Kuwaiti Ministry of Commerce prepares new commercial companies act

The Ministry of Commerce and Industry has said that the ministry has finished preparing the new commercial companies' act. In a statement to Al-Anbaa newspaper published on Wednesday, Assistant Undersecretary for companies affairs and commercial licenses Dawood Al-Sabej said that the act will soon be raised to the Minister of Trade and Industry Anas Al-Saleh, and later the Council of Ministers. He added that "this commercial act is characterized by creating mechanisms and new financial instruments such as issuing negotiable bonds, in addition to the standard of governance, especially in the case of separating the ownership of the company and its management." Most recently, the concept of single ownership companies has been introduced "in order to stimulate the corporate sector." In addition, he said that the new act will include legislation instruments as they are part of the Islamic finance, "which contribute to the organization of the work of companies operating in accordance with Islamic Sharia law." According to specialists and economists, the proposed new companies act is important as it is one of the pillars of improving the business environment in Kuwait, and an essential step towards strengthening its regional economic role.