CBK pushes for licensing reform to boost investment data transparency

In a step aimed at strengthening Kuwait’s economic planning and transparency, the Central Bank of Kuwait (CBK) has requested the Ministry of Commerce and Industry to coordinate with all companies under its oversight — especially those with international dealings — to complete forms related to the Balance of Payments (BOP) and External Sector Statistics. The CBK hopes this process will eventually become a basic requirement for commercial license renewal.

This initiative supports, according to Al-Rai daily, the CBK’s broader goal of improving Kuwait’s investment environment and meeting its international obligations in economic reporting. The Bank emphasized that accurate data, especially on foreign direct investment (FDI), is essential for effective planning, policy decisions, and boosting Kuwait’s global economic standing.

While the CBK already compiles FDI and investment position data through sources like banks, investment companies, insurance firms, and telecoms, it noted a significant gap in coverage. Many companies registered with the Ministry of Commerce do not currently participate in these statistical surveys, limiting the comprehensiveness of the data.

The Central Bank believes that closer cooperation with the Ministry will help improve data quality and coverage. Better data would aid both public and private sectors in strategic planning and help Kuwait align with international benchmarks for economic transparency and investment flows.

However, a senior official at the Ministry of Commerce stated that it would be legally and procedurally difficult to enforce the completion of CBK forms as a mandatory condition for renewing business licenses. The Ministry’s role is limited to registering domestic businesses, and foreign investments made by Kuwaiti entities do not require routine disclosure or updates to the commercial register.

Despite these concerns, the CBK remains hopeful for greater collaboration, viewing it as essential to developing more inclusive and accurate economic statistics. The ongoing dialogue between the two institutions reflects a shared commitment to aligning national policies with global standards and enhancing Kuwait’s overall investment transparency.