‘Kuwaiti law does not recognise unregistered deals’

Labeed Ameen’s firm specialises in cross-border disputes

Labeed Abdal Mohammed Ameen is a lawyer with his own private practice. He has a Masters in Law from Kuwait University. His firm handles both civil and criminal cases, with an especial focus on commercial cases involving Multi National Companies and cross-border commercial disputes.When the disputes are cross border, it is a bit involved. “We have a team of special lawyers to handle such cases to coordinate between the laws of the two countries and build up a strong strategy for defense.” IrregularitiesLabeed and his team have to be conversant with the laws of the countries where the disputing parties belong, and have to be constantly updated to be on par with the changes in the laws. When asked to recall some of his most interesting cases, a host of legal battles came rushing to his mind. Recently there was a case filed by a plaintiff in the UAE against a Kuwaiti subcontracting company. The dispute was regarding construction materials imported by the company from the plaintiff, and some alleged irregularities in the transaction. Labeed built up a strong case for his Kuwaiti client and won the case.
Kuwait is a big economy and the companies here have many multi-national deals. In another instance, a local company got into a legal confrontation with importers in India and China. It was over payments for pipes and other materials bought for construction works in the oil industry. PartnershipLabeed’s word of advice for businesses and entrepreneurs in Kuwait is firstly that they have to be aware of their legal responsibilities. “Make sure you register your company and all agreements related to your business.”
In the case of a foreign partnership, where a Kuwait company is functioning as an agent, there is what is called an agent agreement which needs to be registered according to the format given by the ministry. Most companies don’t register their agreements in which the terms of profit sharing and other details of the business are mentioned.
Kuwaiti law does not recognize any unregistered deals or agreements. This advice holds good for the foreign business community in Kuwait as well.
In Labeed’s experience, he has seen many foreign entrepreneurs entering into agreements that are actually inimical to their interests. They do this without being fully aware of the law or its ramifications. In such instances, he advices entrepreneurs to seek legal help before signing into any agreement. Loan sharks pose another challenge to entrepreneurs, who often find themselves strapped for cash and are on the look out for financiers. It is this scenario the unscrupulous loan sharks take advantage of. Labeed’s advises businessmen to be wary of such loan sharks and to borrow money only from credible financiers, from the right channels.
SponsorsSome foreign entrepreneurs enter into business agreements with Kuwaiti sponsors without registering the agreement documents, says Labeed. “Initially, the partners are very close and there is a tendency to trust one another. Agreements are made merely in spoken words, and nothing is put in black and white.”However, the lawyer adds, when the business is up and running and when the partners begin to see real money, their true colors begin to emerge. “The foreign partners are short changed with the sponsor going down on his promises.”
Then there is what is called Side Agreements, or Sleeping Partner Agreements. Under this, an entrepreneur offers his skills to a company for a share in the profits. Such agreements are almost never registered, and more often than not end up in legal wrangling.
In cross-border disputes, Labeed does not always represent the Kuwaiti side. Even foreign parties appoint Labeed to fight their case in Kuwait. Recently, a Swiss company sought the legal help of Labeed to sue a Kuwaiti commercial agent, who was authorized by the Swiss firm to market a food product in Kuwait. The agent did not fulfill the target as specified in the agreement. “The Swiss company approached us to terminate the contract and appoint a new agent for them. The former agent, meanwhile, went to the court claiming compensation, and we are now defending our client.”Labeed advises foreign entrepreneurs to be active in commercial forums of their respective communities, as these organizations will be in touch with their embassies and the Commercial and Economic Council, which can provide due guidance in business matters.
By: Valiya S. Sajjad

http://www.arabtimesonline.com/NewsDetails/tabid/96/smid/414/ArticleID/158469/t/%E2%80%98Kuwaiti-law-does-not-recognise-unregistered-deals%E2%80%99/Default.aspx

Kuwait lawyer on Hariri panel

KUWAIT CITY, Aug 17: The Admission Panel of the Special Tribunal of Lebanon (STL) in the Netherlands approved the admission of Kuwaiti attorney Labeed Abdal to the list of Defense Counsel’s List Monday.The attorney was speaking to the Arab Times Tuesday following his appointment to the tribunal. Labeed will be the first lawyer from Kuwait and the Gulf region listed in a special tribunal that has an international character “because the STL was established following the request of the Lebanese government to the UN to conduct the trial of the people allegedly involved in the assassination of former premiere Rafiq Al Hariri.“The UN and the Lebanese government negotiated an agreement and formed the STL, which came into force on May 2007.”

