Banks cannot Deduct Full Salaries of Debtors
KUWAIT CITY, April 23: The Head of the General Administration of Execution, Counselor Abdullah Al-Othman, has affirmed that banks are not permitted to recover debts from the debtor's entire salary.
In an official letter addressed to the Governor of the Central Bank of Kuwait, Al-Othman referred to the recent enactment of Decree-Law No. 59 of 2025, which amends certain provisions of the Civil and Commercial Procedures Law (originally issued under Decree-Law No. 38 of 1980). The amendments affect Articles 227 and 230, which pertain to the process of confiscating assets held by third parties and confirm that such seizures shall remain in effect unless lifted by the Execution Department.
Al-Othman highlighted a concerning trend where some banks have recovered from full salaries of individuals working in government ministries, private companies, and the oil sector. He emphasized that this practice violates Article 216, paragraph (z) of the Civil Procedure Code. This article states: 'Without prejudice to other applicable laws, the following may not be seized: wages and salaries, unless regulated by a special law, and even then, only up to half the amount.'
He urged the Central Bank to issue directives to all banks, instructing them to comply with the legal limits on salary seizures as stipulated in the law and related regulations. He also pointed out that enforcement reports issued by the Execution Department explicitly require banks to 'abide by the legal provisions governing salary seizures.'
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Arab Times
a day ago
- Arab Times
Lawsuits in Kuwait get a fee-lift
KUWAIT CITY, June 5: His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah presided over the weekly meeting of the Cabinet, during which a decree-law amending certain provisions of Judicial Fees Law No. 17/1973 was approved. This amendment is the first in more than five decades. It aims to limit the growing number of vexatious cases, ensure the seriousness of the right to litigation, and promote alternative dispute resolution methods like arbitration and conciliation. The amendment includes the increase of fees and rates imposed on lawsuits with a specified or unspecified claim value. It stipulates a five percent rate if the claim value is up to KD30,000; 3.5 percent if the claim value exceeds KD30,000 up to KD150,000; 2.5 percent if the value ranges between KD150,000 and KD500,000; 1.5 percent if the claim value ranges between KD500,000 and KD5million; and one percent if the claim value exceeds KD5 million. It raised the fees for orders on petitions and requests from KD5 to KD10; KD50 for urgent lawsuits and enforcement issues — up from KD3; court lawsuit fees increased to KD100, including the request to appoint an expert; KD150 for enforcement issues — up from KD30; KD100 for requests to dismiss a judge, expert and arbitrator; KD500 for a request to refer a property to a sales judge; the fee for warnings for each party increased from 500 fils to KD5; cost of stamp duty increased from 500 fils to KD1; and requests to expedite lawsuits, suspension and cancellation are subject to a fee of KD5. Article One of the Decree-Law stipulates the replacement of a number of articles of the Judicial Fees Law with new texts. Article Two states that if the lawsuit includes multiple claims of known value — whether original or reserve, and arising from a single legal cause; the assessment shall be based on their total value. However, if they arise from different legal causes, the assessment shall be based on the value of each one separately. Article Five states that if it is impossible to estimate a claim, it shall be deemed unvalued. The following claims, in particular, shall be deemed unvalued: claims for the authenticity of a signature, claims and objections submitted to the judge of urgent matters, original forgery claims, requests for enforcement of arbitrators' rulings and appeals against such orders, requests for orders to implement foreign court rulings, requests to dismiss judges, experts and arbitrators, requests and orders on petitions submitted to the Execution Department and appeals against them, claims for easements, claims for interpretation and correction of rulings, claims for review of endowments, claims for entitlement to residency in endowment sites or their eviction, and claims for eviction of rented premises. It also stipulates that if a claim includes multiple original claims or original and reserve claims — all of which are unvalued — a fee shall be