As regional tensions continue to evolve, businesses operating in and through Kuwait are facing an increasingly uncertain risk environment.
In our latest ASAR InFocus webinar, “Four sectors, one crisis: Regional conflict and the resulting legal and commercial risk in Kuwait”, we examined how these developments are driving legal, contractual and operational challenges across key industries.
The session was led by Ahmed Barakat, Senior Partner, together with Paul Day, Partner, and Adnan Jaafar, Partner, and focussed on four key sectors:
- Construction
- Oil and gas
- Insurance
- Government bids and tenders
Key takeaways from the session:
- Assessing force majeure and hardship claims requires careful consideration of the facts, contractual terms and governing law.
- The distinction between force majeure and hardship under Kuwaiti law is critical: force majeure requires objective impossibility, whereas hardship arises where performance becomes commercially oppressive.
- Consistent internal classification of events and clear communication across the organisation are essential to avoid opportunistic or inconsistent
- Arbitral tribunals tend to scrutinize force majeure claims closely and may be more receptive to properly evidenced hardship arguments.
- Early notice, robust documentation of causation and mitigation, and proactive engagement with counterparties are key to preserving contractual rights.
- Beyond broad drafting, contracts should anticipate disruption and clearly address how parties are expected to behave in such circumstances.
In a time of heightened uncertainty, businesses are increasingly focussed on preserving contractual position while managing operational disruption with clarity and discipline.
For a more detailed analysis, read our recent article on force majeure and hardship in Kuwait: https://www.asarlegal.com/force-majeure-hardship-navigating-contractual-disruption-in-kuwait/
Thank you to everyone who joined and contributed to the discussion.
If you would like to discuss how these developments may affect your organisation, please contact us at asar@asarlegal.com
