Law to Combat Commercial Concealment
Ali Al-Khalidi: The Council of Ministers has approved a draft decree-law on combating commercial concealment, a step aimed at strengthening the regulatory framework governing economic activity, consolidating the principles of transparency and fair competition, and curbing practices that disrupt market balance, thereby contributing to the protection of the national economy and achieving sustainable development. The project, which the Council approved in its meeting chaired by His Highness Sheikh Ahmad Abdullah Al-Jaber Al-Sabah on Tuesday, prohibits enabling any person to conduct any economic activity on behalf of another or outside the scope of the license granted to them, and it was forwarded to His Highness the Amir of Kuwait.
A senior source told Al-Qabas that the law on combating commercial concealment specifically targets the phenomenon of “embedding foreign nationals in commercial licenses.” The draft decree-law prohibits any person, natural or legal, from enabling foreigners to violate this prohibition through commercial concealment, including by allowing them to use the trade name, license, issued approval, commercial register, or any other means that enables them to conduct the activity in violation of the law.
The source clarified that the law defines commercial concealment as enabling a foreigner, whether a natural or legal person, to conduct any economic activity that is prohibited for them to practice under the provisions of laws or effective decisions in the State, whether on their own account or in partnership with others, or enabling them to conduct the economic activity in violation of legal provisions or license conditions. The draft decree-law also defines “foreigner” as any natural or legal person who does not hold Kuwaiti nationality and does not enjoy the legal treatment accorded to Kuwaitis, in accordance with the laws and regulations in force in the State of Kuwait.
The issues the law aims to address include the monopolization of certain sectors, which hinders the entry of new investors and reduces competition opportunities, as well as obscuring the true identity of actual business owners, which limits the ability of regulatory authorities to monitor these activities and collect their entitled fees and taxes.
