Ministry of Commerce Adopts 3 Initiatives to Encourage the Private Sector to Enhance Integrity

The Ministry of Commerce and Industry continues to support efforts to enhance integrity within the private sector, through initiatives that combine the development of financial auditing, the enhancement of professional capacities, and the promotion of ethical practices in the business environment, alongside monitoring companies’ adherence to the principles and standards governing their performance.

The Ministry’s 2025 annual report shows that these efforts were part of three main initiatives under Kuwait’s National Strategy for Enhancing Integrity and Combating Corruption (2019–2025), aimed at encouraging the Kuwaiti private sector to contribute more significantly to this framework. The initiatives included practical measures such as coordination with the Kuwait Society of Accountants and Auditors, adoption of a dual certification and auditing mechanism for budgets, development of auditors’ capacities, and implementation of awareness and training programs.

The initiative focused on monitoring corporate governance principles and practices recorded a 95% progress rate in collaboration with the Capital Markets Authority, while working on developing electronic tools to monitor compliance and prepare periodic reports, thereby supporting continuous monitoring and enhancing procedural efficiency.

In detailing these initiatives, the Ministry of Commerce and Industry stated that the first initiative, which focused on reviewing accounting audit systems and procedures, was undertaken to enhance transparency and accountability in the private sector. This was achieved through the following steps:

1. Coordination with the Kuwait Society of Accountants and Auditors to strengthen the capacities of financial auditors through specialized workshops and training courses aimed at raising the level of financial auditing in the private sector.

2. Adoption of a dual certification and auditing mechanism for budgets. An agreement was reached to include the first certification of budgets by the Kuwait Society of Accountants and Auditors in accordance with internationally recognized accounting standards, to ensure the quality of financial auditing and reduce risks associated with irregular practices. This mechanism was adopted as an initial audit plan, with final certification issued by the Ministry of Commerce and Industry, thereby enhancing the efficiency of financial oversight and raising compliance levels with transparency standards.

The second initiative involved establishing an awareness and training program on ethical business practices. The Ministry stated that it implemented a series of awareness and training programs aimed at enhancing integrity in the business environment, including:

1. Issuing Ministerial Decision No. 159 of 2023 regarding the development of professional capacities for auditors, and mechanisms for qualification and continuous training.

2. Incorporating awareness campaigns on the Ministry’s social media platforms, in addition to preparing a guideline for integrity practices in the private sector.

3. Launching workshops targeted at Ministry staff responsible for auditing companies’ financial data, to enhance their knowledge of best practices in combating corruption.

4. The Ministry does not directly train the private sector; rather, it relies on relevant professional associations and the Chamber of Commerce and Industry to support and enhance professional competencies in the market.

5. The role of the Ministry of Commerce and Industry is to monitor and guide relevant public policies.

Regarding the third and final initiative, which focused on monitoring the implementation of corporate governance principles and practices, the Ministry stated that it took several measures in this regard, achieving a 95% progress rate in collaboration with the Capital Markets Authority. The most prominent of these measures included:

1. Working to include a query on the digital portal regarding companies’ compliance with governance standards as part of the license renewal procedures via the electronic portal, with the aim of building a database of companies implementing governance practices.

2. Cooperating with the Kuwait Society of Accountants and Auditors to include a query on companies’ application of governance standards when submitting and auditing initial budgets, with the aim of enhancing transparency and accountability in financial reports.

3. Establishing an electronic database to monitor companies’ compliance with governance standards and preparing periodic reports to measure compliance levels.