KUWAIT CITY, Feb 12: The Ministry of Commerce and Industry has completed drafting a decree-law aimed at combating commercial cover-up. This new law will prevent any expats or entity from engaging in economic activities within Kuwait without obtaining the necessary licenses from the relevant authorities, under existing regulations. The law prohibits both Bedouns and expats from facilitating commercial cover-up practices. This includes allowing expats to use trade names, licenses, official approvals, or commercial registrations to operate illegally. The law also forbids obstructing or hindering the competent authorities from carrying out their duties, including by withholding or providing false or misleading information.

Article 3 of the law grants the Minister of Commerce or their delegate the authority to designate certain employees as judicial police officers. These officers will be authorized to inspect, oversee, and monitor violations in commercial activities that are suspected of breaching the law. 

Article 4 specifies that any violation of the law will result in penalties as severe as those prescribed for fraud under the Penal Code, including the closure of the business and deportation of the violator. Final rulings against offenders will be published on the Ministry of Commerce’s website to ensure transparency and discourage violations.

This law is part of Kuwait’s broader efforts to regulate the business environment, foster fair competition, and safeguard the local market from illegal practices that harm the national economy. Its strict enforcement aims to create a transparent investment climate that supports the private sector and attracts legitimate investments in line with the country’s legal framework.