http://www.arabtimesonline.com/NewsDetails/tabid/96/smid/414/ArticleID/158409/t/Kuwait-lawyer-on-Hariri-panel/Default.aspx

PM’s Lat. Am visit crucial

THE recent visit of HH the Prime Minister Sheikh Nasser Mohammad Al-Ahmad Al-Sabah, along with a number of ministers and a high-level trade delegation, to South America is vital in the Kuwaiti government’s move towards an important continent.Rekindling ties with Latin America through the premier’s visit to Cuba, Brazil, Chile, Argentina and Mexico is crucial in promoting the KD 37 billion development plan of Kuwait, in addition to attracting foreign investors to the country. This requires the full cooperation of both wings of Kuwait’s democracy.The Parliament and government are expected to exert tremendous efforts to reach a solid agreement on the development program of the executive and other future projects, especially in the infrastructure and economic sectors. This is pertinent since the Kuwaiti Cabinet is appointed by HH the Amir Sheikh Sabah Al-Ahmad Al-Sabah in accordance with Article 56 of the Constitution, while members of the Parliament are elected into office.The private sector and foreign business communities in Kuwait expect both authorities to take more positive steps, as the country could no longer afford any tension between the two authorities, which usually clash at the beginning of each legislative round.Foreign business councils, circles and forums under the umbrella of many important embassies in Kuwait must be given a better chance to develop investment opportunities between Kuwait and other countries in the world, considering their dedicated and continuous efforts for Kuwait and the whole business community.Email: Labeed.abdal@gmail.com
By: Labeed Abdal
http://www.arabtimesonline.com/RSS/tabid/69/smid/414/ArticleID/157918/Default.aspx

Lessons from Iraqi invasion

I was in Iraq as a POW during the last state of liberating Kuwait by the allied forces after invading it by the Iraqi forces on the Aug 2, 1990.
The experience there was totally inhuman, against the Geneva Convention and totally not expected from a close Muslim & Arab neighbour.
After the Iraqis felt the eminent air and land strikes, they started to arrest Kuwaiti civilians from streets and homes, to keep them in hand when exchanging for their Iraqi POWs.
As Kuwait is approaching the 20th anniversary of the invasion, I find it essential to go through some of the lessons of that experience and to talk about the needed measures for our coming future:
1) We need to protect the rule of Law, Freedoms and equality for all the people on this soil.
2) Kuwait as a small country between three giant neighbours, we need strong long term ties with the strategic friends and allies to protect our security and existence.
3) Fortunately, we do have strong and growing budget we need to invest more in education, as it is the long term investment for the coming future generations of this country.
4) It is important to keep strong business relations with the east and the west, to maintain steady cooperation with the world, which truly helped in our difficult days.
5) As Iraq is reaching stability slowly and hopefully surly, we will need to benefit from the bright side of our neighbourhood and try to build bridges between us, even if in new free trade zones in the south of Iraq and the north of Kuwait.
6) The Gulf Cooperation Council must be utilized for a better regional economy, given the regional economical growth and financial stability for all the GCC members.
7) Kuwait as a financial centre will require comprehensive legislative and administrative steps to make real changes in the doing business environment of Kuwait and be able to compete on the regional and the global levels...

Labeed.abdal@gmail.com
http://www.labeedabdal.blogspot.com/

http://www.arabtimesonline.com/NewsDetails/tabid/96/smid/414/ArticleID/157506/reftab/73/t/Lessons-from-Iraqi-invasion/Default.aspx
By: Labeed Abdal - Attorney at Law

