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Saturday , March 25 2023

Steps activated for Nuwaiseeb Free Trade Zone

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Shuwaikh contracts in renewal

KUWAIT CITY, July 13: Within the framework of implementing vital projects aimed at diversifying the economy by attracting foreign investments, government agencies took a step towards activating the establishment of a free trade zone in Nuwaiseeb area in the south of the country, reports Al-Rai daily. Informed sources said, “Kuwait, through the Ministry of Foreign Affairs, has addressed the Kingdom of Saudi Arabia to coordinate the implementation of the project.” This step was taken after some Chinese and Korean companies foresaw the opinion of the Kuwaiti side regarding investment in the free trade zone, which is planned to be established within the territory of Kuwait near its border with Saudi Arabia.

There were field visits made previously to a number of neighboring countries for attending specialized events, and reviewing some global experiences in the field of management of free trade zones. Kuwaiti-Saudi coordination regarding Nuwaiseeb aims at benefiting from the best experiences and practices in this regard, and maximizing the expected benefit from the implementation of the project.

Kuwait’s move towards Saudi Arabia is of particular importance, and indicates the possibility of accelerating the project implementation in the coming period. This is happening about six years after the Council of Ministers approved the establishment of a free trade zone in Nuwaiseeb, and defined the scope of its borders and coordinates.

The decision of the Council of Ministers in this regard was followed by assigning the Direct Investment Promotion Authority to temporarily manage the free trade zones stipulated in law No. 26/1995. The Direct Investment Promotion Authority (DIPA) has completed the economic and technical feasibility study for the Nuwaiseeb Free Trade Zone project, including all the necessary legal and regulatory perspectives with regard to the way it is managed, whether it should be privatized or not, and the type of appropriate economic activities. The sources stressed that the prepared feasibility study took into account the modern economic specifications for Nuwaiseeb to be a free trade zone comparable to the regional areas in terms of organization and service to investors.

They explained that the Fatwa and Legislation Department, a while ago, had confirmed the legality of assigning the administration of the free trade zone to a foreign entity, such as a specialized foreign company, in response to the question regarding the permissibility of granting a foreign entity (a state, entity or government company) the right to benefit from the allocated plot to establish the Nuwaiseeb Free Trade Zone. According to previous studies, the project is considered one of the most important projects in Kuwait, given that a railway is to be built next to the free trade zone, which will help in transporting goods to and from it, and transform it into an important regional commercial station.

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