Kuwait Court of Cassation principle number 232

Foreign companies. The legislature's prohibition on their establishing a branch in Kuwait or conducting commercial business except after obtaining a licence from the Ministry of Commerce and Industry. Conditions for issuing this licence. The agent must be a Kuwaiti merchant, and the licence must be issued in his name. Failure to satisfy either condition. Its effect. The agreement or contract for the commercial business is deemed unlawful, even if drawn up before - 45 - Civil Procedure an official authority. The exception: oil companies. The reason therefor. This prohibition concerns public policy. Contravention thereof. Its effect. Absolute nullity. The absence from the papers of anything indicating that the foreign companies have an agent in Kuwait. Its necessary consequence. Invalidity of the contract. The judgment's contravention thereof, its assumption that it is one of the agents in Kuwait marketing a project in Egypt, and its rejection of the defence relating thereto. Requires its cassation.