Kuwait: Central Bank Enhances Oversight on E-Payment Providers

Arab Times, 16 June 2025: The Central Bank of Kuwait (CBK) issued a comprehensive directive, tightening rules for electronic payment service providers to strengthen oversight and governance within the digital payments sector.

The regulatory circular, referring specifically to the existing framework supported by Article 85 of Kuwait Law No. 32/1968, aimed to increase operational oversight and enhance risk management for electronic payment service providers, electronic money institutions, and payment system operators in Kuwait.

The impacted parties include all entities involved in the provision of electronic payment services in Kuwait. Providers must ensure the accuracy and validity of documentation processed via the Electronic Payment Services Gateway System, with violations potentially incurring penalties under the law. Legal representatives or officially authorised personnel must manage submissions, with the CBK pre-emptively informed of any changes or authorisations.

Key legal requirements of the CBK’s Electronic Payment Business Regulations include adopting strict governance policies and enhanced oversight mechanisms. Providers must comply with Anti-Money Laundering and Counter-Terrorist Financing measures. Firms must inform the CBK of authorised user resignations and conduct annual reviews to ensure board members meet solvency and competence standards.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Law to Enforce Payment of Public Service Fees

Arab Times, 8 June 2025: Kuwait’s government issued Kuwait Decree-Law No. 75/2025, aimed at enforcing the collection of fees for public services such as electricity, water, telecommunications, and transport.

The law introduced mechanisms to ensure timely payment and prevent fee evasion, reinforcing the principle that public utilities must be paid for under regulatory mandates.

Key provisions included automatic service suspension for debtors failing to pay within 30 days of notification, with services restored upon full payment. The law allowed installment-based repayments for those unable to pay in full, subject to creditor approval. Failure to adhere to the installment plan led to its cancellation and immediate debt recovery procedures.

Article 2 of Kuwait Decree-Law No. 75/2025 mandated a grievance process before legal action, requiring debtors to file a written complaint with the concerned authority, which must respond within 30 days. Article 3 of Kuwait Decree-Law No. 75/2025 granted government creditors a statutory lien over all debtor assets, ensuring priority in recovering dues. Article 4 of Kuwait Decree-Law No. 75/2025 elevated official debt documents to “executive instrument” status, allowing direct enforcement without lengthy court proceedings.

The law introduced a 10-year statute of limitations for fee collection, with interruptions possible through official notices from creditors. Judicial fees were exempted from the law’s provisions.

The legislation aimed to address widespread abuse of the existing system, where many beneficiaries delayed or avoided payments, burdening the state financially. It sought to restore financial discipline and ensure efficient management of public utilities, offering structured payment plans to balance enforcement with recognition of genuine financial hardship.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Central Bank Enforces Transparency in AML Penalties

The Central Bank of Kuwait has approved a methodology for imposing penalties in line with Article (15) of Kuwait Law No. 106/2013, concerning combating money laundering and terrorist financing.

There will be the publication of penalties imposed on supervised entities to ensure transparency and adherence to international standards set by the Financial Action Task Force (FATF). The Central Bank aims to make penalties “effective, proportionate, and deterrent,” and align them with the severity of violations. The penalties, including written warnings and financial sanctions, are published on the Central Bank’s official website to promote transparency and regulatory compliance.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: New Public Debt Law

Arab Times, 20 May 2025: The Undersecretary of the Ministry of Finance has introduced a new Public Debt Law, which focuses on enhancing financing and liquidity.

The law is designed to provide Kuwait with diversified financial resources both locally and internationally, supporting development projects and strengthening domestic financial markets. It authorises the Ministry of Finance to mandate the Central Bank or Kuwait Investment Authority to secure financing on its behalf, reflecting the State’s capacity to borrow responsibly.

The law raises the borrowing ceiling from KD10 billion to KD30 billion and extends the borrowing term from 10 to 50 years, introducing specific expenditure guidelines. These changes are expected to positively influence Kuwait’s credit rating by demonstrating fiscal discipline and effective management of development financing. The Public Debt Law is part of a broader strategy to engage confidently with global markets, minimise borrowing costs, and diversify the investor base. It also aims to develop a local debt market by establishing a reliable yield curve, serving as a benchmark for domestic investors.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Health Ministry Sets Prices for Sets Medicines

Kuwait Times, 12 May 2025: Kuwait Ministerial Decision No 93/2025, has been issued approving new pricing for 69 medicines and pharmaceutical products in private pharmacies.

