logo
Kuwait introduces tax rules, expects $820m in revenue

Kuwait introduces tax rules, expects $820m in revenue

Arabian Business11 hours ago
The Kuwait Ministry of Finance has issued a landmark decree introducing executive regulations for taxing multinational enterprise (MNE) groups — marking a major step in the country's economic reform agenda and commitment to diversifying income beyond oil revenues.
The decree (No. 55 of 2025) implements Law No. 157 of 2024, which brings Kuwait in line with the OECD's Pillar Two global minimum tax framework through the introduction of a Domestic Minimum Top-up Tax (DMTT).
According to the Ministry, the new regulation clarifies legal provisions, outlines implementation mechanisms, and enhances transparency in accordance with international best practices.
New Kuwait tax rules
The Ministry said the move aligns with Kuwait Vision 2035, which aims to build a more diversified and resilient economy.
Finance Minister and Minister of State for Economic and Investment Affairs, Eng. Nora AlFusam, said the regulation is pivotal for creating a fair investment environment and enhancing tax justice.
She added that expected annual revenues from the tax could reach around KD250m ($820m), helping build a resilient and sustainable economy.
The Ministry of Finance will organise a series of awareness workshops to help explain the new tax law and its executive regulations to relevant stakeholders, ensuring smooth implementation and full compliance.
The tax applies specifically to large multinational groups operating in Kuwait, in accordance with global tax fairness principles outlined by the Organisation for Economic Cooperation and Development (OECD).
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Family Office Summit's Obediah Ayton on trends impacting generational wealth transfer
Family Office Summit's Obediah Ayton on trends impacting generational wealth transfer

Gulf Business

time26 minutes ago

  • Gulf Business

Family Office Summit's Obediah Ayton on trends impacting generational wealth transfer

Image: Supplied At the recent Family Office Summit in Abu Dhabi, global investors managing over $500bn in assets gathered to exchange ideas, explore partnerships, and chart the future of wealth. From next-gen leadership and gender diversity to wealth tech and sustainability, the summit reflected a key shift in how family offices are evolving — both globally and in the UAE. In this interview with Gulf Business , the summit's chairman Obediah Ayton unpacks the most significant takeaways and explain why Abu Dhabi is fast becoming the world's most influential platform for private capital. The Family Office Summit in Abu Dhabi brought together global investors and family offices. What were the key takeaways from this year's summit that signal a shift in how family offices are positioning themselves globally — and particularly within the UAE? Key takeaways from our summit in May held in Abu Dhabi were that the interest in the buzzword 'family office' is definitely there, in addition to the UAE being the most central platform on the globe today, with the progressive regulatory environment, recent banking credibility, and immense human capital concentration. The summit highlighted the growing role of next-generation and female leaders in reshaping family offices. How is this demographic transformation influencing governance, investment strategies, and the long-term legacy vision of these entities in the region? We currently live in a world of quick money wins with tech stocks, crypto and geopolitical profits. The young leaders are driving future-ready investment strategies, with bold allocations into venture capital, digital innovation, sustainability, and private equity. They are embedding technology, such as AI, into decision-making processes and building more agile governance structures that ensure long-term growth and resilience. Women per se are helping family offices adopt more forward-looking investment approaches, embrace innovation, and strengthen legacy planning. They tend to prioritise impact, sustainability, and long-term outcomes, areas that are gaining traction globally. Traditional roles are evolving. In family businesses and offices, daughters are increasingly being given equal or even leading responsibilities in managing wealth, investments, and governance. Digital innovation and tech-driven investing emerged as dominant themes. With 79 per cent of next-gen investors in the Middle East seeing high potential in the tech sector, how are family offices adapting their models to be more innovation- and sustainability-focused? Wealth tech is continuing to steal the show at our summits. One Swiss wealth tech firm recently signed one of UKs biggest multifamily offices, to progress the digitisation of portfolio management and real time asset value. Imagine a bank account that shows a live value of your house, your car, your stocks, your currencies all in one place. Presenting reports to principals with a nice UX design which makes even challenging months far easier to navigate than traditional Excel spreadsheets. How is Abu Dhabi's rise as a hub for private capital, venture investment, and wealth dialogue reshaping regional and global capital flows? What makes the emirate a compelling base for new-generation family offices and sovereign capital alike? Abu Dhabi is home to the biggest sovereign funds on the planet, which can be intimidating for many in the private sector or overseas families, as not everyone invests billions or hundreds of millions. On the positive side, sovereign funds can now help de-risk investments by guiding families into new industries, leading investment rounds, and managing DD. This support is especially valuable for family offices, as many do not have massive teams. From cryptocurrency businesses to green energy and healthcare, family offices are increasingly diversifying through alternative assets. What role do evolving regulatory frameworks, such as those introduced by the UAE's VARA, play in building trust and long-term value in these sectors? Regulation is the future of the UAE. With the introduction of corporate tax, financial disclosure and transparent bookkeeping have become mandatory — a move that is set to attract increased foreign direct investment (FDI) from credible international jurisdictions. As the Financial Times recently reported, Swiss family offices are relocating to the UAE, while US investors are acquiring land in Dubai to develop villas and golf courses. Why? Because the UAE now offers a high level of financial transparency, with audited accounts and internationally compliant structures under ADGM and DIFC jurisdictions. These highly regulated vehicles, operating under international law, give investors confidence and long-term security. FDI will continue to pour in for years ahead. The establishment of the UAE Ministry of Investment just over a year ago is a clear signal — the country is preparing for this next phase of global capital inflows. Looking ahead, what are your projections for the evolution of the family office landscape in the Middle East over the next five years — particularly in terms of intergenerational wealth transfer, technology adoption, and global collaboration? The Family Office Summit is an organic platform that is taking the long approach on event building. Our focus isn't on maximising attendance or stacking sponsor lists; instead, we prioritise meaningful connections, because ultimately, people invest in people and with time, the real value of these summits will emerge naturally.

