Kuwait’s New Anti-concealment Law to Bolster Transparency, Fair competition

Kuwait has introduced a new anti-concealment law aimed at strengthening transparency in commercial activities, protecting the national economy and creating a more level playing field for businesses, according to Minister of Commerce and Industry Osama Boodai.

Speaking to the Kuwait News Agency (KUNA), Boodai said the newly issued decree-law represents a major step in developing Kuwait’s economic and legal framework by ensuring that commercial activities are conducted openly and that government incentives and support are directed towards those who genuinely qualify.

The minister said the legislation expands the approach to tackling commercial concealment by introducing mandatory disclosure of the beneficial owner behind business activities. The move is intended to prevent unfair practices, promote equal opportunities and protect businesses that operate in compliance with the law.

Boodai explained that experience over recent years had highlighted cases where benefits and incentives designed for small and medium-sized enterprises (SMEs) and other economic activities were misused by hiding the identity of the actual business owner or by operating under another person’s name.

Such practices, he said, denied legitimate entrepreneurs access to opportunities and created an unfair market environment that could discourage investment, innovation and economic diversification.

“The main beneficiary of this legislation is every person who fulfils their legal obligations and bears the costs of compliance,” Boodai said, adding that identifying the true owners of businesses would help create a more balanced marketplace where opportunities are available based on merit and lawful practices.

The minister noted that the new framework would also benefit consumers by improving transparency in commercial dealings. Clear ownership information would strengthen trust, make it easier to resolve complaints and help identify the parties responsible for business operations, thereby enhancing consumer protection.

Boodai stressed that the law applies equally to all violators, regardless of nationality or legal status. He said the legislation defines prohibited practices, sets out the responsibilities of parties involved in commercial concealment and provides authorities with the necessary powers to enforce the rules while maintaining legal safeguards.

The Ministry of Commerce and Industry will issue executive regulations to support the implementation of the decree-law, including procedures, enforcement mechanisms and compliance measures designed to maintain stability in the business sector while encouraging legitimate commercial activities.

Boodai urged companies and individuals to review their legal positions and regularise any existing issues before the law comes into full effect. He described the transition period as an opportunity for businesses to address violations and improve compliance before stricter enforcement begins.

He added that the continued expansion of digital services, integration of government databases and coordination between authorities would help improve transparency and provide a clearer understanding of commercial activities across the country.

The ministry has also made advisory services available for businesses and individuals seeking guidance on the new legislation and encouraged the public to submit questions and feedback through official channels.

Boodai said maintaining market integrity requires both effective regulation and greater public awareness. Allowing another person to operate under one’s name or commercial licence, he said, is not a minor issue but a practice that can deprive deserving entrepreneurs of legitimate opportunities.

He emphasised that the new law is not designed to limit economic activity but to create an environment where success is driven by competence, transparency and compliance.

The ministry will continue working with government bodies and the private sector to ensure smooth implementation of the decree-law, strengthen investor confidence and support an economy where achievement — rather than hidden ownership or personal connections — determines business success.

 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.