During a recent session, Kuwait’s National Assembly deliberated on the first report of the Financial and Economic Affairs Committee, which details proposed amendments to the Public Tenders Law, focusing on the elimination of the local agent requirement, reported Al-Rai Daily.
According to the rapporteur of the committee, Daoud Marafi, the amendments aim to promote market openness and serve the public interest. Marafi highlighted that tenders in the region tend to be among the highest-priced in the surrounding areas. By removing the local agent requirement and permitting foreign companies to establish branches in Kuwait, the proposed changes foster competitiveness among all investors.
Addressing the failures of the local agent system in Kuwait, Abdul Karim Al-Kandari stated that the introduced law has sparked opposition since its inception. He emphasized that eliminating the local agent requirement is essential for opening up trade, ensuring fair market prices, and improving the quality of products in Kuwait. Al-Kandari argued that the presence of a local agent has led to increased costs for consumers and producers, with Kuwait being more expensive than neighboring countries. Mubarak Al-Hajraf stressed the importance of passing the law to encourage foreign investment and job opportunities for national workers.
Other representatives echoed this sentiment, highlighting the need to eliminate monopolies, fight corruption, and create a level playing field for both local and international companies. It was clarified during the session that the proposed amendment does not abolish the local agent entirely.
Rather, it allows foreign investors to conduct business in Kuwait without the requirement of a local agent. The role of the Direct Investment Promotion Authority was also emphasized as the governing body responsible for regulating the entry of foreign investors into the market. The committee underlined the necessity of maintaining certain controls while supporting the entry of foreign investors.
The discussions in parliament further emphasized the importance of improving the business and investment environment to attract foreign companies. Parliamentarians expressed concerns over existing residency laws and the treatment of foreign investors, highlighting the need for reforms and a supportive atmosphere for business growth.
The deliberations in the National Assembly indicate an ongoing commitment to economic reforms and the opening of Kuwait’s market to international investors. While the proposed amendment does not abolish the local agent system entirely, it represents a step towards creating a more competitive business environment, fostering job opportunities, and fostering the growth of the national economy.
Kuwait’s efforts to amend the Public Tenders Law and eliminate the local agent requirement demonstrate a commitment to promoting market openness and attracting foreign investors. By allowing foreign companies to establish branches in Kuwait, the proposed changes aim to foster competitiveness and improve the quality of products in the country.
The presence of a local agent has been a contentious issue, with critics arguing that it leads to increased costs for consumers and producers, making Kuwait more expensive than neighboring countries. The proposed amendment seeks to address these concerns and create a level playing field for both local and international companies.
Furthermore, the discussions in parliament highlight the importance of improving the business and investment environment to attract foreign companies. Concerns over existing residency laws and the treatment of foreign investors underscore the need for reforms and a supportive atmosphere for business growth.
While the proposed amendment does not abolish the local agent system entirely, it represents a significant step towards creating a more competitive business environment in Kuwait. The role of the Direct Investment Promotion Authority in regulating the entry of foreign investors into the market is crucial in maintaining certain controls while supporting the entry of foreign investors.
Kuwait’s commitment to economic reforms and the opening of its market to international investors is evident in the ongoing deliberations in the National Assembly. The proposed amendments to the Public Tenders Law signify a strong desire to foster job opportunities, attract foreign investment, and promote the growth of the national economy.
In conclusion, Kuwait’s proposed amendments to the Public Tenders Law aim to foster competitiveness, attract foreign investors, and create a more favorable business environment. By removing the local agent requirement and allowing foreign companies to establish branches in Kuwait, the changes seek to promote market openness and improve the quality of products in the country. The ongoing discussions in the National Assembly reflect a commitment to economic reforms and the growth of the national economy.
Source: TimesKuwait
