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FINANCIAL NEWS
Kuwait plans to lure more foreign investors
10 Sep 2014
(MENAFN) Kuwait is trying to attract more foreign companies by suspending a program under which foreign winners of big government contracts are required to invest in the local economy, The Peninsula Qatar reported.
The so-called offset program was introduced in 1992 as a way of preventing Kuwait from relying on oil and foreign manpower, giving it access to new technologies and training
According to the program, foreign companies which won military contracts of a value equal to or above USD10.5 million or civil/government contracts of a value equal to or above USD34.83 million and downstream oil/gas contracts have to invest 35 per cent of the contract value in an approved local business venture
Unlike offset arrangements in Saudi Arabia and the UAE, which have tended to be limited to military contracts, Kuwait’s program applies also to civilian contracts signed with Kuwaiti government entities.
Due to this, many foreign businesses were discouraged from doing business in one of the world’s richest countries.
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