Decree-Law No. 78 of 2026 on Combating Commercial Concealment

Decree-Law No. 78 of 2026
on Combating Commercial Concealment

Article 1

In applying the provisions of this Decree-Law, the following words and expressions shall have the meanings assigned to each of them:
1- The Law: the Law on Combating Commercial Concealment.
2- The Competent Ministry: the Ministry of Commerce and Industry.
3- The Competent Minister: the Minister of Commerce and Industry.
4- Commercial Concealment: enabling any person – whether a natural or a juristic person – to carry on any economic activity which he is prohibited from carrying on under the provisions of the laws or legislation in force in the State, whether for his own account or in partnership with others, or circumventing the ownership ratios prescribed by law for foreigners in order to enable him to carry on the economic activity in violation of the provisions of this Decree-Law.
5- Economic Activity: any commercial, investment, industrial, agricultural, service or professional activity, or any activity of an economic nature which aims to make a profit and the practice of which requires obtaining the necessary licences or approvals from the competent authorities.

Article 2

Any person, whether a natural or a juristic person, is prohibited from carrying on any economic activity within the State of Kuwait, for his own account or in partnership with others, unless he holds the necessary licence from the competent authority, or where he exceeds the limits of the licence granted to him, where such activity is carried on through a person who enabled him to carry on that activity.
Every natural or juristic person is likewise prohibited from enabling any person to violate this prohibition through commercial concealment. This includes allowing him to use the trade name, licence, approval issued to him, Commercial Register or any other means enabling him to carry on the economic activity in violation of the provisions of this Decree-Law.

Article 3

Without prejudice to any more severe penalty prescribed by the Penal Code or any other law, whoever violates the prohibition set out in Article (2) shall be punished by imprisonment for a period of not less than one year and not more than three years and by a fine of not less than (KD 10,000) ten thousand dinars and not more than (KD 100,000) one hundred thousand dinars, or the equivalent of the value of the profits obtained, whichever is greater, or by either of these two penalties.
The fines shall be multiplied by the number of violating persons or violating activities.

Article 4

Without prejudice to any more severe penalty prescribed by the Penal Code or any other law, whoever violates the prohibition set out in Article (11) shall be punished by imprisonment for a period not exceeding six months and by a fine not exceeding (KD 10,000) ten thousand dinars, or by either of these two penalties.
The fines shall be multiplied by the number of violating persons or violating activities.

Article 5

The person responsible for the actual management of the violating juristic person shall be punished by the same penalties prescribed for the acts committed in violation of the provisions of this Decree-Law if his knowledge thereof is established, or if it is established that the violation occurred as a result of his breach of the duties imposed on him by his management, or that he contributed to its occurrence.
The juristic person shall be jointly and severally liable for the payment of any financial penalty or compensation adjudged, if the violation is committed by one of its employees in the name of the juristic person or for its benefit.

Article 6

Without prejudice to the rights of bona fide third parties, the court shall – in the event of conviction for any of the offences set out in this Decree-Law – order the confiscation of the funds or profits resulting from the offence and all the tools, equipment and means used in the violating activity, together with the permanent closure of the establishment and the cancellation of the licence.
The court shall also order the deportation of the violating foreigner after the sentence has been served, and the final judgment shall be published through the prescribed means.

Article 7

The penalty prescribed for any of the offences set out in this Decree-Law shall be doubled in the event of recidivism within five years from the date of issuance of the final judgment in such offences.

Article 8

The Competent Minister or his delegate may conclude a settlement in respect of the offences set out in this Decree-Law before the case is referred to the competent court, during its hearing, or before a final judgment is issued therein, in return for payment of an amount not less than half of the maximum prescribed fine.
Acceptance of the settlement shall be conditional upon removal of the violation and regularisation of the legal status, and the settlement shall result in the extinguishment of the criminal action.
This shall not prevent the taking of the measure of administrative deportation if the national interest so requires.
Settlement may not be accepted in the event of recidivism.

Article 9

An informant who is not one of the offenders shall be granted a financial reward, determined by a resolution of the Competent Minister, at a rate not exceeding 10% of the value of the fines collected, if he submits evidence that can be relied upon and a final judgment of conviction is issued on the basis thereof. In the event of multiple informants, the reward shall be distributed among them equally.

Article 10

The competent employees designated by a resolution of the Competent Minister or his delegate shall have the capacity of judicial police officers to detect the offences committed in violation of the provisions of this Decree-Law and the resolutions implementing it.
For this purpose, they may carry out inspection and supervision, and detect and record the violations committed by persons or entities suspected of carrying on economic activities in violation of the provisions of this Decree-Law. Such persons or entities shall provide all the facilities, data, information and documents requested by such employees for the performance of their work.

Article 11

Any person is prohibited from obstructing or preventing the employees of the Competent Ministry who have the capacity of judicial police officers from performing their duties or exercising their powers prescribed under this Decree-Law by any means whatsoever, including refraining from providing the required information or documents, or providing incorrect or misleading data and information to the employees.

Article 12

The Competent Minister shall issue the resolutions necessary for implementing the provisions of this Decree-Law.

Article 13

Every provision contradicting the provisions of this Decree-Law shall be repealed.

Article 14

The Prime Minister and the Ministers – each within his competence – shall implement this Decree-Law, which shall come into force six months after the date of its publication in the Official Gazette.
* Published in the Official Gazette (Kuwait Al-Youm, Issue No. 1803, 9 August 2026); it comes into force six months after the date of its publication, i.e. as of 9 February 2027.

Issued on 2 August 2026 and published in the Official Gazette Kuwait Al-Youm on 9 August 2026.