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Law No. 116 of 2013 on the Promotion of Direct Investment in the State of Kuwait

 Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait

KDIPA Law

Law No. 116 of 2013

Regarding the Promotion of Direct

Investment in the State of Kuwait

Having reviewed the Constitution;

- and Decree No. (3) of 1955 regarding Kuwaiti Income Tax as amended;

- and the Criminal Law promulgated by Law No. (16) of 1960 as amended;

- and the Criminal Procedures and Trials Law promulgated by Law No.

(17) of 1960 as amended;

- and Law No. (4) of 1962 regarding Patents, Industrial Diagrams and

Designs as amended by Law No. (4) of 2001;

- and Law No. (30) of 1964 on the Establishment of the Audit Bureau as

amended;

- and Law No. (33) of 1964 regarding Expropriation and Temporary

Possession in the Public Interest as amended;

- and Law No. (36) of 1964 regarding the Regulation of Commercial

Agencies;

- and Law No. (37) of 1964 regarding Public Tenders as amended;

- and Law No. (32) of 1968 concerning Currency, the Central Bank of

Kuwait and the Organization of Banking Business as amended;

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- and Law No. (32) of 1969 regarding the Licensing of Commercial Stores

as amended;

- and Decree Law No. (31) of 1978 regarding the Rules for Preparing

Public Budgets, Monitoring their Execution and Final Accounts as

amended;

- and Decree Law No. (15) of 1979 regarding the Civil Service as amended

and the Decree regarding the Civil Service System issued on 4 April 1979

as amended;

- and the Commercial Law promulgated by Decree Law No. (68) of 1980

as amended;

- and Decree Law No. (105) of 1980 regarding the Properties of the State

as amended;

- and Decree Law No. (5) of 1981 regarding the Practicing in the Auditing

Profession as amended;

- and Decree Law No. (20) of 1981 on the Establishment of a Division in

the Court of First Instance for Adjudicating Administrative Disputes as

amended by Law No. (61) of 1982;

- and Law No. (26) of 1995 regarding Free Trade Zones;

- and Law No. (81) of 1995 on Approving the Agreement Establishing the

World Trade Organization;

- and Law No. (56) of 1996 regarding the promulgation of the Industrial

Law;

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- and Law No. (19) of 2000 regarding the Support and Promotion of

National Labour to Work in the Non-Governmental Entities as amended;

- and Law No. (8) of 2001 regarding the Regulation of Direct Investment

of Foreign Capital in the State of Kuwait;

- and Law No. (5) of 2003 on the Approval of the Unified Economic

Agreement between Gulf Cooperation Council Countries;

- and Law No. (10) of 2003 on the promulgation of the Unified Customs

Code for the Arab Gulf Cooperation Council Countries;

- and Law No. (46) of 2006 regarding Zakat and the Contribution of Public

and Closed Shareholding Companies in the State’s Budget;

- and Law No. (10) of 2007 regarding the Protection of Competition as

amended by Law No. (2) of 2012 ;

- and Law No. (7) of 2008 on the Regulation of the Operations of Build,

Operate and Transfer and Similar Systems and the Amendment of some

Provisions of Decree Law No. (105) of 1980 regarding the Properties of

the State;

- and Law No. (9) of 2010 on the Issuance of the State Developmental Plan

for the Years 2011-2012/2013-2014;

- and Law No. (37) of 2010 regarding the Regulation of Privatization

Programs and Operations;

- and Decree Law No. (25) of 2012 regarding the Companies Law as

amended by Law No. (97) of 2013;

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- and Law No. (98) of 2013 regarding the National Fund for the

Enhancement and Development of Small and Medium Enterprises;

- The National Assembly has approved the following law which we have

ratified and issued :

Article 1

Definitions

The following terms and phrases shall bear the meanings corresponding to

each of them:

Relevant Minister of Commerce and Industry.

Minister:

Authority: Direct Investment Promotion Authority.

Board: Board of directors of the Authority.

Chairman of the Relevant Minister.

Board:

Director Director General of the Authority.

General:

Regulations: Executive Regulations to this Law.

Investor: Natural or legal person of any nationality.

License: Investment license issued in accordance with this Law.

