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We are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.Read the full edition
Margaret McKenzie - Associate - Corporate / Mergers and Acquisitions
Philip Kotsis - Partner, Head of KSA - Corporate / Mergers and Acquisitions / Commercial
As Kuwait moves towards more online business transactions, Kuwait laws and regulations are constantly evolving to keep pace with these changes. In 2020, the Ministry of Interior released Resolution No. 724 of 2020 Concerning E-Applications (the “E-Applications Law”). Published on 25 October 2020, the resolution details a number of requirements for e-applications in relation to the Kuwait General Department of Traffic.
As ride sharing, the gig economy, and advanced mobile applications continue to evolve globally, the E-Applications Law demonstrates Kuwait’s ability to advance and adapt to the burgeoning technology sector within Kuwait. Reports have estimated that the ICT spending in Kuwait will reach US 10.1 billion by 2024. Further, technology plays a significant role in Kuwait’s 2035 Vision. The E-Application Law acknowledges these changes with specific focus on one area of technology – electronic applications as they apply to companies or facilities that have commercial activities related to the General Department of Traffic.
The E-Applications Law provides for a number of rules that applicable businesses must take into consideration, and the process requires that relevant companies comply with the following:
Although the above list appears extensive, the process required to complete the above is also being transformed. Kuwait is working towards centralizing the requirements online with an e-portal to streamline the process. The Council of Ministers assigned the Minister of CITRA, in coordination with all government agencies, to take the necessary measures towards creating a unified regulatory framework for e-government applications, in order to ensure consistency and integration some services provided through them.
The E-Applications Law also states that if companies or facilities exercise transport mediation only via electronic applications, the following conditions must be fulfilled:
The General Department of Traffic has the right to control and supervise the e-application, including the ability to contact CITRA (or other relevant authority) to cancel or block the application. The provisions of the E-Application Law apply to companies and facilities that currently exercise their commercial activities through electronic applications or act as a mediator for transport through these applications. Such companies and facilities shall fulfil all the conditions mentioned herein within a maximum period of one year, from the effective date of the E-Applications Law.
Kuwait legislation takes into consideration global ICT developments, as evidenced by the E-Applications Law. The ICT sector continues to expand in Kuwait with technology playing a significant role in the Kuwait 2035 Vision.
For further information, please contact Philip Kotsis or Margaret McKenzie.
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