Kuwait Airways becomes fully state-owned shareholding company
Kuwait has issued Decree-Law No. (77) of 2026, converting Kuwait Airways Company into a joint-stock company wholly owned by the state.
The move aims to modernize the national carrier’s legal framework, improve operational flexibility and strengthen its competitiveness amid growing regional competition in the aviation sector.
Under the decree, Kuwait Airways’ shares will be transferred to full state ownership, while the company will operate in accordance with its founding documents and the Companies Law.
The decree prohibits the sale, mortgage or transfer of the company’s shares without approval from the Council of Ministers, ensuring that state ownership remains direct and complete.
The Board of Directors of the Kuwait Investment Authority will assume the powers of the company’s general assembly and appoint its board of directors in line with legal requirements.
The new framework grants Kuwait Airways greater independence in managing its operations, including approving organizational structures, financial and administrative regulations, procurement procedures and employment policies.
The decree also allows the airline to directly hire international expertise and specialists, while applying private sector labour regulations to employees in areas not covered by company rules.
Kuwait Airways’ activities will be exempt from competition law provisions, reflecting its status as the country’s national carrier and fully state-owned entity.
The decree also limits the Audit Bureau’s role to reviewing and commenting on the airline’s auditor reports and financial statements. It takes effect from the date of publication in the Official Gazette.