Investment Is an economic enterprise or activity that is licensed in

Entity: accordance with this Law by virtue of an investment

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license which grants such enterprise or activity legal

existence in the State of Kuwait.

Capital: What is employed or used directly for purposes of Direct

Investment through an Investment Entity that is subject

to this law, including:

1. Funds, financial and commercial securities, be they

local or foreign

2. Machinery, tools, equipment, transportation means

and other technological devices.

3. Raw materials and intermediate goods required for the

commencement of actual production or operations by

the Investment Entity.

4. Intangible rights such as patents, trademarks, licenses,

registered trade names and industrial and

technological designs.

5. Profits and proceeds of the invested capital if used for

the increase of the capital or if it is employed or used

for the purposes of Direct Investment through an

Investment Entity licensed in accordance with this

Law.

Direct An investment where the Investor, individually or with

Investment: the participation of another investor, employs his capital

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directly through an Investment Entity in the State of

Kuwait licensed in accordance with this Law.

Application: The application submitted by the Investor to obtain, as

applicable, the License or incentives or to merge

Investment Entities, in accordance with principles and

rules relevant to each case.

Article 2

Establishment of the Authority

A public authority with legal personality shall be established under the name

"Direct Investment Promotion Authority" to be attached to the Relevant

Minister.

The headquarters of the Authority shall be in the State of Kuwait, and it shall

have the right to establish offices within the country and abroad.

Article 3

Aims of the Authority

The Authority aims to attract and promote and encourage both foreign and

local Direct Investment in the country, which shall include the following:

1. Developing and improving the investment environment, the facilitating

of procedures and the removal of hurdles encountered by investors as

well as the provision of various means of assistance and support to

encourage Direct Investment in the country.

2. Raising awareness regarding the importance of Direct Investment,

especially foreign investment, and the promotion of the Kuwaiti

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investment environment and the available Direct Investment

opportunities by all means of marketing, orientation and promotion.

3. Encouraging investors to transfer, settle and use modern and

sophisticated technologies, means of production and operations,

management methods, and technical and marketing expertise and to

encourage partnerships between Kuwaiti and foreign investors that foster

the objectives of development.

The Authority shall perform its activities in light of the public policy of the

state, the approved economic development plans, the development of

production sectors, the diversification of national revenue sources in the State

of Kuwait, the creation of employment opportunities for the national

workforce, and increasing its productivity and professional skills by

implementing the latest technology in accordance with the best international

standards adopted in this regard.

Article 4

Tasks of the Authority

The Authority shall perform all tasks necessary to achieve its objectives, and

the following in particular:

1. To screen possible Direct Investment opportunities in the country,

promote such opportunities and present the incentives, exemptions and

guarantees granted to investors, in addition to preparing any necessary

studies, research and statistics and providing available information,

clarifications and statistics to investors.

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2. To receive and assess investors' applications and to take the necessary

actions regarding them in accordance with this law and its Executive

Regulations.

3. To establish economic zones and suggest their locations within the

general structural plan in coordination with the concerned authorities.

4. To establish or contribute to the capital of companies specialized in the

establishment or management of business incubators for projects that

meet the objectives of the Authority, following the approval of the

Council of Ministers, and in accordance with the principles and rules

established by the Board in this regard.

5. To coordinate with all relevant and competent authorities to simplify and

facilitate the procedures and services required to improve and streamline

the investment environment in the State of Kuwait and enhance its

competitive advantage and monitor the competitive position and

performance indicators in the investment field on the basis of

international standards and reports, so as to ensure the encouragement of

Direct Investments in the State of Kuwait.

6. To organize conferences, seminars, exhibitions, and workshops as well

as provide services and training programs in line with its objectives, and

to participate in internal and external events, and prepare, print and

publish on all topics relevant to its work and activities.

7. To secure potential financing and credit facilities, in coordination with

concerned parties, in order to encourage investments needed by the

country.

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8. To oversee and monitor the performance of Direct Investments in the

country and identify any hurdles they may encounter and attempt to

overcome such hurdles in coordination with the competent authorities.

9. To implement the tasks and mandates assigned by the Council of

Ministers or the Relevant Minister that relate to its objectives or that

would encourage Direct Investment in the country.

