Kuwaiti lawmakers backed on Tuesday a draft bill which calls for the opening of the country to foreign investments in a bid to boost the sagging national economy, reported the Kuwait News Agency (KUNA).
MPs are due to vote on February 5 on the legislation which grants foreign investors tax holidays for up to 10 years, exemption from customs and charges, and long-term protection against nationalization, said the agency.
The bill also allows foreign investors to establish companies in the emirate without a Kuwaiti sponsor or partner, currently needed for any business venture.
MPs said the bill would help bring advanced technology and modern management, besides billions of dollars of investment needed to revitalize the local economy, KUNA said.
"Luring foreign investment is necessary for the growth of our private sector and boosting its contributions to Gross Domestic Product (GDP)," which is less than 25 percent at present, MP Ahmad al-Duaij was quoted by the agency as saying.
"We need giant foreign companies to invest in major strategic ventures that require advanced technology," MP Abdul Wahab al-Haroun, head of the finance and economic committee, said.
According to figures released by the Kuwaiti Investment Authority, total foreign investments in the emirate in the past 20 years amounted to just $550 million -- Albawaba.com
