Kuwait has issued a new corporate law allowing local companies to split into two or more firms as part of ongoing economic reforms, a newspaper said on Wednesday. 

The Trade and Industry Ministry issued the law which permitted “the division of local companies into two or more firms” for the first time in the OPEC oil producer, the Arabic language daily Alqabas said. 

The paper published what it said was the law issued by former Trade and Industry Minister Mazin Al-Nahed, who is now Minister of State for Communication. 

“The Minister issued the new law in late 2022…it permits local companies to split into two or more firms,” the paper said. 

It quoted a Ministry statement as saying the new law would stimulate the economy and increase projects in Kuwait. 

Split firms must be autonomous and the process must be approved by the Trade and Industry Ministry, according to the report, which added that the decision would take effect a month after it is published in the official gazette. 

(Writing by Nadim Kawach; Editing by Anoop Menon)