Anyone who is interested in doing international business has their eyes on Kuwait. This country has a high-income economy and the 6th largest oil reserves. In addition to this, its currency, the Kuwaiti dinar, is the highest valued currency in the world. As of 2021, Kuwait has around 4.5 million citizens. Interestingly enough, more than 70% of the country’s population are ex-pats. It is no wonder that Easy Move KW is always busy relocating people to this country. If you are one of those who are interested in this Asian country, here is everything you should know about Kuwait export & trade guide.
Kuwait export & trade guide – an overview
First of all, Kuwait is a predominantly oil-based country. In addition to this, Kuwait has 6% of the world’s oil reserves. Because of this, it is one of the founding members of the Organization of the Petroleum Exporting Countries. If you are considering exporting or trading with Kuwait, then you can see what is their strongest point. Kuwait is also the 5th richest country in the entire world and has many bilateral trade deals with most countries and companies around the world. Most of these bilateral trades are worth more than 4 billion dollars. You would have a lot of options if you plan to trade with this country. But before this, you should also think about finding good logistics companies in Kuwait. it is hard to do business alone. For this reason, you should find business partners to help you with your business plan.
Benefits and strengths of Kuwait
There are many benefits to exporting to Kuwait. First of all, there is no personal income tax. This means more money for you. Then, there has been a steady growth of diversity in the Kuwaiti economy. Before, mostly oil-based companies would export or trade with Kuwait. Nowadays, due to the popularity of startup businesses and social media, you can find almost all the businesses in this country. In addition to this, there is earmarked government investment worth more than $75 billion for infrastructure projects. More benefits include the following.
- English is widely spoken so you will have no problems finding international shipping companies in Kuwait that offer English customer support
- Free trade zone
- Strategic location due to its proximity to Gulf markets
- Stable regime
- A large population of ex-pats in the country
- Affordable business costs
- Friendly living environment
- Kuwaiti dinar
Kuwait export & trade guide – challenges
As you can see, there are many benefits to trading or doing business with Kuwait. However, there are some challenges you might have to overcome in order to achieve your goals. First of all, you need to live in Kuwait in order to have long-term business relationships. It is not that difficult for ex-pats to find jobs and accommodation in Kuwait. Still, it can be quite challenging considering Kuwait is quite different from many Western countries. In addition to this, there are some restrictions on company ownership by non-Gulf Cooperation Council nationals. You will need to find suitable sponsors for your entry into the Kuwaiti market. Some other challenges might include bureaucracy, slow process of decision making, some parts of the business can be difficult to navigate, and so on. You should also think about extremely too weather in the summer that can be too difficult to handle.
Potential to grow and expand
As mentioned, Kuwait is one of the richest countries in the world. Still, Kuwait’s GDP growth has reminded steady at around 3%. Oil production, big investment in infrastructure projects, and new legislation are responsible for the expansion and economic growth in Kuwait. Almost 95% of export revenues and government income are due to oil. Kuwait has plans to increase oil production to 4 million barrels per day in the new decade. All the Kuwait stock markets’ recent performances have been more than good. The government plans to do economic reform and push forward the implementation of several long-stalled strategic projects. One of the most important projects would be privatization. As you can see, the government is pushing forward economic growth. For this reason, foreign investment and business are necessary for this project. This is why export and trade are extremely important for Kuwait.
Kuwait export & trade guide – free trade and transport
Kuwait has a free trade zone. It is a member of the World Trade Organization. If you come from European Union, then you need to see whether free trade agreement is still enforced. You can find all the necessary details on the Kuwait Chamber of Commerce and Industry website. Mainly, European countries export goods that include vehicles, mechanical appliances, pharmaceutical products, medical products, plastic, and clothing. The export area is still growing, especially in consultancy and financial services transactions. In addition to this, in order to improve their transport, Kuwait aims to expand the capacity of their transport sector. This includes reconstruction and extension of their runaways, construction of primary and secondary roads, building cargo facilities, and upgrading existing airport infrastructure. This means that the new Kuwait Metro system will expand to 160 kilometers with 69 stations.
Other opportunities to consider
Since you are interested in the Kuwait export & trade guide, here are other opportunities you should consider. Remember that you need to get a visa and all the necessary documents too.
- Healthcare sector – healthcare is free for everyone in Kuwait. For this reason, the government wants to improve its healthcare by importing medical equipment and medical staff from foreign countries.
- Infrastructure sector – the government plans to develop new ports and logistics facilities.
- Housing sector – there are many opportunities in project management, design, construction, and supply chain for the government housing plan. There is a shortage of housing in Kuwait so they plan to build 3 new cities.
- Start-up opportunities – if you want to start a business, you need to do it under the sponsorship of a registered Kuwaiti agent or a commercial representative. Other options include a joint venture and establishing a Kuwaiti company.