The Federation of Chambers calls for the opening of new investment areas between the Kingdom and Kuwait


An economic report issued by the Center for Economic Studies in the Federation of Saudi Chambers of Commerce on the occasion of the official Gulf tour of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Minister of Defense – may God protect him – stressed the need to accelerate the pace of ongoing efforts in developing trade relations between the two countries. The Kingdom and the State of Kuwait, and the diversification of partnerships between the Saudi and Kuwaiti private sectors in development projects related to the Kingdom’s Vision 2030 and Kuwait Vision 2035, in order to achieve Gulf economic integration.

The report added that Saudi-Kuwaiti economic relations enjoy great support from the political leadership in both countries and are backed by effective institutional organizational frameworks, as this support is represented in the Saudi-Kuwaiti Coordination Council, memoranda of understanding and bilateral cooperation agreements in a number of fields.

The report indicated the impact of the Corona pandemic on reducing the volume of trade exchange between the two countries, which amounted to about 7.7 billion Saudi riyals in 2020, and thus Kuwait ranks fourth among the Gulf Cooperation Council countries in the volume of trade exchange with the Kingdom, while the value of Saudi exports decreased in 2020. By 15% from its value in 2019, Kuwaiti exports to the Kingdom also decreased by 14%, which led to a 15% decrease in the volume of trade exchange between the two countries.

The report stressed the need to benefit from the lessons and data created by the Corona pandemic and work more to increase coordination and cooperation in the sectors and areas that achieve their economic interests for the Kingdom and Kuwait.

The report noted the diversity of commodities involved in the trade exchange between the Kingdom and Kuwait for the year 2020, where the commodities exported from Saudi Arabia are food commodities such as dairy, eggs and animal products, intermediate industrial commodities such as plastics and their products, and iron and steel, while commodities imported from Kuwait during the same year are represented by: Food commodities such as barley and mill products, and intermediate commodities such as metal products and paper.

The report reviewed the advantages of direct investment in Kuwait represented in policies to improve the business climate to empower the private sector, including simplifying registration and licensing procedures for investors. Foreign ownership of up to 100% is allowed, and foreign projects enjoy investment incentives, including tax benefits, customs duty relief, and exemptions, in addition to the priority of developing promising sectors, including manufacturing, information and communication technology, supply chains and logistics, energy and mining, besides having Modern and advanced infrastructure.

.

About the author

Leave a Reply

Your email address will not be published. Required fields are marked *