Minister of Commerce: Anti-Disguise Commercial Decree Establishes a New Phase of Transparency and Fairness in the Business Environment
The Minister of Commerce and Industry, Osama Al-Boudi, affirmed that the issuance of the decree-law on combating commercial concealment represents a qualitative legislative leap in the country’s journey to develop its economic environment. It embodies the state’s orientation toward entrenching transparency in the conduct of economic activities, thereby enhancing fair competition.
Minister Al-Boudi told the Kuwait News Agency (KUNA) on Monday that the decree protects the national economy and ensures that state benefits reach those who meet the eligibility criteria.
He clarified that the philosophy behind the decree-law goes beyond combating traditional forms of commercial concealment; it is based on entrenching the principle of disclosing the beneficial owner of a commercial activity. This aims to achieve equal opportunities and protect those who comply with the law from illegal practices.
He added that practical experiences over the past years revealed practices that exploited privileges and benefits designated to support small and medium-sized enterprises and other activities by concealing the beneficial owner or using third-party names.
He pointed out that this deprived rightful beneficiaries of their opportunities. Moreover, its impact extended to weakening the willingness of others to enter the market, as they perceived competition as predetermined in favor of non-compliant entities. This negatively affects the renewal and diversification of economic activity.
Minister Al-Boudi noted that the primary beneficiary of this legislation is every compliant entity that bears the cost of its compliance. Its impact is not limited to economic actors alone; a market where the true owner of the activity is known is a fairer market for all—whether for young men and women seeking legitimate opportunities or for society, as resources and benefits reach their intended targets.
He stated, “The impact of this legislative framework is not lost on consumers.” He added that clarity regarding the identity of the business owner is the foundation of trust in transactions. This makes the enforcement of rights, handling complaints, and ensuring product and service quality easier and more stable. Conversely, the absence of such clarity confuses consumers and prolongs the resolution of their legitimate rights.
He emphasized that the decree-law does not target a specific group nor discriminate between individuals. It applies to anyone who violates its provisions, regardless of their status or nationality, within a comprehensive legal framework that defines prohibited acts and delineates the responsibility of anyone who participates in, facilitates, enables, or benefits from them. It also grants competent authorities the necessary regulatory powers, in accordance with the guarantees stipulated by the law.
He noted that the Ministry will issue the necessary decisions to implement the provisions of the decree-law, ensuring procedural clarity, unifying implementation mechanisms, and facilitating compliance, while considering the stability of the business environment and supporting legitimate activities.
Minister Al-Boudi explained that the upcoming phase presents an opportunity to review and rectify existing situations, adding that addressing any current status is easier than dealing with it after implementation begins. He noted that the development of digital systems, data integration, and cooperation among relevant authorities make the picture of commercial activity more complete and transparent at each stage of implementation.
He indicated that the Ministry has made its advisory services available to anyone wishing to inquire about the provisions of the decree-law and review their status in light of them. He affirmed that market integrity affects every individual in society and that the Ministry welcomes feedback received through its available communication channels.
He pointed out that the Ministry is proceeding with implementing the tasks entrusted to it by the decree-law. He stressed that entrenching transparency is a regulatory effort supported by societal awareness, which begins with individuals realizing that lending one’s name or license is not a facilitation for anyone but rather a forfeiture of an opportunity that belongs to someone else.
The Minister of Commerce and Industry concluded that this legislation does not aim to restrict economic activity but rather to establish a business environment where success is based on efficiency and compliance.
He noted that the ministry will work in partnership with government entities and the private sector to implement its provisions, thereby enhancing investor confidence, safeguarding the state’s support and benefits allocated for their intended purposes, and giving new entrants the assurance that opportunities are available on an equal footing. This will help entrench a national economy where status is determined by achievement rather than by name.