The decision follows recommendations made by the Drug Pricing Committee. These approved prices are for a wide range of therapeutic categories. These include medications for cancer, including leukemia, as well as treatments for diabetes, hypertension, high cholesterol, and cardiovascular diseases. It also covers anticoagulants, antidepressants, antiepileptics, antibiotics, antifungals, antivirals, asthma treatments, osteoporosis drugs, thyroid medications, dermatological preparations, Alzheimer’s and dementia treatments, obesity medications, and migraine relief drugs.

The new decision complements Kuwait Ministerial Decision No. 74/2023.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Civil Service Commission Automates Job Status Amendment Procedures

Khaligyoun, 30 April 2025: The Kuwait Civil Service Commission has announced the automation of job status amendment procedures.

This initiative has been launched to simplify procedures and expedite transaction completion between the employee’s workplace and the relevant departments within the Commission. The automation process will begin with the submission of requests by the employee’s workplace through the system, followed by review and approval by the relevant Civil Service Commission department.

The automation of procedures are part of a broader initiative towards a “paperless Commission,” complementing existing systems for appointments, external transfers, experience calculation, job title changes, and end-of-service settlements.

For full story, click here.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Changes to Criminal Law

Arab Times, 26 April 2025: The Kuwait Council of Ministers approved amendments to the Penal Code, originally enacted under Kuwait Law No. 16/1960.

The amendments have increased fines for manslaughter and unintentional injuries and introduced new articles which alter penalties under aggravating circumstances. A provision was also added to protect the financial system from debtors falsely claiming insolvency.

In addition, amendments to the Code of Criminal Procedure and Trials Kuwait Law No. 17/1960 found in Kuwait Decree-Law No. 62/2025 have included electronic notification of in-absentia judgments to expedite delivery and ensure convicts are informed, reducing litigation delays. Article 230 of Kuwait Law No. 17/1960 has been was amended to facilitate the collection of criminal fines, allowing the Public Prosecution to deduct fines from salaries or arrange instalment payments.

The Council has also approved amendments to Article 5 of Kuwait Law No. 71/2020 on Bankruptcy, reinstating arrest and detention for debtors who evade financial obligations and enhancing enforcement authority for financial disclosures.

A draft decree-law amending the Civil and Commercial Procedures Law ,Kuwait Decree-Law No. 38/1980, has been introduced, which will allow the Enforcement Department to notify a Credit Information Company of non-payment, impacting the debtor’s credit record.

The Public Authority for Combating Corruption (Nazaha) was reinforced through amendments to Kuwait Law No. 2/2016 On the Establishment of the Public Authority for Anti-Corruption and the Provisions Related to Financial Disclosure, broadening the definition of corruption and mandating electronic submission of financial disclosures.

Kuwait Ministerial Decision No. 194/2025 to have also been issued to regulate payment procedures for official documents, in order to combat money laundering and enhance transparency in the real estate market.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.

Kuwait: Law Amended to Allow Salary Deductions for Unpaid Court Fines

Arab Times, 20 April 2025: Kuwait Decree-Law No. 62/2025 amended the Code of Procedures and Trials Law (Kuwait Law No. 17/1960), enabling salary deductions for unpaid court fines and revising objection periods for verdicts.

Kuwait Decree-Law No. 62/2025 has replaced Article 188 and 230 of Kuwait Law No. 17/1960 with new provisions, impacting the objection period for verdicts and the collection of unpaid fines.

Article 188 of Kuwait Law No. 17/1960 now specifies a one-week objection period for verdicts. In misdemeanor cases, this period begins from the date the convicted person is notified of the verdict issued in absentia. For felony cases, it starts from the date of the convicted person’s arrest, provided the judgment was not previously served in person. If the objection is not filed within this timeframe, the verdict may only be appealed if eligible before the Court of Appeals. Notifications can be sent via email or other modern communication methods, and if direct service is not possible, notices may be delivered to a relative or published in the official gazette.

Article 230 of Kuwait Law No. 17/19605 allows for the collection of unpaid fines through compulsory execution from the convict’s assets. The Public Prosecution can recover fines via monthly deductions not exceeding one-quarter of the convict’s salary, wage, national labour support, or pension. The convict may request to pay the fine in instalments or defer payment, with full payment required within five years.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.