Kuwait Times

Published Date: December 30, 2007

KUWAIT: Recent parliamentary blessing of a bill for slashing income tax on investments from 55 percent to 15 percent will lure substantial foreign investments to the country, according to a leading businessman. Omar Al-Qoqa, Chief Executive Officer of Global Investment House, expressed hope in a statement that the law would pave the way for the hard efforts to transform the country into a regional financial hub, indicating at the state objective of attracting USD 100 billion worth of investments in the oil
and non-oil sectors in the coming 10 years.

Foreign businesses in the country, last year, amounted to less than USD 300 million, compared to USD 18 billion in Saudi Arabia, he said, alluding the limited external investments in the country to the removed tax barrier. "We are sure that the amendments of the tax law would result in luring businesses of foreign companies thus paving way for diversification of the economic basis of the state that primarily depends on the oil as a source of income," he said, adding that the foreign investments would also
bring with them technical and administrative expertise. The fact that the new law exempts trading of foreign investors in the stock market from fees will broaden the scope of trading at the local bourse as well. -- KUNA