Al-Jazzaf to 'Al-Siyasa': 'Combating Commercial Concealment' Cleans the Business Environment

He considers it among the protective barriers for markets

By Naji Balal

Economist and member of the Kuwait Economic Association, Sultan Al-Jazaf, affirmed that the issuance of Law No. 78 of 2026 on “Commercial Cover-up” represents a strategic step at a critical juncture, as it directly shifts the state from a crisis diagnosis approach to strict legislative and supervisory implementation.

Al-Jazaf noted that the Commercial Cover-up Law, scheduled to take effect in February 2027, will contribute to creating a fair and competitive environment that will positively reflect on the credit rating and investment attractiveness of the Kuwaiti market compared to other economies in the region.

He viewed the new law as an indispensable pillar within a comprehensive vision for financial and institutional reform adopted by the government to cleanse commercial sectors from the arbitrariness that prevailed for many years. He pointed out that cleaning the market restores credibility for serious investors and opens closed doors to national capacities that have suffered greatly from unequal competition with entities managed covertly under borrowed names, which add no real value to the national economy but instead rely on exploiting government facilities without achieving sustainable development that impacts GDP.

Al-Jazaf stressed that the success of this radical transformation depends primarily on the efficiency and readiness of the executive and supervisory authorities tasked with implementing the law on the ground, given that strict laws alone cannot change a commercial culture entrenched over decades unless supported by advanced supervisory bodies capable of detecting financial manipulation and unraveling complex ties between license holders and actual beneficiaries. He emphasized the need to move away from traditional bureaucracy and replace it with full digital transformation and automated integration among all government ministries and institutions concerned with the business sector.

Al-Jazaf also addressed the other side of the equation, namely how to address illegal practices by imposing a complete ban on conducting economic activities in the name of others and approving a package of aggravated penalties, including long prison sentences, hefty financial fines, and firm supplementary measures such as confiscation of assets and facilities, and permanent revocation of licenses. He noted that this legislative severity must be accompanied by procedural flexibility to avoid sudden shocks in supply chains or shortages in skilled labor that some vital sectors in the market depend on.

Al-Jazaf highlighted the necessity of establishing smart mechanisms to ensure that sectors and shops operating under cover-up arrangements transition to a legal status through incentive measures and streamlined procedures for transferring ownership and establishing companies for actual stakeholders. This would maintain business continuity and protect local markets from artificial inflation waves or sudden spikes in goods and services prices resulting from the random and unregulated exit of some entities from the market.

Al-Jazaf concluded his perspective by emphasizing the importance of launching large-scale awareness campaigns involving commercial chambers and public benefit associations to clarify the dimensions and benefits of Law No. 78 of 2026, ensuring all parties understand their rights and obligations before the final implementation deadline in February 2027. This would contribute to building a genuine partnership between the public and private sectors, laying the foundation for a robust national economy capable of confidently and effectively facing future challenges.