Kuwait Boosts Transparency: 73,700 Inactive Firms Removed

Background

Kuwait’s Ministry of Commerce and Industry (MoCI) has undertaken a significant initiative, removing 73,700 inactive companies from its commercial register. This strategic move is designed to bolster ownership transparency and strengthen the nation’s framework against financial crimes.

Market Context

The comprehensive clean-up forms a core component of a wider 2024-2025 project. Beyond simply delisting dormant entities, the ministry also updated records for thousands of active companies, ensuring accurate disclosure of their ultimate beneficial owners.

Local Relevance

Enforcement has been robust. An initial phase saw fines totaling KWD 2.845 million levied against 2,845 commercial registrations for failing to disclose beneficial ownership. A subsequent phase imposed KWD 2,000 fines on an additional 1,836 entities, bringing the total to KWD 3.672 million. These actions, combined with extensive awareness campaigns and digital guidance, propelled compliance rates from 42.8% to an impressive 98.62% by October 2025.

Outlook

This proactive stance aligns Kuwait with global best practices in financial governance. By strengthening its beneficial ownership register, Kuwait reinforces its adherence to international standards, particularly Recommendation 24 of the Financial Action Task Force (FATF). Such measures are crucial for enhancing the nation's standing and bolstering its anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks, a trend observed across the GCC as regional economies mature.

For investors and businesses operating in Kuwait, this initiative fosters a more secure and transparent environment. The MoCI leverages digital tools like the "My Identity" application for authentication and the "Sahel" platform for official notices, streamlining the verification process. This technological integration not only safeguards the business landscape but also reduces economic risks by enabling regulatory authorities to swiftly identify concealed ownership and analyze suspicious patterns.

Looking ahead, the MoCI will host a pivotal workshop alongside key financial bodies, including the Capital Markets Authority and the Central Bank of Kuwait. This event aims to address emerging risks and outline future enhancements to the beneficial ownership registry. Kuwait's ongoing commitment to transparency is poised to deepen confidence in its financial markets and support its national accountability goals.