Full House

Kuwait Free Trade Zone (KFTZ) has everything an investor needs, except space

Kuwait is pursuing the benefits of privatisation

Long before Kuwait discovered and exported oil it had a free market economy based on trade and pearl diving activities. Today, the Gulf country is actively pursuing the benef its of privatisation, seeking to diversify away from oil, while remaining an active trade partner to its neighbours.

In such a strategically located country like Kuwait, the economic free zone concept has only enhanced established trade and commerce. Opening in 1999, Kuwait Free Trade Zone (KFTZ) remains the country’s sole free zone. Located within the Shuwaikh port, KFTZ encompasses approximately 900,000 sq feet, and comprises 40 warehouses owned by domestic and foreign investors in commercial, industrial, and service sectors. Shuwaikh Port itself is the main commercial port in Kuwait, and is located to the immediate northeast of Kuwait City.

As it is positioned near the Kuwait International Airport, Kuwait City and the Iranian border, KFTZ possesses an ample supply of energy, water and adequate transportation systems by sea, land or air. Additionally, with statutes allowing 100 per cent foreign ownership, no corporate tax, state-of-the-art communication systems, and relaxed policies on exchange of capital and profits outside the KFTZ, Kuwait understands what it takes to attract the investors.

“Kuwait is in the spotlight of many logistics players. However, it would take operators with considerable resources, integrated regional network and established infrastructure to tap into the market,” says Ronald Lichtenecker, Managing Director, GAC Kuwait.

Recently, KFTZ engaged in an expansive renovation and modernisation effort. With the privatisation of cargo and container handling, and computerisation of the tariff, financial and administrative systems, KFTZ’s Shuwaikh Port has become a more modern facility. The only problem is – no vacancy. Currently there is no space available in the KFTZ and the administration of customs has rendered operation there untenable. At this time, investors would probably be best advised to look elsewhere.

BERTH CONTROL 

Shuwaikh Port is considered the main commercial port in Kuwait. It has 21 berths of which 14 are 10 metres deep, four are 8.5 metres deep and three are 6.7 metres deep. The total length of the berths is 4,055 metres.