The Kuwaiti National Assembly (Parliament) is seeking to make a legislative amendment that allows foreign companies to open branches in Kuwait and carry out their activities directly without a local agent, including competition for government tenders.
The rapporteur of the Financial and Economic Affairs Committee in the National Assembly, Abdel-Wahhab Al-Essa, said that the committee approved today, Sunday, a draft law that abolishes the requirement of a local agent for the work of foreign companies in the country, “in victory for the principles of free economy and commercial freedom.”
Al-Essa added, in a press statement, that the legislative amendment aims to open the door to competition between companies, seeking to improve the quality of services provided to the public and reduce prices.
The project needs the approval of the National Assembly.
According to the current trade law, it is not permissible for a foreign company to establish a branch in Kuwait, nor to conduct commercial business except through a local agent.
Over the past few years, criticism of the principle of the “local agent” has escalated, especially among opposition MPs who consider that this condition has led to poor services and some local agents making undue profits.
Al-Essa said the new amendment does not mean canceling the existing agencies, but it will give foreign companies the right to work directly in Kuwait or continue to work with their local agents.