KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Framework for consumer protection applicable to online commerce
Law No. 20 of 2014 regarding Electronic Transactions
Kuwait has a legal framework that applies consumer protection to online transactions. Art. 2 of the Law No. 20 of 2014 regarding Electronic Transactions provides for the scope of its application which includes electronic records, messages, information, documents and signatures related to civil, commercial and administrative transactions and to any disputes arising from or in connection with their use, unless the parties agreed otherwise, or another law applies.
Coverage Horizontal
KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the UN Convention of Electronic Communications
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Kuwait has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Restrictions on domain names
Domain Registration Policy
Under the Domain Registration Policy, the ".com.KW" domain name selected must match a part of the registered company name, or alternatively a registered trademark. The trademark can be from any country, and does not need to be valid for Kuwait. As is the case with other third-level domains (domain registrations are at the third level beneath these names: "com.KW", "net.KW", "org.KW"), a local administrative contact is required. If a company holds a matching trademark from anywhere in the world, or order one through a fast-track trademark service, only a local administrative contact is required.
Coverage Horizontal
KUWAIT
Since October 1980, entry into force in February 1981
Since June 2013
Since June 2013
Pillar Online sales and transactions |
Sub-pillar Local presence requirement for digital services providers
Commercial Law No. 68 of 1980
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
Arts. 23 and 24 of Law No. 68 require foreign entities conducting business in Kuwait to do so either through a local agent or a Kuwaiti partner, which is typically facilitated through the establishment of a Kuwaiti company with Kuwaiti participants owning at least 51% of the share capital. An exception to these restrictions on foreign ownership is when the relevant Kuwaiti company is established and licensed under the Law No. 116 (Art. 12), which allows for increased levels of foreign ownership (up to 100%).
Coverage Horizontal
Sources
- https://www.wipo.int/wipolex/en/text/196499
- https://e.kdipa.gov.kw/main/law1162013.pdf
- https://www.lexology.com/library/detail.aspx?g=2a1ed309-b58e-4b0e-9766-da6ecb84aa65
- https://www.state.gov/reports/2022-investment-climate-statements/kuwait/
- https://kdipa.gov.kw/wp-content/uploads/2021/03/E012016.pdf
- https://oxfordbusinessgroup.com/reports/kuwait/2022-report/legal-framework/doing-business-successful-implementation-of-the-foreign-direct-investment-law-serves-as-a-model-for-the-wider-gcc-region/
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KUWAIT
Reported in 2021
Pillar Online sales and transactions |
Sub-pillar Restrictions on online payments
Resolution No. 44/430 of 2018 of the Central Bank of Kuwait
It is reported that the Resolution No. 44/430 of 2018 of the Central Bank of Kuwait issued in 2017 is applicable to any business that intends to engage in the activity of electronic payments and settlement systems such as e-commerce and fintech businesses. Such businesses must obtain an electronic payment gateway from Service Providers (e.g., local bank) and register as an agent with the service providers. Businesses cannot practice electronic payments and settlement systems without the registration in the Central Bank of Kuwait. In order for the registration to be successful, a service provider must retain KD 1 million (approx 3.3 Million USD) as a minimum capital and an Agent KD 20,000 (approx. 66.000 USD). However, the regulatory text has not been found.
Coverage e-commerce, fintech
KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Threshold for ‘De Minimis’ rule
Lack of de minimis threshold
Kuwait does not implement any de minimis threshold, which is the minimum value of goods below which customs do not charge duties.
Coverage Horizontal
KUWAIT
Since November 2007
Pillar Technical standards applied to ICT goods, products and online services |
Sub-pillar Self-certification for product safety
Gulf Technical Regulation for Low Voltage Electrical Equipment and Appliances – BD-142004-01
According to the GSO Technical Regulation for Low Voltage Electrical Equipment and Appliances – BD-142004-01, which includes an amendment and an update of the first edition, number (BD07070503) was implemented in 2007. Electrical appliances designed to be used in certain rated voltage range must be sold bearing G mark after being certified by the GCC Notified Body.
Products that fall under List 1 under the Regulation are low-risk; thus a self declaration form prepared by the manufacturer can be made affixing the “G” before placing the product on the market. Products that fall under List 2 are higher risk electrical products which will undergo mandatory Type testing and review of the product's Technical File to verify conformity before authorization is granted to affix the “G” mark before placing the product onto the market.
However, for List 2 products, manufacturers must choose a single Notified Body (NB) entity, to examine the technical design of a product and verify that the technical design of the product meets the requirements of the applicable Gulf Technical Regulations and for the issuance of an evaluation report with a Gulf Type Examination certificate and shall be issued certificate from the NB.
Products that fall under List 1 under the Regulation are low-risk; thus a self declaration form prepared by the manufacturer can be made affixing the “G” before placing the product on the market. Products that fall under List 2 are higher risk electrical products which will undergo mandatory Type testing and review of the product's Technical File to verify conformity before authorization is granted to affix the “G” mark before placing the product onto the market.
However, for List 2 products, manufacturers must choose a single Notified Body (NB) entity, to examine the technical design of a product and verify that the technical design of the product meets the requirements of the applicable Gulf Technical Regulations and for the issuance of an evaluation report with a Gulf Type Examination certificate and shall be issued certificate from the NB.
