Kuwaiti Decree-Law No. 77 of 2026 has been issued, converting Kuwait Airways into a joint-stock company fully owned by the state, operating in accordance with its memorandum of incorporation, articles of association and the provisions of Companies Law No. 1 of 2016.
The decree contains 11 articles and comes in light of developments in the air transport sector and growing regional competition, as part of modernizing the legal framework and strengthening the company's efficiency in line with legislative and economic developments, according to a post on the Kuwait News Agency's Facebook page.
Article 1 provides for converting Kuwait Airways' shares to be fully and directly owned by the state. It prohibits any disposal of the company's shares, whether by sale, mortgage or any other form, without the approval of the Council of Ministers.
Kuwait Investment Authority to exercise the powers of the general assembly
Article 2 provides that the board of the Kuwait Investment Authority shall exercise the powers of the ordinary and extraordinary general assembly of Kuwait Airways.
Under Article 3, the board of the Kuwait Investment Authority, in its capacity as the company's general assembly, selects the board of Kuwait Airways in accordance with the Companies Law, in compliance with the provisions of Conflict of Interest Prevention Law No. 1 of 2023.
The decree aims to establish an updated legal framework for the company's operations, while the state retains ownership of all its shares and they may not be disposed of without the approval of the Council of Ministers.
