Recently, Kuwait has initiated some significant economic liberalization initiatives.
Kuwait’s National Assembly enacted major reforms to the Commercial Law and Public Tenders Law, effectively removing the longstanding requirement for foreign companies to operate through local agents within the country.
On July 16, 2023, the Financial and Economic Affairs Committee of the National Assembly approved a decision, allowing foreign companies to establish branches in Kuwait and conduct business without the need for a local agent. This decision was ratified by the National Assembly on December 12, 2023, leading to substantial amendments in two key legal areas:
1. Public Tenders Law (Law No. 49 of 2016, Article 31): This amendment significantly alters the landscape of public tenders, which were previously dominated by local agents. Now, both Kuwaiti and foreign entities are on an equal footing, able to compete in the tendering process. This change fosters a more inclusive, competitive and transparent environment.
2. Commercial Law (Law No. 68 of 1980, Article 24): This reform allows foreign companies to establish branches and conduct their operations in Kuwait independently, without the need for a local agent. This amendment represents a major shift, enabling direct foreign investment and business activities in Kuwait.
The National Assembly’s reforms to enable independent operations of foreign companies are laudable and signify progressive steps toward global economic integration. They are expected to elevate service standards, intensify competition, and promote transparency, benefiting both businesses and consumers.
After much anticipation, Egypt’s Prime Minister issued Decree No. 1120 of 2024 (Decree) revealing the long-awaited amendments to the Competition Act’ executive regulations (Regulations). By way of background, in December 2022, the Egyptian Competition Act underwent a major overhaul with the introduction of a pre-merger control regime that grants the… Read more
The business and economic landscape of Kuwait just changed. With the ratification of the first law of 2024: Law Regarding the Amendment of Article 24 of the Commercial Law and Article 31 of the Public Tenders Law (1/2024) (the “Foreign Company Amendments Law”) on 21 January 2024, foreign companies now… Read more
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The Egyptian Competition Authority (the “ECA”) has traditionally been known for its aggressive stance towards historically tolerated anti- competitive acts. To live up to its slogan, “a stronger economy…for a better life”, it recently began shifting its focus to awareness-raising (in parallel with enforcement), a much-needed step in a market… Read more
Recently, Kuwait has initiated some significant economic liberalization initiatives. Kuwait’s National Assembly enacted major reforms to the Commercial Law and Public Tenders Law, effectively removing the longstanding requirement for foreign companies to operate through local agents within the country. On July 16, 2023, the Financial and Economic Affairs Committee of… Read more
On 5 December 2023, the Ministry of Investment of Saudi Arabia (“MISA”), in collaboration with the Ministry of Finance and the Zakat, Tax and Customs Authority (“ZATCA”), officially announced a 30-year tax relief program as an incentive to attract foreign global companies to establish their regional headquarters (“RHQ”) in the… Read more