Kuwait Implements New Regulations for E-Delivery Platforms

Kuwait City, Kuwait Jul 14, 2026 ALN: The official gazette “Kuwait Al-Youm” published on Sunday Decision No. 109/2026 issued by the Minister of Commerce and Industry Osama Boodai, regarding the issuance of regulations governing the sector of intermediary electronic platforms and applications for displaying, ordering, and delivering products to consumers. The regulations introduce new controls aimed at regulating electronic platform activities and adjusting the status of existing companies and contracts.

The decision is a significant step in the evolving landscape of e-commerce in Kuwait, particularly in light of the rapid growth of online delivery services, which have become increasingly popular in recent years, especially following the COVID-19 pandemic. The pandemic accelerated the shift toward digital solutions, with many consumers turning to online platforms for their shopping needs. As a result, the demand for efficient and reliable delivery services has surged, prompting the government to implement regulations that ensure fair practices and protect consumers.

The decision outlines a series of articles that detail the new regulations, which are intended to create a more structured and transparent environment for both consumers and service providers. The key articles of the decision highlight the responsibilities of companies operating in this sector and the necessary adjustments they must make to comply with the new regulations.

Key Articles of the Decision

Article 1 - The provisions of the regulations governing the activities of intermediary electronic platforms and applications for displaying, ordering, and delivering products to consumers, attached to this decision, shall be implemented. This article serves as the foundation for the entire regulation, emphasizing the importance of adhering to the new rules.

Article 2 - Every company licensed to launch and operate an intermediary electronic platform for displaying, ordering, and delivering products to consumers must adjust its status in accordance with the provisions of the regulations attached to this decision. The licensed activity shall be amended to “Management of Delivery Services via Electronic Platforms” under the approved international classification No. 532013, no later than September 1, 2026. This change is crucial as it aligns the activities of these companies with international standards, potentially enhancing their credibility and operational efficiency.

Article 3 - Every contract concluded between the service provider and the customer from the date of issuance of this decision shall be subject to the provisions of the regulations attached to this decision. For existing contracts concluded before the date of this decision, the parties must amend and align their contracts with the provisions of the attached regulations before September 1, 2026. Existing contracts in which the agreed commission does not exceed the maximum limit stipulated in Article 7 of the attached regulations shall be exempt from the preceding requirement and shall continue to have full legal effect according to their contractual terms until the date of expiry. This provision ensures that both new and existing contracts are governed by the same set of regulations, promoting fairness and transparency in the marketplace.

Article 4 - The service provider licensed by the ministry shall comply with the guidelines attached to this decision concerning the consumer order delivery services sector through smart platforms and applications, as approved by the Competition Protection Authority under Decision No. 1/2026 referred to above. These guidelines shall be considered an integral part of this decision with regard to competition controls and prohibited practices, without prejudice to the service provider’s obligation to comply with the maximum commission and delivery fees stipulated in the regulations attached to this decision. This article aims to foster healthy competition in the market while protecting consumers from unfair practices.

Article 5 - Any person who violates the provisions of the articles contained in this decision shall be subject to the penalties and procedures stipulated in Article 15 of the regulations attached to this decision. This provision underscores the seriousness of compliance and the potential consequences of non-adherence, which may deter companies from engaging in unethical practices.

Article 6 - Ministerial Decision No. 10/2026 concerning the issuance of regulations governing restaurant and readymade food delivery orders is hereby repealed. Any decision or provision that conflicts with the provisions of this decision and its attached regulations shall also be repealed. This repeal indicates a shift in regulatory focus and a move towards a more unified framework for all types of delivery services.

Article 7 - The competent authorities, each within their respective jurisdictions, shall implement this decision, which shall be published in the official gazette and shall enter into force from the date of its issuance. This article highlights the collaborative effort required among various government entities to ensure the effective implementation of the new regulations.

The introduction of these regulations is expected to have several implications for the e-delivery sector in Kuwait. By establishing clear guidelines for operation, the government aims to enhance consumer confidence in online shopping and delivery services. This is particularly important as consumers increasingly rely on digital platforms for their purchasing needs. Furthermore, the regulations are designed to level the playing field for service providers, ensuring that all companies adhere to the same standards and practices, which could lead to improved service quality and customer satisfaction.

Additionally, the new regulations may encourage more companies to enter the market, knowing that there are established rules governing operations. This could lead to increased competition, which in turn may drive innovation and improvements in service delivery methods. As companies strive to differentiate themselves in a crowded market, consumers may benefit from better services and potentially lower prices.

However, the implementation of these regulations also poses challenges for existing companies. Many may need to invest in compliance measures, which could incur additional costs. Smaller companies, in particular, may find it difficult to adapt to the new requirements, potentially leading to a consolidation of the market as larger companies with more resources absorb smaller competitors. This could have long-term implications for market diversity and competition.

In conclusion, the issuance of Decision No. 109/2026 marks a pivotal moment for the e-delivery sector in Kuwait. By establishing a regulatory framework for intermediary electronic platforms and applications, the government seeks to foster a more organized and competitive environment that benefits both consumers and service providers. As the landscape of e-commerce continues to evolve, it will be essential for all stakeholders to adapt to these new regulations to thrive in the digital economy.