'National Competition Policy' Project in Final Stages ... at a Cost of 8.6 Million Dinars
Aiming to boost the inflow of foreign capital and create an investment environment that curbs monopolistic practices
By Najiha Bilal
The government has made significant progress in its economic reform agenda. Official documents obtained by Al-Siyasa reveal that the implementation of the “National Competition Policy” project has reached 96%, paving the way for the announcement of its final outputs and full completion by the end of 2026, with a total allocated cost of 8.6 million dinars.
This governmental step marks a milestone in the broader economic reform train. It aims to address the decline in foreign direct investment (FDI) rates through radical measures. Through this project, the state seeks to break the shackles of monopoly that have long hindered the flow of foreign capital, undermined free competition, and reduced incentives for new investments, thereby creating substantial barriers that prevented investors from entering local markets.
According to the same documents, this project lays the foundation for an economic era based on transparency and equal opportunity. Kuwait aims to tackle bureaucracy by providing faster facilitations for businessmen and enhancing market governance, thereby strengthening its competitiveness to attract direct investments and emulate the dynamic economic activity in the region. The document further states that the project’s outputs are based on in-depth sectoral and field studies of Kuwait’s market structure, followed by a package of legislative and regulatory measures. These include updating laws and regulations and government measures to ensure flexibility and alignment with international standards, as well as stimulating the business environment to encourage vibrant interaction among all companies and commercial institutions to guarantee equal opportunity. The project will also facilitate market entry by removing bureaucratic and structural barriers for new investors and startups. At the same time, it emphasizes that the National Competition Policy will deter violators by imposing strict penalties to prevent anti-competitive behaviors, such as illegal price-fixing cartels, while ensuring effective governance and driving sustainable development.
In the same context, an economic source confirmed to Al-Siyasa that the implementation of the National Competition Policy represents the cornerstone for protecting local markets from structural imbalances. This step directly contributes to building a fair and stable investment environment that guarantees equal opportunity and limits harmful monopolistic practices.
The source pointed out that the strategic importance of this project lies in curbing inflation and stabilizing prices by preventing dominant companies from imposing unjustified prices, thereby protecting consumers’ purchasing power from artificial price hikes. Furthermore, free competition contributes to improving quality and motivating companies to continuously develop their products and services to maintain their market share, while also granting consumers greater flexibility in choice.
Elaborating further, the source explained that this project serves as a mechanism to attract capital, as a fair and transparent legislative environment constitutes the strongest incentive for the flow of both foreign and domestic investments, driven by investors’ confidence in the protection of their rights and the fairness of market-regulating laws. Additionally, the project represents a key tool for empowering small enterprises and diversifying economic sources by breaking monopolies. Strict laws prevent major entities from imposing insurmountable barriers aimed at excluding startups or preventing them from entering the market.
Key Strategic Objectives of the Project:
1. Transforming Kuwait into a regional financial and commercial hub attractive to investment.
2. Increasing local production and growth rates in non-oil sectors.
3. Empowering the private sector and effectively engaging it in the state’s economic activities.
4. Protecting consumer welfare by providing essential products at the highest quality and most competitive prices.
5. Preventing and penalizing monopolistic behaviors and anti-competitive practices.
6. Qualifying and training national cadres in accordance with global best practices.
