In a decisive move to support the local steel industry, Kuwait Customs Authority has raised import duties on steel products, including rebar and wire rod, from 5% to 10%. This measure, originally introduced earlier this year, is set to continue for an additional year, reinforcing the government's commitment to enhancing local steel production capabilities.
The decision, announced by Abdullah Al-Sharhan, Director General of the General Administration of Customs, is part of a broader initiative to reduce reliance on foreign steel and stimulate the domestic industry. This move follows the guidelines established in Customs Instructions No. 2 of 2023 and is supported by recent communications from the Ministry of Finance and the Gulf Cooperation Council’s Financial and Economic Cooperation Committee.
While the extension has been applauded by local steel manufacturers who view it as a boon for competitiveness and job creation, the reaction from importers and construction firms has been mixed. These stakeholders express concerns that the increased duties may lead to higher costs and project delays, potentially impacting their operations.
The Customs Authority has underscored that this extension is provisional and will be subject to periodic reviews to gauge its effects on the market. Industry participants are encouraged to provide feedback to inform future policy adjustments.
This policy move highlights Kuwait’s strategic effort to fortify its industrial sector amid fluctuating global steel market conditions, reflecting a broader aim to ensure economic stability and resilience.
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