Government approves draft law regulating digital commerce
The new legislation reflects the state’s commitment to modernizing its legal framework in line with global economic shifts, strengthening trust in the digital environment, and advancing Kuwait’s transformation toward a knowledge-based economy.
The Ministry of Commerce and Industry announced that the Cabinet has approved the draft law regulating digital commerce, paving the way for its submission to His Highness the Amir for ratification.
The ministry said the new legislation reflects the state’s commitment to modernizing its legal framework in line with global economic shifts, strengthening trust in the digital environment, and advancing Kuwait’s transformation toward a knowledge-based economy.
Minister of Commerce and Industry Khalifa Al-Ajil described the draft law as a “pivotal milestone” in developing Kuwait’s digital economic infrastructure. He noted that the legislation “strikes a balance between protecting consumer rights and enabling merchants to operate within clear, flexible regulations that keep pace with rapidly evolving technologies.”
Al-Ajil explained that the law establishes a comprehensive legal framework for electronic transactions, regulates digital advertising and promotional activities, and enhances personal data protection. It also reinforces transparency and professional standards in the digital market, “reflecting the state’s commitment to creating a modern, attractive environment for digital business and investment.”
The law provides a full regulatory structure for digital activity, including oversight of electronic payment methods in coordination with the Central Bank of Kuwait. It also permits the use of blockchain and smart contracts to increase transaction reliability and safeguard the rights of all parties.
The legislation introduces extensive consumer protection measures, requiring clear disclosure of store information, prices, return and exchange policies, and cancellation periods. It also mandates the issuance of approved electronic invoices and adherence to strict transparency standards.
The law further regulates digital advertising and influencer activity by requiring advertisements to be linked to merchant data and obligating that cooperation contracts be documented and retained for at least five years.
Payments must be processed through official channels in accordance with Central Bank regulations, thereby enhancing discipline and integrity in promotional content.
In addition, the law establishes an integrated electronic system for resolving digital disputes through a unified platform for submitting and tracking complaints.
Cases will be reviewed by specialized committees within defined timeframes, with decisions executed electronically—eliminating the need for paper documentation and ensuring faster, more transparent, and more effective dispute resolution for both consumers and businesses.
Al-Ajil emphasized that the Ministry, in coordination with relevant authorities, will work to implement the law and ensure an orderly transition to the regulated digital marketplace.
He noted that the legislation “supports the state’s efforts to strengthen Kuwait’s position in the global digital economy, enhance competitiveness, and build a more advanced and transparent digital business environment.”
