Public Authority For Industry Completes Industry Law Amendment Project

The Public Authority for Industry, in collaboration with British consulting firm Maxwell Stamp and the Gulf Organization for Industrial Consulting, has finalized a project to amend the Industry Law. This endeavor is a crucial step toward drafting the National Industrial Strategy for the State of Kuwait 2035.

The initiative aims to regulate the industrial sector, foster industrial development, and incentivize industrial investment by introducing programs to encourage private sector participation in establishing and developing cities or industrial zones.

Key aspects of the amended law include empowering the authority to establish industrial projects vital to the national economy and to participate in their creation with capital or in-kind shares. Additionally, the law facilitates industrialists' financing of projects by enabling the mortgage of usufruct rights and facilities built on industrial projects, in coordination with the Industrial Bank of Kuwait.

The objectives of the authority encompass implementing economic development plans, enhancing local industries, increasing industrial sector contributions to national income, and fostering productivity development and competitiveness. The authority also aims to diversify the industrial base, support small and medium-sized industrial projects, and promote the production of strategic goods for food and health security.

Furthermore, the law grants the authority various powers, including the development of industrial strategic plans, conducting industrial surveys, establishing and managing industrial areas, and granting licenses for development or operations within these areas.

Importantly, industrial projects established in Kuwait benefit from customs duty exemptions on inputs necessary for production, in line with agreed-upon controls for exempting industry inputs from taxes. Priority for these benefits is given to projects contributing to natural resource exploitation, state-designated development areas, projects of economic significance, industries supporting drug sufficiency and food security, and those promoting environmental protection and technological innovation.

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