The Offset Program

Introduction

The Government of the State of Kuwait purchases large amounts of goods and services from foreign contractors. This results in economic benefits accruing in foreign countries where the goods and services are manufactured, mainly through job creation and capital accumulation. The Kuwait Counter-Trade Offset Program seeks to achieve equitable distribution of these benefits between Kuwait and the foreign countries. Therefore on July 26, 1992, the Council of Ministers of the State of Kuwait established the Counter-Trade Offset Program (Offset Program) through the issuance of Decision No. 694 which requires all foreign contractors who meet certain criteria to participate in the Offset Program.