Article 5

Board of Directors of the Authority

The Authority shall have a board of directors chaired by the Relevant Minister

and a membership of:

1. Three experienced members specializing in the matters assigned to the

Authority who shall be appointed by a resolution of the Council of

Ministers, upon the proposal of the Relevant Minister. The resolution

shall designate a vice-chairman from amongst them who shall be granted

the powers of the Chairman of the Board in his absence.

2. Three members representing the ministries and the government agencies

related to the activities of the Authority who shall be nominated by a

resolution of the Council of Ministers, upon the proposal of the Relevant

Minister provided that their seniority is at least that of an assistant

undersecretary or equivalent.

3. The Director General who shall attend the meetings of the Board with no

right to vote.

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The term of the Board shall be four years, subject to renewal. The Board

members' remuneration shall be determined by a resolution of the Council of

Ministers.

The Chairman of the Board or his authorized signatory shall sign on behalf of

the Authority and shall represent the Authority in its relations to third parties

and before the courts.

Article 6

Meetings of the Board

The Board shall convene at the invitation of the Chairman of the Board or

vice-chairman and such meeting shall be valid if attended by the majority of

its members including the Chairman of the Board or the vice-chairman.

The Board shall have a secretary appointed by the Chairman of the Board and

selected from the Authority's staff. The secretary shall undertake the

preparation of the meetings of the Board and record its minutes and follow up

on the issued resolutions. The Board may invite to its meeting any individual

to participate in the discussion of any particular matter without having the

right to vote.

The resolutions of the Board shall be passed by the majority of the votes of its

members. Where the votes are equal, the side favored by the Chairman shall

prevail.

The Board shall issue the necessary resolutions regulating its affairs, defining

the rules, procedures, and the scheduling of its meetings, the terms of

implementation of its resolutions and the organization of the work of its sub-

committees.

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Article 7

Conflict of Interest

Members of the Board, employees of the Authority including their respective

spouses or relatives of the first degree are prohibited from having any direct or

indirect interest in any project or services provided by the Authority and shall

be bound to disclose their interests and abstain from participating in

discussions about, or the decision making regarding any project. In the event

of a violation of this provision, the relevant resolution shall be void including

all its effects and shall be considered nonexistent.

Article 8

Powers of the Board

The Board shall have all the powers necessary to achieve the objectives of the

Authority and shall formulate its general policy and supervise the

implementation of the same, including the following in particular:

1. To define the principles, rules and standards upon which basis various

investors' applications are assessed in accordance with this Law and its

Executive Regulations.

2. To define the principles and rules for the use of land, real estate and plots

allocated to the Authority or those which are subject to its supervision or

management.

3. To set the bylaws and organizational structure of the Authority and to

issue the administrative, financial and technical regulations that are

required in conducting its business.

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4. To approve the proposed annual budget of the Authority and its final

account prior to referring them to the relevant authorities.

5. To resolve upon merger applications as set forth in this Law.

6. To impose the administrative and disciplinary penalties as set forth in

this Law.

7. To approve the opening of offices of the Authority within the country

and abroad.

8. To set the criteria for benefitting from tax incentives and exemptions in

accordance with this law.

9. To issue the resolution regarding the recommendations submitted by the

competent committees in respect of the implementation of the provisions

of this Law.

10.To issue resolutions necessary for the fulfillment of the objectives of this

Law in accordance with its provisions and its Executive Regulations.

The Board may delegate some of its powers to the Chairman of the Board or

to the vice- chairman.

Article 9

Director General

The Authority shall have a Director General who shall hold at least the

position of undersecretary, appointed, pursuant to a decree upon the proposal

of the Relevant Minister for four years and subject to renewal.

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The Director General shall implement the resolutions of the Board and shall

supervise the technical, administrative and financial functions of the

Authority. The Director General shall further prepare an annual statistical

report, which is submitted to the Council of Ministers, regarding the activity

of the Authority including the number of projects submitted, the projects

approved and the projects rejected with the reasons for such rejection.

The Director General shall be assisted by one or more assistants holding at

least the position of assistant undersecretary appointed by decree upon the

proposal of the Relevant Minister for four years and is subject to renewal. The

Director General may delegate some of his powers to any of his assistants.

