On 30 May 2023, the CPA announced that it has fined a company a total amounting to 5% of its total revenues. The company, who runs a booking application platform, had failed to secure CPA’s consent prior to completing the economic concentration process.
Based on CPA Law no. 72 of 2020 and its subsequent resolutions, companies must comply with the CPA regulations if a transaction exceeds the CPA determined thresholds and leads to control, or increased existing control, of the relevant market.
The CPA decision presents a timely reminder that clients need to (i) remain vigilant when conducting business in Kuwait and (ii) seek external lawyers’ advice at the outset to carefully consider the application of the CPA Law and its Executive Regulations.
The CPA Law permits the affected company to file a grievance before the CPA Disciplinary Board, and such decision will be deemed final.
For a host of reasons, a bank may decide to carve out part of its business in one or more markets without fully exiting them. These reasons include offloading non-core assets and slashing/reducing regulatory compliance burdens. This may be a result of a global strategic review or a market-specific exercise.… Read more
In 2020, Kuwait issued a robust Bankruptcy Law (71/2020) which comprehensively revoked all provisions relating to the imprisonment of debtors. On 30 March 2025, about five years later, Kuwait reversed course and reinstated debtors’ prison as a means to enforce civil and commercial debts. The new amendments to the Civil… Read more
On 19 January 2025, a Decree Law was published in official gazette Kuwaiti AlYoum amending Article 441 of the Civil Law No 67/1980. Previously, article 441 provided that “1- In the event of denial, a claim for taxes and fees due to the state shall not be heard after the… Read more
This note provides an overview of the key points concerning the applicability and implementation of the recently issued Tax Decree Law No. 157 of 2024 (the law) on Multinational Entities (MNEs) Group Tax. The law aims to align Kuwait’s tax system with international standards under the OECD’s Pillar Two framework… Read more
On August 6, 2024, the Saudi Arabian government introduced amendments to the Labor Law issued by Royal Decree No. (M/51) dated 23/8/1426 AH, as amended. These changes aim to improve working conditions, clarify employer obligations, and enhance worker rights. The revisions include amendments to thirty-eight articles, deletion of seven articles,… Read more
The prevalence of restrictive clauses in contracts with a Kuwaiti nexus, introduced by both service providers and product suppliers, has become a notable feature in the business landscape. These clauses often seek to limit client autonomy by restricting the resale of purchased goods or engagement with competing service providers. However,… Read more