The Embassy of the State of Kuwait

In July 1992, the Government established the Counter-Trade Offset Program (CTOP).

Foreign contractors are required to invest 30% of the contract value of certain Government, Civilian and Defense contracts with a cumulative value in any one fiscal year of KD 1 million ($3.3 million) or more in approved projects in Kuwait and other GCC countries. The program is extremely complex and details are available at the commercial sections of the various embassies.

The main objectives of the CTOP are to provide new investment opportunities in Kuwait in collaboration with the local private sector, to help in the transfer of technology, to create educational and training opportunities for Kuwaiti nationals. The Program is administered by the CTOP Executive Office set up by the Ministry of Finance. One particular U.S. based defense contractor- Raytheon Company has started negotiations with the private sector on the construction of an aluminum plant as part of its offset program.

Kuwait Free Trade Zone

The Government established this initiative in 1997 which came to fruition in 1998 by the formation of the privately owned and funded Kuwait Free Trade Zone (KFTZ). The KFTZ is fully backed by its parent " the National Real Estate Company one of the best managed companies in Kuwait with a paid-up capital of $144 million.

The location of the KFTZ is in the industrial and trading zone of Mina al-Shuwaikh that is very close to the main commercial area and port of Shuwaikh. It is ideally situated to take advantage of the local infrastructure. The KFTZ offers an unbeatable combination of incentives including tax-free personal or corporate income, minimal bureaucracy and absence of monetary restrictions and attractive insurance rates. Commercial and trade licensing applications can be processed in 24 hours of receipt and industrial licenses can be granted in less than a week.