imposed on each of them separately. If these claims are related, a single fee shall be imposed on them. Under the decree, a fixed fee is imposed on the following lawsuits: personal status lawsuits of all types, partition lawsuits between partners, appeals against orders on petitions, and the list of fees and expenses. Fees are also collected for each lawsuit that has been in effect for one year from the date of its cancellation and has not been renewed from the date of cancellation, or from the date of the expiration of the penal or consensual stay and has not been resumed. A fee of KD5 is imposed for a request to renew a lawsuit from cancellation, shorten its hearing date, or expedite it from the penal or consensual stay. The applicant is obligated to pay this fee regardless of the outcome of the lawsuit. A new fee of 10 percent of the value of the fee due is collected for the lawsuit when it is re-filed within three months from the date of the judgment, as if it never existed, or by abandoning it; provided that the subject of the lawsuit or its litigants do not change. The exemption request shall be submitted to the Clerks Department of the Court of First Instance, accompanied by the supporting documents or a copy thereof. The Clerks Department shall notify the Judicial Fees Department of the request and its documents, so that it may submit its report. A committee of three judges shall be formed to decide on the request in the absence of the parties and without pleading unless the committee deems it necessary to attend. The committee shall have a secretary who will attend its sessions and record its minutes. The committee's decision shall be issued by a majority vote of its members, including the reasons for the decision and the basis upon which the exemption was based. The exemption from fees shall be personal and shall not extend to the heirs of the exempted person or their replacement. The committee referred to in the previous article may, during the course of the case or after judgment therein, based on a request from the Judicial Fees Department or the opposing party in the case, annul the exemption decision if it is proven that the justified incapacity has ceased. The Court Clerks Department shall notify the circuit hearing the case of the annulment decision. If the fee-exempt opponent is required to pay the fees, he must first be requested to pay them. If it is impossible to collect the fees from him, it is permissible to recover them from the concerned party if the state of his inability is no longer in accordance with the previous article. A fee of KD5 is imposed on warnings and notifications — other than notification of the statement of claim, judgment and other notifications related to the progress of a dispute before the court — for each person notified. A fee of 500 fils is collected for each page of the copy of the judgment requested from non-litigants. The same fee is imposed for each page requested by the litigants after they obtained the first copy. A fee of KD1 is imposed on certificates and copies of the lawsuit papers requested by the litigants or others regarding the progress of the lawsuit or the judgment therein. It also stipulates that the courts shall adjudicate in lawsuits and requests for which the fee is paid in advance, or for which a temporary exemption is established. No lawsuit or request may be initiated before this fee is paid. If it is found that it has not been paid, the court shall grant the plaintiff an appropriate period for payment. If he does not pay within that period without an acceptable excuse, the lawsuit is deemed null and void. The provisions of Article 123 of the Civil and Commercial Procedures Law shall apply to orders to assess fees and the appeals against them. Without prejudice to the rules of exemption from court fees, the plaintiff is obligated to pay the fee until a final judgment is issued against the other party. The explanatory memorandum states that Law No. 17/1973 regarding judicial fees was issued more than 50 years ago; and it has not been amended despite the economic and social changes in recent years, including the rise in inflation rate and the level of per capita income, which led to an increase in the prices of goods and services. It added that the increasing level of public culture and trust in the judiciary have encouraged citizens to resort to the courts as a safe haven for resolving their disputes. This has led to a steady increase in the number of cases brought before them; hence, litigants have to endure the pain of waiting for resolution.
