Tech startups in Kuwait – Startups in Kuwait

Attorney Fajer Ahmed

We have seen a rise in Kuwait entrepreneurship and creative commercial activity over the past few years. One topic that has been of interest in Kuwait and the region recently is technology startups and finance technology innovations. With the rise of technology startups in the region and internationally, lawyers and legislators have had to discuss many issues that weren’t of concern previously – issues such as data privacy, source-code copyrighting, blockchain technologies, IP rights concerning artificial intelligence and so on.

 

One topic that many people have been discussing lately is data privacy and the regulations concerning our data that is held by companies. You would be surprised at the amount of data that companies hold about their users from our ad clicks to what we search for to our location, or (in Kuwait) how many times we order food. There is so much to discuss when it comes to technology and data, but today I will be answering the two most common questions. Next week I will follow up with more legal info on data and privacy. If you have any questions please email me on info@ftl-legal.com

Regulations
Question: Are there any laws or regulations in Kuwait which we need to focus on for data collection of clients through our mobile application?
Fajer: There are no specific laws in Kuwait for data collection or privacy. With that said, it is important for startups to self-regulate themselves and to make sure that the data received is secure at all times. It is also important to have terms of service and privacy policies that are easily understood by the users of the mobile application and that they have agreed to these terms of service and privacy policies.

Question: What is the best commercial license to operate with as a technology startup?
Fajer: This question is asked very often by my clients. As there is no commercial license for mobile applications, most clients opt for a general trading license, which gives them a wide range of commercial activities to engage in. I also see a lot of clients that come to me with a commercial license to operate a web development company, thinking that it is the best option for running a mobile application, but my opinion is that a general trading license would be the best option out of the options currently available, as it gives you more flexibility, especially if the company plans a physical presence.
If you have a concern, please email us at info@ftl-legal.com

By Attorney Fajer Ahmed

This article was published on 09/05/2018