Kuwait Free Trade Zone

Background

The project for the establishment of the Free Trade Zone dates back to 1964. By granting exemptions from taxes and customs duties, issuing licenses on the spot and having as little state intervention as possible, the Kuwait Free Trade Zone promises to give competition to the neighbouring free zones in Dubai and Iran, in the near future.

The operation of the free zone is managed by the National Real Estate Company, a private sector company. The management has virtually full authority delegated to it by the Ministry of Commerce and Industry to issue licenses to investors who wish to operate in the free zone. The free zone is regulated by a law specially enacted for the purpose, Law No. 26 for the year 1995.

A license may be issued for carrying out any activity within the zone . Goods or commodities of whatever type, origin or source may be imported in the free zone. The items so imported may undergo change in their state through performance of suitable operations without any restrictions. Any services required to perform the activities in the free zone may also be rendered within the zone³⁷.

The investors are given a free hand in carrying out their activities, and the operations are virtually without any restrictions. The monies, or property of the investor in the free zone cannot be seized arbitrarily or placed under custody of the management, except through judicial procedures ³⁸. Any disputes between the investors in the free zones or between the investor and the management authorities may be settled through arbitration ³⁹.