Kuwait: Inspections Reveal Food Violations

Arab Times, 21 September 2024: The Public Authority for Food and Nutrition has revealed a recent inspection campaign has revealed 27 food safety violations.

These included selling food which was unfit for human consumption which included spoilt items with a different shape, colour or smell. Other violations included displaying food outside designated areas, operating as a food establishment with an expired license and transporting food without the necessary authorisation from the authority.

In addition, there were workers handling food without the necessary health certificates and staff who had been employed without the required documentation. Several premises also failed the necessary hygiene standards.

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Kuwait: Biometric Registration Suspends Civil and Bank Transactions

Al-Watan, 19 September 2024: The Interior Ministry has urged citizens to promptly complete the biometric fingerprint process before 30 September 2024.

Failure to do so will result in the suspension of civil cards and all government and banking transactions.
Starting 1 October 2024, fingerprint offices in mall centres will be closed. Citizens must visit designated centres at the Personality Investigation Departments of the General Department of Criminal Evidence, which operate from 8 am to 10 pm daily.

Advance appointments are required through the Sahl application.

For bedridden individuals and those with moderate to severe disabilities, mobile biometric fingerprint devices will be available starting 18 August 2024.

Citizens can send relevant documents to the WhatsApp number 94458124 to schedule an appointment for fingerprinting at their location.

The Ministry aims to enhance services, facilitate security procedures, and reduce hardship for people with special needs, ensuring their access to government services.

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Kuwait: New Decree Issued to Amend Real Estate ‘Rental Law’ in Kuwait

Arab Times, 14 September 2024: Kuwait Law No. 95/2024 has been issued to amend certain provisions of Kuwait Law No. 35/1978 related to real estate rental.

This amendment aims to streamline the legal process for rental disputes and enhance the enforceability of lease agreements.

The amendment requires all pending lawsuits before the Court of Appeal to be referred to the Court of First Instance, except for cases already reserved for judgment, which must be decided within one month.

The lease agreement between the lessor and lessee is now ratified as an enforceable tool for collecting unpaid rent, provided notification is sent to the lessee and a certificate proving non-payment is submitted.

Lease agreements must be in writing, signed by both parties, and specify the full rent amount and designated payment date.

Lease contracts must be documented according to Kuwait Law No. 10/2020 and appended to the executive formula.

Appeals against rulings issued by rental departments must be filed with the Court of First Instance in its appellate capacity.

The decree is effective from the date of its publication in the official gazette, Kuwait Alyoum.

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Kuwait: New E-Sick Leave System Boosts Productivity

Arab Times, 9 September 2024: The implementation of a new electronic system for sick leave for government employees has proven to be a resounding success, leading to significant improvements in productivity and a substantial reduction in visits to primary healthcare centres.

This innovative initiative by the Health Ministry has yielded remarkable results since its launch, aligning seamlessly with the goals of Kuwait Decision No. 29/2023 which amended the rules and provisions of sick leave.

The new system, accessible through the Health Ministry app and the ‘Sahel’ app, has streamlined the process of obtaining sick leave electronically.

This has not only increased productivity within health facilities but also decreased the number of visits to primary care centres substantially.

By the end of March 2024, the system had demonstrated its effectiveness, and this positive trend continued into the second quarter of the year.

Compelling statistics reveal that from October 2023 to June 2024, the total number of visits to primary care centres dropped by an astonishing 2,095,797 compared to the same period in the previous year.

This reduction translates to an average of 232,644 fewer visits per month, marking a significant shift in the management of health resources.

Furthermore, the average number of visits to each primary care centre saw a remarkable decrease of over 2,000 visits per month, reflecting a positive change in the efficiency of medical services.

In the second quarter of 2024 alone, the number of visits to primary care centres dropped by an impressive 17.7% compared to the same period in 2023.

Between April and June 2024, a total of 2,802,755 visits were recorded, compared to 3,404,451 visits during the same period in the previous year.

The data has also highlighted a decline in the number of unnecessary prescriptions and medications dispensed, further contributing to enhanced productivity and reduced costs.

This decline can be attributed to fewer unnecessary visits to healthcare facilities, thanks to the electronic system’s convenience.

The electronic system, which currently issues one-day sick leaves, has been widely embraced by users for its convenience and efficiency.

Employees can now request and receive approval for sick leave via the app, eliminating the need to visit health centres for short-term leave, saving both time and effort.

Evaluations have confirmed that medical staff are highly satisfied with the new system, as it has saved over 50,000 working hours per month.

These hours, which were previously spent processing sick leave requests, are now being redirected to provide higher-quality care to patients, thereby improving the overall quality of health services.

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Kuwait: Commercial Licence Linked to Disclosure of Real Beneficiary

Arab Times, 2 September 2024: The Commerce and Industry Ministry has announced a new legal requirement for companies to disclose their “actual beneficiary” through the commercial registry portal on the ministry’s website.

This measure aims to identify the natural person who holds actual and final control over the company, enhancing transparency and combating money laundering and terrorism financing.

The ministry’s spokesperson has explained that failure to comply with this requirement will result in financial penalties as outlined in Article 15 of Kuwait Law No. 106/2013 on Combating Money Laundering and Terrorism Financing.

All commercial companies registered in the country, except for state-owned and listed companies under the Capital Markets Authority’s supervision, must disclose the actual beneficiary.

The spokesperson has emphasised the importance of this disclosure in improving the country’s business environment, international ranking, and attractiveness for business and investment.

