News

Kuwait Parliament ratifies MoU

Thu, 11 Jun 2009 00:00:00 -0400

Kuwait's parliament (Majlis Al-Umma) ratified a memorandum of understanding on security cooperation with Iran.

An MoU on security cooperation was signed by the Islamic Republic of Iran and Kuwait on October 2000, underlining the need for expansion of collaboration in the field of campaign against drug trafficking, terrorism, organized crimes and cooperation on extradition of criminals.

Forum touts merits of arbitration in Kuwait

Mon, 08 Jun 2009 00:00:00 -0400

A number of speakers at a forum organized by the Kuwaiti Bar Association touted the merits of arbitration when dealing with disputes over commercial contracts.

Speaking at the forum which was also co-organized by the GCC commercial arbitration center, Judge Sultan Bouresli considered the system of arbitration a useful way to settle disputes regarding the construction of large projects or their operation or the changeover in their ownership.

The B.O.T. system being widely adopted by countries in the region and that it was a viable approach toward implementing massive development projects involving many complicated Legal aspects. Arbitration was aptly-placed to deal with problems arising from B.O.T.-related disputes.

Another speaker at the forum, secretary general of the GCC arbitration center Nasser al-Zaid, underlined the center's emphasis on spreading the culture of amicable arbitration among businesses. Fair use of arbitration in the field of business, would attract foreign investors to the Gulf region because they would be assured that none of their Legal rights would be jeopardized in any kind of a business deal.

Commercial arbitration supports existing Legal channels to bring resolution to disputes among businesses. Governments in the region, as well as the private sector, deal with vital business contracts that help in the development of societies through the building of infrastructure projects and providing employment for their citizens. When these contracts run in trouble, it is often speedier and easier and less costly to remedy the trouble through commercial contract arbitration.
The forum discussed the merits of arbitration, the system of B.O.T. and the pros and cons about it, and other topics related to business law.

Municipal Council oks change in electoral law on five constituencies

Mon, 08 Jun 2009 00:00:00 -0400

The Municipal Council approved a proposed amendment to the 2005 Municipal Law, article 5, paving the way for the number of municipal council members to be 31 representing five constituencies.

According the draft amendment the number of municipal council members is to increase from its present number of 16 to 31 provided 20 of them are elected while the remaining 11 would be appointed by means of Amiri decrees. Several draft amendments were put forward but the one which was approved by the committee was that calling for five constituencies with an increase in the number of municipal counsel members.

The council also approved other amendments related to articles 26, 27, 33 and 34. As for an amendment related to article 14, it was decided to submit it to the legal committee for change.

The amendment to article 14 relates to the wording of the amendment and the 90 day delay given to cabinet to approve or disapprove municipal council resolutions. Under article 14, the municipal council is entitled to face up to any rejection of resolutions by the minister in charge of municipal affairs by submitting the resolutions to cabinet for the last word on them.

The municipal council also discussed the findings of a special team appointed to revise agricultural laws in areas of private residence. The draft resolutions were approved except those under article 14.

Under the proposed article 14 amendment, the size of backyards in private homes should not exceed 15 square meters. But the proposed amendment was rejected in favor of one paving the way for backyard size to be not more than 25 square meters.

Direct Foreign Capital Investment in Kuwait

Tue, 23 Jun 2009 00:00:00 -0400

Law No. 8/2001 regarding the Organization of Direct Foreign Capital Investment in Kuwait was issued recently by the National Assembly. According to this new law foreign investors would be able to accomplish commercial and economic projects inside Kuwait.

The new legislation made it possible to the establishment of Kuwaiti companies in which the foreign holding may be 100%. Law No. 8/2001 specifically authorizes foreign-majority ownership and 100 percent foreign ownership in certain industries including: infrastructure projects (water, power, waste water treatment or communications); investment and exchange companies; insurance companies; information technology and software development; hospitals and pharmaceuticals; air, land and sea freight; tourism, hotels, and entertainment; housing projects and urban development.

Though the foreign firms are permitted to invest in petrochemical joint ventures they may not invest in the upstream petroleum sector. Per the legislation brought before Parliament in January 2004 a limited, restricted investment in the petroleum sector is allowed.

The law also ensures that the foreign investor will be given protection from confiscation or nationalization of any project authorized under the said Law. The Law allows total or partial assignment of the project and also gives the right to transfer abroad all profits and capital. In addition, the Law permits the Investment Committee to permit a tax holiday for a maximum of ten years and total or partial exemption from custom duties payable on imports of certain commodities.