Coverage Electrical goods
KUWAIT
Since November 1964
Pillar Quantitative trade restrictions for ICT goods, products and online services |
Sub-pillar Other import restrictions, including non-transparent/discriminatory import procedures
Import Law No. 43 of 1964
Art. 1 of Law No. 43, which requires a licence for the importation of all goods, states that the right to import goods, materials and equipment is limited to: Kuwaiti citizens; Kuwaiti partnerships if all partners are Kuwaiti citizens; joint stock and limited liability companies if Kuwaitis hold 51% or more of the total capital.
Coverage Horizontal
KUWAIT
Since February 2016
Pillar Content access |
Sub-pillar Licensing schemes for digital services and applications
Law No. 8 of 2016 regarding the regulation of electronic media
Law No. 8 of 2016 regulates all web-based publications including electronic news services, bulletins, websites of newspapers and televisions and the likes as well as social media. Under the legislation, all these services must obtain a license from the government before they can operate. Those in existence had one year to comply with the law. According to Art. 1 of the law, electronic media is defined as any activity which includes the publication or transmission of materials, activities or media services of electronic content that are produced, developed, updated, circulated, transmitted, published or penetrating it through the international information net (the internet) or any other communications net.
Coverage Web-based publications including electronic news services, bulletins, websites of newspapers and televisions and the likes as well as social media
KUWAIT
Since February 1977
Pillar Content access |
Sub-pillar Restrictions on online advertising
Decree Regulating Advertisement in Public Places
Under the Decree Regulating Advertisement in Public Places issued in February 1977, written advertisements and the signs for public shops, in their various types, must be in the Arabic language. A translation in a foreign language can be added to the advertisement provided that the largest part of the advertisement is allocated for writing in Arabic. The regulation applies to digital advertising as it defines advertising as "every means used to announce to the public or a group of people information about a certain commodity, commercial or industrial product or apparatus, machinery, commercial or industrial business, trade or profession, or any public or private service."
In addition, entities must obtain a permit to provide advertisement from the Municipality, for this it is required to submit the documents confirming the approval of the other competent authorities and pay for insurance to be assessed by the Municipality. The permit indicates its validity period, and the beneficiary's name and is not transferable.
In addition, entities must obtain a permit to provide advertisement from the Municipality, for this it is required to submit the documents confirming the approval of the other competent authorities and pay for insurance to be assessed by the Municipality. The permit indicates its validity period, and the beneficiary's name and is not transferable.
Coverage Advertising sector
KUWAIT
Since February 2016
Pillar Intermediary liability |
Sub-pillar Monitoring requirement
Law No. 8 of 2016 regarding the regulation of electronic media
In accordance with Art. 17 of Law No. 8, the manager in control of a website or electronic media outlet is responsible for any prohibited or violating content on the respective website or electronic media outlet/platform under the law. Therefore the manager is responsible for observing accuracy and credibility in all publications of news, information or data. Electronic media is defined in Art. 1 as “activity which includes the publication or transmission of materials, activities or media services of electronic content that are produced, developed, updated, circulated, transmitted, published or penetrating it through the international information net (the internet) or any other communications net.”
Coverage Electronic media
KUWAIT
Since June 2015, entry into force in July 2015
Pillar Content access |
Sub-pillar Blocking or filtering of commercial web content
Law No. 63 of 2015 regarding Anti-Information Technology Crime
Under Law No. 63 of 2015 regarding Anti-Information Technology Crime, the Commission for Information and Technology Regulatory Authority (CITRA) is authorized to oversee and block web content. CITRA describes this activity thusly: “The Communication and Information Technology Regulatory Authority (CITRA) receives requests to block web content that contradicts public interest. This includes public morals, the teachings of the Islamic faith, public order, and other prohibited content under the laws of the state of Kuwait.” News reporting suggest that the Kuwaiti authorities have disabled access to a variety of web content, including sites that link or provide access to copyright-infringing material.
Coverage Horizontal
KUWAIT
Since June 2015, entry into force in July 2015
Pillar Intermediary liability |
Sub-pillar Safe harbor for intermediaries for any activity other than copyright infringement
Law No. 63 of 2015 regarding Anti-Information Technology Crime
Article 4(4) of the Law No. 63 of 2015 regarding Anti-Information Technology Crime punishes by imprisonment and a fine: “Whoever establishes a website or publishes or produces or prepares or creates or sends or stores information or data with a view to use, distribute or display to others via the Internet or an information technology device that would prejudice public morality or manages a place for this purpose.”
Coverage Horizontal
KUWAIT
Reported in 2021
Pillar Intermediary liability |
Sub-pillar User identity requirement
Mandatory SIM card registration
It is reported that Kuwait imposes an identity requirement for SIM registration. Anyone wanting to purchase a SIM card has to provide their national ID card, or a passport in case of foreigners, to activate a new prepaid SIM card.
Coverage Telecommunications sector
KUWAIT
N/A
Pillar Intermediary liability |
Sub-pillar Safe harbor for intermediaries for any activity other than copyright infringement
Lack of intermediary liability framework in place for any activity other than copyright infringement
A basic legal framework on intermediary liability beyond copyright infringement is absent in Kuwait's law and jurisprudence.
Coverage Horizontal