AmCham Kuwait and ICAI Kuwait Chapter Host Legal Awareness Session on Kuwait’s New Commercial and Procurement Regulations
The session brought together business representatives and professionals to examine three key areas of regulatory change: Kuwait’s new Commercial Concealment Law (Decree-Law No. 78 of 2026), Article 18 of Decree-Law No. 67 of 2026 concerning contracting with Kuwait Petroleum Corporation (KPC) and its wholly owned subsidiaries, and amendments to the Public Tenders Law (Law No. 94 of 2026).
The event opened with welcome remarks by Ketan Puri, Treasurer of the ICAI Kuwait Chapter and AmCham Kuwait member, followed by introductory remarks from CA Venkata Ramana Badida, Chairperson of the ICAI Kuwait Chapter, and Dr. Arezou Harraf, Chairwoman of the Board of AmCham Kuwait.
The session was led by Aaron Dikos, Chair of AmCham Kuwait’s Legal Focus Group and Partner at Al Tamimi & Company, who provided an overview of the legislative changes, their practical implications, and potential considerations for companies reviewing their existing business and contractual arrangements.
The discussion examined the scope of the Commercial Concealment Law (Decree-Law No. 78 of 2026), which introduces a comprehensive framework addressing commercial concealment, including the unauthorized use of another party’s trade name, licence, approval, or commercial registration to conduct business. Particular attention was given to the increased emphasis on beneficial ownership and actual control, rather than registered ownership alone. With a six-month transition period extending to February 2027, businesses were encouraged to review shareholder arrangements, nominee structures, powers of attorney, management rights, and beneficial ownership declarations. The law also introduces significant penalties for violations, including potential imprisonment, financial fines, confiscation, business closure, and licence revocation.
The session also addressed Article 18 of Decree-Law No. 67 of 2026, which prohibits Kuwait Petroleum Corporation and its wholly owned subsidiaries from contracting through local agents or commission agents, whether at the contract formation stage or during contract performance. The discussion highlighted the potential implications for foreign suppliers, contractors, and businesses currently engaged in KPC-related activities, emphasizing the importance of reviewing existing agency, commission, and intermediary arrangements while awaiting further guidance from KPC and the relevant executive regulations.
A third area of discussion focused on Law No. 94 of 2026 amending the Public Tenders Law, which introduces restrictions on the use of local agents and commission agents throughout public contracting procedures. The amendments also introduce changes to procurement thresholds and local content requirements, alongside a preference for small and medium-sized enterprises (SMEs). With further implementing rules to be approved by the Council of Ministers, companies involved in public-sector procurement were encouraged to assess their existing contractual arrangements and prepare for the implementation of the new requirements.
Beyond explaining the legislative changes, the session explored potential commercial structures and approaches that businesses may consider, including registration through the Kuwait Direct Investment Promotion Authority (KDIPA), GCC ownership structures, and alternative contractual arrangements. These were discussed as potential avenues for consideration, with their applicability and suitability dependent on each company's circumstances and the relevant legal and regulatory requirements.
The discussion emphasized the importance of early legal assessment, particularly for foreign-owned businesses, suppliers, contractors, and companies involved in government procurement. Participants were encouraged to seek qualified legal advice, review existing ownership and contractual structures, monitor upcoming executive regulations, and remain informed as further official guidance becomes available.
The session concluded with an interactive question-and-answer segment, allowing participants to raise questions and seek further clarification on the practical implications of the regulatory developments. A vote of thanks was delivered by CA Nisha Jalan of the ICAI Kuwait Chapter Organizing Committee.
Through this initiative, AmCham Kuwait and the ICAI Kuwait Chapter reaffirmed their commitment to providing businesses with relevant regulatory insights and opportunities to better understand the evolving legal and commercial environment in Kuwait.
Both organizations will continue to monitor developments and share relevant updates with their respective business communities as additional official guidance and implementing regulations become available.