Dubai Airshow 2025: Big players, top tech, aviation innovations unveiled
Dubai Airshow 2025: Big players, top tech, aviation innovations unveiled

Gulf Business

time26 minutes ago

  • Gulf Business

Dubai Airshow 2025: Big players, top tech, aviation innovations unveiled

Image credit: WAM/Website Registration is now open for the 19th edition of the Dubai Airshow, set to take place from 17 to 21 November 2025 at Dubai World Central. The landmark event returns with a focus on advancing innovation, enhancing connectivity, and shaping the future of the global aviation and defence sectors. Read- Building on its reputation as one of the world's most influential aerospace events, Dubai Airshow 2025 will serve as a critical platform for accelerating cutting-edge technologies and fostering cross-sector collaboration. The show will reflect the UAE's bold vision for aviation, aligning with the sector's rapid growth trajectory, According to recent data from the International Air Transport Association (IATA), the aviation industry contributes approximately $92bn to the UAE's GDP, accounting for 18.2 per cent of the total. The Middle East's commercial aircraft fleet is projected to grow by 5.1 per cent annually over the next decade, underlining the region's expanding role in global aviation. Global platform for transformation Major General Dr Mubarak Saeed bin Ghafan Al Jabri, Executive Director of the Military Committee organizing Dubai Airshow, emphasised the event's importance in spotlighting the UAE's leadership in both aviation and defence. 'As the industry evolves rapidly, the Ministry of Defence remains committed to building future-ready capabilities and fostering innovation,' he said. 'Empowering the next generation of talent is central to this vision, ensuring the UAE stays at the forefront of global development.' One of the highlights of this year's show will be a first-of-its-kind networking event hosted directly on the runway. Held in partnership with SkyDive Dubai, this exclusive gathering will bring together top international aviation figures in a dynamic setting that blends entertainment with informal engagement. Attendees can expect drone light shows, skydiving performances, live DJ sets, and premium hospitality experiences. First-ever night programming In a first for the Dubai Airshow, the 2025 edition will introduce night-time programming. Scheduled for the second day of the show, this unique experience will extend activities until 9:00 PM, giving attendees extra time to explore the static aircraft displays, attend evening receptions, and enjoy immersive aerial displays under the stars. The night programming is designed to deepen engagement while showcasing the sector's innovation in an entirely new light. Innovation, sustainability, and future talent Dubai Airshow 2025 will once again spotlight industry innovation and sustainability. As aviation organizations worldwide prioritize the transition to greener, more efficient technologies, sustainability will be a key theme across exhibits, panels, and features. The return of VISTA, the leading hub for aerospace start-ups, will highlight the role of emerging companies in transforming aviation and space. Alongside this, the NextGen Leaders Programme and the newly introduced Academy will provide professional development, mentorship, and hands-on training opportunities for aspiring industry professionals. The Aerospace Executive Club will convene senior leaders to discuss current trends, economic strategies, and global cooperation efforts. Delegates will benefit from curated programming and access to one of the industry's most comprehensive business matchmaking systems. Powered by AI through the official Dubai Airshow app, the system is designed to connect participants efficiently, fostering meaningful partnerships. Co-hosted by the UAE Ministry of Defence, Dubai Civil Aviation Authority, and the Government of Dubai, the show's extensive delegation programme will facilitate strategic engagement across civil, military, and commercial domains. Engaging the public: Skyview returns Skyview, the only event of its kind in the UAE open to the public, will also return for the 2025 edition. Expected to attract over 15,000 visitors across five days, Skyview will offer attendees exclusive access to live flying displays, interactive exhibits, and a variety of entertainment experiences. Global leadership and future outlook Timothy Hawes, Managing Director of Informa Markets, which organizes the event, emphasized the Airshow's pivotal role in shaping the aviation and defence sectors. 'Dubai Airshow has always focused on progress and connectivity,' said Hawes. 'The 2025 edition will be our most future-forward to date—uniting global industry players through meaningful initiatives that support innovation, education, and regional growth strategies.' He added that the show's youth engagement efforts are expanding through educational programmes, networking opportunities, and tech showcases aimed at inspiring the next generation of aviation professionals. With registration now open, stakeholders from across the global aerospace ecosystem are invited to secure their place at the Dubai Airshow 2025—an event poised to influence the next chapter of aviation, defence, and space innovation.

