Kuwait Court of Cassation principle number 167

Foreign companies. Prohibition on establishing branches in Kuwait or conducting commercial business therein except after obtaining a license therefor from the Ministry of Commerce and Industry. The two conditions for issuance of 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 name of the Kuwaiti agent and expire upon completion of the work specified in the license. Absence of either condition. Its effect. The agreement or contract concerning commercial business in Kuwait is unlawful and is not legally recognized, even if drawn up before an official authority. The exception. Oil companies, which are subject to their special arrangements pursuant to their concession contracts. This prohibition relates to public policy, and its contravention entails absolute nullity.