Kuwait Abolishes the Silk City and Boubyan Island Development Authority

Decree No. 175 of 2026, published in Kuwait Al-Youm Issue 1816 on 8 November 2026 (page 6), abolishes Decree No. 240 of 2012, which set up the Silk City (Al-Subiya) and Boubyan Island Development Authority. The decree was signed on 1 November 2026 and takes effect from its publication (Article 5).

Closing the authority does not cancel the project. Under Article 2, the Council of Ministers will name the government bodies that take over the development of Silk City and the Kuwaiti islands, including the policies, plans, programmes and projects needed for it. The authority's assets, rights and obligations pass to those bodies, each within the task given to it. That expressly covers contracts, agreements, projects, studies, records and the related budget allocations.

Article 1 leaves Decree No. 22 of 2025 untouched. That decree had already moved the completion of Mubarak Al-Kabeer Port to the Ministry of Public Works. Permanent staff of the authority move to the Civil Service Commission, which will place them in other government bodies on the same grades and salaries; the service of other staff ends under the applicable rules (Article 3).

The Council of Ministers approved the draft decree at its meeting of 29 September 2026. The decree does not name the successor bodies or set a date for naming them.

WEFAQ's view: contracts signed with the authority do not fall away, because its obligations pass by law to the bodies the Cabinet will name. Until that decision is issued, though, it is unclear who signs, pays and receives notices. Contractors, consultants and suppliers should record what is owed to them, keep serving notices as their contracts require, and watch for the Cabinet decision.

Read more: for the full analysis, read our companion blog article: 'The Silk City Authority Is Gone: What Contractors, Suppliers and Investors Should Do Now'.

Source: Decree No. 175 of 2026 abolishing Decree No. 240 of 2012 establishing the Silk City (Al-Subiya) and Boubyan Island Development Authority; Kuwait Al-Youm Issue 1816, page 6, dated 8 November 2026; Council of Ministers meeting of 29 September 2026 (KUNA, reported by Arab Times, 29 September 2026).

This article is provided for general information only and does not constitute legal advice. For advice specific to your circumstances, please contact WEFAQ Law Firm.