A decree-law (no. 77 of 2026) was issued last week converting Kuwait Airways into a wholly state-owned shareholding company. The 11-article law aims to modernize the national carrier’s legal framework, strengthen competitiveness and align it with the state’s economic and legislative reforms.

Under the law, all Kuwait Airways shares will remain directly owned by the state and cannot be sold, pledged or otherwise disposed of without Cabinet approval. The airline will operate under the companies law and its memorandum and articles of association.

The Kuwait Investment Authority (KIA) Board will exercise the powers of the company’s general assembly and appoint its board of directors in line with the companies law and conflict-of-interest legislation.

The Board will have authority to approve the airline’s organizational structure, internal regulations and procurement rules without being bound by state property and public tender laws, giving the carrier greater operational flexibility.

Employee regulations issued by the board will govern all staff, while matters not covered will fall under the private sector labor law. The airline may also directly recruit international experts under board-approved rules. The law exempts Kuwait Airways from the competition protection law due to its status as the national carrier and limits the State Audit Bureau’s oversight to reviewing the external auditor’s reports and financial statements.

The company must align its legal status with the new law, while implementing regulations will be issued by the minister designated by the Cabinet. The decree-law repeals law no. 6 of 2008 and takes effect upon publication in the official gazette.