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The enactment of Law No. 1 of 2024: Revolutionizing Business in Kuwait: New Legislation Empowers Foreign Companies to Operate Independently

Updated: Jan 23


The enactment of Law No. 1 of 2024: Revolutionizing Business in Kuwait: New Legislation Empowers Foreign Companies to Operate Independently

Law No. 1 of 2024 amends two significant legal articles in Kuwait, specifically Article 24 of the Commercial Law (Decree-Law No. 68 of 1980) and Article 31 of the Public Tenders Law (Law No. 49 of 2016). These amendments reflect a shift towards market liberalization and the facilitation of economic activity in Kuwait, particularly for foreign companies.

 

1.    Amendment of Article 24 of the Commercial Law:

   - The new text permits foreign companies to establish branches in Kuwait and operate directly without the need for a local agent.

   - This represents an exception to the previous restrictions that required a Kuwaiti partner owning at least 51% of the capital.

 

2.    Amendment of Article 31 of the Public Tenders Law:

   - The general conditions for contractors are modified, eliminating the requirement for tender applicants to be exclusively Kuwaiti.

   - Individuals or companies, whether Kuwaiti or foreign, are now allowed to participate in public tenders, provided they are registered in the Commercial Register and the register of suppliers or contractors.

 

Objectives and Impacts:

- These amendments aim to liberate the Kuwaiti market from previous restrictions imposed on foreign companies, including the old requirement of having a local agent.

- These changes reflect Kuwait's desire to attract foreign investments and promote market competitiveness.

- The amendments align with global trends towards market openness and the encouragement of global competition.


Here is the Law No. 1 of 2024 in both English and Arabic.


Law No. 1 of 2024
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Download PDF • 220KB

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