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Editorial

Doing business in Kuwait: independent water and power projects

Contributed by Al Markaz Law Firm

This article discusses the legal aspects of undertaking an independent water and power project in Kuwait. The main focus of this article shall be on the legal framework of doing business in Kuwait and managing certain aspects of legal risk.

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Legal market overview

As a result of the decline in oil prices the Kuwaiti government has looked to diversify and strengthen the country through investments into social infrastructure projects, mainly using the PPP model. In August 2016 the Supreme Council for Planning and Development announced its plans to invest KWD4.75bn into smaller projects in 2017 and 2018 as part of a $116bn five-year development plan.

Law firms in the region have been highly active in PPP projects such as the expansion of the Kuwait Airport and the construction of a large solar power plant. Firms have also been advising corporate clients on formal insolvency and restructuring proceedings, as well as exits from the region.

Al Tamimi & Company and DLA Piper Kuwait in Association with (NEN) Al-Wagayan, Al Awadhi and Al-Saif are the only international firms with offices in the country. Of the local law firms, ASAR – Al Ruwayeh & Partners is the largest; other key players include International Counsel Bureau, Al Markaz Law Firm and Meysan Partners, which was established in 2015.

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