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Data Protection and Compliance in the Ed-Tech Industry

Posted on July 24, 2022 - 6:59 pm by

Recent global developments have made cybersecurity crucial for all sectors. Ed-Tech has experienced tremendous expansion at all educational levels in the last few years due to the pandemic.

Today, nearly every student has at some point attended their lessons using online meeting platforms. These Ed-Tech platforms are helping to gradually digitize the education sector. But as more educational institutions transition to virtual learning, Ed-Tech privacy has become a top concern for students, parents, professors, and school administrators. This means that while Ed-Tech businesses continue developing and providing fantastic learning solutions, they must prioritize student privacy.

Data privacy is a major issue for everyone, but it becomes much more important when dealing with the personal data of minors.

These challenges are associated with the shift to adopting digital tools to enhance education. Ed-Tech has emerged as the primary target of regular, intense cyber-attacks, which are growing exponentially each year. Invasion incidents usually occur because of a lack of data security and privacy implementation. Even a business with strict data security guidelines might fall victim to cyber assaults. This results from the fact that most Ed-Tech initiatives include several partners such as third-party vendors and these associates might not always adhere to the same standards.

It is crucial to maintain thorough protection against any external data theft. As such, Ed-Tech providers should comply with all the laws and regulations governing data protection.

What is Ed-Tech?

Ed-Tech can be defined as the concept of using IT resources in the classroom to create a more interactive, inclusive, and personalized learning environment.

Tablets and even robots that can take notes and document lectures for ill students have replaced the bulky desktop PCs that were previously the standard in classrooms.

The proliferation of Ed-Tech tools is transforming classrooms in several ways. Ed-Tech robots make it simple for students to stay interested through engaging learning activities while IoT devices are praised for their capacity to turn any space into a digital classroom for kids.

How is Ed-Tech Used?

Ed-Tech is a heavily debated subject. There are worries that Ed-Tech is a move to phase out certain in-class tasks to cut expenses because a sizable component of the educational system is unionized.

Ed-Tech developers highlight technology’s capacity for improvement, which frees the instructor to take on more of a facilitator role.

Due to time limits, it can be challenging for a teacher to follow the curriculum, stay up with lower-level students, and keep the class’s top students interested in their work. Ed-Tech can potentially improve results for both the class as a whole and individual students by automating the evaluation of aptitude and modification of difficulty.

There have been two phases of technology deployment in the classroom. The first was the addition of hardware to the lecture hall and the second was the introduction and development of various forms of education-enhancing software. Many of these applications are cloud-based and use algorithms to determine how quickly or slowly to move a learner along various learning objectives based on studies in education.

Ed-Tech Trends Across the UAE and Saudi Arabia

As schools quickly adopted technology to address limitations on in-classroom instruction during the COVID-19 outbreak, the education landscape in the Gulf underwent a seismic upheaval. The Middle East’s education technology market is now worth $350 billion and is expected to grow to $3.2 trillion by 2025.

The UAE’s favorable growth prospects for the Ed-Tech sector are only made possible by a highly skilled workforce and a government that supports education and facilitates the ease of doing business.

Online education was viewed as “supplemental aid” until the pandemic. The same regulatory organizations today approve of completely digitized education and enable, encourage, and support it in both early childhood education and higher education.

The experience of the pandemic has enabled ministries to fully understand the potential benefits of Ed-Tech, as well as its drawbacks. Although governments initially forced it upon ministries due to public health concerns, it has created new opportunities.

As things settle into the new normal, most educational institutions in the Gulf plan to run more like digital businesses.

In this new context, ICT will operate in a mixed learning environment as a “cognitive partner.” Institutions will rely on digital technologies to engage students, handle homework and exams, and conduct digital versions of auxiliary activities like virtual campus tours and recruitment.

Broad-reaching digital efforts are being implemented by Gulf educational institutions. This includes a greater focus on automation and process re-engineering for digital campuses, quick absorption and acceptance of digital education technology, and improved digital data governance and trust.

Artificial intelligence is another promising field within the education sector. Some of the forward-thinking institutions in the Gulf are already exploring more sophisticated use cases,such as personalized and adaptive learning. In contrast, the early use cases concentrated on automating processes like attendance monitoring and test grading.

