03/10/2026
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03/10/2026
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Minister of Social Affairs announces key changes to charitable associations' regulations.
KUWAIT CITY, Oct 3 : The Ministry of Social Affairs has launched a comprehensive review of investment contracts covering around 5,270 shops and branches in cooperative societies across Kuwait to ensure compliance with the provisions of Decree Law No. 78 of 2026 on combating commercial concealment.
The review, being conducted by the ministry’s Financial and Administrative Affairs and Cooperative Affairs Sector, will examine investment arrangements and cases involving the inclusion or involvement of third parties in commercial activities. The ministry is particularly focusing on arrangements that could allow economic activities to be conducted in violation of the law, directly or indirectly, including cases where the management of an investment is effectively handed over to a non-Kuwaiti.
Sources said legal action will be taken against investors found to have violated the decree or attempted to circumvent its provisions through manipulation or arrangements designed to obtain benefits unlawfully.
The ministry will also focus on subletting, with the aim of preventing investment outlets from being transferred to others who could use them for activities that violate the law.
According to the sources, investors found to be non-compliant will generally be given a grace period until the expiry of their existing investment contracts. Once the contracts expire, the ministry will reclaim the shops and branches and re-offer them in accordance with cooperative-sector regulations and other applicable laws.
The review is part of wider government efforts to strengthen oversight of commercial activities and prevent the misuse of investment arrangements to conceal the actual beneficiaries or operators of businesses.
