Central Bank holds ultimate power in regulating prize contests within banks, according to MCI.
In a significant development for Kuwait's financial sector, the Central Bank of Kuwait has been confirmed as the primary regulator for bank prize draws. This regulatory role was affirmed by the Ministry of Commerce and Industry (MCI) in August 2025.
The exact legal framework for bank prize draws in Kuwait remains somewhat elusive, with the specific decree-laws or articles not explicitly cited in the available sources. However, it is clear that the Central Bank holds the final authority over these activities to ensure compliance and proper conduct.
The Central Bank's jurisdiction extends to all banking-related activities, including prize draws run by banks. This authority is granted under Law No. 32 of 1968. The Bank is empowered to set binding rules, inspect banks, and oversee both their financial and promotional practices to maintain fairness and transparency.
On the other hand, the Commerce Ministry is responsible for regulating promotional activities, raffles, and prize draws conducted by non-bank companies or individuals. This regulation is in accordance with Commercial Law No. 68 of 1980, Consumer Protection Law No. 39 of 2014, and other relevant statutes. The Ministry is tasked with licensing, monitoring compliance, preventing consumer deception, and enforcing transparency in advertising and offers.
Minister of Commerce and Industry Khalifa Al-Ajeel has confirmed that the Central Bank of Kuwait regulates bank prize draws. As a result, the Commerce Ministry will no longer respond to banks' inquiries regarding the regulation or resumption of prize draws.
This shift in regulatory responsibilities underscores the importance of transparency and fairness in prize draws, particularly those run by banks. The Central Bank's role will be crucial in ensuring that bank prize draws are conducted in a manner that adheres to liquidity, solvency, and fair promotional standards.
While the exact legal provisions affirming the Central Bank's authority are not provided in this article, consulting official Kuwait Central Bank publications or the Kuwait Gazette for recent decrees (post-2024) would be necessary for a more comprehensive understanding of the regulations governing bank prize draws in Kuwait.
The Central Bank of Kuwait, being the primary regulator for bank prize draws, holds authority over banking-related activities, such as prize draws run by banks, ensuring compliance and proper conduct. This authority is granted under Law No. 32 of 1968.
In accordance with Commercial Law No. 68 of 1980, Consumer Protection Law No. 39 of 2014, and other relevant statutes, the Ministry of Commerce and Industry is responsible for regulating promotional activities, raffles, and prize draws conducted by non-bank companies or individuals.
