Key Distribution & Agency Considerations: Overview (Kuwait)

Publication

10 September 2025

4 MIN READ

4 AUTHORS

Thomson Reuters Practical Law has featured two articles from HFW in Kuwait on the key issues and considerations when entering into distribution agreements and agency arrangements for the sale of goods or services in Kuwait.

Our insights are authored by HFW Partners Rula Dajani and Kashif Sayed, Senior Associate Tarek Abu Mariam and Legal Coordinator Haya Ghannam.

Key Distribution Considerations: Overview (Kuwait)

This Practice Note outlines the principal laws governing distribution agreements in Kuwait, and the governing provisions on distribution in the Agency Law (Law No. 13/2016) and the Commercial Law (Decree-Law No. 68/1980). It discusses the legal formalities for appointing a local distributor, such as the requirement for Kuwaiti ownership and registration of the agreement with the Ministry of Commerce and Industry (MOCI) to ensure enforceability.

The note also addresses crucial topics such as tax requirements for foreign entities, competition law considerations, product liability, and intellectual property protection. This Practice Note also examines the significant considerations surrounding the termination or non-renewal of a distribution agreement, highlighting the potential for distributor compensation claims and the rules governing choice of law and dispute resolution forums.

Download the article below.

Key Agency Considerations: Overview (Kuwait)

This Practice Note discusses the legal framework governing commercial agents, primarily under the Agency Law and Commercial Law. It covers essential formalities, such as agency registration, and covers the different types of agencies, duties implied by law for both the agent and principal, and key provisions of the agency agreement. It highlights practical considerations regarding tax obligations for foreign entities, product liability, intellectual property protection, and competition law.

This Practice Note also explores the significant legal and contractual obligations on termination, including an agent’s statutory rights to compensation, and outlines dispute resolution options available under Kuwaiti law.

Download the article below.