Traffic cameras in Kuwait

Installing cameras in the streets were meant to be a way to minimize accidents and save lives.Yet, one can clearly see that, it became an indirect way to impose taxes, when the cameras are installed in the streets without proper indications such as camera signs, the differences between streets, its speed, its users and the recent developments in the car industry.Moreover, sometimes these cameras have become a reason for the increase in accidents rates instead of decreasing it, because of the sudden effects of the flashes that make the drivers panic and induce them to apply strong breaks so as to avoid traffic fine and causes more crashes for the vehicles following them.In the existing Traffic Law of Kuwait, cameras were not mentioned clearly and the M.O.I. is imposing fines on the drivers depending on mere ministerial decrees, which should be swiftly amended as per the constitutional provisions of Kuwait which requires applying fines by the relevant traffic laws, which should have been released by the parliament to authorize the levying of fines.For sure it is a must, we all need to prevent car wars in the streets because of any reckless speed driving and negligent or deliberate crossing of red traffic lights and for that we need to have solid legal grounds to collect fines. Also we need to assure that for some streets a little bit higher speeds should be allowed, as the new generation cars are not like those 30 years ago, given the new models of cars with hybrid engines that give high speed from 0-100 MPH in seconds, with little consumption of fuel and less pollution.Adding enough traffic signs, using electronic alerts and enough distance between the locations of the cameras to give the drivers sufficient time to reduce speed, will make it more meaningful to actually have safer streets with less threats to the innocent people.Light and shadeWe need quick measures and media campaigns in all languages from the Ministry of Interior — The Public Authority for Traffic Affairs to deploy vigilant police officers at the zebra crossings on the important places and busy junctions in Kuwait, so as to assure the absolute protection of the pedestrians and save lives.The effective measures and campaigns which were done before, regarding the use of seat belts while driving on the streets, through the media were successful and we want that to happen again...

Labeed.abdal@gmail.com
http://www.labeedabdal.blogspot..com
By: Labeed Abdal - Attorney at Law

http://www.arabtimesonline.com/NewsDetails/tabid/96/smid/414/ArticleID/157187/reftab/96/t/Traffic-cameras-in-Kuwait/Default.aspx

The sorry state of education

There is a kind of sorry state in the education system in Kuwait, as there are the public schools and the private schools, which are getting into unresolved difficulties and big challenges in different ways, while we are not a country of dearth of resources.In the public schools main challenge is to have good educators who are committed to their normal obligation of moulding and building the young generation in their educational career with providing quality information and skills.In the private schools, you will find good and committed teachers, who crossed oceans and came to Kuwait and get confronted with the private schools administrations, whom some times prefer the parents and in some cases their spoiled children than the needed respect for the teaches and their respective disciplinary role in the class.The education system in Kuwait went through long history and started from the mid of 20th century by Al Katatib system. Which are Quranic schools taught reading, writing and some maths by individual teachers and started to become formal education by the government by taking control of education in 1939.With respect to the old and long history, it presently requires more control from the Ministry of Education to supervise the operation of public and private schools and maintain a better grip on the educational system, to reach more modern goals away from the mentioned difficulties and concerns with more justice and fairness for all parties of the educational process.Email: Labeed.abdal@gmail.com

Blog: www.labeedabdal.blogspot.com
By: Labeed Abdal - Attorney at Law

http://www.arabtimesonline.com/Default.aspx?TabId=96&smid=414&ArticleID=156927&reftab=73&t=The-sorry-state-of-education

Fostering charity culture in Kuwait

Need to make easier means to facilitate, up donations

Charity has been part of the Kuwaiti culture since the early beginning of this society more than 300 years ago.Historically merchants supported the society by building schools, paying for teachers, promoting sports clubs and newspapers and magazines.Whereas in the existing times, charity became more religiously centered and generally known to be away from the civil society activities in some cases and its willingness to contribute for those who are in need, no matter their religion, origin, sex or background.We need to make easier means to facilitate and increase donation to people in need, such as the patients with serious illnesses like heart problems or cancer, the elderly people with lack of means for protection, sick, deserted children, people with disability and low paid workers, etc.Philanthropic undertakings should include nationals, foreigners and expatriates in need and foreign organizations should be allowed to contribute if they are willing to participate in, as the expatriate community still are integral part of the society and they share its highs and lows.There should be sufficient legal guarantee and strong institutional support to increase donations from the non-profit organizations and with no terrorism background or fear.However, impose strict measures in the collection, such as stipulation to payments only through K-net and a close watch on the utilization of the funds, by the concerned authorities to prevent doubtful situation of charity, as we need by all means to increase the responsible charity education and the culture of sharing.The charity concerns everybody and not only the rich or the government. Somebody thinking the charity should be only within the country and someone thinking it is not good for the business. In reality we need to uphold the charity as a social responsibility of the companies and the society’s core values, where it should be part of the public awareness of the need of living together in peace and prosperity.

Labeed.abdal@gmail.com

www.labeedabdal.blogspot.com

http://www.arabtimesonline.com/RSS/tabid/69/smid/414/ArticleID/156571/t/Fostering-charity-culture-in-Kuwait/Default.aspx