Kuwait Court of Cassation principle number 1648

Foreign companies. The prohibition on establishing branches in Kuwait or conducting commercial activities therein except after obtaining a license therefor from the Ministry of Commerce and Industry. The two conditions for issuing the license. Their nature. That the company have a Kuwaiti agent who is a merchant in Kuwait, and that the license be issued in the Kuwaiti agent's name and expire upon completion of the work specified in the license. Failure to meet either condition. Its effect. The agreement or contract concerning commercial activity in Kuwait is unlawful and has no legal effect, even if drawn up before an official authority. The exception. Oil companies subject to their own special arrangements pursuant to their concession contracts. This prohibition concerns public policy, and its violation entails absolute nullity.