. exporter can take in Kuwait. Obtaining competent local legal counsel to craft an agreement that protects your company from future liability is critical. The best local partners share the risk and profit with their American partners.

The U.S. Commercial Service team is ready to assist and offer support on behalf of U.S. commercial interests in Kuwait. For more information about who to contact, please visit www.trade.gov/kuwait.