Kuwait tightens rules to stop expats from operating without licenses

• The new law prohibits withholding information or providing misleading data, imposing fraud penalties, facility closure, and removal, with final rulings published to ensure transparency and support the private sector.

The Ministry of Commerce and Industry has finalized a draft decree-law to combat commercial cover-ups, aiming to prohibit foreigners—whether individuals or entities—from conducting economic activities in Kuwait without the required licenses from the relevant authorities, in line with existing laws.

Sources confirmed to Al-Anba newspaper that the new law drafted by the Ministry of Commerce prohibits any natural or legal person from enabling foreigners to violate this restriction through commercial cover-up practices. This includes allowing them to use a trade name, license, official approvals, trade register, or any other means to engage in economic activity illegally.

The Commercial Cover-Up Law also bans any attempt to obstruct or prevent competent authorities from carrying out their duties, whether by withholding required information or providing false or misleading data.

Article 3 of Chapter III grants the Minister of Commerce—or a designated representative—the authority to appoint certain employees as judicial officers, enabling them to conduct inspections, monitor compliance, and take action against violations in suspected commercial activities.

Article 4 stipulates that, without prejudice to any stricter penalties under the Penal Code or other laws, anyone violating this law will be subject to penalties for fraud under the Penal Law. Additionally, the establishment will be closed, and the violator will be removed. Final judgments against violators will also be published on the Ministry of Commerce’s website to ensure transparency and deter violations.

This law aligns with Kuwait’s efforts to regulate the business environment, promote fair competition among investors, and protect the local market from illegal practices that harm the national economy. Its strict enforcement aims to foster a transparent investment climate, support the private sector, and attract legitimate investments that comply with applicable laws and regulations.