Overview
Kuwait’s economy is showing signs of recovery, helped by stable oil prices, and government action to support the financial sector following the global financial crisis. Lawyers report an increase in M&A activity, and more interest in commercial real estate, although restructuring work was also keeping banking departments busy. Kuwait is one of the six member states of the Gulf Cooperation Council (GCC) which are gradually moving towards a degree of economic integration.
One important legal development likely to generate a good deal of legal work is the new privatization law which was passed by the National Assembly in May 2010. Under the policy, privately owned corporations will be allowed to build new power and water desalination plants, which will contract to sell production to the government under 40 year agreements.
In the market for legal services, there were two significant developments. In November 2009, Al Tamimi & Company established a presence in Kuwait through a joint venture with Yaqoub Al Munayae, and the acquisition of the Dawliya Law Firm: former DLA Piper chief Alex Saleh heads the office. In June 2010, the amalgamation of Sonnenschein Nath & Rosenthal and Denton Wilde Sapte set in train a process which will lead to a doubling in size to 27 fee-earners for the renamed The Law Office of Dr Ahmad Al-Samdan in association with SNR Denton & Co. Several Kuwaiti law firms are, effectively, members of international law firms although local regulations prevent full integration. International law firms active in the region but not directly linked with Kuwaiti firms, include Ashurst LLP, Baker & McKenzie LLP, Clifford Chance, Dewey & LeBoeuf LLP, King & Spalding LLP, Linklaters LLP and Norton Rose LLP