KUWAIT CITY, Oct 13: Minister of Commerce and Industry Dr Yousef Al-Ali says he has approved the proposal sent by the team, which was formed by the authority for encouraging direct investment, concerning transferring the supervision of free trade zones from Public Authority for Industry to the Direct Investment Commission, reports Annahar daily.
He explained that a detailed report about the decision will be sent to the Economic Committee of the Cabinet next week. The management of free trade zones will be transferred to the administration of the Direct Investment Commission within a year.
However, the Free Trade Zone in Shuwaikh will require three more months for the management transfer. The minister denied that the government intends to establish a public company to manage the free trade zones, indicating that a private company might be assigned to manage the free trade zones. Regarding the discussion of the law on insolvency (voluntary rescheduling of debts) in the Cabinet, he revealed that the Cabinet has not discussed the law yet, as it is currently being tackled by a legal team headed by Ministry of Commerce and Industry.
Al-Ali said the discussions will require two-three weeks, after which the decision in this regard will be sent to the relevant authorities, affirming that the insolvency law is aimed to protect the rights of the creditors and it will be based on similar international laws. Meanwhile, the minister said the decision concerning the process of organizing of real-estate exhibitions is being drafted currently, indicating that it is aimed to supervise the organizing of all local and international real-estate exhibitions and fairs that are held in Kuwait, reports Al-Rai daily.
He revealed that the three authorities that control the real-estate exhibitions are Ministry of Commerce and Industry, Kuwait Municipality and Ministry of Justice. In this regard, informed sources said the important aspects concerning this decision should include the condition that the relevant contracts must have a provision of financial guarantee by the company in order to protect the buyer until the latter receives his real-estate unit.
They said the decision necessitates the need to demand fees from the organizers and participating companies in order to prove their seriousness, adding that the decision obligates the organizers to impose assurance fees on the participating companies in order to prevent the clients from being deceived and this assurance fees will be refunded after the exhibition. The sources explained that the decision will allot a unified standard for the contracts.
The dates of the exhibitions will be organized and will no longer be held or continued randomly. The contracts of real estates that are under construction can be signed only after the completion of 30 percent of their construction. There must be a real-estate developer to follow up the development of the construction at the sites. They indicated that the decision includes more conditions but the above mentioned are the most important ones.