Law & Regulation
Bankruptcy Law
Approved by Parliament 29 September 2020, published 25 October 2020. Modernizes Kuwait's insolvency regime: introduces preventive settlement, financial restructuring, a specialized bankruptcy court, and abolishes jail sentences for debtors. Decree-Law No. 69/2026, signed 28 June 2026 and published in Kuwait Al-Youm (Issue 1798) on 5 July 2026, amends Articles 4 and 7(1), restructuring the Bankruptcy Court's composition (each circuit may comprise three judges chosen by the General Assembly) to speed dispute resolution.
Legal Significance
What This Instrument Does
Provides Kuwait's modern reorganisation and bankruptcy framework, including a specialized court.
Why It Matters
Directly relevant to lender and investor risk assessment for Kuwaiti project companies and sponsors.
Legal Framework Position
- Insolvency / BankruptcyPrimary / Framework Instrument
Instrument Overview
- Official Citation
- Law No. (71) of 2020, as amended by Decree-Law No. (69) of 2026
- Instrument Type
- Law / Act
- Enactment Date
- 29 September 2020
- Effective Date
- 25 October 2020
- Last Amended Date
- 5 July 2026
- Last Verified
- 30 September 2026
Recent Developments
- Regulatory · 5 July 2026Kuwait issues Decree-Law 69/2026 restructuring Bankruptcy Court composition
Decree-Law No. 69 of 2026, signed 28 June 2026 and published in the Official Gazette Kuwait Al-Youm (Issue 1798) on 5 July 2026, amends Articles 4 and 7(1) of the Bankruptcy Law (Law No. 71 of 2020), restructuring the composition of Bankruptcy Court circuits to speed dispute resolution.