Chinese car brands gain ground in UAE's growing used vehicle market
Chinese car brands gain ground in UAE's growing used vehicle market

Gulf Business

time26 minutes ago

  • Gulf Business

Chinese car brands gain ground in UAE's growing used vehicle market

Sebastian Fuchs, managing director of AutoData Middle East. Chinese car brands are rapidly gaining traction in the UAE's used car segment, reflecting shifting consumer preferences and a broader realignment of market dynamics in the region, reveals Sebastian Fuchs, managing director of AutoData Middle East. Fuchs, whose firm operates the Vehicle Report platform, a data-driven tool launched last year to boost transparency and trust in used vehicle transactions, says Chinese brands are accelerating in both sales and long-term value retention. 'Chinese brands have notably accelerated, with Jetour growing 150.4 per cent YoY, becoming the 4th most popular brand,' Fuchs told Gulf Business . 'Among newer entrants, the Jetour X70S STD stands out with 88 per cent retention after one year and 82 per cent by year three, reflecting growing trust in competitively priced Chinese SUVs.' In Q1 2025, used car buyer demand has centred around models from 2015–2020 , priced between Dhs10,000 and Dhs90,000 , with sedans like the Toyota Camry and SUVs like the Nissan Patrol remaining top search choices. However, there's growing attention on newer electric and hybrid models, especially as more Chinese EVs enter the resale market backed by generous warranties. Read: 'Electric vehicles have also surged, growing 62.2 per cent YoY in Q1 2025, with Tesla leading the segment at 43 per cent market share,' Fuchs noted. 'Consumer confidence is backed by extended warranties, particularly from Chinese brands, offering up to 7-year or 200,000 km warranties.' Auto lending rates in the UAE have become more attractive, aided by Q4 2024 rate cuts in the US. 'Financing has become more attractive, with auto lending rates decreasing approximately 0.5 per cent. Banks have intensified promotions like limited-time 0 per cent financing offers with mandatory 20 per cent down payments,' said Fuchs. This environment, combined with an influx of residents ( Dubai added over 51,000 people in Q1 2025 ) is pushing demand for affordable mobility options. 'The UAE used car market is expected to remain on a strong growth path, driven largely by population growth,' he said. On pricing and consumer behaviour, the UAE diverges from other GCC markets. 'In 2025, UAE GCC-spec vehicles averaged Dhs 180,000 with a model year around 2019, compared to KSA's average of SAR130,000 (Dhs127,252) for 2020 models,' said Fuchs. 'UAE buyers are more digitally driven, with 83 per cent starting their search online… while KSA buyers still favour traditional dealerships.' Looking ahead, Fuchs expects geopolitical trade policies to impact inventory flows. 'Recent global developments, such as new US tariffs, could lower used car prices in the UAE by increasing availability and competition among European and Chinese automakers,' he said. As trust in newer brands and digital platforms increases, AutoData's Vehicle Report platform is tapping into a more discerning and digitally savvy buyer base. 'This behavior indicates a growing segment of consumers who favour independent sellers and online platforms that offer more transparency and variety rather than the traditional franchise route,' Fuchs added.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store