By Dr Abdullah Ahmed Alkayat

KUWAIT: The regulation of the minimum age to engage in commerce in Kuwait has undergone significant transformations over the decades, reflecting both historical considerations and evolving societal dynamics. In the 1960s, Kuwait’s first commercial law no. 2 of 1961, established the age of commercial capacity — the minimum age at which an individual could lawfully engage in commerce or be recognized as a merchant — at 18 years. This decision aligned with prevailing international standards of the time and recognized that 18-year-olds, as legal adults, were capable of assuming commercial responsibilities.

However, in the 1980s, Kuwait introduced a new commercial law, no. 68 of 1980, raising the age of commercial capacity to 21. This shift represented a more cautious approach, perhaps rooted in concerns about the maturity, experience, and preparedness of younger individuals to undertake the risks and obligations inherent in commercial activities. Today, the question of whether the age of commercial capacity should remain at 21 or revert to 18 is increasingly relevant.

Around the world, many legal systems and jurisdictions have moved toward recognizing 18 as the age of legal capacity for various matters, including commercial activities. This shift reflects the broader acknowledgment that 18-year-olds are legally and practically adults, capable of entering into contracts, assuming obligations and participating fully in economic life. For instance, in many modern economies, lowering the age of commercial capacity to 18 has fostered entrepreneurship among youth, allowing them to innovate, start businesses, and contribute to economic development at an earlier stage.

In the GCC countries (Gulf Cooperation Council), the age of commercial capacity is uniformly set at 18 years across all member states, except for Kuwait, where the age of commercial capacity remains at 21 years, reflecting a notable exception to the regional standard. This distinction highlights a divergence in the legal frameworks governing capacity within the GCC, as Kuwait continues to adhere to a higher age threshold for commercial transactions and related responsibilities.

One of the benefits of maintaining the age of commercial capacity at 21 is the added layer of protection it provides to younger individuals who may lack sufficient experience, judgment or financial knowledge to navigate complex commercial transactions. Commerce, by its nature, involves risks, and raising the minimum age can serve as a safeguard against exploitation, impulsive decision-making or economic failure caused by inexperience.

Additionally, it aligns with cultural perspectives in Kuwait that emphasize the gradual transition to adulthood and the readiness to take on significant responsibilities. From this perspective, the law serves as a means of protecting youth from entering into premature obligations that could have long-term financial or legal repercussions.

On the other hand, proponents of lowering the age back to 18 argue that it better reflects modern realities. Today’s youth are more educated, informed, and exposed to the world of business and technology than ever before. Platforms for entrepreneurship, such as e-commerce and digital startups, often attract younger individuals, who possess the creativity and adaptability necessary to thrive in these sectors.

Restricting the age of commercial capacity to 21 may hinder these opportunities and place Kuwait at a competitive disadvantage compared to jurisdictions that allow 18-year-olds to participate in commerce. Furthermore, lowering the age would align Kuwait’s commercial law with its civil and international commitments, as 18 is widely recognized as the age of majority across legal systems worldwide.

In addition, the economic landscape has changed drastically in recent decades, particularly with the rise of technology-driven commerce. Many young individuals in Kuwait and globally are now capable of building successful businesses online through platforms like e-commerce, app development, and social media. These opportunities require minimal capital investment and are often driven by innovation and technological proficiency — skills that younger generations excel at.

By maintaining the minimum age of commercial capacity at 21, the law risks limiting access to these opportunities, thereby stifling young entrepreneurs who could otherwise contribute to the national economy. Countries that embrace youthful entrepreneurship tend to benefit from a more dynamic, competitive, and forward-looking economic environment, a factor worth considering for Kuwait’s future.

Overall, the debate over the age of commercial capacity in Kuwait reflects a tension between tradition and modernity. While maintaining the age at 21 offers a protective and cautious approach, lowering it to 18 would empower younger generations to contribute meaningfully to the economy, aligning with global norms and fostering entrepreneurial growth.

As societal values, education, and economic opportunities evolve, Kuwait may need to reconsider whether the current law adequately serves the nation’s youth and economic future. Balancing maturity with opportunity is key, and finding that balance will determine the path forward for Kuwait’s commercial development. Kuwait can ensure that its legal framework supports both the protection and empowerment of its younger generations in an increasingly competitive global economy.

NOTE: Dr Abdullah Ahmed Alkayat is a Commercial and Capital Markets Law Professor at Kuwait University School of Law.