KUWAIT
Since May 2016
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Public Tenders Law No. 49 of 2016
(بشأن المناقصات العامــة قانـون رقم 49 لسنة 2016 مجلس الوزراء)
(بشأن المناقصات العامــة قانـون رقم 49 لسنة 2016 مجلس الوزراء)
The Public Tenders Law No. 49 of 2016 governs public procurement from the government. Art. 62 creates a preference scheme in favour of national products or products from the Gulf Cooperation Council (GCC) member countries. It is reported that Kuwait provides a 15% price preference for domestic and GCC goods.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230327075044/https://capt.gov.kw/en/laws/
- https://web.archive.org/web/20230802065859/https://kw.usembassy.gov/wp-content/uploads/sites/157/2020-Investment-Climate-Statements.pdf
- https://web.archive.org/web/20230331215014/https://ustr.gov/sites/default/files/2023-03/2023%20NTE%20Report.pdf
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KUWAIT
Since May 2016
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Public Tenders Law No. 49 of 2016
(بشأن المناقصات العامــة قانـون رقم 49 لسنة 2016 مجلس الوزراء)
(بشأن المناقصات العامــة قانـون رقم 49 لسنة 2016 مجلس الوزراء)
The Public Tenders Law No. 49 of 2016 governs public procurement from the government. Art. 31 requires bidders to be a Kuwait individual or company registered in a commercial register. Art. 87 imposes a local content requirement on foreign bidders to purchase not less than 30% of the goods from local suppliers and, in addition, subcontract at least 30% of the work to domestic contractors - where such contractors are available.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230327075044/https://capt.gov.kw/en/laws/
- https://web.archive.org/web/20230802065859/https://kw.usembassy.gov/wp-content/uploads/sites/157/2020-Investment-Climate-Statements.pdf
- https://web.archive.org/web/20230331215014/https://ustr.gov/sites/default/files/2023-03/2023%20NTE%20Report.pdf
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KUWAIT
Reported in 2021, last reported in 2023
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Lack of transparency in procurement process
It is reported that the process that manufacturers must undertake to pre-qualify new technologies by the government is lengthy and burdensome and lacks transparency. It is also reported that the often-lengthy procurement process in Kuwait occasionally results in accusations of attempted bribery or the offering of other inducements by bidders.
Coverage Horizontal
Sources
- https://ustr.gov/sites/default/files/files/reports/2021/2021NTE.pdf
- https://web.archive.org/web/20230331215014/https://ustr.gov/sites/default/files/2023-03/2023%20NTE%20Report.pdf
- https://web.archive.org/web/20230802065859/https://kw.usembassy.gov/wp-content/uploads/sites/157/2020-Investment-Climate-Statements.pdf
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KUWAIT
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the World Trade Organization (WTO) Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Kuwait is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA), nor does it have observer status.
Coverage Horizontal
KUWAIT
Since October 1980, entry into force in February 1981
Since June 2013
Since February 2016, as amended in April 2017
Since June 2013
Since February 2016, as amended in April 2017
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Commercial Law No. 68 of 1980
(مرسوم بالقانون رقم 68 لسنة 1980 بإصدار قانون التجارة)
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
(قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت)
Council of Ministers Law No. 15 of 2017 amending provisions of Law No. 1 of 2016 on the Promulgation of the Companies Law (قانون رقم (15) لسنة 2017 بتعديل بعض أحكام القانون رقم (1) لسنة 2016 بإصدار قانون الشركات)
(مرسوم بالقانون رقم 68 لسنة 1980 بإصدار قانون التجارة)
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
(قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت)
Council of Ministers Law No. 15 of 2017 amending provisions of Law No. 1 of 2016 on the Promulgation of the Companies Law (قانون رقم (15) لسنة 2017 بتعديل بعض أحكام القانون رقم (1) لسنة 2016 بإصدار قانون الشركات)
Arts. 23 and 24 of Law No. 68 require foreign entities conducting business in Kuwait to do so either through a local agent or a Kuwaiti partner, which is typically facilitated through the establishment of a Kuwaiti company with Kuwaiti participants owning at least 51% of the share capital. An exception to these restrictions on foreign ownership is when the relevant Kuwaiti company is established and licensed under Law No. 116 (Art. 12), which allows for increased levels of foreign ownership (up to 100%). Law No. 116 permits the Kuwait Direct Investment Promotion Authority (KDIPA) to authorise, on a case-by-case basis, up to 100% foreign ownership in the following industries: communications infrastructure, information technology and software development, entertainment, and investment management, among others. Although a Kuwaiti or Gulf Cooperation Council (GCC) national must own at least 51% of any local company, this requirement may be waived if non-GCC investors qualify to invest through KDIPA. A 2017 amendment to the 2016 Companies Law eliminated prohibitive requirements on limited liability companies.
