When oil prices crash, Kuwaiti family firms suddenly embrace UK-style governance to attract foreign debt. When oil booms, they revert to the Diwaniya (traditional majlis) model of decision making.
Corporate Governance of Listed Companies in Kuwait: A Comparative Study with United Kingdom, Saudi, and Qatar Codes When oil prices crash, Kuwaiti family firms suddenly
The UK model relies on principles rather than prescriptive rules. It emphasizes shareholder stewardship, stakeholder engagement (Section 172 of the Companies Act 2006), and a rigid separation of CEO and Chairman. The UK sanctions governance through the Financial Reporting Council (FRC) using the "Comply or Explain" mechanism—allowing deviation if justified. When oil prices crash