Kuwait has been witnessing a surge in the number of newly established companies recording an 80% increase in the number of commercial licenses issued during the first half of the year, local Arabic newspaper Al Qabas reported on Wednesday, citing statistics from the Ministry of Commerce and Industry.
A total of 3,077 new licenses was issued between January and June this year, 29,26 of which were limited liability companies, which represents an increase of 102.4% compared to the same period last year.
The second fastest growing category was closed shareholding companies which grew at 71.4% to 12 new licenses year-on-year.
On the other hand, limited partnerships companies witnessed a decrease of 25.2% to 65 new licenses year-on-year, while joint liability companies dropped by 55% down to 74 new licenses in the first half of 2016. Moreover, Kuwait did not see any new public shareholding companies compared to one healthcare company announced in the same period of 2015.
This increase can be mainly attributed to the amendment in Kuwait’s companies’ law last year. The new law lowered the minimum capital requirements to start a new business to KD25,000 ($82,979) for public shareholding companies, KD10,000 ($33,199) for closed shareholding companies, and to KD1,000 ($3,319) for the rest.