The Evolution of Corporate Law in the Arab World: The Everlasting Grip of the State

• Presenter: Fahad Al-Zumai, Associate Professor of Law, Faculty of Law, Kuwait University, Kuwait City
• Discutant: Julie Klein, Professor at Sciences Po Law School

This conference explores the evolution of corporate laws in major Arab economies, with a focus on the role of the state in shaping these laws. It will examine how the dominance of the state is reflected in the absence of a substantial number of default rules, resulting in a legal framework heavily reliant on mandatory regulations. These rules limit the freedom of companies to structure and manage their businesses effectively.

The discussion will also analyze the policy background that led to the current Arab corporate laws, emphasizing how the paternalistic nature of Arab states has shaped legal policies. The interventionist nature of political and economic systems in the Arab world is similarly reflected in corporate laws, reinforcing state control over business regulations.

The conference will argue for the need to reform corporate laws in the Arab world, advocating for a shift away from paternalistic regulations toward a legal framework that embraces enabling rules and greater freedom of contract as its guiding philosophy.