LOC12:12
09:12 GMT
KUWAIT, June 4 (KUNA) -- Kuwait is undergoing a significant wave of economic reform, with a strong government push to improve the business environment through legislative and regulatory overhauls.
These efforts aim to simplify procedures, reduce investor burdens, embrace digital transformation, and support sectors such as e-commerce and SMEs.
These initiatives align with the broader goals of New Kuwait Vision 2035, which seeks to diversify the economy, increase non-oil revenues, attract foreign investment, and create youth employment.
A key reform is Ministerial Resolution No. 74 of 2025, which allows a single business premises and unified address to be used for up to five licenses by individuals or entities with major stakes in subsidiaries or branches.
This decision addresses operational challenges faced by SMEs, especially those not requiring physical locations, while also enhancing government oversight.
Complementing this, the Smart License Project was launched in February; this unified digital license integrates all required business approvals with synchronized expiry dates.
It reduces the time and complexity of licensing, positions the Ministry of Commerce as the sole issuing authority, and links digitally with other agencies, an important step in Kuwait's digital transformation strategy.
The Electronic Real Estate Broker System, introduced by the Ministry of Commerce, transitions the real estate market from paper-based to fully digital processes.
It streamlines procedures, improves transparency, verifies actual property ownership, and centralizes transaction tracking.
To further support the digital economy, the Ministry finalized the draft law for Empowering Digital Trade, developed in consultation with 285 stakeholders and receiving over 5,600 responses, the draft achieved 82.2 percent satisfaction.
It sets a modern regulatory framework balancing consumer rights with service provider responsibilities, aligned with global standards.
In 2024, Decree-Law No. 106 amended the Companies Law to ease legal requirements for Limited Liability Companies (LLCs), which reduced quorum thresholds for Extraordinary General Meetings (EGMs) and authorized the Ministry of Commerce to convene EGMs if needed.
In line with global tax reforms, a new law introduced a 15 percent tax on multinational enterprise groups, which helps combat tax evasion and ensures Kuwait complies with international standards, creating a more predictable business environment for global investors.
The Capital Markets Authority (CMA) continues to modernize Kuwait's financial sector, and on May 15, 2025, Resolution No. 92 amended parts of the Executive Regulations of Law No. 7 of 2010 to develop post-trade infrastructure.
This is part of the CMA's broader Capital Market Development Program, which includes launching a Central Counterparty (CCP) and upgrading trading, settlement, and clearing systems to reduce systemic risks and attract diverse investment products.
To address Kuwait's housing needs, the Public Authority for Housing Welfare (PAHW) began implementing the real estate developer system in March 2025, contracting consultancy services for three residential sites.
The move supports sustainable housing development and strengthens the role of private developers under Law No. 118 of 2023, which enables real estate firms to participate in housing projects.
Minister of Housing Abdullatif Al-Meshari announced the mortgage law is nearing completion, with ongoing evaluations to finalize eligibility criteria.
During Gulf Housing Week, he affirmed Kuwait's commitment to implementing comprehensive housing legislation and enabling private sector involvement.
At the Kuwait New Economic Strategy 2025 conference, Minister of Commerce and Industry Khalifa Al-Ajeel reiterated the government's commitment to economic restructuring and diversification.
He highlighted a series of laws and initiatives, including the Public Debt Law, Real Estate Developer Law, Company Law amendments, and Smart License project, as indicators of progress in Kuwait's reform journey.
These reforms collectively aim to streamline business operations, encourage entrepreneurship, attract investment, and modernize Kuwait's economy.
With their implementation, Kuwait is positioning itself as a more agile, transparent, and investor-friendly market within the region. (end)
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