Moving into 2015, the Middle East can expect to see a number of trends and drivers continuing to put pressure on the region’s political and socioeconomic infrastructures, which without doubt will have an impact on business and the legislative frameworks that surround it.

The fall in oil prices and the emergence of DAESH will continue to dominate headlines and, inevitably, impact business. Commercially, 2014 ended as an uncomfortable year for several Middle Eastern countries which look set to lose the exceptional margins they were able to make on high oil prices over recent years as a factor of economic uncertainty and readjustment.

But infrastructure projects will forge ahead and hope exists that the psychological concerns that result will force governments to step up their efforts to diversify their economies beyond oil.

From a legal standpoint, the theme of change also applies, with a raft of new laws to be introduced across the Gulf over the course of the year. Kuwait for example has just passed the Executive Regulations to the Direct Investment Promotion Law, which modernises the approach to attracting foreign direct investment into the country.

This new legislation has removed the previously applicable “positive list” of sectors where foreigners could investment and hold up to 100 per cent equity ownership. This has now been replaced by a relatively short “negative list” of sectors, in which foreigners are restricted from holding a majority shareholding.

In addition, the former Kuwait Foreign Investment Bureau has been upgraded to the level of a governmental authority, thus giving it more powers to assist foreigners to open shop in the country.

Insolvency code

The investment promotion legislation is just one of a number of new business laws being passed in Kuwait in one of the most significant legislative overhauls in the GCC. Other laws, such as a new insolvency code and an overhaul of the competition protection regime, are being worked on.

Many of the new laws are aimed at creating an environment that is supportive of the continued economic development of the country and it will be encouraging to see more of the same occurring across other GCC countries in the coming year.

Despite previous years of tensions between the Emir-appointed government ministers in Kuwait and the elected members of the National Assembly, considerable cooperation exists at present, which bodes well for business in 2015 and beyond.

Meanwhile, we have seen continued good news for the UAE. The Federal Cabinet approved a Dh49.1 billion UAE budget for 2015 last week, projecting no deficit and increased income and public spending with 49 per cent of the budget allocated for social development projects and other benefits for citizens.

A substantial Dh20 billion was allocated for government affairs and upgraded services, with a focus on harnessing financial resources in a sustainable way to serve citizens and provide them with better health, education and social services.

The Council of Ministers also gave its nod to issuing the executive regulations of the UAE Competition law, which regulates economic activities and exploitation of Intellectual Property Rights (IPR) affecting competition in the State. The law supports national efforts to deliver the UAE Vision 2021, which seeks to build a knowledge-based economy, the cornerstone of the development strategy.

Without doubt, 2015 will bring with it some key changes of which businesses, as always, will need to take note and be responsive to in order to ensure their continued competitiveness in the region.

The writer is a Senior Partner at Meysan Partners (www.meysan.com), a regional law practice.