Ed-Tech Regulations in the GCC and How Companies Can Protect Themselves

The growing frequency of data breaches in the Gulf has heightened the debate over data protection and privacy and sparked various initiatives in both the public and commercial sectors.

Ever since the General Data Protection Regulation (GDPR) was adopted by the EU, businesses in the GCC have been striving to implement policies and methods to comply with these new regulations. Thanks to technological advancements, data is in more demand and more readily available than ever before. However, as recent events have demonstrated, malicious people can use personal data for political and economic purposes.\

GDPR has highlighted the interconnectivity of our digital world by bringing data protection issues to a global audience. The GCC has passed measures to guarantee compliance with the GDPR and other global data protection rules.

Therefore, Ed-Tech companies in the GCC are in a better position to protect themselves if they adhere to GDPR laws and other national-level regulations on data protection.

With the greater focus on data privacy and regulations in the GCC, Ed-Tech companies must take stringent measures to ensure they are compliant with the laws and regulations governing data protection.

We give our clients strong substantive expertise in all facets of the education industry together with the most effective business and litigation strategies. We concentrate on the specific requirements of fast-growing businesses involved in the creation of cutting-edge educational tools, resources, and solutions, and we also work with the universities and other organizations that use these technologies.

An Overview of IPO Readiness and Future Trends in the GCC Region

Posted on July 24, 2022 - 7:03 pm by

There has been a recent surge of mega listings across the Gulf, driven by Saudi Arabia and the United Arab Emirates. Investors from around the world are increasingly attracted to the promise of substantial dividends from promising industries and innovation across the region.

Nations in the GCC region are actively taking advantage of the increasing demand and high energy prices to publicize state-owned businesses. Are you planning to be a part of the booming Initial Public Offering shift? Will your company benefit from going public? Are you IPO-ready? Here is all you need to know about IPO readiness and upcoming trends in the Gulf region.

Why An IPO?

An initial public offering does the following:

·        It provides real-time access to finance.

·        It improves the public’s view of a company by making it more credible and visible.

·        It makes it very easy for a company to establish share option plans for its workforce. These plans will serve to motivate employees and help the company find good staff.

·        It also enriches capital markets with fresh concepts and investment possibilities.

Putting together an IPO requires careful planning and preparedness.

What is IPO Readiness?

When a business is IPO-ready, it has all the systems in place to comply with the legal requirements for selling stock to the public. These systems include:

·        Internal controls

·        Financial reporting

·        Governance

This information will be available to investors on demand from when your business goes public and throughout the IPO process. Investors, analysts, and the media will closely examine your company’s internal operations and financial data. Moreover, new public firms must adhere to a mass of additional reporting and legal requirements for the duration of their existence.

Why You Need IPO Legal Cover

It is undeniable that you will require competent legal representation if you are commencing the process of making your business public. There are many different aspects to this process that your company must be acutely aware of. If you forget any one of them, the results could be unfortunate.

Legal and professional fees will be recurring expenses, however they are imperative in developing and managing the following:

·        Putting together, submitting, and finishing the listing application.

·        Providing guidance on the dangers and laws surrounding the IPO transaction, such as publicity and transparency.

·        Giving direction on the functions of the leading regulatory players, exchange listing requirements, and securities regulations.

·        Counter-examining and confirming everything to ensure no problems would subject the company to lawsuits after the IPO.

IPO Trends in the Middle East to Look Out For In 2022 And Beyond

Bloomberg data shows that IPOs in the Middle East have raised $11.4 billion during the first five months of this year. This is more than any other year’s first six months. Since petrochemicals company Borouge started trading in Abu Dhabi earlier this month – raising $2 billion – the sum will only go up.

For this year, the energy industry is one of the few bright spots for IPOs. This is because oil prices have gone up by 50%, helping Gulf economies and equity markets. Share sales in Europe are at their lowest level in 20 years because of high inflation, rising interest rates, and a depressed economy in general. In contrast, the Middle East has more or less managed to avoid these problems and has continued to successfully attract investors from other countries.

Trends Beyond the Oil Sector

In recent years, diversification has become a top priority for GCC governments. The recovery is being driven by growth in areas other than oil. Sectors like monetary services are doing well since the pandemic. The key to Saudi Arabia’s economic regeneration is its vast domestic market and the government’s commitment to big projects.

