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Kuwait – Executive Bylaw of Law Number 13/2018

Kuwait – Executive Bylaw of Law Number 13/2018

Kuwait has just released a new executive bylaw on conflict of interest, namely Executive Bylaw of Law Number 13/2018. This new bylaw was published on 7 October 2018 and consists of 16 Articles issued by the National Assembly. This bylaw has brought about new changes in the employment regime in that it places a ban on employees from being involved or engaged in any partnership or arrangement that is in contradiction to such employees' job and provides a further outline of relative and infinite conflict.

This bylaw brings with it a far more stringent conflict of interest regulations to the Kuwaiti region. Within Article 2 of the new law, should an employee be subject to this new law, they will be considered to be in a position of relative conflict if such employee is in possession of a share or percentage of his work in any activity or if such employee has financial transactions with his/her employer.

Such transactions must be relevant and related to that employees’ job, and if the employees actively participate in the procedures without any resulting benefit, or if any of the abovementioned causes harm to the public interest. 

The new Bylaw will also find application in respect of circumstances where an employee, his/her minor children or his wife/her husband, or any persons under his/her guardianship or custody who has any of the following:

  1. A share in any company, establishment or activity;]
  2. n inclination to profit from and to participate in the procedures;
  3. Such participation is without any benefit or harm to the general public interest.

In addition to this, the bylaw also provides for new standards and provisions for public behavior which must be implemented by all persons who fall within the purview of the regulation. These provisions have been applied to ensure transparency by all parties who fall within the bylaw regulation.