Kuwait mandates deportation of expatriates convicted of commercial concealment

Kuwait: Kuwait has issued a new decree-law introducing tougher measures to combat commercial concealment, imposing prison sentences, heavier financial penalties and business closures as part of efforts to strengthen transparency and regulate economic activity.

Decree-Law No. 78 of 2026, published in the official gazette Kuwait Al Youm last Sunday, will enter into force six months after publication. 

The 14-article law aims to standardise the business environment, promote fair competition and prevent individuals or companies from conducting commercial activities without the required licences or by concealing the identity of those operating businesses in violation of the law.

Under the legislation, individuals and legal entities are prohibited from conducting economic activities on their own or in partnership with others without obtaining the necessary licences or beyond the scope of those licences. 

The law also bans facilitating or enabling others to engage in unlicensed commercial activities, whether directly or indirectly.

Violators face prison terms ranging from one to three years and fines of between 10,000 Kuwaiti dinars ($32,500) and 100,000 dinars ($325,000), or an amount equal to the total illicit profits, whichever is higher. Fines may be multiplied depending on the number of offenders or the number of violations committed.

The decree also holds the beneficial owner of a company liable if they were aware of the offence or failed in their management responsibilities. 

Courts must order the confiscation of assets and profits derived from commercial concealment, revoke business licences, close offending establishments and deport expatriates convicted under the law, while safeguarding the rights of bona fide third parties.

Repeat offenders who commit commercial concealment within five years of a final conviction will face doubled penalties. 

The law also permits settlements before a final court ruling, provided offenders pay at least half of the maximum fine and rectify their legal status. However, repeat offenders are not eligible for settlement.

In a move aimed at encouraging public reporting, the law introduces financial rewards of up to 10 per cent of the fines collected for individuals who provide credible information leading to the detection and conviction of commercial concealment offences. 

It also grants designated officials judicial enforcement powers and introduces penalties of up to six months' imprisonment and fines of up to 10,000 dinars for obstructing inspections or providing false information to investigators.