Kuwait mandates deportation of expatriates convicted of commercial concealment

Kuwait has enacted a new decree-law to combat commercial concealment, imposing strict penalties including prison terms, hefty fines, and business closures. The 14-article law, Decree-Law No. 78 of 2026, will take effect six months after its publication in Kuwait Al Youm. It aims to standardize the business environment, promote fair competition, and prevent individuals or companies from operating without proper licenses or concealing business identities.

Violators face prison sentences ranging from one to three years and fines between 10,000 and 100,000 Kuwaiti dinars, or the illicit profits, whichever is higher. The law also holds beneficial owners liable if they were aware of the offense or failed in their management duties. Courts must order asset confiscation, revoke licenses, close establishments, and deport convicted expatriates.

Repeat offenders face doubled penalties within five years of a final conviction. The law allows settlements before a final court ruling, but not for repeat offenders. It also introduces financial rewards for credible informants and grants officials judicial enforcement powers, with penalties for obstructing inspections or providing false information.