Coverage Horizontal
Sources
- https://www.wipo.int/wipolex/en/text/196499
- https://web.archive.org/web/20220121032233/https://e.kdipa.gov.kw/main/law1162013.pdf
- https://web.archive.org/web/20240302102440/https://kdipa.gov.kw/wp-content/uploads/2021/03/E012016.pdf
- https://web.archive.org/web/20230328070418/https://oxfordbusinessgroup.com/reports/kuwait/2022-report/legal-framework/doing-business-successful-implementation-of-the-foreign-direct-investment-law-serv...
- https://web.archive.org/web/20190220064829/https://www.lexology.com/library/detail.aspx?g=2a1ed309-b58e-4b0e-9766-da6ecb84aa65
- https://web.archive.org/web/20231202183536/https://www.state.gov/reports/2022-investment-climate-statements/kuwait/
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KUWAIT
Since February 2016
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Nationality/residency requirement for directors or managers
Companies Law No. 1 of 2016
During the establishment process under Companies Law No. 1 of 2016, the manager of a limited liability company can either be a Kuwaiti national or a Gulf Cooperation Council national. The manager can also be a foreign national, but he/she must hold a valid residence in Kuwait. If a foreign national is appointed as a manager, the company will have a temporary licence until he/she transfers his/her residence to the new company, which must be achieved within three months.
Coverage Horizontal
KUWAIT
Since June 2013
Since March 2019
Since March 2019
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
(قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت)
Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits
(قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت)
Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits
The Foreign Direct Investment Law of 2013 established the Kuwait Direct Investment Promotion Authority (KDIPA) to solicit investment proposals, evaluate their potential, and assist foreign investors with licensing. Art. 14 sets forth a licensing scheme for foreign direct investment. The Board of KDIPA examines investment proposals against the criteria, principles and assessment rules established by the Board regarding each of the cases set forth in this law. Investment through the establishment of a new enterprise, a foreign branch, and a regional representative office must go through the licensing scheme (Art. 12).
In 2019, KDIPA issued Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits. It is reported that, in approving applications from foreign investors seeking full ownership, KDIPA prioritises local job creation, the provision of training and education to Kuwaiti citizens, technology transfer, diversification of national income sources, contribution to exports, support for small- and medium-sized enterprises, and the utilisation of Kuwaiti products and services.
In 2019, KDIPA issued Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits. It is reported that, in approving applications from foreign investors seeking full ownership, KDIPA prioritises local job creation, the provision of training and education to Kuwaiti citizens, technology transfer, diversification of national income sources, contribution to exports, support for small- and medium-sized enterprises, and the utilisation of Kuwaiti products and services.
Coverage Horizontal
Sources
- https://web.archive.org/web/20220121032233/https://e.kdipa.gov.kw/main/law1162013.pdf
- https://web.archive.org/web/20230503180407/https://kdipa.gov.kw/wp-content/uploads/2021/09/Decision-No.-329-of-2019-1.pdf
- https://web.archive.org/web/20210318105607/https://kw.usembassy.gov/wp-content/uploads/sites/157/2020-Investment-Climate-Statements.pdf
- https://web.archive.org/web/20230126213853/https://www.state.gov/reports/2021-investment-climate-statements/kuwait/
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KUWAIT
Since December 1992
Since April 2016
Since April 2016
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Practical or legal restrictions related to the application process for patents
GCC Patent Regulation Decree and By-Law of 1992
Kuwait Patent Law No. 71 of 2013
Kuwait Patent Law No. 71 of 2013
Following the implementation of Patent Law No. 71 2013 and implementing Regulations 115/2016, the Kuwaiti Patent Office stopped accepting national patent applications in 2016. The patent regime reflects the regime in place under the Gulf Cooperation Council (GCC). Patents are granted by the GCC Patent Office to the owner of the invention under the GCC Patent Regulation Decree and By-Law of 1992 and are valid in all the states of the GCC. A patent is granted to an invention that is new, innovative, and industrially applicable. On top of that, it must not contradict the rules of Islam, public order, or public ethics in the GCC states, whether this relates to products, manufacturing operations or manufacturing methods. A patent applicant filed by a non-GCC resident must appoint a registered agent who is a resident of the GCC to represent them in carrying out their activities (Art. 6). Furthermore, the official language in all GCC states is Arabic. No other language is accepted.
