ARABIAN TIMES NEWS NETWORK
Kuwait has marked two major milestones in its economic and regulatory landscape by resuming national airline operations after a prolonged suspension and introducing sweeping reforms to modernize financial transactions in the insurance sector. Together, the developments reflect the country’s commitment to restoring normalcy, strengthening governance, and accelerating digital transformation. After a 57-day suspension caused by regional developments, Kuwait’s national carriers, Kuwait Airways and Jazeera Airways, have officially resumed services as the country reopened its airspace and reactivated operations at Kuwait International Airport.
The restart was carried out in phases, with Kuwait Airways operating through Terminal 4 and Jazeera Airways through Terminal 5. The Public Authority of Civil Aviation oversaw the relaunch under the leadership of its chairman, Sheikh Hamoud Mubarak Al-Hamoud Al-Sabah, in close coordination with several government agencies, including the Ministry of Interior, Customs, the Fire Force, and the Ministry of Health. Authorities confirmed that the process was smooth, organized, and efficient. At present, air traffic has resumed at around 10 percent of pre-suspension levels, with nearly 40 daily flights compared to approximately 400 flights before operations were halted.
Initial destinations include Cairo, Amman, Delhi, Mumbai, and Manila, signaling a cautious but steady return of regional and international connectivity. Executives from both airlines said the successful reopening followed intensive planning and coordination over the past week. Kuwait Airways added that the first phase will focus on assessing operational performance before gradually increasing capacity and adding more destinations, with Jeddah and Paris expected in the next stage. The move is seen as a crucial step in reviving Kuwait’s aviation sector while ensuring high standards of safety, reliability, and passenger service.
Tightens insurance oversight in push for recovery and reform
In a separate but equally significant development, Kuwait has introduced stricter financial regulations for the insurance industry. The Insurance Regulatory Unit issued Resolution No. (32) of 2026, prohibiting all cash transactions for companies and entities under its supervision. Under the new rules, all payments and collections must now be made through banking channels or electronic payment systems approved by the Central Bank of Kuwait. The measure aims to improve transparency, accountability, and financial traceability across the sector.
A limited exception has been granted for insurance documents issued at border crossings, particularly mandatory vehicle insurance, recognizing the practical needs of such transactions. Violations of the resolution will result in legal accountability under Law No. 125 of 2019 and related executive bylaws, in addition to other applicable laws, including anti-money laundering and counter-terrorism financing regulations. Effective from April 22, 2026, the reforms demonstrate Kuwait’s broader vision of combining economic recovery with stronger governance, digital innovation, and international best practices.
