RESTRICTED
WORLD TRADE S/FIN/W/12/Add.41
4December 1997
ORGANIZATION(97-5348)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM KUWAIT
Initial Offer onFinancial Services
Addendum
ThefollowingcommunicationiscirculatedattherequestofKuwaittoMembersoftheCommittee
onTrade inFinancial Services.
_______________
TheState ofKuwait hereby submits theinitial offer onfinancial services under theGeneral
Agreement onTrade inServices.
Thisofferisconditional. TheState ofKuwait retains therighttomodify orwithdraw allor
parts ofitsspecific commitments onfinancial services atanytimethrough 12December 1997.S/FIN/W/12/Add.41
Page2KUWAIT
INITIAL OFFER ONFINANCIAL SERVICES
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
A.Acceptance ofdeposits and
other repayable funds from
thepublic(1) Unbound
(2) None
(3) Unbound except for:
-Foreign banks inwhich the
Government ofKuwait, orother
Kuwaiti financial orbanking
institutions areshareholders. A
prior decision oftheCouncil of
Ministers shall beneeded for
each case.
-Foreign participation inKuwaiti
banks should notexceed 40% of
their capital.
(4) Unbound except forthecaseindicated
initem(3)above.(1) Unbound
(2) None
(3) Unbound except asindicated in
item (3)inthecolumn (1)ofthis
sub-sector.
(4) Unbound except asindicated inthe
twocases initem(3)ofcolumn (1)of
thissub-sector.S/FIN/W/12/Add.41
Page3Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
B.Lending ofalltypes
including, inter alia,
consumer credit, mortgage
credit, factoring and
financing ofcommercial
transactions(1) Unbound except forthecaseof
participation insyndicated loans
through Kuwaiti banks orKuwaiti
investment companies.
(2) None
(3) Unbound except forthetwocases in
item(3)ofcolumn No.(1)of
sub-sector (A).
(4) Unbound except forthetwocases in
item(3)ofcolumn No.(1)of
sub-sector (A).(1) Unbound
(2) None
(3) Unbound except forthetwocases in
item (3)incolumn No.(1)of
sub-sector (A).
(4) Unbound except forthetwocases in
item (3)ofcolumn No.(1)of
sub-sector (A).
C.Financial leasing (1) Unbound
(2) None
(3) Unbound except forthefollowing:
- Thetwocases referred toinitem (3)
incolumn No.(1)ofsub-sector (A);
- theparticipation inaKuwaiti
investment company, provided thatthe
foreign participation (other thanGCC
citizens) should notexceed 49% ofthe
company 'scapital.
(4) Unbound except forthecases referred
toinitem(3)above.(1) Unbound
(2) None
(3) Unbound except forthecases referred
toinitem (3)ofcolumn No.(1)of
thissub-sector.
(4) Unbound except forthecases referred
toinitem (3)ofcolumn No.(1)of
thissub-sector.S/FIN/W/12/Add.41
Page4Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
D.Allservices relevant to
payments andtransfers(1) Unbound
(2) None
(3) Unbound except forthefollowing:
- Thetwocases referred toinitem (3)
ofcolumn No.(1)ofsub-sector (A);
- theparticipation inaKuwaiti exchange
company, provided thattheforeign
participation (other thanGCC citizens)
should notexceed 49% ofthe
company 'scapital.
(4) Unbound except forthecases referred
toinitem(3)above.(1) Unbound
(2) None
(3) Unbound except forthecases referred
toinitem (3)ofcolumn No.(1)of
thissub-sector.
(4) Unbound except forthecases referred
toinitem (3)ofcolumn No.(1)of
thissub-sector.
E.Guarantees and
commitments(1),(2),(3)and(4)areidentical tothe
sub-sector (C).(1),(2),(3)and(4)areidentical tothe
sub-sector (C).S/FIN/W/12/Add.41
Page5Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
F.Trading forownaccount
orfortheaccount of
customers, either inthe
financial market,
over-the-counter or
otherwise asfollows:
-Money market
instruments (cheques,
bills, certificates of
deposits, etc.)
