New Decree-Law Targets Unauthorized Business Activities By Expats

The Ministry of Commerce and Industry has finalized a new decree-law to combat commercial cover-up in Kuwait. This law aims to prevent expatriates and unauthorized entities from engaging in economic activities without proper licensing from the relevant authorities. The legislation reinforces the country’s commitment to fostering a transparent and fair business environment by prohibiting illegal business practices.

Stricter Measures to Prevent Commercial Violations

The law explicitly prohibits both Bedouns and expatriates from facilitating commercial cover-up activities. This includes:

• Using trade names, business licenses, or commercial registrations to operate illicitly.
• Providing false or misleading information to the authorities.
• Hindering official investigations by withholding necessary documents.

Judicial Oversight and Enforcement

Under Article 3, the Minister of Commerce or their designated representative will have the authority to appoint judicial police officers. These officers will be responsible for:

• Conducting inspections and oversight of suspected violations.
• Monitoring commercial activities for compliance with the law.
• Taking legal action against offenders.

Severe Penalties for Offenders

According to Article 4, violations of this law will attract penalties similar to those for fraud under the Penal Code. These may include:

• Business closure for entities found guilty.
• Deportation of expatriates violating the regulations.
• Public disclosure of final rulings on the Ministry of Commerce’s website to maintain transparency and deter future violations.

Enhancing Business Transparency in Kuwait

This decree-law is a crucial step in Kuwait’s economic reforms, aimed at:

• Safeguarding the local market from illegal business practices.
• Encouraging fair competition and a level playing field for businesses.
• Attracting legitimate investments by ensuring a regulated business environment.

The government’s strict enforcement of this law will strengthen Kuwait’s investment climate, ensuring compliance with legal business operations while protecting the national economy from fraudulent activities.