Sultan Al-Qahtani, Founding Partner of Alitqan Legal Group, called on Kuwait Petroleum Corporation (KPC) and its subsidiaries to raise the share of local content in oil projects and to strengthen ties with local suppliers, contractors and manufacturers.
In a press statement, Al-Qahtani warned that tender and practice contracts signed by oil companies directly with foreign companies should be reviewed, because Kuwaiti law requires such contracts to go through one of two routes: a local agent who signs in that capacity, or a local branch of the foreign company.
What changed in 2024?
Article 24 of Commercial Law No. 68 of 1980 barred foreign companies from doing business in Kuwait except through a local agent. Law No. 1 of 2024 added an alternative: a foreign company may now operate through a Kuwaiti branch that is 100% foreign-owned, without an agent.
The legal consequence
According to Al-Qahtani, contracts concluded in breach of these rules are void. In practice, this makes recourse against the foreign company difficult, and the local agent cannot be held liable for a contract signed outside the scope of the agency.
Source (in Arabic): Al-Seyassah
Also covered by (in Arabic): Al-Wasat