The unified smart license improves the business environment in Kuwait

The launch of the first phase of the unified smart license project in Kuwait last February, highlighting the support of the digital transformation within the framework of Kuwait 2035 strategic plan, as the project will allow the Ministry of Trade and Industry to be the authority to issue the license, while linking other government agencies concerned with licenses automatically, which would accelerate the process of approvals and organizational procedures in institutions.

The success of the project’s application is a qualitative shift in Kuwait, as the current situation of issuing licenses is based on extracting business owners for multiple licenses from different parties, while the first stage of the smart license project is subject to the supervision of five governmental institutions, which are the Ministry of Trade and Industry, the Kuwait Municipality, the General Fire Power, the General Authority for Manpower, and the General Authority for Food and Nutrition, which means its inclusion for all regulatory approvals with simultaneous validity dates, Reducing the time of issuing licenses via an integrated digital system, according to a report published by the Biometricupdate platform specializing in publishing news, analyzes and research related to the world’s biometric technology market.

This would simplify procedures, enhance the transparency of the business environment, and facilitate inspection and control via a unified regulatory system, as well as support for digital transformation in the State of Kuwait with automatic update of the data and linking the regulators, according to a report published by the website of the Direct Investment Authority in Kuwait (KDIPA).
The second phase of the project begins by the next April 15, and includes activities under the supervision of the Ministry of Information, the General Communications Authority, and the General Authority for Industry, which includes media production, advertisements, software, and factories, while the third stage starts by May 15, while the fourth stage of the project is launched by June 15.

Business environment in Kuwait

The Kuwaiti economist, Mohamed Ramadan, told Al -Arabi Al -Jadeed that the smart license represents a group of integrated licenses from various bodies, ministries and government institutions in one license, so that all dates are similar and close, explaining that this system facilitates procedures instead of having to assign a delegate to go to each government agency separately to end a specific license, as all procedures are carried out once from one place.

This license is characterized by the possibility of completing it electronically or with very simple reviews, according to Ramadan, which confirms that this provides great costs, especially on small projects that may constitute any cost, no matter how small, a great burden on it.
Although the World Bank has stopped the business environment index since 2021, which makes it difficult to measure the impact of the application of the smart license through a neutral authority, Ramadan expects that such a system will contribute to improving the business environment significantly, pointing out that the Kuwaiti government has pledged to a clear timetable.

On the potential challenges in the application of the smart license, Ramadan explains that implementation may not be useful in the expected degree, and many problems may appear in implementation, or the project may not end in the specified time period, but it is added that these challenges can be overcome over time if there is a real will.
Ramadan believes that cooperation with international companies such as Google will improve the application of the smart license in Kuwait, because it will ensure the disciplined course on a schedule and reduce possible difficulties and help the project progress well.

Corporate registration

In the context, the economist, Ali Saeed Al -Amri, told Al -Arabi Al -Jadeed that the smart license can contribute to facilitating the practice of business in Kuwait in several ways, despite some of the challenges that it may face, it provides a unified platform to complete government procedures such as commercial registration, pay fees and extract licenses, and also reduces the need to visit government departments repeatedly, which saves time and effort.

He adds that this license allows the completion of companies registration and issuing licenses faster, which encourages entrepreneurs to start their projects quickly, and contributes to reducing the need for brokers and simplifying procedures, which helps reduce administrative costs of small companies, as well as provides greater transparency in government procedures, which reduces administrative corruption and enhances confidence between investors.
Al -Amiri points to other benefits of the smart license, which is to encourage small companies to adopt digital technologies, which enhances their competence and ability to compete, as it contributes to improving Kuwait’s classification in indicators of ease of business, which attracts more foreign investments.
However, Al -Amiri refers to challenges facing the application of the license, including what relates to technological infrastructure, such as the weakness of the internet speed or the lack of advanced cloud services, in addition to the possibility of confronting its application with resistance from government employees or entrepreneurs who used to the traditional system.
Also, some owners of small companies may not be familiar with digital technologies. Al -Amiri notes that some of the current laws and regulations in Kuwait may not be compatible with the requirements of digital transformation, which requires their modernization, as well as the costs of developing and applying the smart license system may be high, especially if it comes to training employees and updating the infrastructure.