Business transformation heralded by the rollout of the "Five-in-One" licensing initiative
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Kuwait's Minister of Commerce and Industry, Khalifa Al-Ajeel, has taken a groundbreaking step in the business world by presenting a new policy, dubbed as the "Five-in-One" business licensing policy. This game-changer allows entrepreneurs and business owners to obtain up to five commercial licenses under a single roof and automated number, all sharing the same commercial address and rental contract [1][3].
Observers have hailed this move as a progressive step towards improving the business environment in Kuwait and increasing global competitiveness rankings [5]. By easing operational burdens, supporting cost reduction, and facilitating remote operations [2], this policy is set to revolutionize the way businesses operate.
One such benefit is the reduction of costs. With the elimination of the need for separate rental contracts, overhead costs for small and medium-sized enterprises (SMEs) are significantly lowered [1]. Moreover, administrative efficiency is improved, as licensing procedures are streamlined, reducing bureaucratic hurdles [2]. This move is seen as a strong supporter of SMEs, helping to encourage business diversification by enabling multiple ventures under a single structure [2].
Real estate experts predict that this policy will contribute to curbing inflation in the commercial property market, aligning with the goals of the "New Kuwait 2035" vision through regulatory changes that address investors' expectations [5]. Former Minister Fahad Al-Shariaan finds this decision timely and in line with global business transformations [5]. He emphasizes its potential to address rent-related challenges that often lead to business failures.
Businessman Qais Al-Ghanim welcomes the positive impact of the policy on SMEs, stating it simplifies procedures, reduces bureaucracy, and strengthens Kuwait's economic attractiveness. Ibrahim Al-Kandari, a former Director of the National Fund for SME Development, echoes this sentiment, describing the step as practical and reflective of the ministry's responsiveness to real market needs.
However, there are calls for clarification of legal procedures, especially regarding implications in the event of a license seizure, marking a need for further guidance to ensure smooth implementation [4]. Nevertheless, the policy encourages investment diversification and helps to address high operational costs [5].
The decision is also seen as supportive of freelancers and SMEs, reducing rental burdens and enabling entrepreneurs to reinvest in business development from a single base [4]. The goal of depressing inflated commercial rents is another significant advantage [4].
Recent trends at the Ministry of Commerce suggest a serious drive to simplify business procedures and support the entrepreneurial community [5]. With potential expansion of the policy to include service and industrial activities [5], this initiative marks a catalyst for broader business reforms, showcasing Kuwait's commitment to enhancing economic flexibility and attracting diversified investments [3][5].
- Qais Al-Ghanim, a businessman, praises the "Five-in-One" business licensing policy for its ability to simplify procedures, reduce bureaucracy, and enhance Kuwait's economic attractiveness.
- Ibrahim Al-Kandari, a former Director of the National Fund for SME Development, similarly appreciates the policy's practicality and its reflection of the ministry's responsiveness to market needs.
- The new policy in Kuwait, expected to expand to include service and industrial activities, could potentially lead to broader business reforms, making Kuwait more competitive in attracting diversified investments by 2035.
