Interest on commercial loans / Kuwaiti law, Article 102 of the Kuwaiti Civil Code / Legal interest rate / Starting point.

'Under Article 102 of the Kuwaiti Civil Code interest can be charged on commercial loans unless the contrary was agreed, and if the rate be unspecified, the legal interest rate is 7% per annum.

This Tribunal has a discretion to grant interest. It will do so on the total sum awarded by it and on penalties wrongly withheld at the rate of 7% per annum as provided for in Kuwaiti law.

Strictly speaking the rate of interest commences from the date that the debt is due, which we interpret to mean the date upon which the Engineer rejected any claim which this Tribunal subsequently granted. However, in his final submission "and for the sake of simplicity" the Claimant has only claimed interest of 7% per annum from the date of the service of the Request for Arbitration.

We take the view that this request is reasonable and accords with Kuwaiti law. The Tribunal will therefore award interest on all sums found due to the Contractor at the rate of 7% per annum from the date of the Request for Arbitration.'