Kuwait lacks a comprehensive regime for the protection of trade secrets.

It is reported that there is a regulatory obligation in Kuwait for the sharing of passive infrastructure to enable the provision of telecommunications services to end-users, and that this is not only mandated but also actively practised in both the mobile and fixed sectors.

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 Law No. 116 (Art. 12), which allows for increased levels of foreign ownership up to 100%. Law No. 116 permits the Kuwait Direct Investment Promotion Authority (KDIPA) to authorise, on a case-by-case basis, up to 100% foreign ownership in the following industries: communications infrastructure; information technology and software development; entertainment, investment management, among others. Although a Kuwaiti or Gulf Cooperation Council (GCC) national must own at least 51% of any local company, this requirement may be waived if non-GCC investors qualify to invest through KDIPA. A 2017 amendment to the 2016 Companies Law eliminated prohibitive requirements on limited liability companies.

The government holds a 21.4% equity stake in the telecommunications company Zain, through the Kuwait Investment Authority and the Public Institution for Social Security.

It is reported that Kuwait does not compel operators with significant market power (SMP) to adopt functional separation; however, compliance with accounting separation is mandatory.

Under Law No. 37 of 2014 on the Telecommunications and Information Technology Regulatory Commission, the Communication and Information Technology Regulatory Authority (CITRA) issues licenses to telecom service providers. Under Art. 59, the CITRA employees have the power to request and examine licenses, books, registers, documents, and all papers related to the telecommunication activity; Examine and inspect any telecommunication devices, telecommunication installations, or any other facilities associated with providing telecommunication service or establishing, operating or owning telecommunication network; Review any additional information or documents in any form they might be related to the provision of telecommunication services. It is reported that "although Kuwait’s telecommunications industry is technically open to private investment, in practice, the government maintains extensive ownership in the sector and controls licensing and infrastructure development. It is reported that Kuwait’s telecommunications law gives authorities sweeping power to revoke licenses and block content, with little judicial oversight."

It is reported that a minimum capital threshold is required for the acquisition of a telecommunications licence in Kuwait.

Kuwait has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

It is reported that the Communication and Information Technology Regulatory Authority (CITRA), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.

Pursuant to Arts. 3.2.1.2.2 and 4.2.1.1 of the Cloud Computing Regulatory Framework, private and public entities in Kuwait utilising cloud service providers are required to refrain from storing or hosting Tier 3 or Tier 4 personal data, as defined under the Data Classification Policy, on data centres or cloud computing environments situated outside Kuwait, whether on a temporary or permanent basis. The use of hybrid cloud infrastructure within Kuwait is permitted for Tier 3 data.
The Data Classification Policy defined Tier 3 and Tier 4 data as follows:
- Tier 3 – Private sensitive data: data held by public and private sector organisations, which may include non-sensitive private information capable of identifying individuals and potentially compromising personal privacy if disclosed without authorisation. Examples include: minutes of meetings and business plans; internal project reports; litigation files and court orders and judgments; legal notes and opinions; medical records; DNA information; and criminal fingerprint data.
- Tier 4 – Highly sensitive data: data of an extremely sensitive nature, the unauthorised disclosure of which may cause significant harm to individual privacy. This includes data owned by governmental or private entities, or of national significance, and should be disclosed solely to authorised individuals. Examples include: encryption keys; political documents, international negotiations, or international relations data; and sensitive military or state security information.
This Policy was repealed in February 2024, and therefore there is currently a legal vacuum with regard to definitions of Tier 3 and Tier 4.

Pursuant to Art. 4 of the Data Privacy Protection Regulation, service providers are obligated to disclose the location of personal data storage, specifying whether such data is retained within or outside Kuwait. In addition, they are required to inform data subjects of any intention to transfer their personal data beyond Kuwait’s borders. This provision applies to both individuals and entities engaged in the provision of public telecommunications services, as well as those responsible for the management, establishment, or operation of telecommunications networks, or the provision of internet services for telecommunications purposes.

Following the implementation of Patent Law No. 71 2013 and implementing Regulations 115/2016, the Kuwaiti Patent Office stopped accepting national patent applications in 2016. The patent regime reflects the regime in place under the Gulf Cooperation Council (GCC). Patents are granted by the GCC Patent Office to the owner of the invention under the GCC Patent Regulation Decree and By-Law of 1992 and are valid in all the states of the GCC. A patent is granted to an invention that is new, innovative, and industrially applicable. On top of that, it must not contradict the rules of Islam, public order, or public ethics in the GCC states, whether this relates to products, manufacturing operations or manufacturing methods. A patent applicant filed by a non-GCC resident must appoint a registered agent who is a resident of the GCC to represent them in carrying out their activities (Art. 6). Furthermore, the official language in all GCC states is Arabic. No other language is accepted.

Kuwait is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).

In August 2024, following publication in the GCC Technical Secretariat’s Official Gazette (Vol. 47, 20 August 2024), the GCC Member States, included Kuwait, imposed definitive anti-dumping duties for five years on imports of electrical connectors, switches, sockets and plugs for a voltage not exceeding 1,000 volts (HS 853669, 853650, 85444291, 85444221) originating in or exported from the People’s Republic of China; the duty rates range from 11.3% to 42% by exporter.