Counter-Trade Offset Program

In July 1992, the Government established the Counter-Trade Offset Program (CTOP).

Foreign contractors are required to invest 30% of the contract value of certain Government, Civilian and Defense contracts with a cumulative value in any one fiscal year of KD 1 million ($3.3 million) or more in approved projects in Kuwait and other GCC countries. The program is extremely complex and details are available at the commercial sections of the various embassies.

The main objectives of the CTOP are to provide new investment opportunities in Kuwait in collaboration with the local private sector, to help in the transfer of technology, to create educational and training opportunities for Kuwaiti nationals. The Program is administered by the CTOP Executive Office set up by the Ministry of Finance. One particular U.S. based defense contractor- Raytheon Company has started negotiations with the private sector on the construction of an aluminum plant as part of its offset program.