Database

Browse Database

KUWAIT

N/A

Pillar Cross-border data policies  |  Indicator Participation in trade agreements committing to open cross-border data flows
Lack of participation in agreements with binding commitments on data flows
Kuwait has not joined any agreement with binding commitments to open transfers of data across borders.
Coverage Horizontal

KUWAIT

Since September 2016

Pillar Intellectual Property Rights (IPRs)  |  Indicator 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 July 2019

Pillar Intellectual Property Rights (IPRs)  |  Indicator Copyright law with clear exceptions
Law No. 75 of 2019 on Copyright and Related Rights
قانون رقم (75) لسنة 2019 بإصدار قانون حقوق المؤلف والحقوق المجاورة
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)  |  Indicator Adoption of the 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

KUWAIT

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Performances and Phonograms Treaty
Lack of signature of the WIPO Performances and Phonograms Treaty
Kuwait has not signed the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

KUWAIT

N/A

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Lack of regulatory framework covering trade secrets
Kuwait lacks a comprehensive regime for the protection of trade secrets.
Coverage Horizontal

KUWAIT

Reported in 2024

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is a regulatory obligation in Kuwait for the sharing of passive infrastructure to enable the provision of telecommunications services to end-users, and that this is not only mandated but also actively practised in both the mobile and fixed sectors.
Coverage Telecommunications sector

KUWAIT

Since October 1980, entry into force in February 1981
Since June 2013
Since February 2016, as amended in April 2017

Pillar Telecom infrastructure & competition  |  Indicator Maximum foreign equity share for investment in the telecommunication sector
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
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.
Coverage Horizontal
Sources

KUWAIT

Since June 2016, last amended in 2019

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Law No. 49 of 2016 regarding Public Tenders
2016 لسنة 49 رقم قانـون بشـأن المناقصــات العامــة
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%
Coverage Horizontal

KUWAIT

Since June 2016, last amended in 2024

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Law No. 49 of 2016 regarding Public Tenders
2016 لسنة 49 رقم قانـون بشـأن المناقصــات العامــة
Art. 87 of Law No. 49 of 2016 stipulates that both national and foreign contractors must source no less than 20% of their purchases from locally produced goods, and no less than 10% from products supplied by small and medium-sized enterprises (SMEs). It further provides that the competent authority shall monitor foreign bidders’ adherence to the requirement to subcontract at least 30% of the contract’s scope of work to locally registered contractors. Of this 30%, a minimum of 10% must be contracted to SMEs or to small and medium projects. The same subcontracting obligations apply to national bidders where the nature of their contracts permits them to subcontract portions of the work.
Coverage Horizontal

KUWAIT

Reported in 2021, last reported in 2025

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Lack of transparency in procurement process
It is 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

KUWAIT

N/A

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the 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

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator 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
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

KUWAIT

Since February 2016

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator 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

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator 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
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.
Coverage Horizontal

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