Kuwait Times
2 days ago
- Kuwait Times
Style or security? How culture shapes gold buying habits in Kuwait
Every community has its go-to gold, affected by tradition, resale value, aesthetics KUWAIT: As Eid approaches, it's easy to notice how different gold markets draw in people with different nationalities. According to local jewelers, one key factor drives these preferences: karat - the measure of gold's purity mixed with other metals. The availability of certain karats across shops not only impacts price, but also influences the jewelry's color, strength and the styles favored by each community. 'Each country tends to have its own distinct preference for gold karat,' said Ahmad Gad, a jeweler at Al-Mubarakiya Gold Souq, one of the most popular markets among diverse nationalities in Kuwait. He broke down the three most common karats in Kuwait and who typically prefers each: 'Indians usually go for the rich yellow of 22K gold. Arabs lean toward 21K for its shine. As for 18K, which has a softer glow, it's often chosen by people who like European styles — Filipinos, for example.' Ahmad Gad, a jeweler in Kuwait. A vendor shows a gold necklace to a customer at the gold exhibition. The Indian favorite Indian buyers are especially drawn to 22K gold, valuing both its high purity and cultural significance. 'For Indians, what matters most is purity. If it were practical, they'd choose 24K - but it's too soft for jewelry,' said Ayoub, an Indian gold salesman who has worked in Kuwait for seven years. Pure 24-karat gold, considered 100 percent gold, is typically reserved for bars and coins, as its softness makes it unsuitable for wearable, intricately designed jewelry. To increase durability, gold is alloyed with other metals, resulting in lower karats: 22K gold contains 91.7 percent pure gold, and is ideal for the ornate, heavily detailed pieces typical in Indian culture. 'Our classic Indian pieces can only be made with 22K,' said Naresh Kumar, a jeweler at Souq Al Wataniya in Kuwait City, which mainly serves Indian and Bengali customers. 'It's also the standard karat in India, so it's easier to resell there.' Gad added, 'Every community prefers gold that can be resold easily in their home country.' Smart investment Despite its cultural significance, 22K gold is less commonly stocked in Kuwait compared to 21K. You'll find 21K gold widely available in popular markets like Al-Mubarakiya, Hawally, Salmiya and Farwaniya. According to jewelers, 21K is the most sought-after karat among Arabs. With 87.5% purity, it offers a sweet spot between visual beauty and long-term value. '21K is ideal for those who want a beautiful ornament that also holds its value,' said Gad. 'It has a higher resale price compared to lower karats, especially if it's locally made Kuwaiti gold, free of decorative cloves.' Kuwait is known for its high-quality 21K gold, thanks in part to strong trade ties with the UAE, home to some of the Gulf's most skilled goldsmiths. This partnership enables Kuwait to import a wide variety of 21K designs in large quantities. Elegant, but less valuable By contrast, 18K gold is found in smaller quantities across Kuwait, mostly in the Salmiya Gold Souq, which caters largely to Filipino buyers. While 18K contains 75 percent pure gold and is often used for dainty, European-style pieces, jewelers say it carries the highest making charges and offers weaker resale value, making it less appealing to investment-focused shoppers. 'The lower the gold's karat, the harder it is to mold,' explained Kumar. 'Working with low karats like 18K takes more time and precision, which increases labor costs.' That added labor is reflected in the making charge — a markup applied to the price of gold per gram for craftsmanship, which doesn't contribute to the resale value. Still, 18K remains the go-to for many Filipino shoppers and others who prioritize aesthetics over return value. 'I prefer 18K because it's simpler and more elegant,' said Rachel, a Filipino customer. 'The higher-karat designs are too loud - too madame. Unlike 18K pieces which I can easily stack and wear daily without feeling it's too much. For many, gold is more than a fashion statement - it's financial security. 'Gold is the most affordable investment for me right now. Instead of wasting money, I buy gold. It's like my money is still there, just preserved in a different form,' said Nada Dawod, an Egyptian gold enthusiast. 'When I was younger, I loved 18K gold,' she said. 'But once I started buying gold with my own money, I switched to 21K. It has better resale value and comes with a lower making charge. Even if I like a design in 18K, I try to find a similar one in 21K.'
Arab Times
2 days ago
- Arab Times
Citizen blasts opaque debt campaign, files court case
KUWAIT CITY, June 4: The Court of First Instance received a new case filed by a Kuwaiti citizen who has demanded full disclosure of the distribution and beneficiaries of donations totaling millions of dinars collected by the national campaign for refunding debtors' loans. Lawyer Reem Al-Baghdadi, representing the aggrieved citizen, requested detailed information on debt repayment records, the disbursement process, and the list of beneficiaries. She explained that her client was extremely surprised to be excluded from the current debtors' campaign beneficiary list, despite not having applied for any previous campaigns. An investigation revealed that the committee overseeing one of the previous campaigns had paid the government a fee of KD 10 owed by the citizen, based on a request from the Ministry of Justice. Her client was unaware of this payment and that his name had been included in the previous campaign's beneficiary list without his knowledge. Despite being able to pay the KD 10 fee himself, he applied to register in the latest campaign due to a large debt he could not afford to repay. Lawyer Al-Baghdadi emphasized that the purpose of this lawsuit is to clarify the mechanisms of the debtors' campaigns, ensuring transparency and fairness so that aid reaches those truly entitled to it based on clear and just criteria.
