The latest laws and decisions in Kuwait, with a clear summary of what they mean for you and your business.
Draft: these summaries are awaiting the firm's review before publication.
Litigation & Arbitration
Kuwait issues a new Arbitration Law
Decree-Law No. 120 of 2026 establishes a standalone arbitration statute, published in the Official Gazette on 18 October 2026. The law has 108 articles in 15 chapters and brings together in one code the arbitration rules previously spread across the Civil and Commercial Procedure Law and Law No. 11 of 1995.
What it means for you: If your contracts contain an arbitration clause, it is worth reviewing the wording in light of the new law, particularly in long-term and construction contracts.
New decree-law on mortgage financing for housing beneficiaries
Decree-Law No. 114 of 2026 regulates mortgage financing for Kuwaiti citizens eligible for housing welfare. It covers supported and non-supported financing, which may be combined under Central Bank of Kuwait rules, repaid in equal monthly instalments over no more than 25 years. Kuwait Credit Bank guarantees the outstanding balance of supported financing if a beneficiary defaults.
What it means for you: Before signing a financing agreement or buying from a developer, check the eligibility conditions and await the Central Bank regulations that will set out the details.
New rules on transferring workers before the first year ends
Administrative Decision No. 680 of 2026 amends the rules on transferring workers between employers. A worker may transfer before completing the mandatory year after the Public Authority for Manpower reviews their complaint, in cases including inability to obtain a work permit or residency because of the employer's failure, suspension of the employer's file, or a false absconding report.
What it means for you: Employers should review their residency procedures and absconding reports to avoid losing staff or facing complaints; workers should keep evidence of their situation.
Decree-Law No. 10 of 2026 regulates digital commerce, covering electronic contracts, digital advertising and influencers, and electronic payments. Key obligations include registering with the Ministry of Commerce and Industry, electronic invoicing, protecting customer data and disclosing commercial relationships with influencers. It takes effect one month after its implementing regulations are published.
What it means for you: If you sell online or work with influencers, start reviewing your terms of sale, returns policy and advertising contracts now, ahead of the law taking effect.
