Kuwait tightens compliance net - Digital complaints surge ahead

The data showed a clear escalation in the efforts of the Commercial Control Department, which issued 1,275 violation reports in February, marking a 27 percent increase compared to January. Licensing violations saw a significant rise, reaching 130 cases, an increase of 141 percent. The number of newly opened shops declined to 12, a decrease of 67 percent, while the number of closed shops rose to 74, an increase of 124 percent. This reflects a clear trend toward market regulation by closing violators rather than expanding the issuance of new licenses.

The number of complaints decreased to 181, a 13 percent drop, while complaints submitted through digital channels, including the online portal, WhatsApp, and the Sahel app, rose to 4,922, an increase of 19 percent. These figures reflect a structural shift in consumer interaction with regulatory bodies and a growing reliance on digital platforms for reporting issues. The advertising and promotional licensing sector witnessed notable activity during February, with discount transactions rising sharply to seven transactions, a 250 percent increase.

Overall discount transactions also increased to 68, up by 172 percent, reflecting active marketing efforts by companies. In contrast, promotional offers from cooperative societies and supermarkets declined by 14 percent, suggesting a shift in marketing strategies within this sector. Seasonal and emergency offers continued to rise, reaching 71 transactions, a 58 percent increase. Transactions involving the distribution of free gifts remained relatively stable.

Recall notices recorded a sharp decline of 91 percent, while the number of vehicles recalled due to defects also decreased. The precious metals sector witnessed strong activity during February, with fees collected for testing reaching approximately KD 583,900, an increase of 42 percent. The amount of gold tested exceeded 3.5 million grams, in addition to 36.5 million grams of silver. The activity also included testing of diamonds, platinum, and titanium, reflecting high trading volumes in the sector and its connection to the market and investment trends. At the Real Estate Services and Valuation Department, the number of transactions rose to 79, an increase of 16 percent, while brokerage license renewals grew by 33 percent.

Requests to cancel brokerage licenses decreased by 50 percent, which may indicate relative stability in the number of professionals operating in this sector. The total number of licensed Kuwaiti brokers reached 1,810, along with 13 GCC brokers and 133 real estate appraisers. In the context of combating money laundering and terrorist financing, the Ministry of Commerce and Industry continued to strengthen oversight, conducting 12 high-risk inspections (an increase of 20 percent), 10 medium-risk inspections, and 14 low-risk inspections.

Penal measures were also taken, including the issuance of 7 orders and 12 fines totaling KD 11,000 in the precious metals sector, in addition to warnings and other regulatory actions in the real estate brokerage sector. In the trademarks sector, applications recorded significant growth, reaching 1,102 transactions, an increase of 12 percent. Registered and issued trademark certificates reached 977, up by 21 percent, reflecting increased activity in trademark registration and intellectual property protection.

Renewal applications declined, which may indicate the expiration of some trademarks or restructuring in ownership. Patent applications showed mixed performance, with individual applications increasing by 25 percent, while corporate applications declined by 15 percent. In terms of international relations, the value of certificates of origin reached approximately KD 194 million, with notable increases in exports to Europe and Africa, compared to a sharp decline of 87 percent in exports to GCC countries.

The trade fair sector witnessed increased activity, with 93 licenses issued for temporary exhibitions within Kuwait, representing a 16 percent increase. Licenses for gold and jewelry exhibitions declined by 58 percent, which may be linked to changes in demand or market regulation. Regarding food subsidies, the total amount reached approximately KD 27 million, with basic commodities accounting for the largest share at KD 15 million, despite a 6 percent decrease. Subsidies for milk and infant formula increased by 17 percent, while subsidies for construction materials declined by 23 percent. The number of beneficiaries of food subsidies exceeded 2.34 million individuals, reflecting the state’s continued role in supporting essential commodities.