Enterprises praise their forward-thinking policies and methods. With half of the world’s people only an eight-hour flight away, the Middle East has now become a true economic powerhouse. It serves as a prime mover for trade, exchange, advancement, and revenue generation.

GCC trade growth will be bolstered by the hope that supply chain slowdowns and cross-border activity delays are set to improve in the next few quarters. If you have been thinking of an IPO, this might be the right time to start getting ready.

In summary

The proliferation of 5G technology and the growth of online platforms and marketplaces are leading to new ways to run successful businesses. As a result, the regional business environment will change in a way that will significantly affect economic patterns and social dynamics. The GCC’s non-oil industries will continue to lead the economy over the next ten years, giving the regional markets and stock prices an immense boost.

What does this mean for you? It simply means that you ought to prepare adequately for that coming IPO. Having the right legal support team by your side is key to making this happen.

The Push For Alternative Energy In The GCC

Posted on September 29, 2022 - 3:07 pm by

The worldwide energy industry is headed towards an extraordinary excursion and the Gulf Cooperation Council (“GCC”)  is pushing to be a pioneer in this rising market. The United Arab Emirates (“UAE”) and the Kingdom of Saudi Arabia (the “Kingdom” or “KSA”) are two of the central figures in the movement toward utilising more sustainable and environmentally friendly energy sources, and both have made large investments in research and development for these fields.

From NEOM to ADNOC, the UAE and Saudi Arabia are working to establish themselves as leaders in the global energy market, and it is clear that alternative energy will play a major role in their plans. These two nations have access to the necessary technical expertise and financial resources to drive a more clean-energy strategic focus in the future.

 

GCC Clean Energy Drive Requires $50b for Grid-related Speculations

The GCC would require approximately $50 billion by 2026 to boost the proposed increments from renewables, as highlighted in a recent white paper, ‘Clean Energy — Going Beyond the Grid’.

Improvements in sustainable power innovation are one of the critical mainstays of the UAE’s Operation 300bn and Saudi Arabia’s Made in Saudi Initiative, which are both national plans that envision improving the contribution of renewables in the energy blend of their nations.

The UAE National Energy Plan 2050 calls for clean energy to achieve 50% of the country’s complete energy blend by 2050. This would lower the carbon footprint by 70%, requiring an investment of $190 billion along the way.

Two of the biggest single-site solar plants in the world are currently being created in Abu Dhabi and Dubai. Both will add to the developing UAE green economy while advancing the nation’s status as a global renewable energy player.

Furthermore, Saudi Arabia is focused on deriving 50% of its energy from renewables by 2030 and the Kingdom also intends to spend up to $50 billion on this sector by 2023. Under the normal expansion in grid-related ventures, the transmission and circulation gear industry are supposed to top $312.8 billion universally by 2026.

 

Minerals Projects

Inside the unique energy sector, organisations with a history of upgrading power age and energy stockpiling arrangements are assuming a significant part in empowering the practical creation of minerals universally. This is subsequently assisting the world to decarbonize more quickly.

Perhaps the best illustration of that, is in Saudi Arabia, where at the height of the COVID-19 pandemic in 2020, consent was given to supply a 45 MW power plant to the biggest gold venture for the Saudi Arabian Mining Company.

The Mansourah-Massarah plant uses a crossover of motor innovation and solar power, and Finnish energy company Wärtsilä has the mandate to introduce six power motors — working in close coordination with project worker for hire, Larsen, and Toubro and EPC project worker, Outotec.

The task is important for Saudi Arabia’s Vision 2030, which plans to expand revenue sources for the Saudi economy by moving away from oil dependency and increasing the mining of under-exploited assets such as gold.

 

Changes to the Legal and Regulatory Framework Governing Clean Energy

The GCC’s ambitious plans for alternative energy will have major legal implications, both in terms of the regulatory frameworks that need to be put in place and the contracts that need to be negotiated.

Accordingly, a coordinated approach to alternative energy may need to be taken by the GCC and the applicable GCC national laws and regulations may need to be further developed and enhanced in order to become a suitable regional market for alternative energy.

