Kuwait increases merger control thresholds under CPA Resolution No. 32 of 2026

The Kuwait Competition Protection Authority (CPA) has issued Resolution No. 32 of 2026 regarding the controls on the overall and individual limits for prior notification of economic concentrations (the ‘Resolution’), which came into effect from the date of its publication in the Official Gazette on 5 April 2026.

The Resolution increases the financial thresholds that trigger mandatory prior notification for economic concentrations under Law No. 72 of 2020 (Competition Protection Law), and repeals and replaces the previous threshold requirements set out in Resolution No. 26 of 2021.

The updated thresholds apply to mergers, acquisitions, joint ventures, and other transactions resulting in a change of control.

According to the Resolution, a filing with the CPA for approval of the concentration is required where any of the following economic thresholds are met, calculated by reference to the audited financial statements for the financial year preceding completion of the concentration:

• Single party annual sales: Any one party to the transaction achieves annual sales in Kuwait exceeding KWD 1,500,000 (previously KWD 500,000); or
• Combined annual sales of the parties: The parties’ combined annual sales in Kuwait exceed KWD 3,000,000, together with the introduction of a minimum target threshold requiring that the target company generates at least KWD 1,500,000 in annual sales in Kuwait (previously KWD 750,000 for combined sales, with no minimum target threshold); or
• Value of assets: The combined value of the parties’ registered assets in Kuwait exceeds KWD 7,500,000 (previously KWD 2,250,000).

Article 2 of the Resolution further clarifies that “sales in the State of Kuwait” refers to revenues actually generated in the Kuwaiti market, whether realised directly or through controlled entities. It also provides that relevant assets are those registered in, or used for the purposes of conducting economic activity within the State of Kuwait, as reflected in the audited financial statements.

Key implications

The increased thresholds, together with the introduction of a minimum target turnover requirement, narrow the scope of transactions subject to notification and align Kuwait’s regime more closely with international practice.

The revised thresholds are expected to enhance administrative effectiveness and reduce the volume of filings to the CPA, allowing the CPA to focus on transactions with a more significant nexus to Kuwait. Notwithstanding the increased thresholds, the parties must continue to comply with the mandatory notification requirements and broader obligations under the Competition Protection Law framework and should assess their filing requirements accordingly. Failure to comply with the obligations set out in the Resolution, may result in the CPA imposing the penalties prescribed under the Competition Protection Law.

How we can help

Our team is available to advise on the implications of Resolution No. 32 of 2026, including assessing whether transactions meet the revised notification thresholds and supporting clients through the CPA filing process, as well as merger control and regulatory compliance in Kuwait.