A group calling itself the Tawhid and Jihad group said it seized Ali Ahmad Musa who worked for a Kuwaiti company which transported goods to US occupation troops in Iraq.
In a video aired by Aljazeera, the group threatened to behead Musa within 48 hours unless the company withdrew from Iraq. It did not name the Kuwaiti company.
Thursday's warning comes a day after another Iraqi group killed two Pakistani captives who also worked for a Kuwaiti company.
Dozens of foreigners have been captured in Iraq. At least six have been executed while others have been released. Armed groups have increasingly targeted drivers and employees of foreign companies working in the country, accusing them of supporting the war.
The fate of three Indians, three Kenyans and an Egyptian captured last week is still unclear.