KUWAIT CITY, Aug 10: A British court has ruled that the Kuwait Investment Authority (KIA) is a commercial entity, allowing it to be sued and stripping it of its diplomatic immunity, reports Al-Seyassah daily. This decision opens the door for employees to initiate legal action against the KIA’s London office. The ruling, which confirms reports published by Al-Seyassah on July 8, highlights administrative confusion and legal vulnerabilities within the Authority, which could lead to significant financial and legal repercussions at the international level.

The court emphasized that the KIA is separate from the Kuwaiti government according to Article 14 (1) of the State Immunity Law of 1978 and manages assets on behalf of various entities, including the Kuwait Petroleum Corporation and the Kuwait Foundation for the Advancement of Sciences. The ruling added, “The definition of the Kuwait Investment Authority’s office in London stipulates that “the Authority opens an office in London (for commercial purposes),” that is, to manage investments on a commercial basis. This legal change may negatively impact future investment returns and tax exemptions that the Authority previously enjoyed under sovereign immunity. Bloomberg has noted the ruling as a partial blow to the KIA, which has traditionally operated under the protection of diplomatic immunity.