Coverage Horizontal
KUWAIT
Since September 2016
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
Kuwait is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal
KUWAIT
Since August 2019
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Copyright law with clear exceptions
Copyright and Related Rights Law
Kuwait has a copyright regime under the Copyright and Related Rights Law. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Art. 31 lists the exceptions, which include citing paragraphs of that work in another work, provided that the citation is in line with current practice and is not essential and to the extent justified by the desired goal, and mentions the source and the name of the author, and this applies to press abstracts transferred from newspapers and periodicals; transfer of short excerpts from previously published works, drawings, photographs, designs or maps to textbooks prepared for the curricula and to history, literature and the arts, provided that such transfer shall be as necessary, provided that the source and the name of the author are mentioned; among others.
Coverage Horizontal
KUWAIT
N/A
Pillar Intellectual Property Rights (IPRs) |
Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Copyright Treaty
Lack of signature of the WIPO Copyright Treaty
Kuwait has not signed the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
JORDAN
Since 2015
Pillar Online sales and transactions |
Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Jordan has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
JORDAN
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Jordan has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
JORDAN
Since 2018
Pillar Technical standards applied to ICT goods and online services |
Sub-pillar Self-certification for product safety
Instructions for Granting Conformity Certificates No. 2 of 2018
(تعليمات إصدار شهادات المطابقة للعام 2018)
(تعليمات إصدار شهادات المطابقة للعام 2018)
The Instructions for Granting Conformity Certificates No. 2 of 2018 mandate that imported goods are subject to mandatory verification through laboratory testing approved by the Directorate of Conformity Certificates at the Jordan Standards and Metrology Organisation (JSMO) and in accordance with its internal procedure. It is reported that approved laboratory testing is exclusively in Jordan. The JSMO undertakes these responsibilities by cooperating with approved labs, including those at the JSMO, Ministry of Health, Greater Amman Municipality, Ministry of Agriculture, and Royal Scientific Society, all of which perform inspection and testing.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240510133346/http://www.jsmo.gov.jo/en/OrgStructure/Departments/Certification/Documents/Instructions%20for%20Granting%20Conformity%20Certificates%20No.%202%20of%202018.pd...
- https://web.archive.org/web/20231210212609/https://www.trade.gov/country-commercial-guides/jordan-trade-standards
JORDAN
Since October 2017
Since 2020
Since 2020
Pillar Online sales and transactions |
Sub-pillar Restrictions on online payments
Bylaw No. 111/2017 on Electronic Payment and Money Transfer
(نظام الدفع والتحويل الالكتروني للأموال رقم ( 111) لسنة 2017)
Instructions of Accreditation of International Electronic Payment Systems No. 3/2020
(تعليمات اعتماد أنظمة الدفع الالكترونية العالمية رقم (2020/3))
(نظام الدفع والتحويل الالكتروني للأموال رقم ( 111) لسنة 2017)
Instructions of Accreditation of International Electronic Payment Systems No. 3/2020
(تعليمات اعتماد أنظمة الدفع الالكترونية العالمية رقم (2020/3))
Art. 3 of Instruction No. 3/2020, issued under the provisions of Art. 3.5 and Art. 55 of Ordinance No. 111/2017, sets forth the conditions for the accreditation of international electronic payment systems. The regulation requires providers of international electronic payment systems to:
- provide their services in one country or more other than in Jordan; and
- provide their services for a period of not less than three consecutive years prior to the date of submitting the request for obtaining accreditation.
- provide their services in one country or more other than in Jordan; and
- provide their services for a period of not less than three consecutive years prior to the date of submitting the request for obtaining accreditation.
Coverage Electronic payments