Kuwait's competition regulator, the Competition Protection Agency ("CPA"), has taken important steps to further develop its merger control regime. In this update, White & Case provides insights into recent CPA decisions: one introduces new merger control notification thresholds for Kuwait filings, and the other protects confidential information and trade secrets.
New, Raised Thresholds Target Impact on the Kuwaiti Market
On April 5, 2026, the CPA's Board of Directors published Resolution No. 32 of 2026, increasing the merger control notification thresholds, which trigger filing requirements under Law No. 72 of 2020 Regarding the Protection of Competition (the "Kuwait Competition Law"). This is the first increase to the thresholds since they were introduced in 2021.2 The new thresholds became effective immediately.
Similar to the old thresholds, under the new thresholds, an economic concentration notification to the CPA is required if any of the turnover thresholds are met, based on financial statements in the last financial year preceding the transaction:
- Single Party Sales: Any single party to the transaction has annual sales in Kuwait exceeding KWD 1.5 million (~ USD 4.85 million). The previous threshold was KWD 500,000 (~ USD 1.62 million).
- Combined Party Sales: The parties' combined annual sales in Kuwait exceed KWD 3 million (~ USD 9.7 million), at least KWD 1.5 million (~ USD 4.85 million) of which must be achieved by the target company. The previous threshold was set at KWD 1.5 million (~ USD 4.85 million), with no minimum requirement by the target company.
- Assets Value: The combined value of the parties' registered assets in Kuwait exceed KWD 7.5 million (~ USD 24.3 million). The previous threshold was set at KWD 2.25 million (~ USD 7.29 million).
The new Kuwait thresholds represent a significant increase from the 2021 thresholds – twice the amount for the Combined Party Sales, and three times for the other thresholds – and introduce for the first time minimum domestic turnover requirements. This reflects an approach that is more consistent with other jurisdictions in the region and an effort to reduce the number of filings for transactions with limited connection to the local market.3
The new thresholds intend to lower the burden on parties engaging in M&A transactions involving limited activities in Kuwait, while also allowing the CPA to focus its resources on evaluating transactions that are more likely to affect the market in Kuwait.
However, it is important to note that, while the Combined Party Sales threshold requires minimum sales in Kuwait by the target, the Single Party Sales and Assets Value thresholds do not include such a requirement for the target – their plain language appears to apply to "any party" or "parties" to the economic concentration. The CPA has previously considered that these thresholds could be triggered by the turnover or assets of the acquirer entity (including any entities under its control) alone, even if the target entity has no activities in Kuwait. This could potentially lead to inconsistency under the new thresholds.
It remains unclear how the CPA will interpret these thresholds moving forward. For example, will the CPA, in practice, require notification only when the target has sales or assets in Kuwait? How will the CPA apply these thresholds in the context of establishing a greenfield joint venture? We will continue to follow these developments and update the guidance as needed.
Strengthening Trade Secret and Confidentiality Frameworks
Also on April 5, the CPA published Board Resolution No. 33 of 2026, bolstering its confidentiality and trade secrets protection framework under the Kuwait Competition Law.4 The Resolution requires CPA board members and staff to protect the confidentiality of trade secrets in all cases. In addition, the CPA will maintain the confidentiality of other types of information subject to the Executive Director's discretion on a case-by-case basis.
The Resolution acknowledges in the definitions that "confidential information" includes: "financial information, technical information relating to experience and practical skills, valuation methods, production secrets and processes, supply sources, the kinds of products produced or sold, market shares, customers and distributors lists, marketing plans, price and cost structures, and sales strategies."
Requests for confidentiality must be submitted to the CPA using a designated form. If the party does not file such a request, the party is deemed to have no objection to the disclosure of the information provided. The request for confidentiality must:
- Clearly identify the information that is to be kept confidential;
- Include two copies – one containing the confidential information and one with that information withheld; and
- Provide a comprehensive explanation of the reasons for confidentiality treatment, accompanied by an explanation of the potential harm that could result from disclosure or access.
When assessing a confidentiality claim, the CPA's Executive Director will account for the following:
- The importance and value of the information,
- Whether the information is known only to a specific, limited number of people,
- Whether the information is available from public sources, and
- The extent to which disclosure would prejudice the interests of the injured party.
If the Executive Director approves the confidentiality request, the copy with confidential information will be placed in a separate file only accessible to the team studying the notification. If the Executive Director rejects the request, they must inform the applicant of their reasons in writing and give the applicant 15 days to submit additional arguments in support of confidentiality. The Executive Director may review any confidentiality decisions at any time during the review period.
In the context of merger control filings, the CPA's current practice already protects the confidentiality of all information provided upon request of the parties. This practice continues for future filings without the need to submit a separate request form to designate specific information as confidential.
Conclusion
These CPA decisions suggest there is an effort to reduce the number of filings in Kuwait while also reassuring businesses that any confidential information provided in filings will be protected against public disclosure. These are welcome developments that help generally align Kuwait's merger control regime with other jurisdictions in the Middle East & North Africa, but it is important to track how the CPA will apply these changes in practice and look out for any potential guidance. Moreover, we expect additional legislative reforms in the Kuwait Competition Law this year, at least to introduce amended articles on the CPA's penalty powers to replace provisions that were struck down by Kuwait's Constitutional Court in 2025.5 Companies contemplating transactions or new business activities involving Kuwait are advised to monitor these developments and plan accordingly.
1 The authors are grateful to Jana Hatem and Shaden Amr for their research contributions to this article.
2 See Kuwait CPA Board Resolution No. 32 of 2026 (in Arabic).
3 For additional information on the impact of the previous thresholds, see White & Case alert, Key Developments in Kuwait Merger Control: New Turnover Threshold Requirements (March 2022).
4 See Kuwait CPA Board Resolution No. 33 of 2026 (in Arabic).
5 In two separate cases in 2025, Kuwait's Constitutional Court struck down certain provisions of Article 34 of the Kuwait Competition Law, which allowed the CPA to sanction violations by imposing fines in amounts based on a percentage of each violating party's annual revenues. The Court held that these provision were unconstitutional because a fine must be proportionate to the violation at issue and any harm it caused, not a flat percentage. As a result, the Kuwait Competition Law is expected to be amended this year to introduce new penalty provisions.
White & Case means the international legal practice comprising White & Case LLP, a New York State registered limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated partnerships, companies and entities.
This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.
© 2026 White & Case LLP