 

Saudi Arabia

The Ministry of Energy (“MoE”) has introduced the National Renewable Energy Program (“NREP”), which aims to diversify the Kingdom’s energy resources. Several incentives were issued to promote investments into the renewable energy projects under the NREP, which include direct foreign ownership and land incentives that include subsidized leases for projects. This will further entice foreign entities to invest in the Kingdom’s renewable energy schemes, while also resulting in the formation of innovative technologies within the renewable energy sector that include solar photovoltaic technologies, waste to energy technologies, wind energy technologies and concentrated solar power technologies. All such renewable technologies have been identified and developed under the NREP to further diversify the Kingdom’s local energy supply and to further encourage foreign investment along with public-private participation within the energy industry.

To that end, MoE, in collaboration with the Ministry of Industry and Mineral Resources and Non-oil Revenue Development Center, introduced further initiatives that allow companies whose activities involve renewable energy and solar power plants to apply for and obtain industrial licenses. These initiatives aim to support the renewable energy industry and economic growth while enhancing the Kingdom’s capabilities regarding renewable energy, and to achieve an optimum energy usage in electrical productions. Furthermore, the Gulf Cooperation Council (“GCC”) grants industrial projects with benefits and facilities to promote the industrial sector and to attract investments to countries in the GCC under the scope of the Common Industrial Regulatory Law of the GCC Countries (the “Law”). This Law grants companies’ certain exemptions from customs duties in relation to manufacturing and industrial projects. Such exemptions are aimed to enhance investments and increase production and adoption of renewable energy in the KSA.

In addition to having solar power plants, KSA’s 2030 target includes the usage of the aforementioned Solar Photovoltaic (“PV”) Systems. The Water & Electricity Regulatory Authority (“WERA”) issued a regulatory framework for the use of Small-Scale Solar PV Systems. The framework aims to promote the use of Small-Scale Solar PV Systems and ensure efficient and safe production, installation, operation, and maintenance of these systems within the Kingdom. Under the regulatory framework, customers may build/possess and operate on a premises in which a Small-Scale Solar PV System may be installed. This Solar PV System helps convert solar energy into electricity and gives a more efficient way of obtaining electricity using renewable energy, thus, reducing the usage of oil and instead using a renewable energy source that does not emit carbon.

Moreover, the Kingdom has also introduced the Saudi Green Initiative (“SGI”) which works to combat climate change as its main goal while also aiming to offer significant investment opportunities for local and foreign investors in the energy sector in KSA. The SGI’s programs which include environmental protection, energy transformation and sustainability, aims to reduce carbon emissions and increase domestic usage of renewable energy. To that end, the kingdom developed cost-effective technologies for efficient carbon management, with the aim of eliminating gas combustion by 2030.

 

The UAE

The UAE has taken a leading role in the development of renewable energy in the GCC, and currently has the largest installed capacity of solar PV in the region.

The objective of the Dubai Clean Energy Strategy 2050 is for clean energy to contribute 25% of Dubai’s overall energy output by 2030 and 75 per cent by 2060. To achieve this, the Dubai Electricity and Water Authority (“DEWA”) has launched a number of initiatives, including the Shams 1 solar-thermal plant (100MW) and the Mohammed bin Rashid Al Maktoum Solar Park, which represents a total investment of AED 1.2 billion and is the largest single-site solar park in the world.

In addition to this, the Dubai Green Fund has been established to provide financing for renewable energy projects. The Fund is open to both local and international investors and offers a number of benefits, including tax exemptions and visa facilitation.

In the realm of transportation, the Dubai Supreme Council of Energy has initiated free charging, parking, and registration fees. The Dubai Autonomous Transportation Strategy also aims to have 25% of all trips made using driverless vehicles by 2030.

 

The Future

Ultimately, the GCC is at the forefront of the global energy transition, and its ambitious plans for alternative energy will have major legal implications.

In order to meet its renewable energy targets, the GCC will need to make significant changes to its current regulatory frameworks and invest in developing the infrastructure needed to support large-scale renewable energy projects.

The GCC is also likely to face challenges in relation to water availability and land use, as well as the need to develop a skilled workforce for the renewable energy sector.

Despite these challenges, the GCC is well placed to become a global leader in renewable energy, and its commitment to this transition will have far-reaching legal implications.

