The legal protection of private foreign investment in the state of Kuwait
Chapter III is dedicated to the discussion of the regulation of foreign investment under the Kuwaiti Commercial Laws (KCLs) concerning foreign investment, forms and legal procedures for establishing such investment in Kuwait and the appropriate legal forms for establishing private foreign investment in Kuwait are also examined. In addition, the incentives that are offered to foreign investors, according to KCLs and double taxation treaties, to which Kuwait is a party in Kuwait territory, are examined here. Chapter IV is devoted to discussing the scope and standards of protection of private foreign investment under international law, in addition to Kuwaiti domestic law. The substantive provisions on the protection of foreign investment through bilateral and multilateral investment agreements, to which Kuwait is also a party, is focused on in this Chapter. Non-commercial risk is considered the most unpredictable risk which may affect foreign investment in the host country and thus, foreign investors usually seek to insure their investments against non-commercial risk under a guarantee scheme to which the host country is a party. Because of the fact that Kuwait is a contracting party to the Inter-Arab Investment Guarantee Corporation of 1974, and the Convention on the Multilateral Investment Guarantee Agency of 1985, the most important provisions of these schemes are discussed in Chapter V. In addition, since the Kuwait government and United States have acceded to the 1989 Agreement on Investment Guarantees, which provides guarantee for American private investments in Kuwait against non-commercial risks by Overseas Private Investment Corporation (OPIC), close attention will be provided to this scheme in this Chapter. Since the availability of effective, independent, impartial and appropriate mechanisms in resolving investment disputes is considered to be a fundamental guarantee for the protection of foreign investment, the mechanisms for the settlement of disputes arising out of, or in connection with, foreign investment in Kuwait are highlighted in Chapter VI. The general conclusions and evaluations of the study are aired in Chapter VII.