ARTICLES & UPDATES

Effective as of 21st January 2024, the ‘Law No.1 of 2024’ was enacted amending Article 24 of the Kuwait Commercial Law and Article 31 of the Public Tenders Law. The amendments have been officially published in the Kuwait Official Gazette on Sunday, January 21, 2024.

Implications for the companies in Kuwait

The Amendment to Article 24 of Decree No. (68) of 1980 on Commercial Law allows foreign companies to establish branches in Kuwait and operate without the necessity of a local agent.

The Amendment to Article 31 of Law No. (49) of 2016 on Public Tenders allows foreign bidders from the obligation to possess a commercial registration in Kuwait and eliminates the need for a local agent. Foreign companies are now allowed to apply for a tender in Kuwait and execute it without a local agent or the need to set up a company.

What’s on the horizon?

After these amendments, we anticipate further regulations to outline the process of establishing a branch, including requirements.

We expect that the relevant ministries will issue resolutions to Law 1/2024 and provide practical guidance on its implementation.

How can Abdul Razzaq Abdullah and Partners assist?

This legal development marks a transformative milestone for foreign companies operating in Kuwait and the foreign companies desirous of establishing their presence in Kuwait, potentially paving the way for increased foreign investment.

Our firm is readily available to provide additional insights into this recent legal development and to support your organization in navigating the evolving regulatory landscape.

For more information on this development, please write to us at info@arazzaqlaw.com or call us at +965 22449909.