Kuwait embarks on sweeping legal, economic reforms to boost growth

• Global rating agency Fitch expects that Kuwait’s new laws will support the growth and diversification of the banking sector while boosting economic expansion and government spending on major projects.

• Around nine specialized committees are currently reviewing a wide package of laws, including those governing economic courts, the rental system, landlord associations, penalties, criminal procedures and trials, labor law, and civil and commercial law.

The State of Kuwait has launched a comprehensive reform of its legislative system, an unprecedented initiative designed to strengthen the country’s legal, economic, and social foundations within an integrated strategic vision, Al Rai newspaper reported.

The planned government amendments are guided by key principles, including enhancing governance and transparency, ensuring legislative consistency, supporting digital transformation, and reinforcing integrity while combating corruption. They will also draw on successful Gulf, Arab, and international models to establish a legislative framework that supports sustainable development.

Counselor Nasser Al-Sumait, the Minister of Justice, speaking at an open meeting with lawyers at the Kuwait Lawyers Association last August, said the political leadership had given direct approval for the project and authorized a full review of the legislative system. He added that the initiative marks the launch of the largest legislative development plan in Kuwait’s history.

Positive economic results

The package of legislation approved by the government last year marked the first step towards reformulating Kuwait’s legal framework to achieve the “New Kuwait 2035” vision and align with international laws and agreements. Legislative reviews have so far covered nearly 25 percent of the country’s existing laws.

These reforms, coupled with Kuwait’s open development policies, have delivered positive economic results. Economic indicators show improvement, growth forecasts remain strong, and foreign direct investment rose by 20 percent over the past year.

In this context, global rating agency Fitch expects that Kuwait’s new laws will support the growth and diversification of the banking sector while boosting economic expansion and government spending on major projects. In a recent report, Fitch highlighted that reform progress—particularly rationalizing spending and diversifying revenues away from oil—would strengthen the government’s budget and financial flexibility. It also noted that the supplementary minimum tax on multinational companies came into effect last January under Law No. 157 of 2024.

Key amendments

Among the most notable reforms is the new traffic law, implemented in April. Statistics from the General Traffic Department show a marked drop in accident-related deaths and traffic violations, reflecting the law’s positive impact on public safety.

Other significant legislation includes amendments to the Penal Code (Law No. 16 of 1960), the Criminal Procedures and Trials Law, and the Civil and Commercial Procedures Law (Decree No. 38 of 1980).

Reforms also cover amendments to Law No. 2 of 2016 on the Integrity Commission and financial disclosure requirements, Decree-Law No. 94 of 2024 on administrative disputes, as well as new laws for real estate developers and updates to the Companies Law.

Nine working committees

Around nine specialized committees are currently reviewing a wide package of laws, including those governing economic courts, the rental system, landlord associations, penalties, criminal procedures and trials, labor law, and civil and commercial law. This effort runs in parallel with ongoing coordination between ministries and other relevant authorities to amend additional legislation.

Family protection

In this context, Kuwait is preparing for a qualitative shift in laws related to family and society through amendments to the Personal Status Law, the Domestic Violence Law, and the Juvenile and Child Laws. The aim is to address gaps revealed in the practical application of these laws, provide stronger safeguards against family disintegration, protect women from violence, and ensure justice.

The draft amendments to the Personal Status Law of 1984 target over 120 existing articles, propose twenty new ones, and repeal fifteen others. Together, these changes will create a comprehensive framework that serves the interests of all parties while preserving family integrity.

Plans also call for merging the Juvenile and Child Laws into a single law with a specialized court draft. This will resolve the conflict between the concepts of “child at risk” in the Child Law and “juvenile at risk of delinquency” in the Juvenile Law, while regulating procedures for dealing with children in both cases.

During Kuwait’s address to the Human Rights Council in Geneva last May, officials confirmed that a comprehensive review of all 983 laws is underway. They noted that recent reviews have already produced key reforms, including amendments to the Nationality Law and Penal Code, expanded powers for the Anti-Corruption Commission, greater judicial authority to prosecute corruption crimes, and stronger protection of public funds.

New judicial law

The new Judicial Law, currently under review by the Fatwa and Legislation Department, represents a prelude to the most extensive reform of Kuwait’s judicial system. This legislative overhaul seeks to strike a balance between safeguarding rights and freedoms while ensuring deterrence and justice.

Nationality laws, combatting drug use

Sheikh Fahad Yousef Saud Al-Sabah, First Deputy Prime Minister and Minister of Interior, announced during a recent meeting with newspaper editors-in-chief that the new nationality law is in its final stages of review and will soon be referred to the Council of Ministers for approval.

He also revealed that a new drug law will be enacted in cooperation with the Ministry of Justice, as part of a broader effort to combat drug use and disrupt supply chains both inside and outside the country.

In addition, the Lawyers’ Law, being prepared with the Kuwait Lawyers Association, will introduce significant reforms to the legal profession through a package of regulatory and protective measures. Authorities are also reviewing amendments to Law No. (8) of 2010 on the rights of persons with disabilities, aiming to enhance protections and ensure equal opportunities.

Digital transformation

Government amendments emphasize digital transformation, particularly within the Representation Law and Electronic Transactions Law, to shift all powers of attorney and documentation—including personal status and real estate matters—into electronic formats.

A specialized committee has also drafted amendments to the Ministry of Justice’s Expert Management Law, covering electronic transfers of notifications and documents, now under review by the Fatwa and Legislation Department.
Furthermore, the Ministry of Justice is partnering with global technology companies Google and Microsoft to advance digital transformation and deliver integrated electronic services.

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