Article 10

Financials of the Authority

The Authority shall have an annexed budget. The financial year commences

and ends with the financial year of the state. The first financial year shall

commence on the date this law comes into force and shall end at the closing of

the following financial year.

The Authority's resources shall consist of the following:

1. Financial funds allocated to it in the annual state budget.

2. Returns, revenues or allowances resulting from the Authority's activities,

services, organized events, workshops or training programs for those

involved in the affairs of Direct Investment, as resolved by the Board in

this regard.

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3. Returns or revenues resulting from the investment of the funds allocated

to the Authority or that are subject to its supervision or management.

Article 11

Negative List

Within the limits of Articles 152 and 153 of the Constitution, the Council of

Ministers shall prepare a list of Direct Investments that will be excluded from

the scope of this Law and which shall be updated in light of the general policy

of the state and its plans and the proposals of the Board in this regard.

The Council of Ministers shall set the principles and rules regarding the

investments of foreign corporate entities in the State of Kuwait.

Article 12

Type of Investment Entity

The Application for the License shall be submitted in accordance with the

provisions of this Law by an Investment Entity specified according to the

following cases:

1. A Kuwaiti company having one of the legal entity forms of companies

set forth in the Companies Law promulgated by the aforementioned

Decree Law No. (25) of 2012, which will be incorporated for the purpose

of Direct Investment. Foreign participation in such company may amount

to 100% of the capital of the company in accordance with the principles

and rules set forth under the Companies Law.

2. A branch of a foreign company licensed to operate within the State of

Kuwait for the purpose of Direct Investment. The Relevant Minister shall

issue, upon the proposal of the Board, a resolution clarifying the

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principles and rules regulating the relationship between the branch of the

foreign company and the official authorities with respect to the necessary

procedures for the commencement of the operation.

3. Representative offices having the sole purpose of preparing market

studies and production possibilities, without engaging in a commercial

activity or activity of commercial agents. The Board shall set the

principles and rules in this regard.

Article 13

Rules of Application

The Executive Regulations shall establish the principles, rules and procedures

for the submission and registration of Applications to obtain the appropriate

License in the cases set forth in this Law. They shall further set out the

information and statements that must be contained in, or attached to the

Application and the conditions to be met by the applicant, the appropriate

methods of notice and notification and the fees for the issuance of Licenses.

Article 14

Issuance of Licenses

The License shall be issued pursuant to a decision of the Director General, if

the Application fulfills the criteria, principles and assessment rules established

by the Board regarding each of the cases set forth in this Law, and the

Investor shall be notified of such requirements prior to the submission of the

Application to the Authority.

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This License shall not be subject, with regards to foreigners, to the provisions

of paragraph 1 of Article 23 and the provisions of Article 24 of the

aforementioned Commercial Code.

The License for the incorporation of foreign banks and their branches shall be

subject to the provisions of this Law, without prejudice to the provisions of

Law No. (32) of 1968, and to the decisions and instructions issued in

implementation of its provisions.

In all events, the Authority shall coordinate with the Ministry of Commerce

and Industry on the incorporation and issuance of Licenses and supervision of

companies, branches and representative offices, which are subject to the

provisions of this Law.

Article 15

Term for Decision on Application

A decision on the merits of the Application shall be rendered within thirty

days from the date of submission of a complete Application with the data,

documents and conditions set by the Authority.

Article 16

Rejection of Application

In the event the Application is rejected, the rejection shall be reasoned and in

writing. The applicant may appeal the rejection. In the event there is no

response to the appeal thirty days following the date of receipt of the appeal,

such lack of response shall be deemed a rejection of the appeal.

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Article 17

One-Stop Shop

An administrative unit shall be established within the Authority called the

"One-Stop Shop" which shall include employees designated by the relevant

government authorities to proceed with resolving upon the licensing

procedures and the establishment of the Investment Entity in order to ensure

the completion of the procedures within the period set out in this Law.

The Board shall establish the principles and rules necessary to identify the

mentioned government authorities and the method to be adopted for calling

upon their employees and coordinating between them and the Authority.

The applicant may appoint specialized companies or qualified consulting

firms that are approved by the Authority in accordance with the principles and

rules set by the Authority.

