Kuwait has a small retail sector relative to the UAE or Saudi Arabia, but the sector is still attractive for investors as they see great opportunities due to changing consumer trends and increased preference for international food and modern shopping experiences.

Main Supermarket Chains

The Kuwaiti grocery and food retail sector is split among cooperatives (coops) run by the government, which held 55% of the grocery market and accounted for around 65% of food sales in 2018, privately-owned supermarkets and hypermarkets, as well as small shops. In fact, Kuwait is reported to have the lowest penetration rate of private sector supermarkets in the GCC region. However, this trend has been changing as the share of coops in the market has been diminishing in face of the growth of supermarkets.

Private supermarkets and hypermarkets bring convenience to customers by offering a wide range of imported products and an improved customer experience. Among the major ones are Carrefour and Marks & Spencer, operating separately in partnership with Majid El Futtaim Group, in addition to Geant, LuLu and Sultan Center (Source: Large-Format Retail Chains Expand in Kuwait Retail, Oxford Business Group, 2015).

E-commerce Trends

On the other hand, Kuwait enjoys the highest internet penetration rate in the Middle East, at 98%, and has been a pioneer in food digitization ever since 2004, with the establishment of the first food platform Talabat has now become a regional success (Source: Large-Format Retail Chains Expand in Kuwait Retail, Oxford Business Group, 2015). The growing popularity of online food marketplaces has indeed paved the way for other platforms. A few years back, Delivery Hero, one of the global leading delivery marketplaces, also embarked on the Kuwaiti market (Source: GCC Food Industry, Alpen Capital, 2019).

Kuwait’s Public Authority for Food and Nutrition (PAFN) is the official national entity mandated to ensure the safety of food supplies, and to control food producers, importers, and sellers in the country. PAFN is responsible for setting up food safety criteria and developing a national food and nutrition policy, promoting healthier eating habits and lifestyles, fighting malnutrition, and bringing down foodborne diseases.

The GCC Common Customs Law regulates customs procedures in Kuwait. Imports must be declared prior to the goods’ arrival, either by the owners of the goods or their authorized representatives or by licensed customs brokers who have to be GCC nationals. Non-GCC nationals can operate through the office of a licensed customs broker. The majority of import declarations, including licensing and certifications of origin, are done electronically through a system that identifies whether the goods are prohibited from importation, require special permission, or need an inspection. The “general” licensing system is requested for all goods coming from all countries (Source: World Trade Organization, 2007). Importers must be registered with the Kuwait Chamber of Commerce and Industry (KCCI) and must first obtain a commercial license, and then an import license, both licenses from the Ministry of Commerce and Industry (MCI), which is the only administrative entity responsible for issuing licenses (Source: Kuwait – Country Commercial Guide, International Trade Administration, 2021), (Source: World Trade Organization, 2007). Whenever the electronic system recognizes the need for special permission, it automatically identifies the competent agency authorized to issue the permit. Interestingly, a vast variety of agri-food products such as cereals, prepared foodstuffs, and beverages, do require that special permit (Source: World Trade Organization, 2007).

For all imports, Kuwait requires the authentication of documents like the commercial invoices, certificates of origin, health and halal meat certificates, and manifests by the Kuwaiti embassy or an assigned embassy in the exporting country (Source: World Trade Organization, 2007).

Import Documentation

When you are exporting agri-food products to Kuwait, you need the following documents for customs clearance:

• Certificate of Origin issued by the Chamber of Commerce and legalized by the Ministry of Foreign Affairs and the Kuwaiti Embassy in Lebanon.
• An original commercial invoice (in triplicate) attested by the Chamber of Commerce, and must state the country of origin, name of the carrier, brand, and quantity of goods, and description of the goods including weight and value.
• A bill of lading or airway bill.
• Pre-approval from the Ministry of Economy and Trade for certain products that were subject to government subsidies.
• Insurance documents, if shipments are sent CIF.
• Halal certificate for meat-based products.
• Packing list.
• Health certificate issued by the Ministry of Agriculture.
• Phytosanitary certificate for plant-based products such as fresh fruits and vegetables issued by Ministry of Agriculture.
• Certificate of Free Sale for novel food issued by the Ministry of Agriculture.

Labelling Requirements

Food labels must include the following :

• Product and brand names.
• Production and expiry dates.
• The batch number.
• Country of origin.
• Name and address of the manufacturer.
• Net weight in metric units.
• A list of the ingredients in descending order of importance.
• the nutritional information, the origin of animal fats, additives.
• Address of the manufacturer or packer.
• The storage/preparation/handling instructions.
• Labels must be in Arabic only or in Arabic/English.
• All meat and poultry products labels must be Halal certified (Source: Kuwait – Country Commercial Guide, International Trade Administration, 2021).
• The information must be in Arabic, but multi-lingual labels are also accepted.