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The Ministry of Commerce and Industry issued Ministerial Decision No 109 of 2026 which was published in the official gazette during July and takes effect on September 1. The rules apply exclusively to intermediary platforms that connect merchants with consumers for product display ordering and delivery while exempting businesses that handle their own sales and logistics through proprietary channels. Platforms must amend their licensed activity to Managing Delivery Services via Electronic Platforms under international classification 532013 by the deadline and all existing contracts require alignment with the new provisions except those already compliant with the financial ceilings.
According to a Kuwait Times report on August 29 the decision seeks to correct an imbalance in which small and medium-sized enterprises accept platform terms out of necessity because delivery services have become deeply embedded in daily consumer habits. The legal text describes platforms as a gateway without realistic alternatives for many clients. Lawyer Khaled Bashir told the newspaper that limits on contractual freedom prevent exploitation monopolies and price inflation.
Restaurants have welcomed the regulations as prior commissions often ranged between 20 and 35 percent of revenues according to industry figures cited in the report. Fahad Al-Arbash chairman of Kuwait’s Restaurants Cafes and Catering Services Federation noted that some multi-branch establishments paid around KD 400000 annually to platforms and that aggregate sums across thousands of outlets reached millions. Khalid Hussein a financial manager with three decades in the food and beverage sector said the caps would shift profitability toward restaurants potentially allowing enhanced in-app promotions without reducing menu prices for consumers.
Delivery companies known as third-party logistics providers voiced strong reservations arguing that the framework overlooks their operational costs and was drafted without their full consultation. Abdulaziz Faleh head of the Committee of Delivery Company Owners affiliated with small and medium enterprises told Kuwait Times that the decision protects consumers apps and restaurants but leaves local 3PLs vulnerable. He warned that platforms may renegotiate contracts downward to preserve margins potentially triggering bankruptcies and disrupting the entire delivery chain.
Current payment models vary with some platforms requiring 3PLs to allocate 60 percent of order value to drivers and retain 40 percent while others disburse fixed sums between KD 1.05 and KD 1.3 per delivery based on performance the Kuwait Times report detailed. Anonymous industry managers told the newspaper that absorbing the new caps would force elimination of driver incentives staff reductions and possible service cutbacks in remote areas. Fahad Saleh Al-Turaiji CEO of Coops Delivery which operates without merchant commissions explained that his model depends entirely on the delivery fee and that serving distant locations from single-branch cooperatives would become unsustainable under the KD 1 ceiling.
The regulations prohibit platforms from mandating use of their delivery fleets penalizing self-delivery options or imposing price-parity clauses according to the ministry’s framework as summarized by Kuwait Times. Additional provisions mandate transparent fee disclosure prior to transactions initial complaint responses within 48 hours and data confidentiality with cybersecurity safeguards. Bashir suggested that periodic review mechanisms could help adjust the caps as market conditions evolve while violations risk penalties up to license cancellation.