It ensures transparency in economic and financial transactions and provides necessary information to law enforcement, judicial authorities, and regulatory bodies.

To register the actual beneficiary, companies need to provide information such as the name, civil number, email, phone number, address, and passport number for non-Kuwaitis.

The registration process can be completed by visiting the ministry’s website, selecting “Corporate User,” authenticating through the “My Identity” application, and following the steps to finalise the process.

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Kuwait: Ministry of Interior Implements New Vehicle Driving Test System

Arab Times, 22 August 2024: The Ministry of Interior in Kuwait has introduced a modernised system for vehicle driving tests, utilising a new written evaluation form for assessing applicants. This new procedure, now in effect across all six governorates, covers all vehicle categories including private, public, construction, and motorcycles.

According to sources from the Ministry, the new driving test format is structured into six key stages. These stages include fastening the seat belt, maintaining attention while driving, properly parking inside spaces next to the sidewalk, stopping at a red light, manoeuvring the vehicle in a restricted space, and using manual transmission effectively when starting and moving.

Each stage is assigned a specific point value: 10 points for each of the first four stages, and 30 points each for stopping at a red light and turning in a confined space. Applicants must score at least 75 percent out of a total of 100 points to pass the test. Failure to meet this threshold will result in the applicant being considered unsuccessful.

The examiner is responsible for completing the new form and evaluating the applicant’s performance. The scores are then reviewed and approved by the practical testing officer and the head of the testing department.

This marks a shift from the previous system, where results were recorded simply as pass or fail by the examiner. Major General Yousef Al-Khudda, Assistant Undersecretary for Traffic and Operations Affairs, has endorsed this new testing approach. The revised procedure aims to provide a more comprehensive assessment of driving skills, moving away from the prior practice of recording results directly on the applicant’s form.

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Kuwait: New Regulations for Foreign Investors

Gulf News, 18 August 2024: The Kuwait Direct Investment Promotion Authority (KDIPA) has introduced regulations to streamline the process for foreign investors who wish to benefit from investment incentives and exemptions there.

The decision outlines the criteria and procedures for investment entities looking to capitalise on benefits under Kuwait Law No. 116/2013.

Investors must apply for an investment licence to access these benefits.

The application must meet the criteria set by KDIPA’s evaluation mechanism, which assesses the eligibility for these benefits and exemptions.

Investment entities licensed under Kuwait Law No. 116/2013 which have at least one year of operational experience, are eligible to request the benefits and exemptions.

These entities must follow the Authority’s evaluation criteria, submit periodic reports that demonstrate adherence to their work plans and provide a comprehensive business plan detailing their past achievements and future objectives.

Benefits apply from the date of application, provided that all required documentation and fees have been submitted. However, the exemption does not cover taxes and customs duties that have already been paid.

Article 3 of the decision outlines special provisions for entities seeking benefits either at the time of or after they have obtained an investment licence.

It clarifies that exemptions will not apply to existing contracts or projects which have bids submitted before the application date, even if these contracts or projects are subsequently transferred to another entity.

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Kuwait: Tax Reforms Being Considered

Al-Qabas, 12 August 2024: Kuwait is undertaking a comprehensive reform of its tax system to align with global standards and reduce its reliance on oil revenues.

As part of this initiative, the country has signed its first-ever double tax treaty with another Gulf state, the UAE.

According to a Partner in Tax and Regulatory Services at BDO Accounting and Consulting in Kuwait, the Kuwaiti government is implementing several measures to address its budget deficit, including increasing tax revenues.

The partner has stated that the tax treaty with the UAE comes at an opportune time to prevent or mitigate double taxation between the two countries.

Such agreements provide tax clarity and predictability, which can encourage an environment conducive to boosting investments.

While Kuwait currently imposes a 15% tax on business income, this tax has primarily been applied to non-Gulf foreign companies and non-Gulf foreign shareholders.

However, he has further indicated that the corporate profits tax will now be extended to all companies operating in the country.

The move is a significant shift for Kuwait towards establishing a more equitable tax system, where companies will contribute a larger share to government revenues.

The reforms are part of Kuwait’s broader efforts to diversify its economy and reduce its dependence on oil exports, which have traditionally been the primary source of government revenue.

By aligning its tax policies with global standards and encouraging a more favourable investment climate, Kuwait aims to attract foreign investment and promote sustainable economic growth.

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Kuwait: MoCI to Tackle Fraud in Precious Metal

Arab Times, 1 August 2024: The Ministry of Commerce and Industry’s (MoCI’s) Undersecretary has issued a decision to form a joint working team between the Precious Metals Department and the Commercial Control Department to reduce the phenomenon of fraud in precious metals.

This team is headed by the Commercial Control Department’s Director, with a deputy and nine ministry employees as members.

The decision has defined the team’s responsibilities, which include conducting joint inspection tours between the two departments at gold and precious metal jewelry shops and workshops to combat commercial fraud.

The team’s activities will continue over three months from the date of the decision’s issuance.

The Commercial Control Inspection Teams at the Fish Market Centre in the eastern region affiliated with MoCI continue their efforts and inspection campaigns to monitor the performance of offices selling imported fish.

One of the campaigns had resulted in the closure of an office after the office owner started the auction without obtaining the approval of the ministry’s inspectors, violating the regulations and laws in force.

The inspection teams have also conducted several tours of school clothing stores in Hawally, resulting in the issuance of seven citations for various violations such as lack of price tags and absence of country of origin labels.

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