Kuwait approves new company rules, Zakat House restructuring and Silk City authority cancellation
The Council of Ministers has approved draft legislation to simplify company procedures, abolish the joint venture company structure and restructure the Zakat House board, while also approving a decree to cancel the authority overseeing the Silk City and Bubiyan Island development.
The Cabinet, chaired by Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, approved a draft decree cancelling Decree No. 240 of 2012 establishing the Silk City (Sabiyah) and Bubiyan Island Development Authority and submitted it to His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah.
It also approved amendments to the Companies Law No. 1 of 2016 aimed at making company formation and operations more flexible and transparent. The proposed changes would remove the requirement to document all company-related legal procedures and transactions, relying instead on signatures by partners or their representatives. Registration in the Commercial Register would have the same legal effect as documentation, making company contracts, amendments and extraordinary general assembly resolutions effective against third parties.
The draft would abolish joint venture companies, as they are not subject to registration or declaration, and allow self-employed professionals to establish one-person professional companies. Existing offices and companies would receive a one-year transition period to adjust their status, while contracts and companies established before the law takes effect would remain valid.
The Cabinet also approved amendments to Article 3 of Law No. 5 of 1982 governing the Zakat House, reducing its board from 12 to seven members to create a more flexible and effective structure. The board would be chaired by the Minister of Endowments and Islamic Affairs, with the Zakat House Director General as vice-chairman, alongside senior officials from the Ministry of Islamic Affairs, Ministry of Social Affairs, Family and Childhood Affairs, Ministry of Finance, General Secretariat of Endowments and General Authority for Minors’ Affairs.
The Cabinet also reviewed agenda items and reports from ministerial committees, approving some and referring others to the relevant committees for further study and recommendations.
At the start of the meeting, the Cabinet reviewed a message from Saudi King Salman bin Abdulaziz Al Saud inviting the Amir to attend the second Gulf Cooperation Council-European Union summit in Riyadh on Saturday, October 24, 2026.
Cabinet backs Crown Prince’s UNGA speech
The Cabinet praised the speech delivered by H.H. the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah, representing the Amir at the 81st UN General Assembly in New York. The Crown Prince addressed what Kuwait described as ongoing Iranian attacks against Kuwait, GCC states and Jordan since February, involving ballistic and cruise missiles and drones and targeting civilian infrastructure and vital facilities, including Kuwait International Airport, power and water stations and oil installations.
He stressed Kuwait’s commitment to a just peace, respect for state sovereignty, protection of peoples’ rights and international law as foundations for regional and international security and stability. The Cabinet also reviewed his participation in a meeting hosted by US President Donald Trump with Arab and Islamic leaders and delegations, where regional developments, Iranian attacks, maritime navigation, global energy supplies and Gaza were discussed.
The meeting underscored the strategic partnership and continued coordination between Kuwait and the United States on regional and international security, de-escalation and efforts toward a comprehensive and just peace.
