Legal implications of the law abolishing Civil Imprisonment for Foreign Investors in the State of Kuwait

Document Type : Original Article

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Saad Al-Abdullah Academy for Security Sciences

Abstract

The State of Kuwait recently passed legislation (2020) abolishing the imprisonment of debtors for their refusal to pay civil debts. This amendment had a profound effect on Kuwait society, particularly because those affected by this law fall into the category of foreign investors. Accordingly, this research was devoted to discussing civil imprisonment and the affect it had on foreign investment, without addressing other aspects. The importance of this topic lies in knowing the provisions related to civil imprisonment, what is the legal perception about the process of its abolition, and what are the legal effects of the abolition on foreign investors. Some scholars believe that from a human rights perspective, the debtor’s freedom should not be restricted because of non-payment of debt. However, some believe that Kuwaiti law relied on civil imprisonment as one of the most important provisions for the recovery of debts.  Accordingly, the research deals with one of the important issues related to civil imprisonment and its impact on foreign investors. It also discusses the opinions in favor, and those against, this legislation. The research attempts to answer the question: Does repealing this law have a significant impact on the guarantees available to creditors and the foreign investment sector, what are the existing guarantees for creditors, and what are the alternatives that contribute to preserving the rights of creditors?

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