Kuwait's Delivery Companies Demand Review of New Regulations

Kuwait City, Kuwait Jul 14, 2026 ALN: More than 250 delivery companies in Kuwait, represented by the Committee of Delivery Companies Owners affiliated with the Small and Medium Enterprises (SMEs) sector, have submitted a grievance to the Minister of Commerce and Industry. They are requesting a review of Ministerial Decision No. 109/2026 and its temporary suspension pending an assessment of its economic and operational impacts.

The companies have emphasized the need for an urgent meeting with the ministry, expressing their surprise at the decision's issuance without their involvement in discussions. As the main stakeholders in the delivery system, they feel they bear the brunt of the sector’s operational and investment burdens. This situation highlights a broader concern regarding the regulatory environment in which these businesses operate, particularly in a rapidly evolving landscape influenced by technology and changing consumer behaviors.

The decision aims to regulate the relationship between electronic platforms, customers, and merchants, setting caps on commissions and delivery fees. However, the committee argues that it does not adequately consider the impact of these changes on delivery companies, nor does it establish a framework to regulate their role or balance their rights and obligations. The introduction of such regulations is often intended to create a fair marketplace, but the lack of consultation with industry stakeholders raises questions about the effectiveness and practicality of the measures.

Delivery companies face high operational and investment costs, including drivers’ and employees’ salaries, accommodation and living expenses, vehicle maintenance, fuel, rent, licenses, health insurance, IT systems, customer service, and cybersecurity. Many have made significant investments based on feasibility studies and long-term loans. The financial landscape for these companies is precarious, and any sudden regulatory changes can disrupt their business models, jeopardizing their financial stability.

The committee warns that a sudden decline in revenues, without a comprehensive assessment of the economic impact, could lead to financial losses, insolvency for some companies, and layoffs, ultimately affecting citizens who have invested in this sector. The repercussions of the decision could extend beyond delivery companies to restaurants, shops, cooperative societies, and consumers, potentially affecting service quality and the sustainability of the e-commerce sector in Kuwait. This interconnectedness of businesses in the delivery ecosystem underscores the importance of thoughtful regulation that considers the broader implications of policy changes.

To address these concerns, the committee has proposed three main measures: first, the temporary suspension of the decision until its impacts are thoroughly studied; second, the formation of a joint committee comprising the Ministry of Commerce and Industry, relevant government entities, and representatives of delivery companies, platforms, and merchants to develop a balanced regulatory framework; and third, an urgent meeting with the minister to present financial and economic studies, along with data on the potential impact of the decision. These proposals indicate a willingness to collaborate with the government, signaling that the delivery companies are not against regulation per se, but seek a more inclusive approach that considers their perspectives and challenges.

The committee has authorized its chairman, Abdulaziz Abdul Latif Bandar Faleh, to represent delivery companies in discussions with the relevant authorities. They stress that their objective is not to oppose regulation of the sector but to establish a fair and sustainable regulatory framework that protects Kuwaiti investments, supports the digital economy, and ensures continued delivery of services to consumers while balancing the interests of all parties. This balance is crucial in fostering a healthy business environment that can adapt to the needs of consumers while also ensuring the viability of service providers.

The delivery sector in Kuwait has seen significant growth in recent years, driven by the increasing reliance on e-commerce and the demand for convenient services. This growth has led to the emergence of numerous delivery companies, each vying for a share of the market. However, with this growth comes the challenge of regulation, as authorities seek to implement measures that protect consumers while also ensuring fair competition among service providers. The delicate balance between regulation and market freedom is a common issue faced by many industries, particularly in rapidly changing economic environments.

Moreover, the COVID-19 pandemic has accelerated the shift towards online shopping and delivery services, making the role of these companies even more critical. As consumers become accustomed to the convenience of home delivery, the expectations for service quality and reliability have also increased. This changing landscape necessitates a regulatory framework that is both adaptive and forward-thinking, capable of addressing the evolving needs of the market and its participants.

In light of these developments, it is essential for the Ministry of Commerce and Industry to engage with delivery companies and other stakeholders to ensure that regulations are not only effective but also equitable. The voices of those directly affected by these decisions should be heard, as their insights can provide valuable context and inform more balanced policy-making. This collaborative approach can help mitigate the risks associated with sudden regulatory changes and foster a more resilient delivery ecosystem.

As the situation unfolds, it will be crucial to monitor the government's response to the committee's grievances and proposals. The outcome of these discussions could have far-reaching implications for the delivery sector and the broader economy in Kuwait. A regulatory framework that supports the growth and sustainability of delivery companies will not only benefit the businesses themselves but also contribute to the overall health of the e-commerce landscape, ensuring that consumers continue to receive high-quality services in an increasingly digital world.

In conclusion, the call for a review of Ministerial Decision No. 109/2026 by Kuwait's delivery companies highlights the complexities of regulating a rapidly evolving industry. The need for collaboration between the government and industry stakeholders is paramount to creating a regulatory environment that supports growth, innovation, and sustainability. As discussions progress, the emphasis should remain on finding solutions that protect investments, promote fair competition, and ultimately enhance the consumer experience in Kuwait's burgeoning delivery sector.