Article 18

Accounts of the Investment Entity

Each Investment Entity, licensed in accordance with the provisions of this

Law, shall maintain regular accounts supervised by an auditor or more among

the legal auditors. Where the Investor is granted licenses for more than one

Investment Entity, each Investment Entity shall be dealt with separately.

Article 19

Compensation for Expropriation

No Investment Entity, licensed in accordance with the provisions of this Law,

shall be confiscated pursuant to this Law nor be deprived of its property

except in the public interest and only in accordance with the applicable laws

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and against compensation equivalent to the true economic value of the

expropriated project at the time of expropriation, estimated in accordance with

the economic situation prior to any threat of expropriation. The due

compensation is to be paid as soon as the said decision is taken.

Article 20

Disposal of the Investment Entity

The Investor has the right to transfer or relinquish the ownership of the

licensed Investment Entity, or dispose over it in whole or in part, for the

benefit of a foreign or a Kuwaiti investor. The Board shall establish the

principles and regulations in this regard.

In the event of transfer or relinquishment of ownership of the Investment

Entity, in whole or in part, the new owner or assignee shall replace the

original owner in rights and obligations.

Article 21

Merger of Investment Entities

The merger of two or more Investment Entities can be carried out with the

consent of the Board, following a joint request submitted to the Authority in

this regard, and the new entity resulting from the merger shall be a legal

successor to the merged entities and shall replace such entities in their rights

and obligations.

The new entity shall automatically enjoy the shortest periods remaining for

exemptions and incentives granted to any of the merged Investment Entities.

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Article 22

Transfer of Monies Abroad

The Investor shall have the right to transfer abroad his profits, capital or

proceeds resulting from the disposal over his shares or participation in the

Investment Entity or the compensation set forth in this Law. Moreover,

employees in the Investment Entity shall have the right to transfer their

savings and entitlements abroad.

Article 23

Confidentiality of Information

By virtue of this law, the Investor shall be entitled to the basic principles of

confidentiality in respect of the technical, economic and financial information

relevant to his investment and to safeguard initiatives in accordance with the

provisions of the laws and regulations in force in the country.

Without prejudice to a more severe penalty provided for in any other law, a

person shall be punished with imprisonment for a term not exceeding one year

and a fine not less than one thousand dinars and not exceeding ten thousand

dinars or either one of these two penalties, who divulges or benefits from any

information that he might have gained knowledge of as a result of his

employment or due to his participation in an activity initiated by the Authority

or any of its divisions, relating to investment initiatives or the technical,

economic or financial aspects of an investment that is subject to the provisions

of this Law, except where permitted by law or pursuant to a judgment or an

order issued by a judicial authority.

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Article 24

Legislative Framework of Direct Investments

Unless there is a special provision in this Law, the laws and regulations

applicable in the country shall govern Direct Investments falling within the

purview of this Law, and all international conventions in force in the country

related to investments and the avoidance of double taxation shall be observed.

Article 25

Scope of the Law's Application

The provisions of this Law shall apply to existing Direct Investments and

those investments that were licensed prior to this Law coming into force,

without subjecting such Direct Investments to any damage, provided that the

incentives, exemptions and guarantees granted under this Law shall be no less

than what was granted before its implementation. Investors may apply for

privileges provided for in this Law for the Authority's consideration.

The provisions of this Law shall apply to any expansion or modification of an

existing Investment Entity if the expansion or modification occurs following

the date on which this Law comes into force. The Board shall establish the

regulations in relation to expansions and modifications and how to license the

same.

Article 26

Competent Courts

The Kuwaiti courts are the ones solely competent to consider any disputes

arising between investment projects and third parties, whoever they may be.

The parties may also agree to refer such disputes to arbitration.

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Article 27

Incentives and Exemptions

The Investor shall be entitled to some or all of the following incentives:

1. Exemption from income tax or any other taxes for a period not exceeding

ten years from the date of the actual commencement of operations of the

licensed investment entity.

2. Exemption of any expansion of an Investment Entity, licensed in

accordance with the provisions of this Law, from the taxes set forth in

the preceding paragraph, for a period of no less than the duration of the

exemption granted to the original Investment Entity as of the date of

commencement of production or actual operation of the expansion.

