Kuwait Court of Cassation principle number 295

Foreign companies. Prohibition on establishing branches in Kuwait or conducting commercial activities therein except after obtaining a license to that effect from the Ministry of Commerce and Industry. The two conditions for issuing the license. Their nature. The company must have a Kuwaiti agent who is a merchant in Kuwait, and the license must be issued in the Kuwaiti agent's name and expire - 59 - Commercial upon completion of the work specified in the license. Absence of either condition. Its effect. The agreement or contract concerning the commercial activity in Kuwait is unlawful and has no legal effect even if executed before an official authority. The exception. Oil companies subject to their own special arrangements under their concession contracts. This prohibition relates to public policy and its contravention entails absolute nullity.