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Easy Guide to Investing in Kuwait

Easy Guide to Investing in Kuwait: Get Started Today

19.08.2019

Investing is not just for wealthy or middle-aged people with lots of savings. It is, in fact, a safe and easy way to grow your money no matter what your age. That’s why, even if you’re just starting out, you need to know how to invest, where to invest and how to do it wisely.

Thankfully, investing is easier than ever today. And the key taco a solid investment portfolio – as any financial advisor will tell you – is diversification. One definite target to have such a diversified portfolio is investing in foreign countries. 

This is because, as a country’s economy grows, it can benefit companies and individuals who have invested in it. Each country has its own advantages, and, among the GCC countries, we’re going to take a look at Kuwait, which is quickly becoming a rising star. 

Why Kuwait? 

Kuwait is ranked the 3rd most tax-friendly country in the world and stands 2nd in gross national savings and has the 3rd best macroeconomic environment globally. Further, in recent years, the Kuwaiti government has focused on a massive business and infrastructure program, termed New Kuwait Vision 2035. This a strategic plan to move the Gulf state away from its reliance on the petrochemical industry and create a more mature and diversified economy.

How can you invest in Kuwait?

There are many ways you can invest in any foreign country. At each step, banks can provide you access to competitive investment opportunities as they manage and distribute them.

Here are 3 main ways to invest:

1- Money Market Fund:

This is a good starting point. A money market fund provides you a high level of liquidity by investing in diversified and high-quality money market instruments. This is also a type of mutual fund, characterized as a low-risk investment. A perfect place for a beginner investor to start due to the low-risk.

2- Equity funds:

Also known as stock funds, these invest mainly in stocks. Banks have various equity funds that provide good, long-term capital appreciation because they invest primarily in equities that are domiciled and listed in Kuwait. Your bank’s Investment Manager may also choose to invest in non-Kuwaiti stocks that they believe have significant exposure to the Kuwaiti economy.

​Moreover, there are also open-ended debt funds incorporated in Kuwait, licensed and supervised by the country’s Capital Market Authority. These give you exposure to fixed-income securities either issued or guaranteed by governments, quasi-government entities or corporations registered in the MENA region.

3- Start a business:

A country’s growth provides significant opportunities for investors. So, starting a business is definitely another way of investing. If you’re looking to start a business offshore, Kuwait is ideal. In 2013, the Kuwait Direct Investment Promotion Authority (KDIPA) established a new commercial code allowing foreigners to own up to 100% of business entities. This attracts foreign investors who want to invest in Kuwait and take advantage of its flat CIT (Corporate Income Tax) of only 15%. Furthermore, banks provide ease of access to loans as well as various support for startups.
 

With this basic information at your fingertips, you are now in the right position to begin your deeper research into investing in Kuwait. Contact your preferred bank or financial advisor today and get started!