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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Trade Financing
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Methods of Payment

Kuwaiti banks offer the full range of financial services needed to conduct commercial transactions or develop projects. Letters of Credit (LCs) are traditional instruments for private-sector transactions. LCs may be confirmed by a prime U.S. bank for additional exporter assurance. As U.S. exporters develop longer-term relationships and there is greater trust in the creditworthiness of all parties, companies may be willing to accept documents against payment (d/p) or documents against acceptance (d/a). Deferred payment schedules are not common except in cases of large transactions where supplier financing plays a role.

Companies bidding on government of Kuwait contracts should pay careful attention to the way proposals are prepared and should strictly follow the administrative specifications. Financing costs and foreign exchange rate risks, wherever applicable, should be factored into the bid price. Bids which do not comply with administrative specifications (including financial criteria) are generally rejected. Government tenders often require bid and performance bonds. Bid bonds must be issued by a local bank and range between 2 percent and 5 percent of the value of the bid. The performance bond will replace the bid bond once the tender is awarded and is 10 percent of the value of the contract.

The local representative, sponsor or account executive will pay foreign companies involved in major government-tendered projects. The concerned ministry or department will issue a check in honor of the beneficiary to be drawn at a local bank. In turn, the beneficiary will remit the amount due to the foreign company (Sub-contractor).

Banking Systems

Banks are under the supervision of the Kuwait Central Bank. Twenty-two banks operate in Kuwait: five conventional local banks, five Islamic banks, 11 foreign banks, and one specialized bank. 

Two specialized government-owned banks provide medium and long-term financing. The Industrial Bank of Kuwait provides medium- and long-term financing to industrial companies and Kuwaiti citizens through customized financing packages. The Credit and Savings Bank facilitates the purchase of single-family or multi-family residential units.

Foreign Exchange Controls

The Kuwaiti Dinar (KD) has been pegged to a basket of currencies since 2007. It is freely convertible and given strong foreign-currency earnings and foreign-currency reserves. Its exchange rate vis-a-vis most major international currencies is stable. 

US Banks & Local Correspondent Banks

Citi Bank is one of 11 international banks maintaining operations in Kuwait. Other international banks include BNP-Paribas, HSBC, Qatar National Bank, and the Industrial and Commercial Bank of China (ICBC). In 2013, the Kuwait Central Bank announced that foreign banks would be able to open multiple branches in Kuwait on a case-by-case basis. 

For more information on the banking system please read the section Capital Markets and Portfolio Investment of the Investment Climate Statement.

Protecting Intellectual Property

Kuwait is a member of the World Intellectual Property Organization (WIPO) and of the World Trade Organization (WTO); thus, it is a signatory to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Intellectual property rights (IPR) in Kuwait are protected nominally by local trademark, patents and copyright laws as well as under the Gulf Cooperation Council (GCC) Trademark Law and GCC Patent Law.

The Office of the U.S. Trade Representative (USTR) removed Kuwait from the Watch List in its 2022 Special 301 Report as Kuwait improved its enforcement and protection of intellectual property rights (IPR).

Contact Information
U.S. Intellectual Property Attaché for Middle East and Africa
Address: U.S. Embassy United Arab Emirates

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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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As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

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