Kuwait Issues Decree-Law No. 78 of 2026 Making Commercial Concealment a Crime

Kuwait has issued Decree-Law No. 78 of 2026 on combating commercial concealment, the practice known in the region as tastur. The law was signed at Seif Palace on 2 August 2026. It contains fourteen articles and takes effect six months after its publication in the Official Gazette. It is Kuwait's first standalone law aimed directly at this practice.

In plain terms, commercial concealment means letting someone the law does not allow to run a business run it behind your name. Article 1 defines it as enabling any person or company to carry on an economic activity the law bars them from, whether for their own benefit or in partnership with others, or getting around the ownership limits set for foreigners. "Economic activity" covers almost everything: any commercial, investment, industrial, agricultural, service or professional activity that aims at profit and needs a licence. Article 2 then bans both sides of the deal: running the business without a licence, and allowing it by lending your trade name, licence, approval or commercial register entry.

The penalties are heavy. Article 3 sets prison of one to three years and a fine of KD 10,000 to KD 100,000, or the value of the profits made if that is higher, or one of the two, with the fine repeated for each violator and each activity. On conviction, Article 6 requires the court to confiscate the profits and the tools used, close the establishment permanently and cancel the licence, and a foreign violator is deported after serving the sentence. Two provisions soften the regime: Article 8 allows a settlement against payment of at least half the maximum fine, provided the violation is corrected, and Article 9 gives informants a reward of up to 10 percent of the fines collected.

WEFAQ's view: the six-month lead-in under Article 14 is, in practice, a window to fix existing arrangements. If the name on a licence is not the person actually running the business, this is the period in which to review the setup and put it right.

Read more: for the full analysis, read our companion blog article: "Kuwait's Commercial Concealment Law: Six Months to Put Arrangements in Order".