New Digital Commerce Law: An Urgent Necessity... Protecting the Market and Consumer

This question leads us to recognize that paper currency has become a rare medium of exchange in daily transactions within Kuwaiti society, whether when buying a snack from a restaurant or shopping at a retail store, thereby underscoring the urgent necessity of having an e-commerce law.

Bank cards and smart payment applications have become the primary and default choice for most segments of society. From this perspective, it has become imperative for regulatory authorities to strengthen and develop the digital commerce system and regulate it legislatively, a framework that will be implemented in the near future, especially given the widespread shift toward a society that relies fundamentally on purchasing through websites and electronic platforms.

The law provides a regulatory legal framework for operating in Kuwait’s digital commerce sector, enhancing trust in digital transactions and creating a safe, competitive environment that encourages investment and innovation. It also contributes to achieving the objectives of Kuwait’s development vision, “New Kuwait 2035,” toward digital transformation and sustainable development.

In this regard, the latest economic data released by the AfterShip eCommerce Library database and market readings for 2026 reveal a significant expansion in the size of Kuwait’s e-commerce market. The average monthly sales of online stores in the country are estimated at approximately $513.76 million, exceeding $6 billion annually.

These figures place Kuwait among the highest rates regionally in terms of average electronic shopping cart value and per capita spending on digital shopping compared to other countries in the region. The Kuwaiti market offers valuable insights into market dynamics through estimates of sales volumes across various store categories.

Data on monthly e-commerce sales in Kuwait by sector reveals that the food and beverage category, as the most prominent segment, achieved substantial sales of $85.81 million monthly, equivalent to 16.70 percent of the total sales of this sector in the region.

Hypermarkets and multi-department stores contribute significantly to the regional market, with sales reaching $53.97 million, equivalent to 10.50 percent of total sales in Kuwait.

On the other hand, figures issued by the Central Bank of Kuwait regarding payment volumes during the first eight months of 2026 prompt us to pause and reflect on an exceptional structural transformation in the nature of the national economy and consumer behavior within Kuwait.

Electronic payment transactions recorded a total of approximately 37.6 billion dinars, executed through more than 1.1 billion transactions within Kuwait and abroad. This massive financial flow reflects society’s reliance on digital means, which could not operate efficiently and securely without an advanced legal environment ensuring the protection of all parties and participants.

In this regulatory context, Decree-Law No. 10 of 2026 concerning the regulation of work in the digital commerce sector was issued, marking a pivotal turning point that addresses legal gaps, regulates the emerging digital market, and keeps pace with this digital explosion in the movement of funds and transactions.

Data issued by the Central Bank of Kuwait for the period from January to August 2026 shows an unprecedented surge in the adoption of electronic payment methods alongside the decline of traditional ones. These figures are distributed across several axes, including the total volume and value of payments.

Bank cards accounted for the largest share of total fund movements, recording 29.9 billion dinars across 977.5 million transactions. These were distributed across point-of-sale (POS) terminals, where they recorded 12.74 billion dinars, reflecting the continuous daily reliance on stores and direct sales channels.

Meanwhile, e-commerce transactions reached 11.43 billion dinars, a record figure that underscores the massive scale of online purchasing, while ATM withdrawals were limited to 5.74 billion dinars.

A new development has seen the "Wamda" service streamline payment and peer-to-peer transfer processes for retailers.

On another front, the value of transfers via the "Wamda" system amounted to approximately 7.7 billion dinars, executed through 118.4 million transactions between January and August 2026.

This rapid growth reflects the success of digital banking solutions in facilitating instant fund transfers between individuals and businesses.

Regarding the legislative framework of the new Digital Commerce Law, which was introduced to strengthen protection in this vast financial sector, Decree-Law No. 10 of 2026 was issued. It comprises 45 articles establishing a comprehensive regulatory framework aimed at building a secure digital investment environment that enhances transparency, protects consumers, and provides legal safeguards for traders and investors.

The legislation prohibits engaging in any digital commerce activity unless registered and recorded in the electronic registers maintained by the Ministry of Commerce and Industry. It also mandates integration with the commercial identity, requiring traders and business owners to clearly disclose their trade name, commercial registration, contact details, and platform licensing to customers.

The law serves as a direct link to the regulations governing the payment system, explicitly stipulating compliance with Article 28 regarding licensed service providers. It obligates all product and service providers to deal exclusively with payment gateways and electronic payment service providers officially licensed by the Central Bank of Kuwait.

The law ensures transparency in payment methods and bans hidden fees. It mandates the availability of simple and transparent payment options and prohibits the imposition of any undisclosed additional fees on electronic payment transactions without specific approvals.

According to figures from the Central Bank of Kuwait, which exceeded 37.6 billion dinars over eight months, it is evident that Kuwait’s digital economy is no longer merely an alternative option but a primary driver of commercial activity.

This regulatory move, including the provisions of Decree-Law No. 10 of 2026, establishes a comprehensive regulatory framework that protects consumers, regulates payment mechanisms, and boosts investment confidence in this pioneering sector, which is expected to be among the most significant future sectors, particularly with the advancement of modern payment technologies and the facilitation of purchasing processes offered by many companies.

Relevant sources stated that the law will be comprehensive and cover all current loopholes, noting that the Ministry of Commerce and Industry has kept pace with important and urgent developments, including monitoring reactions to a public opinion poll on the draft Digital Commerce Law until approval is granted for the bill regulating work in the sector.

Following the enactment of this law, the Ministry of Commerce and Industry set strategic objectives derived from the State Development Plan, aiming to increase national output and diversify its sources. These objectives encompass initiatives such as infrastructure development. The Ministry seeks to develop infrastructure to facilitate the transition to the State’s digital platform for conducting business, thereby keeping pace with the evolution of electronic services and achieving the goals of the State’s development plan.

It is worth noting that the Ministry of Commerce and Industry has been entrusted with the task of regulating work in the digital commerce sector and overseeing the implementation of the Decree-Law and its executive regulations and decisions. Its provisions stipulate that no person may engage in digital commerce activities prior to registration in the specialized registers maintained by the Ministry.