 

Ebaa Tounesi

Associate – Corporate & Commercial Practice

Emerging Trends of Saudi Arabia’s Sporting Industry

Posted on October 12, 2022 - 12:20 pm by

Entertainment and sporting events have not always been the first things that come to mind in relation to Saudi Arabia. However, in recent years the country has made great strides in developing its entertainment industry, with a particular focus on sports. This has been driven by several factors, including the country’s large and young population, and the government’s desire to build a more diverse and modern economy.

 

While the sporting industry in Saudi Arabia is still in its early stages of development, it is currently growing at a rapid pace. This is evident in the increasing number of sports facilities and events being held in the country and the growing number of Saudis participating in sports. In addition, the Saudi government has been investing heavily in the sporting industry, both in terms of infrastructure and supporting local athletes.

 

Key Developments in Saudi Arabia’s Sporting Sector

The Saudi government has taken a keen interest in the role of sports and sporting events in the country’s development. In line with its Vision 2030 reform agenda, the government has set out to increase participation in sports and improve the quality of sporting facilities and events within the Kingdom. This has led to many developments within Saudi Arabia’s sporting sector, including the ones outlined below.

 

Increase in Major Sporting Events

One of the most notable developments in Saudi Arabia’s sporting industry has been the increase in major sporting events being held in the country. Over the past five years, the country has hosted several high-profile sporting events, including the Saudi Arabian Grand Prix in 2021, the Joshua v Ruiz II – “Clash on the Dunes” in 2018 and the Saudi Cup international horse racing event in 2020. Saudi Arabia has now put forward its bid to host the FIFA World Cup in 2030.

 

The Introduction of ESports

Esports — competitive electronic gaming — is not recognised by many countries as a sport. This means it can be difficult for professional gamers to find an appropriate venue to compete at an international level. However, in recent years, Saudi Arabia has begun to nurture its own esports scene, which has included the establishment of the Saudi Esports Federation in 2017. In the summer of this year, the federation launched the Gamer8 Festival, which was a highly successful 8-week esports event held across Riyadh.

 

The Growth of Women’s Sport

The Saudi government has taken a keen interest in increasing women’s participation in sports over the last decade. In 2012, the nation sent its first female athletes to the Olympic games and from 2017 onwards, women have been allowed to compete in sports tournaments held in the country. 2020 saw the launch of the Saudi Women’s Premier League, ushering in a new era for women’s football in the Kingdom.

 

The Rise of Sports Tourism

The Saudi government is also looking to develop the country’s sports tourism industry. In 2018, the Kingdom hosted the first season of the World Boxing Super Series at King Abdullah Sports City in Jeddah, which attracted boxing fans from all over the world. The country is also set to host the Spanish Super Cup semi-final in 2023 and the Formula E Diriyah E-Prix early next year. These types of events are not only a boost for the sporting industry, but also for the country’s economy as a whole.

 

Savvy Games Group Strategy

In September 2022, Saudi Crown Prince Mohammed bin Salman announced the government’s goal of becoming a global hub of games and esports, with the launch of the Savvy Games Group Strategy. This ambitious plan includes a focus on developing the local games industry, as well as supporting Saudi Arabian gamers to compete at an international level. As part of the plan, the government will establish 250 games companies in the country by 2030, creating over 39,000 jobs. In total, government investment in this strategy is expected to reach SAR 142 billion by 2030.

 

Next World Event

The Saudi Esports Federation just hosted the inaugural Next World Forum in September 2022. It was a two-day event that saw a number of prominent Esports industry speakers gather to discuss the future of the sector. Among them were Grant Johnson, the chairman and CEO of Canada’s Esports Entertainment Group and Chester King, the vice president of the Global Esports Federation. The forum was a huge success, with over 1,000 people in attendance from across the globe.

 

What Does the Future Hold?

The sporting industry in Saudi Arabia is still in its early stages of development. However, the sector is growing at a rapid pace and the government is fully supportive of its growth. This is evident in the many developments that have taken place in recent years, including the increase in major sporting events, the arrival of esports and the active promotion of women as both sports spectators and competitors.

