Do not lease to his officials
Finally, the Anti-Commercial Concealment Bill has arrived, addressing one of the most draining files for the economy, damaging to competition, and harmful to the market’s reputation. This law does not target the honest resident who operates within the regulations, nor the foreign investor who enters through legal channels; rather, it targets a phenomenon long known to all, ignored by some for decades, and paid for by many. Years ago, I wrote on several occasions about the phenomenon of renting out commercial licenses, warning that it is not easy income as some believe, but rather the beginning of a long road that may end in court or even prison. During my time in the banking sector, I encountered numerous cases where citizens lent their names and commercial licenses to others in exchange for a monthly fee. They believed they were merely renting a license, but in reality, they were also lending their legal liability. As soon as a crime such as money laundering, issuing post-dated checks without sufficient funds, tax evasion, fraud, or financial violations occurs, the first person summoned by the authorities is the official license holder, not the exploiter who may vanish in an instant. How many individuals began their journey seeking additional income of just a few hundred dinars, only to end up facing lawsuits, travel bans, asset freezes, and perhaps prison sentences, because the law viewed them as the true merchants, while the actual concealer remained a ghost difficult to reach.
Perhaps the most dangerous aspect of commercial concealment is that it wrongs everyone. It wrongs the compliant merchant who competes against those who do not bear regulatory costs; it wrongs the state, which loses part of its rights and fees; it wrongs the consumer, who may deal with establishments whose actual management is unknown; and it even wrongs the citizen who lent his name to the license, believing himself exempt from responsibility. A healthy market is not built on aliases or formal fronts, but on transparency, disclosure, and accountability. Anyone wishing to engage in trade must do so in accordance with the law, whether they are a citizen or a licensed foreign investor. The sale and rental of names and licenses is a practice that not only harms the economy but also threatens confidence in the entire market.
As I mentioned, during my tenure managing difficult debts at the bank, I witnessed many cases where men suddenly found themselves under pressure, having signed facilitation and guarantee contracts for companies they managed or even owned, but which were effectively controlled by foreigners. Most, if not all, were ordinary, retired citizens. In one instance that became a cautionary tale, a bank manager ended up serving a five-year prison sentence. He had partnered with Asians in a contracting company he nominally owned, acting merely as a front for their operations. Later, he became a guarantor despite being an expert, but greed overcame him. The group entered numerous tenders, took advances, and disappeared. Our friend became entangled in contracts he did not know how to manage, guarantees were called in, checks were presented to the prosecution, and the outcome was disastrous.
This behavior continues to this day. Foreigners control sectors such as contracting, retail, and services by renting licenses from citizens. The number is not small. Not all of them are criminals; many work with integrity and honor, albeit in violation of the law. In sectors reserved for citizens, such as real estate and brokerage, during the real estate boom before 2008, many non-Kuwaiti engineers would buy and sell investment lands, build on them for their own account, and resell them using Kuwaiti citizens’ names. These individuals earned millions, while the citizens received crumbs. Some gave them power of attorney to operate and obtain facilities in their names. If things went well, no problem arose; but if things went wrong, and the citizen claimed the property and his company, the situation became dire. I recall contracting with a construction company to build a building twenty years ago. The contractor submitted all the proper documentation. Halfway through the project, I found a citizen sitting in the office claiming he was the contractor. It turned out the group had deceived and abandoned him. He was a good man; I accepted the assignment from him, accounted for the completed work, and overlooked the amounts his partner had received without delivering corresponding work. I resolved the matter with minimal loss, and I was fortunate that this man was honest and willing to settle. However, I later learned that the owners of other suspended projects were not so forgiving, and their stories ended in tragedy. Similar tales have repeated many times.
As I mentioned, I wrote several articles over the past ten years, advising and warning. Fortunately, our wise government is now moving legislatively in the right direction, preserving business stability and protecting rights. Therefore, approving this law is an important step. However, its true success will only be achieved through changing the prevailing culture that considers renting out licenses a normal practice. A commercial license is not merely an asset to be rented; it is a legal trust involving ethical, financial, and criminal responsibility. In the end, money obtained without effort may cost you all the reputation and peace of mind you have accumulated, bringing legal responsibility upon you within hours.
Sincerely,
Adnan Abdullah Al-Othman
