Doing Business in Kuwait

Expats doing business in Kuwait will find themselves in a tiny Gulf state that is also one of the wealthiest countries in the world, thanks to its oil reserves. Kuwait has an open economy, with low corporate tax rates and a well-educated workforce, predominantly made up of foreign workers to boot.

The centre of business is the capital, Kuwait City, with large industrial areas located in Shuwaikh, Sabhan, and Shuaiba. Home to around 10 percent of the world’s oil reserves, business in Kuwait is largely centred on the oil industry.

Other significant sectors include construction, finance, and water desalination. The country is also a major exporter of plant fertilisers, but aside from fishing, there is virtually no agricultural industry.

Fast facts

Business hours

The workweek in Kuwait is Sunday to Thursday, with the weekend falling on Friday and Saturday. Some companies may require a 48-hour workweek, meaning the workweek will be six days long, with Saturday as the official rest day.

Business hours are usually between 8.30am and 6pm, with an extended lunch break. Business hours are reduced during the holy month of Ramadan, so you should not expect to conduct important business during this time. Fridays are considered a day of rest, so we recommend scheduling business meetings for other days of the week.

Business language

Although English is widely spoken in Kuwaiti business circles, Arabic is the official language. Nevertheless, it will be appreciated if you can speak some Arabic, and it will be advantageous for you. Official documents and business contracts are written in Arabic. Although it’s possible to have the contract translated into English, should a dispute arise, the Arabic version will be the only one taken into consideration.

Dress

Business dress is conservative, and men should wear suits. While women are not expected to wear an abaya or hijab, they should cover up as much as possible and avoid wearing tight-fitting or revealing clothing.

Gifts

Gifts are not expected in Kuwaiti business circles but will be appreciated. In line with Islamic practices, alcohol and pork products should be avoided. Gifts are usually opened in private.

Gender equality

Although women are given greater freedoms than in some of Kuwait’s neighbouring countries, senior business positions are still dominated by men.

Business culture in Kuwait

Business culture in Kuwait is essentially Arabic. The majority of the local population is Muslim, and Islam dominates most facets of life in Kuwait, including business practices. We encourage you to familiarise yourself with local customs and business etiquette and show respect for them at all times.

Greetings

A handshake is a standard greeting between men. Muslim women will generally not make physical contact with men they do not know, so when greeting a woman, wait for her to extend her hand first. Titles are important; only use someone’s first name when invited to do so.

Family

Family is the centre of Kuwaiti society, and it’s not unusual to see many members of the same extended family all working within the same organisation. In line with this, Kuwaitis like to do business with those they know and trust.

Networking and taking time to build meaningful relationships with Kuwaiti associates will go a long way to conducting successful business. Small talk and getting to know one’s associates are expected at the start of a meeting, and it would be considered rude to go straight to business.

Titles

Titles and seniority are respected in Kuwaiti business culture. Business structures are hierarchical, and decisions are made at the top. You’ll need patience to get through business meetings with junior associates before finally meeting with the main decision-makers when you’re doing business in Kuwait.

At other times, the senior decision-makers may be present at a meeting but will have the junior associates conduct the conversation without contributing their thoughts upfront. Business decisions can therefore take time and should not be rushed.

Timing

It’s not unusual for business meetings to be frequently interrupted by visitors or phone calls. In addition, Muslims pray five times a day, so you should be aware of prayer times, as meetings and business engagements must be arranged around these times. Such disruptions can frustrate some foreign businesspeople, but impatience is frowned upon, and tolerance and courtesy are appreciated.

Saving face

Kuwaitis are known to be hospitable and generous hosts, but they are also fine negotiators and astute businessmen. Saving face is of the essence to Kuwaitis, who will not necessarily offer an outright ‘no’ when they cannot do something or are not interested in a business proposition. It is difficult to discern whether a business deal will likely succeed. When dealing with Kuwaiti business associates, expats should always remain calm and not show anger or frustration.

Dos and don’ts of business in Kuwait

• Do respect Islamic principles and practices. An effort to learn Arabic would also be well received.
• Do show respect for Kuwaiti business associates at all times. Never show anger or impatience in business meetings.
• Don’t rush business negotiations. Always have patience and expect decision-making to be a slow process in Kuwait.
• Do take the time to get to know Kuwaiti associates and build meaningful business relationships with them. Kuwaitis are more inclined to do business with those they know and trust.
• Do dress conservatively. Women should take particular care with their clothing, which should not be too tight or revealing.
• Do have business cards printed in both English and Arabic. Business cards should be given with the right hand.
• Don’t arrange business meetings on a Friday, as this is a day of rest and an important day of prayer for Muslims.