KDIPA Suspends Foreign Investor's Licence Over Kuwaitisation Breach; Four Firms Hit in Two Weeks

The Kuwait Direct Investment Promotion Authority (KDIPA) has temporarily suspended the investment licence of a foreign power-sector investor for failing to meet the Kuwaiti-national workforce ratio attached to its licence — the latest in a wave of enforcement actions that has touched four foreign companies in roughly two weeks.

The suspension was formalised by Ministerial Decision No. 207 of 2026, issued by the Minister of State for Economic Affairs and Investment in his capacity as Chairman of KDIPA, and published in the Official Gazette (Kuwait Al-Youm), Issue No. 1793, dated 31 May 2026, at page 76. The decision names the investment entity “Shanghai Engineering Company for Electric Power Transmission and Distribution Limited” (commercial licence 4728/2017; investment licence 24/2017-T1) and cites a breach of licence conditions for not employing the agreed number of national workers.

The decision rests on follow-up and audit reports dated 23 December 2025 and 14 April 2026 and a KDIPA board resolution taken at its meeting No. 1/2026 on 16 April 2026. The entity has been ordered to submit proof that the violation has been remedied no later than 7 July 2026; failing which it becomes exposed to the more severe penalty under Article 32 of the Direct Investment Promotion Law No. 116 of 2013.

Local press (Times Kuwait, 1 June 2026) reported that KDIPA had, in the same short window, cancelled the licences of three further foreign companies following similar compliance reviews — signalling a clear shift from incentive-led promotion toward active, audit-driven oversight that links investment privileges to measurable national-economy contribution, including Kuwaitisation and knowledge transfer.

For foreign investors operating under a KDIPA licence, the message is direct: the national-workforce undertakings given at licensing are now being tested against audit evidence, and remediation windows are short. Affected entities should treat a suspension notice as a time-critical matter requiring an immediate compliance and representation strategy.

Sources: Kuwait Al-Youm, Issue 1793, 31 May 2026, p.76 (Ministerial Decision No. 207/2026); Times Kuwait, “KDIPA suspends, delists four foreign companies within two weeks”, 1 June 2026.