Allows foreign companies to operate without a local agent

On July 16, 2023, the Financial and Economic Affairs Committee passed a decision allowing foreign companies to establish branches within Kuwait and conduct operations directly, eliminating the prior requirement of a local agent. This change extends to participation in government tenders as well. Formerly, in accordance with prevailing trade regulations, foreign companies were prohibited from establishing branches in Kuwait or engaging in commercial activities without the involvement of a local agent.

The primary objective of this legislative amendment is to foster increased competition among companies. By doing so, the aim is to enhance the quality of services accessible to the public and curtail pricing. The amendment does not signify the elimination of existing agency arrangements. Instead, it grants foreign companies the option to operate directly within Kuwait or opt to continue their collaborations with local agents.

• Type:

  • Entry and establishment (Approval and admission, Other)

• Industry:

  • Not industry specific

• Sources:

  • National Assembly of Kuwait, THE FINANCIAL AND ECONOMIC AFFAIRS COMMITTEE APPROVES THE ABOLITION OF THE LOCAL AGENT AND SUBMITS IT TO THE COUNCIL, https://www.kna.kw/News/NewsDetail/5/22/767, 16 Jul 2023
  • globeecho, Kuwait To Cancel The “Local Agent” Requirement For Foreign Companies, https://globeecho.com/news/middle-east/kuwait-to-cancel-the-local-agent-requirement-for-foreign-companies/, 16 Jul 2023
  • thenewsglory, A Gulf country intends to allow foreign companies to operate without a local agent, https://thenewsglory.com/a-gulf-country-intends-to-allow-foreign-companies-to-operate-without-a-local-agent/?expand_article=1, 16 Jul 2023