-Foreign exchange
-Derivative products,
including -butnot
limited to-futures
andoptions
-Exchange rateand
interest rate
instruments, including
products such as
swaps, forward rate
agreements, etc.
-Transferable securities
-Other negotiable
instruments and
financial assets,
including dealing in
goldbullions(1),(2),(3)and(4)areidentical tothe
sub-sector (C).(1),(2),(3)and(4)areidentical tothe
sub-sector (C).S/FIN/W/12/Add.41
Page6Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
G. Participation inissues of
allkinds ofsecurities,
including underwriting
andplacement asagent
(whether publicly or
privately) andthe
provision offinancial
services related tosuch
issues(1) Unbound
(2) None
(3) Unbound except forthefollowing:
-Thetwocases referred toinitem (3)in
column No.(1)ofsub-sector (A);
-theparticipation inaKuwaiti investment
company, provided thattheforeign
participation (other thanGCC citizens)
should notexceed 49% ofthe
company 'scapital;
-theunderwriting andtheexchange of
foreign securities (shares, bonds, mutual
funds units, etc.) areallowed inKuwait
through aKuwaiti agent, onlyafter the
necessary licence isissued bythe
Ministry ofCommerce andIndustry,
andafter approval oftheCentral Bank
ofKuwait ifthatagent isunder the
supervision oftheCBK.
(4) Unbound except forthecases referred toin
item(3)above.(1) Unbound
(2) None
(3) Unbound except forthecases referred toin
item (3)incolumn No.(1)ofthis
sub-sector.
(4) Unbound except forthecases referred toin
item (3)ofcolumn No.(1)ofthis
sub-sector.S/FIN/W/12/Add.41
Page7Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
H. Speculations inmoney
markets(1),(2),(3)and(4)areidentical tothe
sub-sector (C).(1),(2),(3)and(4)areidentical tothe
sub-sector (C).
I. Management ofassets,
such asmanagement of
portfolio investments,
liquid assets, allforms of
collective investments,
pension funds and
investment trustee
services.(1),(2),(3)and(4)areidentical tothe
sub-sector (C).(1),(2),(3)and(4)areidentical tothe
sub-sector (C).
J. Settlement andclearing
services forfinancial
assets, including
securities, derivative
products, andother
negotiable instruments(1) Unbound
(2) None
(3) Unbound except fortheparticipation ina
Kuwaiti company licenced toexercise the
same activity, provided thattheforeign
participation (other thanGCC citizens)
should notexceed 49% ofthecompany 's
capital.
(4) Unbound except forthecasereferred toin
item(3)above.(1) Unbound
(2) None
(3) Unbound except forthecasereferred toin
item (3)ofcolumn No.(1)ofthis
sub-sector.
(4) Unbound except forthecasereferred toin
item (3)ofcolumn No.(1)ofthis
sub-sector.S/FIN/W/12/Add.41
Page8Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
K. Advisory andother
auxiliary financial
services onallthe
activities listed in
Article 1Bof
MTN.TNC/W/50,
including credit analysis,
researches, investment
andportfolio research
andconsultations on
acquisitions andon
corporate restructuring
andstrategy(1),(2),(3)and(4)areidentical tothe
sub-sector (J).(1),(2),(3)and(4)areidentical tothe
sub-sector (J).
L. Provision andtransfer of
financial information,
andfinancial data
processing andthe
related software by
suppliers ofother
financial services(1) Unbound except fortheprovision and
transfer offinancial information supplied
directly from abroad tothesubscribers in
Kuwait.
(2) None
(3) Unbound except fortheparticipation ina
Kuwaiti company licenced toexercise the
same activity, provided thattheforeign
participation (other thanGCC citizens)
should notexceed 49% ofthecompany 's
capital.
(4) Unbound except forthecases referred toin
items (1)and(3)above.(1) Unbound except forthecasereferred toin
item (1)incolumn No.(1)ofthis
sub-sector.
(2) None
(3) Unbound except forthecases referred toin
item (3)ofColumn No.(1)ofthis
sub-sector.
(4) Unbound except forthecases referred toin
items (1)and(3)ofcolumn No.(1)ofthis
sub-sector.