KUWAIT: Minister of Commerce and Industry Khalifa Al-Ajeel affirmed Wednesday that digital trade in Kuwait is a vital sector witnessing continuous growth and is a key component of the country’s gross domestic product (GDP). However, he noted, it lacks appropriate commercial legislation, as it is currently regulated by laws designed for traditional commerce.

This statement was made during Al-Ajeel’s address at a presentation organized by the ministry of commerce and industry at the Jaber Al-Ahmad Cultural Center to discuss the draft digital trade enablement law. “We are operating in a business environment with extensive commercial activity but, at the same time, it lacks the regulations needed to protect consumers, enable sector growth, and localize it,” said Al-Ajeel.

He added that this draft law is the first step in this direction and a cornerstone for building a comprehensive legislative framework to support the growth and distinction of Kuwait’s digital economy. He further stated that this initiative is part of the ministry’s phased priorities and stems from the importance of updating commercial legislation to improve Kuwait’s

business environment. “This is the first draft, and today it is open for input from the business community and professionals to refine and develop it in line with their needs and aspirations,” he explained.

The minister highlighted that the law has three primary objectives: regulating the digital trade sector, protecting consumer rights, and enabling the growth of digital trade. The draft includes key provisions for engaging the business community and professionals, such as requiring service providers to offer electronic payment options approved by the Central Bank of Kuwait. This provision encourages engagement with Kuwaiti payment and fintech companies.

Al-Ajeel noted that the draft also aims to adopt advanced technologies such as blockchain, smart contracts and artificial intelligence to enhance the efficiency of digital trade. The law requires the use of Arabic in product descriptions, purchasing procedures, payment processes and communication throughout all stages of digital commerce.

He added that the draft law addresses relationships between social media influencers and advertisers to ensure transparency, adherence to anti-money laundering standards and a ban on deceptive promotions or unauthorized content use, thereby protecting intellectual property rights. The draft also includes the establishment of commercial and digital registers to provide legal clarity for unregistered electronic stores and professionals. It obligates service providers to protect consumer data, promptly report security breaches, and ensure the provision of secure and efficient logistics services.

Al-Ajeel emphasized that the draft law outlines transparent mechanisms for managing complaints and resolving disputes swiftly and efficiently. It also safeguards consumer rights in cases of delivery delays or transaction errors, creating a comprehensive framework that balances consumer rights and service provider obligations, while supporting the development of the digital trade sector in line with global best practices.

One of the most notable provisions of the law, he said, pertains to financial technologies. It mandates that product or service providers offer Arabic-enabled, Central Bank-approved electronic payment options, steering all businesses toward local payment gateways.

The minister also pointed out that the law will curb deceptive real estate promotions abroad as well as harmful or counterfeit products. He announced the launch of a dedicated website, e-com.moci.gov.kw, to collect feedback from the business community, professionals and the public on the draft law, aiming to make it more aligned with the needs and aspirations of all stakeholders.

Al-Ajeel concluded by stating that these measures represent only the first phase of organizing traditional trade. The ministry will accept feedback until Dec 18, with a second draft of the law to be submitted to the fatwa and legislation department. He anticipates the law will be approved by the end of March next year. – KUNA