KUWAIT CITY — Kuwait’s government has accelerated efforts to reform its financial and economic framework during the third quarter of 2026, implementing a series of legislative and structural measures designed to improve the business environment, diversify revenue streams, and attract foreign investment. These initiatives align with the strategic objectives of Kuwait Vision 2035, which aims to foster sustainable economic growth and development.
In recent months, six new laws have been enacted reflecting the government’s commitment to strengthening economic resilience and advancing key development projects. Among these, Law No. 90 of 2026 introduces government sukuk, a Sharia-compliant sovereign financing instrument that complements existing conventional debt options. The new law allows the issuance of sukuk backed by government assets and rights, broadening Kuwait’s financing tools and investor base while supporting capital market growth and more efficient fiscal management.
The Ministry of Finance stated that an institutionalized issuance approach would position Kuwait as a consistent sovereign issuer in both domestic and international capital markets. Concurrently, Decree-Law No. 81 of 2026 permits the government to borrow from the Future Generations Reserve by utilizing realized returns on a repayable basis. This measure is intended to maintain the reserve’s capital base while enhancing sovereign financing flexibility, complementing the Financing and Liquidity Law which authorizes up to KD 30 billion in domestic and international debt issuance.
Legal reforms have also been introduced to strengthen investor protection and streamline dispute resolution. A draft decree-law on arbitration, approved by the Cabinet in September, consolidates arbitration rules under a single framework aligned with international standards. It aims to provide faster, more flexible resolution of commercial and investment disputes, ensuring neutrality, confidentiality, and the use of modern electronic procedures.
Further judicial reforms include the Economic Circuits Law, which pre-established specialized courts to handle economic, commercial, and investment disputes, in an effort to expedite litigation and reduce procedural complexity. These changes support Kuwait’s ambitions to enhance its reputation as a regional financial and commercial hub by bolstering investor confidence and reducing business risks.
Additional legislation addresses market transparency and regulation: Decree-Law No. 78 of 2026 targets commercial concealment by prohibiting unauthorized economic activities conducted under others’ trade names or licenses, while allowing for reconciliation under certain conditions without custodial penalties to protect legitimate third parties.
The government also proposed amendments to the Companies Law No. 1 of 2016 aimed at simplifying business formation and improving transaction confidence. Among these changes is the removal of notarization requirements for all company procedures, replacing them with written agreements validated upon registration with the Commercial Register. The amendments also permit self-employed professionals to establish one-person companies and grant a one-year grace period for existing entities to comply with new regulations.
Alongside legal reforms, Kuwait is advancing a four-year public financial management program commencing in April 2026 to reinforce integrity, transparency, governance, and specialized financial expertise across government institutions. This program supports enhanced decision-making to promote sustainable development consistent with Kuwait Vision 2035.
In fiscal terms, the draft 2026/2027 state budget outlines significant capital spending with 433 ongoing and 101 new projects across ministries and government departments, plus approximately 122 ongoing and new projects at public authorities. These investments are designed to stimulate the private sector, expand economic opportunities, and strengthen fiscal sustainability, reflecting a comprehensive approach to economic reform and growth.