Al Qadsia had lost twice in the final of the AFC's second-tier continental club competition in 2010 and 2013 but on Saturday Danijel Subotic scored the winning spot kick as they beat Iraq's Erbil 4-2 on penalties.
The Kuwaiti side dominated much of the 90 minutes and extra time but could not convert the pressure into scoring chances in the heat and humidity of Dubai as the match ended goalless.
Both sides failed to convert early spot kicks before Al Qadsia goalkeeper Nawaf Al Khaldi provided Swiss striker Subotic with a chance to win the title by diving to his right to save Ali Faez Atiyah’s effort.
AFC President Shaikh Salman bin Ebrahim Al Khalifa presented Al Qadsia with the trophy and also handed out Most Valuable Player honours to midfielder Al Hashan, who immediately set his sights on bigger prizes after both finalists qualified for the Champions League.
"A club like Al Qadsia should be playing in the AFC Champions League, not in the AFC Cup," Al Hashan said.
"We have shown that there is a big difference between us and the other teams in this competition."
(Writing by Patrick Johnston in Singapore; Editing by Peter Rutherford)
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