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, 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.

The government holds a 21.4% equity stake in the telecommunications company Zain, through the Kuwait Investment Authority and the Public Institution for Social Security.

It is reported that Kuwait does not compel operators with significant market power (SMP) to adopt functional separation; however, compliance with accounting separation is mandatory.

Under Law No. 37 of 2014 on the Telecommunications and Information Technology Regulatory Commission, the Communication and Information Technology Regulatory Authority (CITRA) issues licenses to telecom service providers. Under Art. 59, the CITRA employees have the power to request and examine licenses, books, registers, documents, and all papers related to the telecommunication activity; Examine and inspect any telecommunication devices, telecommunication installations, or any other facilities associated with providing telecommunication service or establishing, operating or owning telecommunication network; Review any additional information or documents in any form they might be related to the provision of telecommunication services. It is reported that "although Kuwait’s telecommunications industry is technically open to private investment, in practice, the government maintains extensive ownership in the sector and controls licensing and infrastructure development. It is reported that Kuwait’s telecommunications law gives authorities sweeping power to revoke licenses and block content, with little judicial oversight."

It is reported that a minimum capital threshold is required for the acquisition of a telecommunications licence in Kuwait.

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.

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.

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.

It is reported that foreign applicants are required to appoint a local representative to apply for patents in Kuwait.

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.

Kuwait is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).

In August 2024, following publication in the GCC Technical Secretariat’s Official Gazette (Vol. 47, 20 August 2024), the GCC Member States, included Kuwait, imposed definitive anti-dumping duties for five years on imports of electrical connectors, switches, sockets and plugs for a voltage not exceeding 1,000 volts (HS 853669, 853650, 85444291, 85444221) originating in or exported from the People’s Republic of China; the duty rates range from 11.3% to 42% by exporter.

It is reported that the government may mandate the provision of source code as a condition for participation in public procurement processes in sectors considered critical to national security or public safety.

Art. 62 of Law No. 49 of 2016 stipulates that, in the context of supply tenders, the Council or the competent authority shall award the contract to a locally produced item, provided that it complies with the prescribed specifications and conditions, and its price does not exceed that of comparable imported products by more than 20%