Kuwait: Commercial Agency Law Amendments Proposed

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Kuwait: Commercial Agency Law Amendments Proposed

Arab Times, 22 February 2022: A Kuwaiti MP has proposed an amendment to the country’s Commercial Agency Law.

They have proposed an amendment to Article 24 of Kuwait Decree-Law No. 68/1980.

If approved, it will state ‘Any foreign company can establish its branch in the country and operate here without the need for a Kuwaiti agent’.

They have also proposed an amendment to Article 31 of Kuwait Law No. 49/2016 (the Public Tenders Law) on the conditions which individuals or companies must meet to participate in public or limited tenders, as well as direct contracting.

Individuals or companies must be registered in the commercial register, in addition to the suppliers and contractors register. The aim of the amendment is to eliminate the privileges granted to local agents, most of who have caused problems which impeded the implementation of many development projects because of the absence of suitable technology and unwillingness to support national projects.

They added most local agents focus on making gains and engage in visa trading, instead of working in the public interest

They went on to say some of these agents won tenders and then divided the projects which were distributed to subcontractors who failed to meet the conditions.

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