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The panel discussion, titled “The Commercial Concealment Law: An In-Depth Reading of Legal Texts and Practical Applications,” occurred under the patronage of department president Counselor Salah Al-Majed. Undersecretary Haitham Al-Ruwaished told the Kuwait News Agency that the seminar and others planned for the season seek to raise legal awareness and assist specialists as well as everyone affected by the law to fully understand its provisions. He said this would make it easier to apply the legislation and bring all types of economic activity into compliance, ranging from commercial, investment and industrial to agricultural, service and professional work.
According to a Kuwait Times report, participants explored the law’s legal, economic and regulatory dimensions, its legislative philosophy, the breadth of its scope and its role in supporting and protecting economic activity. Government officials and academics who took part stressed the legislation’s importance in safeguarding the economic system and creating a business environment where success depends on efficiency and compliance. The event marked the opening of the department’s second annual legal cultural season focused on such topics.
Decree-Law No. 78 of 2026 on combating commercial concealment was issued in August and published in the Official Gazette on August 9, with the law set to enter into force six months later in February 2027, a timeline detailed in reporting by Times Kuwait. The legislation addresses arrangements in which an individual enables another to engage in economic activity they are not legally entitled to conduct, often by circumventing ownership requirements through proxies, trade names or licenses. Earlier statutes including Commercial Law No. 68 of 1980, Commercial Shops Licensing Law No. 111 of 2013 and Companies Law No. 1 of 2016 had contained related provisions, according to a Kuwait Chamber of Commerce and Industry seminar summary from August.
Violators face imprisonment for one to three years and fines from 10,000 to 100,000 dinars, or the equivalent of illegal profits if that amount is higher, as stipulated in the decree-law covered by multiple Kuwaiti outlets. Additional measures can include confiscation of funds and profits generated through the offense, seizure of tools used to commit it, permanent closure of the establishment and revocation of its commercial license. For foreign offenders, the law provides for deportation after conviction, according to an analysis published by Times Kuwait.
Minister of Commerce and Industry Osama Boodai earlier described the decree as a significant step in strengthening transparency, protecting the national economy and ensuring fair competition, Kuwait Times reported in August. He noted that the law extends beyond traditional forms of concealment by introducing requirements for disclosing beneficial owners of commercial activities. This framework aims to prevent the misuse of entities and licenses for illegal practices while directing government support toward qualified operators.
A separate awareness seminar hosted by the Kuwait Chamber of Commerce and Industry in August highlighted how the new rules promote compliance and a level playing field, with speakers reviewing the legislative background. Abdullah Abdulwahab Al-Harz, director of the Kuwait Business Center, explained at that session that concealment involves using another person’s license or registration to conduct unauthorized business. The Chamber event underscored the six-month preparation period for businesses to adjust structures before full enforcement begins.
The Fatwa and Legislation Department intends to continue the legal cultural season with further seminars that build on this initial discussion of the concealment law. Haitham Al-Ruwaished indicated that such events will help clarify practical applications across affected sectors. Kuwait Times covered the October 25 seminar as part of ongoing official efforts to inform the public and specialists about the legislation.
