Kuwait: Compliance

Kuwait's new Commercial Concealment Law criminalizes traditional nominee structures that have long enabled foreign investors to circumvent ownership restrictions, imposing severe penalties including imprisonment, fines up to KD 100,000, and deportation. With the law taking effect in February 2027, businesses operating under nominee arrangements face an urgent compliance deadline to restructure or risk criminal prosecution, asset confiscation, and permanent closure.

Kuwait's new Ministerial Decision No. 109/2026 introduces sweeping regulations for electronic delivery platforms, capping commissions at 17% and prohibiting exclusivity arrangements. How will these comprehensive rules reshape the balance of power between delivery platforms, restaurants, and consumers in Kuwait's rapidly growing e-commerce sector?

Kuwait has enacted its first standalone law criminalizing commercial concealment, commonly known as 'fronting' or hidden ownership arrangements. The legislation establishes dual prohibitions on unlicensed economic activity and enabling concealment, while extending criminal liability to company management and offering financial rewards to whistleblowers. Set to take effect in early 2027, this regulatory framework aims to enhance business transparency and ensure foreign investment flows through compliant stru