KUWAIT Law and Practice Contributed by: Sam Habbas, Luis Cunha, Hisham Al-Quraan and Mustafa Sayed, ASAR – Al Ruwayeh & Partners
the telecommunications sector (mobile network operators, ISPs, cloud service providers, etc). 8.2 Geographical Scope Companies that are doing business “in” Kuwait are typically required to abide by Kuwaiti laws, regardless of whether or not they have a physi - cal presence in Kuwait; such laws include the ET Law. While this is decided on a case-by-case basis, the likelihood of the foreign entity being subject to Kuwait’s laws increases according to the strength of the link between the activities of the foreign entity and Kuwait. Having noted this, there are restrictions on the export of certain government and sensitive information (although these points are currently being looked into and new reforms are expected). 8.3 Role and Authority of the Data Protection Agency There is no particular agency in Kuwait that is specifically charged with and dedicated to enforcing Kuwaiti data protection rules. The agency that may have jurisdiction will depend on the specific data protection rules that are being contravened. For instance, CITRA would be the authority in charge of overseeing the applica - tion of the DPR and Cloud Regulations when it is related to a company which is licensed by CITRA to conduct telecommunication services, while the Central Bank of Kuwait would be the primary authority in relation to entities which it may regulate (such as banks).
Perhaps the most significant of these are the regulations which are to be issued which will allow the establishment and operation of an Article 24 Branch. The MOCI circulated a draft Digital Commerce Law aimed at establishing a comprehensive regulatory framework for the country’s bur - geoning digital economy. This initiative seeks to modernise e-commerce practices, enhance consumer protections, and promote the integra - tion of advanced technologies within Kuwait’s commercial landscape. The proposed draft addresses certain business registration require - ments, consumer protection rights, electronic advertisement rules, digital documentation and signatures, and data protection and cybersecu - rity. The Law aims to establish a comprehensive digital trading environment that would help pro - mote e-commerce in Kuwait. There have also been discussions on the follow - ing developments. • A new mortgage law that aims to address the nation’s housing challenge – this legislative move seeks to regulate the housing finance system and expand homeownership opportu - nities for Kuwaiti citizens. Under the proposed law, a Kuwaiti citizen could access mortgage loans with flexible repayment periods. This move will invigorate the financial and real estate sectors. • A potential new business profits tax law – this would apply to persons doing business in Kuwait. No details have been disclosed save for certain discussions/market speculation.
9. Looking Forward 9.1 Upcoming Legal Reforms
With respect to business reforms in 2025 and beyond, it is expected that a number of reforms will be issued which would facilitate foreign par - ties seeking to do business directly in Kuwait.
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