15/10/2026
*Three scenarios for the shape of Kuwait market after the application of the Anti-concealment Law*
In the previous report, we referred to the additions of the Anti-concealment Law in Kuwait economy and practical solutions. In this research, we show some of the projections of this law - 78/2026 - on the market and the most prominent variables. In this report of EXCPR Consulting and Business Management CO indicates that the total number of commercial organization in the State of Kuwait has been close to 144 thousand, according to the latest data of the Central Bureau of Statistics in the State of Kuwait in 2026. Since this came to the law to regulate the market and trade in the State, many companies that had been established for nearly 50 years have used the method of inclusion "commercial cover-up" as a basis and a way out of their implementation, since the situation at that time allowed such methods.
With the implementation of the new law and its entry into force on 2/2027, it is expected to find a reflection of the application of that law in the form of the market, supply chain, jobs, local consumer, and even consumer behavior. This change does not mean the ineffectiveness of the new law. As we showed in the previous report, the law has many additions such as protecting the economic environment and competition, monitoring the crime of money laundering, combating monopoly and encouraging entry to the market, especially for small and medium enterprises, strengthening control and transparency, paving the way for the application of the tax system and contributing to the domestic national product of the State of Kuwait.
On the other hand, if we assume that the percentage of companies that not meet the Ministry of Commerce and Industry -MOCI requirement, about 50% of the total number of companies - as the best scenario, this means that 72,000 companies are required to adjust their legal status in the records of the Ministry before the beginning of the new year. As if the annual income of these institutions is about 65,000 USD, this means that the total annual return of those companies together will be 4.7 billion USD, equivalent to 3.0% of the GDP of the State of Kuwait. This shows the importance of the existence of such laws in diversifying the sources of income for the state, especially in the case of the application of the tax system in future.
We may go on to divide the total value obtained from the annual income into three categories, acquisition, partnership, or closure, the aspects of such strategic decisions will be as follows:
*Category I - Acquisition*
It is the case in which some companies will succeed in adjusting their legal status by acquiring the company's assets and purchasing its assets in full, which will result in the continuation of the same performance to a large extent, and thus will support the market by the continuous flow of products. It is noted in this case that the revenues were not visible in the data of the macroeconomic size of the state, but rather that they were exported abroad - on the basis of their ownership of the foreigner, which is expected to revive the remaining economy, which may reach 1.569 billion USD per year in an upward trend. We do not believe in this case that performance or that the market will feel that difference, especially since the change has become on the scope of ownership and not at the level of management or employees.
*Category II - Partnership*
As for the second category of segments of resetting and organizing the new law on companies, it may obtain the form of legal change and partnership between the citizen-to-citizen or between the citizen-to- foreigner, so that the majority of the company's shares are formed for the citizen by +51%. In this case, the flow of products to the market will also continue normally, with a recovery of the national economy by up to 784 million USD per year. This case is considered a standard case in which the mutual benefit of the parties will be achieved.
*Category III - Closure*
The last category is the one that has not been able to amend their legal status for any reason, or reach a consensus formula among the owners, and thus dissolve the partnership that lasted for decades. It is then expected to leave a commercial open size “vacuum” in this case, which may lead to an increase in the prices of goods and services provided to customers by up to 16.7%, as a result of scarcity. This situation will also lead to an increase in the supply of commercial sites, which will contribute to reducing the store rents, in addition to the so-called "kheloo", unemployment that requires treatment or contracts. In return, this state of space allows new competitors to enter the market and SME owners, which may be considered a real opportunity to achieve meaningful returns.
In conclusion, EXCPR CO. said that regulating the market is an absolute right of state organs and institutions, which are required to achieve the minimum of the supervisory side, towards more fairness and transparency. Such laws are also considered external forces possessed by governments, which would be inherent risks to the survival of business, or are a good opportunity to enter the markets. Perhaps the gradual application with the measurement of developments would regulate the market more during the next phase, especially since it may affect a large segment of end-users.
*EXCPR Public Relation - Copyright ©*
Nayef A. Bastaki – Founder and MD
Anti-concealment Law 78/2026. 463.2026
13.10.2026
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EXCPR Strategic Consultancy For Business Sustainability , EXCPR Kuwait’s entrepreneur firm works in Management Consultancy Services and specializes in Strategic business – for advises and studies.
