Recently, Kuwait has initiated some significant economic liberalization initiatives.
Kuwait’s National Assembly enacted major reforms to the Commercial Law and Public Tenders Law, effectively removing the longstanding requirement for foreign companies to operate through local agents within the country.
On July 16, 2023, the Financial and Economic Affairs Committee of the National Assembly approved a decision, allowing foreign companies to establish branches in Kuwait and conduct business without the need for a local agent. This decision was ratified by the National Assembly on December 12, 2023, leading to substantial amendments in two key legal areas:
1. Public Tenders Law (Law No. 49 of 2016, Article 31): This amendment significantly alters the landscape of public tenders, which were previously dominated by local agents. Now, both Kuwaiti and foreign entities are on an equal footing, able to compete in the tendering process. This change fosters a more inclusive, competitive and transparent environment.
2. Commercial Law (Law No. 68 of 1980, Article 24): This reform allows foreign companies to establish branches and conduct their operations in Kuwait independently, without the need for a local agent. This amendment represents a major shift, enabling direct foreign investment and business activities in Kuwait.
The National Assembly’s reforms to enable independent operations of foreign companies are laudable and signify progressive steps toward global economic integration. They are expected to elevate service standards, intensify competition, and promote transparency, benefiting both businesses and consumers.
What’s new? Kuwait Minister of Commerce and Industry issued on 30 October 2025 Ministerial Decision No. 182 of 2025 (the “Decision”), published in the Official Gazette on 9 November 2025 and effective from its date of issuance (30 October 2025), prohibiting all cash transactions when concluding contracts or executing transactions… Read more
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In 2020, Kuwait issued a robust Bankruptcy Law (71/2020) which comprehensively revoked all provisions relating to the imprisonment of debtors. On 30 March 2025, about five years later, Kuwait reversed course and reinstated debtors’ prison as a means to enforce civil and commercial debts. The new amendments to the Civil… Read more
On 19 January 2025, a Decree Law was published in official gazette Kuwaiti AlYoum amending Article 441 of the Civil Law No 67/1980. Previously, article 441 provided that “1- In the event of denial, a claim for taxes and fees due to the state shall not be heard after the… Read more
This note provides an overview of the key points concerning the applicability and implementation of the recently issued Tax Decree Law No. 157 of 2024 (the law) on Multinational Entities (MNEs) Group Tax. The law aims to align Kuwait’s tax system with international standards under the OECD’s Pillar Two framework… Read more
On August 6, 2024, the Saudi Arabian government introduced amendments to the Labor Law issued by Royal Decree No. (M/51) dated 23/8/1426 AH, as amended. These changes aim to improve working conditions, clarify employer obligations, and enhance worker rights. The revisions include amendments to thirty-eight articles, deletion of seven articles,… Read more