COVID-19 pandemic effects on SMES in Kuwait

Abstract EN

Coronavirus disease (COVID-19) affected negatively on people lives.

The governments from all over the world have announced precautionary measures to combat the spread of the virus.

The measures included the lockdown of most businesses.

The precautionary policies affected severely on the economies of countries.

As a result, businesses, particularly, small and medium-sized enterprises (SMEs) have been on the edge of bankruptcy.

The article discusses the effects of COVID-19 on SMEs in Kuwait.

The article examines whether COVID-19 pandemic is a force majeure or emergency circumstance under the legal system of Kuwait.

The discussion scrutinizes the economic stimulus packages addressed by the government of Kuwait and provides critical analysis.

The article concludes that the government did not take real initiatives to support SMEs during this crisis.

The policies adopted either postpone SMEs obligations or increase their liabilities through having concessional loans.

Ultimately, the article proposes clear laws and economic measures that are designed to achieve a balance between safe- guarding fiscal capacity and minimizing economic distortions that might result from proposed policies.