3. Without prejudice to the provisions of Law No. (10) of 2003

promulgating the Unified Customs Code for the Gulf Cooperation

Council Countries, the following shall be wholly or partially exempted

from taxes, customs duties or any other fees that may be payable on

imports required for the purposes of Direct Investment:

a. Machinery, tools and equipment and means of transport and other

technological devices.

b. Spare parts and necessary maintenance supplies for what has been

described in the previous subsection.

c. Merchandise, raw materials, partially manufactured goods,

wrapping materials and packaging.

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The Investor is prohibited, for a period of five years as of the date

notifying him of exemptions from the duties described in this article,

from disposing in any manner over the goods described in this clause,

including by way of sale, swap or assignment. During the same period,

the Investor may not utilize the goods in any other manner than for the

purpose for which they were imported, except in accordance with the

principles and rules decided by the Board in this regard, and shall pay

the taxes and fees that would have been due for the importation at the

time of disposal.

4. The use of land and real estate allocated to the Authority or that is subject

to its supervision or management, in accordance with the principles and

rules established by the Board in this regard.

5. The employment of foreign labor required for the investment, in

accordance with the principles and restrictions established by decision of

the Council of Ministers in respect of the minimum proportion of national

employment that must be provided.

6. The Council of Ministers may decide to grant some cases and groups

certain advantages and exemptions, which are not mentioned in this

article.

Article 28

Applicability of Incentives and Exemptions to Partnerships of the Public

and Private Sectors

The provisions of the previous article shall apply to all types of partnerships

between the public and private sectors established for the purpose of Direct

Investment, including companies and projects stipulated in Law No. (7) of

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2008 and Law No. (37) of 2010 provided that the Board establishes the

relevant rules and principles.

Article 29

Application and Criteria for Granting of Incentives

The Investor shall apply to the Authority for all or part of the incentives

provided for in this Law, simultaneously or following the application for the

License, for consideration by the Authority with the goal of ensuring that it

satisfies the principles, rules and procedures established by the Board in this

regard in line with the approved general policy of the state and economic

development plans.

The value, type and duration of incentives and exemptions granted for

investments, each according to its type and nature, shall be connected to all or

some of the following criteria:

1. The transfer and settlement of technology and modern management

methods as well as practical, advanced technical and marketing

experience into the State of Kuwait.

2. The amount and quality of the products and services offered.

3. The need of the local and Gulf market for Direct Investment and its

contribution to economic diversification.

4. Increase in national exports.

5. Creation of job opportunities for, and training of the national workforce.

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6. Contribution to the development of areas that lack similar projects or

activities.

7. Favorable environmental impact.

8. The extent to which the project offers services to the community that are

outside the framework of the specific project or economic activity that is

being practiced.

9. Use of national products.

10.Use of national technical, professional and consulting services.

The Board may amend or add other criteria to the aforementioned criteria, in

accordance with the public policy of the State and the approved economic

development plans.

Article 30

Investment Register

A special register called the "Investment Register" shall be prepared in which

all Investment Entities licensed in accordance with the provisions of this Law

are recorded, as well as all Applications, Licenses, incentives, exemptions and

penalties connected thereto, and all documents and related data shall be

attached to the register.

The Director General shall issue any decisions required for specifying the

method of setting up the register and its content as well as the mechanism for

registration and the required documentation and data.

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Article 31

Annual Report

The Relevant Minister shall submit to the National Assembly a copy of the

annual report issued by the Authority and a copy of the statistics relevant to its

activities and the projects, within 30 days from the date of submission to the

Council of Ministers.

Article 32

Sanctions in Case of Violation of the Law or the License

In case of a violation by the Investor of the provisions of this Law or the

requirements of the License, the Board may impose one of the following

sanctions:

1. Written warning and a more severe sanction can be decided in the event

three warnings have been addressed to the same Investor or the same

Investment Entity within one year of the first warning.

2. Partial or total withdrawal of incentives and exemptions granted. The

decision of withdrawal may be reconsidered if the violation has been

addressed.

3. Temporary administrative detention.

The License shall be considered null and void by force of law in the event the

Investment Entity ceases its activities and business for more than a year

without acceptable justification, or in the case of a delay of more than one

year from the date set for actual operations to begin according to the timetable

provided by the Investor to the Authority at the time of the request of the

License Application, without acceptable justification. The Executive

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Regulations shall set out the principles and rules necessary in this regard. In

other cases, the License may not be revoked or the Investment terminated

except according to an order issued by the President of the Court of First

Instance based on a petition submitted by the Authority providing justification

for the request.

