To fully appraise the direct investment laws in Kuwait, it is necessary to briefly reflect on the status of law before the enactment of the current laws encouraging foreign investment in Kuwait. Foreign corporations were not allowed to operate independently in Kuwait. According to article 23 of Kuwait Decree-Law No. 68/1980 On the Promulgation of the Commercial Transactions Law, a non-Kuwaiti may not practice trade in Kuwait unless they have a Kuwaiti partner or partners and provided that the capital of the Kuwaitis in the joint business concern is not less than 51 % of the total capital of said business concern. This means that to establish a commercial entity in Kuwait, it must have majority ownership of at least 51% over the company.