Ministerial Resolution No. 894 of 2026, issued by First Deputy Prime Minister and Minister of Interior Sheikh Fahd Al-Yousef, amends provisions from Ministerial Resolution No. 723 of 2020 with the stated aim of tightening oversight on the rental sector while advancing road safety and security standards. The resolution requires rental companies to prepare agreements in both Arabic and English that spell out the rights and responsibilities of owners and renters, with each party keeping a paper or electronic copy available for inspection upon request. A Mordor Intelligence assessment places the broader Middle East car rental market at USD 3.41 billion in 2026, expanding at a compound annual growth rate of 5.62 percent through 2031, a trend that underscores the need for updated regulatory frameworks across the Gulf.
Rental firms must now keep detailed records, either on paper or in digital format approved by the General Directorate of Traffic, that capture each renter or driver’s full name, nationality, address, telephone number, driving licence information and the exact rental period. When the renter is a legal entity, the records must also identify the authorised representative. These stipulations extend to vehicles hired with drivers, which are now obliged to carry internal cameras whose footage must be preserved and surrendered to authorities when demanded. Earlier Ken Research estimates showed Kuwait’s vehicle leasing market expanding at a 17 percent compound annual rate between 2016 and 2022, indicating sustained demand that the new record-keeping rules seek to channel within clearer compliance boundaries.
The resolution sets strict age thresholds for vehicles entering rental service. Motorcycles may not exceed three years from manufacture at the time of initial licensing and must be retired after six years of service. Private cars, light transport vehicles and minibuses carrying up to 14 passengers face the same three-year cap at initial licensing but may operate for a maximum of eight years. Medium transport vehicles, trucks and buses carrying more than 15 passengers may be up to five years old at first licensing and can remain in service for 15 years, according to the text of the resolution.
Comprehensive insurance coverage is now mandatory for every rental car and motorcycle, remaining valid for the vehicle’s entire operational life with annual renewals that cannot be cancelled during the licensing period. Ownership documents must explicitly designate the vehicle for rental use. The Ministry of Interior has tied these insurance and designation requirements to the goal of ensuring continuous protection and accountability across the fleet. A separate study published in the Journal of Transport & Health noted that non-Kuwaitis account for the majority of road traffic fatalities in the country, a pattern that has prompted successive regulatory adjustments aimed at reducing risks linked to vehicle condition and operator screening.
Companies already operating in the sector have received a three-month grace period to align their fleets, documentation systems and insurance policies with the updated standards. The resolution takes effect immediately upon its publication in Kuwait’s Official Gazette. Officials indicated that the transition window would allow existing operators to adjust without immediate disruption while still enforcing the new limits on vehicle age and data retention.
Ministry of Interior figures cited in local reporting have credited stricter traffic enforcement with a 28.6 percent reduction in road fatalities in one recent annual comparison, alongside a 34 percent drop in accident deaths during the first half of a subsequent year. The updated rental rules form part of that continuing effort to align commercial vehicle operations with broader safety objectives. Industry participants will now integrate the resolution’s requirements into daily procedures, from contract preparation through to data archiving and camera maintenance.