The Investor may appeal against the sanctions set forth in subsections 2 and 3

of this article within thirty days from the date of notification of the sanction

decision. The appeal shall be decided within thirty days and in case of refusal

of the appeal, the decision shall be written and justified.

Sanctions imposed in accordance with this article and the date of notification

to the Investor shall be recorded in the Investment Register stipulated in this

Law in the section relevant to the Investment Entity associated therewith. The

imposition of such sanctions does not prejudice any civil or criminal liability.

Article 33

Appointment and Powers of Judicial Officers

Specialist employees, who are designated by the Minister by virtue of a

decision issued by him, shall be granted the capacity of judicial officers in

order to monitor the implementation of this Law and its implementing

regulations and decisions. The said employees shall perform their work with

honesty, integrity and impartiality and shall have the obligation not to disclose

the confidential information of Investment Entities received by them in the

course of the performance of their duties. They shall also take the following

oath before the Minister:

"I swear by Almighty God that I will perform my work with honesty,

impartiality, integrity and truthfulness, and I will safeguard the confidentiality

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of the information made available to me in the course of my duties even after

the end of my service."

The relevant employees of the Authority shall submit a detailed report on the

results of their work immediately following its completion to the Director

General, who shall refer it to the Board with his opinion in order to take a

decision in this regard.

Article 34

Obligations of the Investor

The Investor, who has been granted a License or whose investment was

granted incentives or exemptions pursuant to the provisions of this Law, shall

undertake the following:

1. Notify the Authority in writing of the date of the beginning of the

measures and operational steps necessary to start the work of the licensed

Investment Entity and the date of completion thereof, within a period not

exceeding thirty days from the date of each of them.

2. Notify the Authority in writing of the date of the start actual operation of

the licensed Investment Entity, within a period not exceeding thirty days

from the said date.

3. Comply with the rules and financial and tax regulations issued by the

Ministry of Finance, especially those related to the submission of tax

returns and issuing of the tax card.

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4. Provide any information, data, statistics or documents requested and

deemed necessary by the Authority in order to implement the provisions

of this Law.

5. Allow any of the Authority's employees authorized by the Director

General, to enter all buildings, sites and facilities associated with the

licensed Investment Entity, for the purpose of monitoring and following

up in accordance with the provisions of this Law as well as verifying the

content of the data, information, statistics and documents submitted by

the Investor against actual practices. The Authority's employees shall

submit a detailed report on the results of their work immediately

following its completion to the Director General, who shall decide what

he deems appropriate in this regard.

6. In all cases, the Investor is obliged during the performance of his work

not to violate the laws and regulations applicable in the country,

especially the duty to protect the environment and the regulations relating

to security, public health, public order and not to expose others to risk.

Article 35

Funds, Assets and Employees of the Authority

All funds, assets, obligations, rights and anything relevant to the Foreign

Investment Bureau established pursuant to Law No. (8) of 2001 shall be

transferred to the Authority.

Without prejudice to the provisions of Decree Law No. (15) of 1979 and the

decree concerning the civil service system issued on 4 April 1979, the

Authority shall have staff appointed according to the regulations set by the

Board of Directors, which shall include the rules of appointment and the

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remuneration granted in kind and in cash to employees. The Relevant Minister

shall issue, within six months from the date this Law comes into force, the

decisions necessary for the transfer of the employees he deems appropriate

from the aforementioned bureau to the Authority.

Article 36

Executive Regulations

The Relevant Minister shall issue the Executive Regulations to this Law and

take the decisions necessary for the implementation of its provisions within

six months from the date of its publication in the Official Gazette.

Article 37

Repeal of Law No. (8) of 2001

Law No. (8) of 2001 and any other article which is in breach of this Law is

repealed.

Article 38

Implementation of the Law

The Prime Minister and the Ministers, each in their respective capacity, shall

implement this Law which shall come into force six months following the

date of its publication in the Official Gazette.

Amir of Kuwait

Sabah Al-Ahmed Al-Jaber Al-Sabah

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