Kuwait Raises Merger Control Thresholds Fewer Filings. More Targeted Oversight.

Kuwait has raised its merger control thresholds, reducing the number of transactions that require regulatory approval

The Competition Protection Agency (CPA) has issued Resolution No. 32 of 2026, effective 5 April, updating the thresholds that trigger merger control notifications under Kuwait’s Competition Protection Law No. 72 of 2020.

These thresholds apply to mergers, acquisitions, joint ventures, and other transactions resulting in a change of control. The thresholds are assessed based on the parties’ most recent audited financial statements.

What has changed?
The Resolution increases the financial thresholds that trigger mandatory CPA notification and approval. CPA approval is required if any of the following thresholds are met:

Single party threshold: Any party to the transaction achieves annual sales in Kuwait exceeding KD 1.5 million (including through subsidiaries or controlled entities) (previously KD 500,000).
Combined sales threshold: The parties achieve combined annual sales exceeding KD 3 million, provided the target entity or business generates at least KD 1.5 million in Kuwait (previously KD 750,000 combined, with no minimum target threshold).
Asset threshold: The combined value of the parties’ registered assets in Kuwait exceeds KD 7.5 million (previously KD 2.5 million).

The introduction of a target-level sales threshold is a notable development, narrowing the scope of transactions caught by the regime and bringing Kuwait more in line with international merger control approaches. In particular, acquisitions of businesses with limited or no sales in Kuwait may fall outside the filing requirement.

The Resolution also clarifies what constitutes “sales in Kuwait”, addressing a key uncertainty under the previous regime.

This is a practical development. The higher thresholds and refined criteria point to a more targeted merger control regime, allowing the CPA to focus on transactions with greater competitive impact.

While fewer M&A transactions will require CPA approval, businesses should assess filing requirements at an early stage to avoid delays and potential fines for non-compliance.

For further information, please contact Luis Cunha, Head of Corporate Commercial at ASAR Kuwait, at lcunha@asarlegal.com