New law shines light on Kuwait shadow markets

Kuwait is implementing a new "Commercial Concealment Law" as a significant legislative step in its ongoing structural economic reforms. The legislation targets deep-rooted market distortions that have hampered the efficiency and natural growth of the local economy, a move widely welcomed by economists and investors.

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the state is taking serious and effective steps to address structural imbalances in the national economy. However, he emphasized the importance of involving private-sector experts in the drafting of the law.

Economic and real estate expert Qais Al-Ghanim praised the government's "serious and effective steps" to address national economic imbalances. However, he stressed the importance of involving private sector experts in the law's drafting process. Al-Ghanim noted that while the government aims to attract foreign investment, vital sectors like grocery stores, auto repair shops, and laundries face management challenges, often relying on experienced expatriates who contribute capital and expertise. He highlighted the need for regulations governing commercial relationships between citizens and residents to foster a better business environment.

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the government’s approval of the draft decree-law on combating commercial concealment represents a significant strategic step that directly serves the national economy.

Mohammed Al-Furaih, an economic expert and food security consultant, described the draft law as a "significant strategic step" for the national economy. He explained that the law directly combats the illegal practice of expatriate workers managing companies and shops for their own gain, paying only nominal annual sums to the citizens holding the licenses. Al-Furaih believes strict implementation will open new avenues for employment and investment for Kuwaiti youth, particularly in the small and medium-sized enterprises (SMEs) sector.

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The strict implementation of this law would create broad opportunities and open new avenues for employment and investment for Kuwaiti youth, particularly in the small and medium-sized enterprises (SMEs) sector.

Al-Furaih dismissed concerns that the law might negatively impact capital flows, asserting that combating commercial concealment would not undermine efforts to attract foreign direct investment (FDI). He pointed to Kuwait's existing comprehensive legislative framework for foreign investment. The law's objective is to create a more natural and sustainable economic growth pattern by ensuring that businesses are genuinely managed and operated by their license holders, thereby promoting fair competition and opportunities for local entrepreneurs.

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combating commercial concealment would not undermine efforts to attract foreign direct investment (FDI). He noted that Kuwait already has a comprehensive and independent legislative framework that regulates and supports foreign investment.