 

In addition to this, the Saudi government is keen to develop the country’s sports tourism industry as part of its move to diversify the nation’s economic activity. With the government’s continued support, it is likely that the sector will continue to grow in popularity and size, welcoming a new era of sports in Saudi Arabia.

Managing Construction Disputes in Saudi Arabia

Posted on February 28, 2023 - 1:51 pm by

The construction industry in Saudi Arabia has experienced significant growth in recent years, with numerous infrastructure projects and real estate developments underway across the Kingdom. From tourist attractions to transport projects, the Kingdom is undergoing a transformation fuelled by rapid infrastructure development.

While this trend presents significant opportunities for investors and developers, it has also given rise to its fair share of challenges, including construction disputes. These disputes can occur due to a variety of reasons and can often lead to costly and time-consuming legal proceedings.

Effective management of construction disputes is therefore crucial for the success of any construction project in Saudi Arabia. This article will provide an overview of common types of construction disputes in the Kingdom and examine the available dispute resolution methods.

Common Types of Construction Disputes in Saudi Arabia

It’s an unfortunate reality of the construction industry that disputes are a frequent occurrence. However, the root cause of many of these disputes can be narrowed down to several common issues. Here are the main types of construction disputes, which commonly arise in Saudi Arabia.

  • Design Faults and Errors. These types of disputes may arise when the construction design does not meet local regulations or when the design fails to match the specifications agreed upon in the contract.
  • Delay Claims and Disputes. Delays can be triggered by a range of issues, such as adverse weather conditions, modifications to the scope of work, or the late delivery of equipment or materials. This can impact the timeline of a project and lead to claims for compensation or other remedies.
  • Scope of Work Disagreements. Disagreements about the scope of work can lead to disputes during the completion of construction projects. These disputes can occur when relevant parties disagree over the interpretation of the contract, or when there is unclear contract language, or an unexpected change in the scope of work.
  • Payment and Billing Disputes. Disagreements over payment are common in Saudi Arabia’s construction industry, with contractors and subcontractors sometimes coming into conflict over compensation for unpaid work or additional work that was not included in the original contract.
  • Contractual Obligation Disputes. Finally, contractors and developers may disagree about the terms of a contract, such as payment schedules or other contractual obligations, leading to costly and time-consuming disputes.

Dispute Resolution Methods in Saudi Arabia

When construction disputes arise in Saudi Arabia, there are a variety of dispute resolution methods available for the parties involved to resolve their disagreements. These methods can include litigation in the courts or alternative dispute resolution (ADR) methods, such as mediation, arbitration, and expert determination. Here’s a brief overview of each of these dispute resolution methods:

  • Litigation in the Courts. The most traditional method of resolving disputes is through litigation in the courts. The dispute is presented before a judge, who decides on the outcome of the case. Litigation can be a time-consuming and expensive process and may not always result in a favourable outcome for all parties.
  • Mediation is an ADR method in which a neutral third party, the mediator, assists the parties in reaching a mutually acceptable solution. Mediation is voluntary and confidential and can often result in a faster and more cost-effective resolution to the dispute.
  • Arbitration is another ADR method in which a neutral third party – the arbitrator – listens to both sides of the dispute and renders a binding decision. Arbitration can be faster and less expensive than litigation, but it can also result in a limited ability to appeal.
  • Expert Determination. Expert determination is an ADR method in which an independent expert is appointed to determine the outcome of a dispute. The expert’s decision is binding, and the process is often faster and less formal than other ADR methods.

Resolve and Prevent Disputes for a Stronger Construction Industry

Construction disputes in Saudi Arabia can be costly and disruptive for all parties involved, delaying the completion of projects, and causing financial losses. However, construction disputes in the Kingdom are an unfortunate but common reality for stakeholders within the industry. By understanding the common types of construction disputes, stakeholders can take proactive steps to mitigate the risk of disputes occurring in the first place.

Additionally, by utilising the appropriate dispute resolution methods available, such as mediation or arbitration, stakeholders can resolve disputes more efficiently and effectively than through traditional litigation. If you need help with a construction dispute in Saudi Arabia, it is best to seek legal advice from a qualified expert who can guide you through the process and help you reach a resolution.

