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Representatives Thamer Al-Suwait, Hamdan Al-Azmi, Khaled Al-Otaibi, Dr. Abdulaziz Al-Saqabi and Mubarak Al-Hajraf submitted a proposal for a law regarding the establishment of the (Dawakm) area for the pharmaceutical industries and medical equipment and its stores.
The proposed law stipulated the following:
Within a period not exceeding two years from the date of the issuance of this law, an industrial zone called (Dawakm) shall be established for the pharmaceutical industries and medical equipment and its warehouses. The Public Authority for Industry shall undertake the planning and equipping of its infrastructure, in cooperation between public authorities and private sector companies.
The Public Authority for Industry shall manage, operate, develop and maintain the zone referred to in the previous article, in cooperation with private sector companies, in accordance with the provisions of Law No. (116) of 2014 referred to.
The Public Authority for Industry shall prepare sufficient spaces and appropriate locations for the construction of factories and warehouses, and shall prepare vouchers to be offered for auction to companies specialized in the manufacture and trade of medicines and medical equipment.
A percentage of no less than (5 percent) of the total establishments referred to in the previous article shall be allocated to owners of small and medium enterprises wishing to invest in the zone.
Within a period not exceeding one year starting from the date of enforcement of this law, a Kuwaiti shareholding company shall be established for the purpose of manufacturing and storing medicines, medical supplies and industries complementing them, and its factories shall be localized in the area established in accordance with the provisions of this law.
The shares of the company stipulated in the previous article shall be distributed as follows:
A- Government agencies and public entities, with no less than (6 percent) and no more than (24 percent).
B- Public subscription to Kuwaitis at a rate of (50 percent), and each of them is allocated the number of what they have subscribed for. If the number of subscribed shares exceeds the number of shares offered, all shares are allocated equally among all subscribers. of the shares in a public auction in accordance with the provisions of Clause (C) of this Article.
C- A percentage of no less than (26 percent) shall be offered for sale in a public auction in which specialized local and international joint stock companies with high experience in the sector participate. for the state.
Any provision inconsistent with the provisions of this law shall be repealed.
The Prime Minister and the ministers – each within his jurisdiction – shall implement this law.
His explanatory memorandum stated that Law No. (56) of 1996 regarding the issuance of the Industry Law established a public authority aimed at developing and advancing industrial activity in the country, and made one of its objectives to support and encourage the production of strategic goods necessary for national and food security, and one of its most important functions is the development of a plan for industrial development. Planning and equipping the infrastructure of industrial zones, managing, operating, developing and maintaining them, and establishing new industrial zones in cooperation with the private sector.
The establishment of an area dedicated to the pharmaceutical industries and medical equipment and its stores is an urgent need today in Kuwait for several considerations and economic and social objectives with a strategic dimension, the most important of which is achieving drug security, diversifying sources of income, providing more job opportunities and increasing the efficiency of the national cadre working in the sector through the exchange of experiences and cooperation with international companies with high level.
If the pharmaceutical industry is one of the sustainable industries due to its connection with human life and is not subject to recession, achieving pharmaceutical security requires facing all the challenges that accompany the establishment of this industry, foremost of which is facing monopoly and controlling drug prices by adopting legislative and regulatory measures to provide the conditions for establishing and supporting these strategic industries and their development and development In this context, it becomes clear the important role that the Public Authority for Industry should play by activating the competencies entrusted to it under Law No. (56) of 1996 referred to, in order to establish the Pharmaceutical Industrial Zone.
The growth of the Kuwaiti market for pharmaceutical industries depends mainly on government healthcare initiatives, as confirmed by a report issued by (Research in Markets) for economic research on the future outlook of these industries during the period between (2018-2020), as it led to the prosperity of the oil industry, And the limited diversification in other sectors to limit manufacturing activities, and dependence has become mainly on the import of medicine and products with distinctive brands, which caused the cost of government funding to rise.
And because manufacturing capacities are limited locally, we must motivate international and regional pharmaceutical companies to enter the Kuwaiti pharmaceutical industry. The public-private partnership system seems an appropriate formula for developing the pharmaceutical market in Kuwait, which has been receiving offers to benefit from the experience of global factories, and the Industry Authority is working on studying aspects Cooperation in this regard, and there have been many government initiatives directed at the pharmaceutical market, including granting (12) medical permits to companies to build pharmaceutical factories in the country in cooperation with the Public Authority for Industry, which almost doubled the budget of spending on health care between (2010-2019) to reach two billion dinars, There are also (20) major government health care projects under implementation, worth 305 billion dinars.
The development of the pharmaceutical industry is inevitable and needs to provide an appropriate environment to meet many challenges, establish research centers, encourage national factories, achieve competitive conditions, lift monopoly and consolidate cooperation and integration among the countries of the Arab region. Stores and warehouses would contribute to achieving the desired goals.
That is why this proposal came with a law in seven articles, where (the first article) stipulated the establishment of an industrial zone dedicated to the pharmaceutical industries, medical equipment and complementary industries and their stores, and that the Public Authority for Industry would undertake the planning, equipping, managing, operating, developing and maintaining its infrastructure.
According to (Article Two), the Authority shall manage, operate, develop and maintain the zone in cooperation with the private sector in accordance with the provisions of Law No. (116) of 2014 in the matter of partnership between the public and private sectors. In accordance with (Article Three), the Authority shall prepare sufficient spaces and appropriate locations for the construction of factories and warehouses. In addition to preparing the necessary coupons to be offered for auction to companies specialized in the manufacture and trade of medicines and medical equipment.
It also stipulated (Article 4) allocating a percentage of no less than (5 percent) of the total facilities referred to in Article (3) for owners of small and medium enterprises wishing to invest in the zone.
And (Article Five) stipulated that within a period not exceeding one year starting from the effective date of this law, a Kuwaiti shareholding company shall be established for the purpose of manufacturing and storing medicines, medical equipment and complementary industries, and its factories shall be localized in the established area in accordance with the provisions of the proposed law.
(Article Six) also specified the distribution of the company’s shares as follows:
1- Government agencies and public entities, with no less than (6 percent) and no more than (24 percent).
2- Public subscription to Kuwaitis at a rate of (50 percent), and each of them is allocated the number of what he has subscribed to. If the number of subscribed shares exceeds the number of shares offered, all shares are allocated equally among all subscribers. Its shares are in public auction.
3- A percentage of no less than (26 percent) is offered for sale in a public auction in which the best specialized local and international companies participate, with the aim of bringing the best expertise. Subscription to the state’s general reserve.