Have you ever thought of starting a business in Kuwait but weren’t sure whether doing so is a good idea? Or maybe you love the idea of starting a business but don’t know which Kuwait business ideas to explore.
When the Kuwait Government discovered that SMEs only contributed 3% of its GDP in 2016, it began to make plans to spur entrepreneurship and to help SMEs grow and innovate.
Given the general macroeconomic conditions in Kuwait and the government’s commitment to entrepreneurship, now is the best time to start your own business.
In this article, we will highlight some of the developments that make Kuwait a good place to start a business. And for those who are not sure what business to start, we will list some business ideas that you can consider.
Why should you start a business in Kuwait?
General macroeconomic conditions
Kuwait is the 30th richest country in the world with a GDP per capita of $35, 256, according to 2023 IMF data collated by Visual Capitalist, a data analytics company. This figure puts it ahead of Saudi Arabia, Japan, South Korea, Spain, Italy, Portugal, Cyprus, among others.
Since GDP per capita is a measure of purchasing power, a high GDP per capita is good news for those seeking to do business in Kuwait.
In addition, Kuwait is tax free. Not paying corporate income tax means you keep 100% of your net income and can reinvest it to grow quickly.
Kuwait is also the country with the third-highest internet penetration rate, according to data from Insider Monkey, a website providing investors with market data. This means ecommerce businesses and online payments can thrive in the country.
Recent developments
The main economic pursuit of the government is the New Kuwait 2035 vision, when Kuwait would be “a financial and trade center, attractive to investors, where the private sector leads the economy, creating competition and promoting production efficiency, under the umbrella of enabling government institutions,” according to H.H. Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, the Emir of Kuwait.
In pursuit of this goal, the government has taken lots of steps to encourage entrepreneurship and innovation.
The OECD (Organization for Economic Cooperation and Development) noted the simplification of regulations (making it easy to obtain business licenses) and the creation of industrial zones as two policies that have favored innovation in Kuwait.
The Oxford Business Group, an economic research firm, also noted the SME capacity development programs organized by the government in tandem with the World Bank, the amount of funds disbursed for SME development by the National Fund for SME Development, and the significant SME support following from COVID-19.
Furthermore, there are free trade zones, subsidies for targeted industries, an Export Development Center (to encourage export), an investment promotion agency, and innovation hubs (e.g.,Kuwait Business Center and the Kuwait Science and Technology Park).
Why wouldn’t you want to do business in this environment?
Kuwait business ideas
But what business should you start exactly?
There is no one size fits all answer to that question. Some of the factors to consider include your skills, interest, passion, location, capital, availability, among others.
However, a general list of some of the thriving businesses can spark ideas in your mind that you can go on and explore. Below is the list:
- Car wash: Per capita car ownership in Kuwait is one of the highest in the world.
- Restaurant, eatery, food truck, or catering business: In a country with many immigrants, giving people a taste of home away from home is a big business.
- Party rentals: Kuwaitis like to organize events, and supplying them the items they need to have a party is a good business idea.
- Event management: Beyond renting out party items, consider also planning the parties.
- Selling homemade sweets: Locals and expats love their sweets. The demand is high, so consider meeting some of it.
- Cooking gas refilling: Cooking gas is now the preferred energy source for cooking. Consider setting up a gas refilling stand in the neighborhood.
- Home-based child care: More women are entering the workforce. They need someone to take care of their children while they are away.
- Graphics design company: As SMEs adapt to the digital world, they will need expert graphic designers who can create eye-catching and effective business designs.
- Web design company: The web is the digital office. Helping businesses open their online office is a very profitable business in an SME-friendly country like Kuwait.
- Errands and delivery service: Many people will pay for the chance to have someone else run their errands for them (groceries delivery, taking clothes to the laundry, etc.). That’s a great business idea you might want to explore.
These are just a drop in the ocean of the numerous businesses you can start in this country.
Finally, whatever business you do will require that you have a dependable way to receive payments from your customers.
Kem is one company that has been working to make online payment seamless in Kuwait. With the Kem app, your offline customers can pay by scanning your printed QR codes on-site and online customers can make a P2P transfer or scan your digital QR code.
The use of QR codes has made payment instant, convenient, contactless, and safer. Your business can enjoy these benefits by registering an account with Kem.