An Insight into Kuwait’s Economic Market

Posted on April 3, 2023 - 2:33 pm by

Situated at the tip of the Persian Gulf, Kuwait is a small but fascinating oil-rich nation, with a population of just over 4 million people. Before its reinvention as a global oil supplier, it was a busy trade port, connecting merchants and traders between ancient Mesopotamia, Persia, and India. Today, Kuwait is considered one of the most prosperous countries in the Middle East – it has one of the highest GDPs per capita and is a major player in the global oil industry.

It currently holds around 7 percent of the world’s oil reserves and is one of the wealthiest nations in the region. But there is more to modern-day Kuwait than just oil. In this article, we will explore some of the exciting investment opportunities that Kuwait has to offer.

Exploring Kuwait’s Economic Opportunities

There are plenty of reasons why Kuwait should be on the radar of investors. Thanks to its long history of oil production, Kuwait has benefited from a stable economic foundation on which to build further prosperity. Here are some of the economic opportunities Kuwait has to offer:

Infrastructure Development. Kuwait’s government is making enormous investments in infrastructure projects, aiming to build a new subway system and modernize its airport in the coming years.

Oil-backed economy. While Kuwait makes gains in developing other economic sectors, its significant oil reserves provide investors with a stable economic foundation for investment.

Politically stable. Kuwait ranks well in terms of political stability, providing a beacon of security among the turbulent political climates of other countries in the region.

Business-friendly. Kuwait has created a business-friendly atmosphere, with its open economy characteristics, favorable taxes, and an active venture capital market.

Kuwait’s Most Well-Developed Sectors

Kuwait boasts a diversified economy and is home to some of the most innovative start-ups and modern business ventures in the Middle East. The government has made considerable strides towards liberalizing the economy, making it easier to invest and start businesses. Let’s take a look at some of the most profitable opportunities (outside of the oil sector) in Kuwait.

Renewable Energy

With the increasing demand for electricity and the growing threat of global warming, Kuwait has invested heavily in renewable energy sources. With a goal of 15% of its energy needs being supplied by renewable sources by 2030, solar and wind projects are featuring prominently in Kuwait’s energy sector.

Finance

Kuwait boasts a flourishing banking sector, making it an attractive option for investors looking to take advantage of its highly competitive financial services industry. Regional and international banking institutions are well-established here, so businesses in the finance domain will find all that they need to explore the market.

Technology

As the government seeks to digitize the nation’s healthcare system and bring its other industries up to international standards, technology and ICT companies are finding excellent opportunities for growth in Kuwait. Cybersecurity, mobile application development, and software development are some of the most in-demand industries in the country.

Real Estate

Although Kuwait is a small nation, demand for housing is beginning to pick up pace. The government has recently started to devote its resources to the development of this sector, creating even more attractive opportunities for investors.

Kuwait’s Trade Relationship with Saudi Arabia

Kuwait and Saudi Arabia have a long history of trade ties, with Kuwait often serving as the gateway to regional markets. The two countries share many cultural and economic similarities, making Kuwait an ideal partner for Saudi businesses and investors.

The United Nations COMTRADE database on international trade has revealed that Saudi Arabia’s imports from Kuwait totaled US$566.55 million in 2021, and in the same year, Kuwait imported US$149.89 Million in goods from Saudi Arabia. KSA primarily imports petroleum-related products, paper, iron, and steel from Kuwait, whereas Kuwait largely imports Saudi dairy products, plastics, and soaps.

Kuwait: A Strategic Investment Hub

For investors with an eye for the Middle East, Kuwait is an obvious choice. With its strong economic fundamentals and strategic location, Kuwait provides investors with a stable opportunity to diversify their portfolios. Non-GCC, foreign-owned companies can own 100% of their subsidiary in Kuwait with approval from the Kuwait Direct Investment Promotion Authority (KDIPA). Alternatively, non-GCC foreign investors may join forces with a local Kuwaiti partner and own up to 49% of the company. There is no double taxation treaty between Kuwait and KSA, however, Gulf nationals are not required to pay corporate or personal income tax in Kuwait. Except for the requirement to retain 5% of the contract or transaction value by entities in Kuwait on payment to any incorporated body (which will be released at the presentation of a tax clearance certificate), Kuwait does not have any other form of withholding tax regime on payments made by residents to a non-resident.

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