Not many people can do business and be successful while doing it. Those people who managed to get some success will always tell you the same thing, you need to stay informed. The most valuable thing you can possess today is information. So if you wanted to open up a business or partnership with some company in Kuwait, you should read this handy article. Here, we will discuss basic Kuwait exports guide. This way you will have some basis on what to expect and do if you decide to jump into trading with Kuwaiti companies.
Overview of Kuwait exports
As with every introduction, we have to start with simple basics on how to organize a good business. When you are starting a new professional career in Kuwait you must think about every aspect of your new company. That can really prove to be stressful and time-consuming. When it comes to moving your business to Kuwait, do a little research and find out which are the best business movers Kuwait and what services they can provide you with. Their professional services will make your startup easier that way.
Kuwait economy revolves around oil. They make up to 6% of the world’s oil reserves. What is important to know is that Kuwait is one of the founding members of the Organization of The Petroleum Exporting Countries, or simply OPEC. Measured by GPD, Kuwait holds the fifth place of the richest countries in the world. Kuwait exports oil to its biggest buyers like United States, United Kingdom etc. To transport that cargo they need to use professional crew and the latest technology, which most of the shipping companies in Kuwait already possess.
Economic challenges and benefits of Kuwait
Before you start your business and find a good partner regarding Kuwait exports, there are certain legal issues you will have to address. There are laws regarding doing business with domestic entrepreneurs and with foreign ones. To begin, you must provide all the required legal papers, based on what kind of business you will be doing in Kuwait, to certain places. Some licenses are provided by The Industrial Development Commission of the Ministry of Commerce and Industry, but there are a lot of other agencies and ministries that will provide you with the necessary licenses for your business.
As far as documentation goes, you must provide them with all the required papers. Kuwait laws are strict and they prevent anyone from any type of fraud. Those documentations include:
- Bill of lading – Required if you want to ship your products.
- Packing list – Precise information about cargo, quantity, and quality.
- Certificate of Origin – Representing the origin of the products.
- Commercial Invoice – Used for the more precise description of the items you are trading with.
There are also some necessary requirements you are will have to do in order to do legal business. And they are:
- Long-term partnerships require physical presence in Kuwait
- Kuwait is in mid-table in the Worlds Banks “Ease of doing business”
- It can be very difficult to navigate tendering process
- Decision making is slow
- It is very difficult to find a good partner for joint operations like Kuwait exports
- Finding appropriate sponsors before entering Kuwait market
- Restrictions on ownership of the company for foreigners.
Kuwaiti transport and organization
The second most important thing you must know if you are interested in Kuwait exports is transport. Of course, knowing right Kuwait moving companies that can provide you with a simpler way of moving is a big plus. When it comes to transport and roads, Kuwait invests a large amount of money into its infrastructure, due to their oil incomes. Making their roads one of the quickest, safest in the world. Not to mention the quality of the said roads.
Air transport is one of the main ways of export and import to Kuwait. Kuwait International Airport, or short KIA, is a center of a great investment. Estimated 6 billion dollars is used to upgrade the quality of Kuwait International Airport. With almost 3 billion dollars used for:
- Renovating airport infrastructure
- Rebuilding and building new facilities for storing cargos
- Control tower facilities are constantly improved
- Construction of additional access roads to Kuwait International Airport
- Extension and reconstruction of existing airways
Of course, all these projects are also open for foreign companies to do. With all that said you should have the basic idea of all the pros of using air transport in Kuwait, not to mention the estimated costs for air freight Kuwait.
Development of sea transport and ports
There is a big 20 years long project in development based around Kuwait Port. A big port with latest logistic facilities is built at Boubyan Island, just north-west of Kuwait. This will be the conjoined project of both Kuwait government and the private sector. What is very important to know is that Kuwait Port is connected to the railway, creating an easy way for transport between sea and land.
Business ethics and behavior in Kuwait
Friday and Saturday are weekends in Kuwait, unlike the rest of the world. The official language spoken in Kuwait is Arabic. The English language is the second language in Kuwait. All official business with Kuwait Government is done in Arabic. English version of the contract is not enough. You must have the Arabic one will as well, because it will be officially used. When it comes to doing business, people like to do it over a small talk and tea. They have that kind of bargaining laid-back attitude. Do not be pushy and impatient when doing business with Kuwait people, as a result of that, you will fail to conclude business. They do like to take time in arranging new deals. Investing in marketing is also important among Kuwaiti business owners.
Although it is rather difficult to point out the most important parts when it comes to Kuwait exports guide, we do hope this article helped you get the basic idea of Kuwait economy. If you have any pieces of advice of your own, please do share with us your opinions regarding this topic. We are happy to hear from you!