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Kuwait’s trade and investment profile has long been dominated by oil, with revenue from its vast reserves used to fund overseas investment, generating sustainable long-term returns and safeguarding future prosperity. As Kuwait emerges from the disruption of the Covid-19 pandemic with robust public finances and a new government in place following elections in September 2022, it has an opportunity to drive forwards projects that diversify exports and attract inward investment in high-potential industries. Kuwait has a long-established legal framework that governs public-private partnerships, which could potentially play a key role in the country’s broader efforts to widen the scope of private sector participation in the economy under the direction of New Kuwait 2035.

This chapter contains an interview with Sheikh Meshaal Jaber Al Sabah, Director-General, Kuwait Direct Investment Promotion Authority.

Kuwait’s economy has long been underpinned by the production and export of crude oil. Although the rise in oil prices in 2021-22 boosted government revenue and macroeconomic stability, the Covid-19 pandemic – which preceded the commodity price boom – also underscored the risks of overreliance on an industry subject to fluctuating global demand. This has created fresh impetus for economic diversification, with the government hoping that robust public finances, as well as a new Cabinet and elected legislature, will drive policy changes and infrastructure projects, in turn unlocking investment and private sector growth. Although many of the projects and objectives of the Kuwait National Development Plan 2015-20, which focused on infrastructure, have yet to be fulfilled, significant investment and ongoing efforts to meet these goals highlight progress.

A productive cross-sectoral innovation ecosystem underpins the world’s leading economies, enabling countries such as the US, China and Germany to respond effectively to existential challenges, economic inefficiencies and commercial opportunities that ultimately bolster economic sustainability. In recognition of this, Saudi Arabia’s government is working to plug gaps in the Kingdom’s own innovation ecosystem by ensuring each sector of its economy has a strong research, development and innovation (RDI) component. Saudi Arabia’s sovereign reserves and reformed regulatory frameworks have enabled rapid economic diversification, and its flourishing RDI entities have made significant contributions to the Kingdom’s search for solutions to national challenges, which include water scarcity, genetic diseases, the Covid-19 pandemic, the energy transition and food insecurity. This chapter contains an interview with Munir El Desouki, President, King Abdulaziz City for Science and Technology.

As the world’s largest oil producer and the only Arab country in the G20, Saudi Arabia is a key geopolitical player on the global stage. Officially established in September 1932, the Kingdom has begun to invest its considerable financial resources into a series of large-scale economic development, diversification and modernisation initiatives in recent years. Saudi Arabia has attracted...

In recent years Saudi Arabia has committed to a series of wide-ranging reforms that aim to diversify the economy; foster a more open and connected society; and establish a transparent, efficient and accountable government under the country’s Vision 2030 strategic framework. With those objectives in mind, there have been numerous legislative developments related to real estate, foreign investment, judicial processes, financial innovation, tourism, entertainment and civil law that are transforming the landscape and positioning the economy for growth. Saudi Arabia continues to initiate legislative reforms in the digital space. The authorities seek to be proactive and pioneering by providing integrated digital services to government agencies via the Digital Government Authority. This chapter contains a viewpoint from Eyad Reda, Managing Partner, Eyad Reda Law Firm.

Saudi Arabia’s income tax rules are governed by the Income Tax Law, which came into force in 2004. The Tax Law is supplemented by implementing regulations. Zakat (a payment under Islamic law that is used for charitable or religious purposes) is governed by the implementing regulations for zakat collection. The Ministry of Finance issues ministerial resolutions concerning aspects of tax and zakat, and the Zakat, Tax and Customs Authority regularly issues circulars and responses to frequently asked questions containing its interpretation or position on regulations. Corporate income tax is assessed on the share of profits of the foreign partner in the local company and a non-resident who conducts business in Saudi Arabia through a permanent establishment. This chapter contains a viewpoint from Tareq al Sunaid, Head of Tax, KPMG Saudi Arabia.