Kuwait achieves legislative leap in developing economic and financial infrastructure - Sarmad
The Kuwaiti Cabinet approved six laws to develop the financial and economic infrastructure, including the issuance of government bonds and amendments to the Companies Law.
Translated by Qiyas from سرمد — Original source
Government steps in Kuwait accelerated during the third quarter of this year toward achieving a qualitative leap in developing the financial and economic infrastructure, through a package of legislative reforms supported by structural transformations aimed at improving the business environment, diversifying income sources, and enhancing the attractiveness of foreign investments.
Six laws approved by the Council of Ministers in the past two months embody a strategic government commitment to steering the national economy toward a more sustainable path, supporting the comprehensive targets of the “New Kuwait 2035” development vision, while continuing to implement the state sectors’ restructuring plan and follow up on major developmental projects in the country.
The approval of Law No. 90 of 2026 concerning Government Sukuk represents an important step in developing Kuwait’s sovereign financing system by expanding the range of financial instruments available to the state and adding an instrument compliant with Islamic Sharia principles.
The new law allows for the inclusion of Sukuk within the sovereign financing structure alongside traditional debt instruments, thereby enhancing the flexibility of managing financing needs, diversifying funding sources and the investor base locally and internationally, and supporting the state’s direction toward developing capital markets and enhancing the efficiency of financial obligations management, in line with financial sustainability targets and preserving the strength of the state’s financial position.
In line with the state’s commitment to strengthening the legal and institutional protection of the Future Generations Reserve Fund as one of the key sovereign pillars supporting the country’s financial and economic sustainability across generations, the government issued Decree-Law No. 81 of 2026, which allows the government to borrow from the Future Generations Reserve Fund to support the state’s general reserves. The law enables the utilization of returns generated on a repayable basis, ensuring full preservation of capital, achieving sustainability in asset growth, and maximizing returns in the long term, while enabling the state to manage its needs in a disciplined manner without compromising or depleting the principal wealth, thereby achieving a balance between current requirements and the rights of future generations.
In a related development, the Law on the Establishment of Economic Courts, issued last August, represents a qualitative leap toward ensuring the proper administration of justice, expediting the resolution of economic disputes, simplifying litigation procedures, and enhancing the use of electronic means. The law provides for the establishment of specialized economic courts at the Court of First Instance, the Court of Appeal, and the Court of Cassation, which have jurisdiction over economic, commercial, and investment disputes specified by the law, assisted by a specialized technical office to support their work. The new law contributes to enhancing confidence in the investment environment, reducing costs and risks, and accelerating the return of idle funds to the economic cycle, thereby supporting the country’s competitiveness and consolidating its position as a regional financial and commercial hub, in line with the objectives of the “New Kuwait 2035” vision.
Furthermore, Draft Decree-Law No. 78 of 2026 concerning the Combating of Commercial Concealment aims to regulate the environment of economic activities to ensure transparency, fairness, and equal opportunity, and to enhance the state’s capacity for supervision, regulation, and revenue collection; this serves to achieve sustainable economic development and protect public order and the public interest.
In line with the state’s move toward a more flexible and transparent business environment, the Council of Ministers approved late last September a draft decree-law amending certain provisions of the Companies Law issued under Law No. 1 of 2016, aiming to facilitate company establishment and enhance confidence in dealing with them. The draft exempts the requirement to notarize all legal procedures and transactions related to companies from their establishment throughout their existence and any amendments to their contracts and articles of association, limiting the requirement to written documentation and signatures by the partners or their representatives.
Concurrently, the government continues to elevate the public financial management system, strengthening its efficiency and effectiveness as a fundamental pillar in the reform and development process. Recently, the government launched the Integrity, Transparency, and Governance Enhancement Program for Financial Performance in Government Entities, which spans four fiscal years from April 1, 2026, to March 31, 2030.
The program supports two key pillars of the state’s development plan: “Effective Government” and “Creative Human Capital.” It is linked to the concept of the knowledge economy by enhancing specialized financial knowledge, leveraging best practices, and utilizing financial and technical analytical tools, thereby contributing to improved financial decision-making quality and strengthening the foundations of sustainable development within the framework of the “New Kuwait 2035” vision.
Earlier this year, Kuwait intensified its measures to stimulate economic activity and enhance financial sustainability through several pathways, including continuing capital expenditure directed toward developmental projects, reforming the regulatory framework for the private sector, expanding the creation of new economic opportunities and sectors, and supporting private sector participation in developmental projects.
The draft General Budget for the fiscal year 2026/2027 indicates the existence of 433 ongoing projects across ministries and government departments, in addition to 101 new projects. Furthermore, affiliated bodies have approximately 122 projects, including 15 new projects and 107 ongoing ones.
