Minister of Justice: Arbitration Law is a significant legislative milestone for regulating dispute resolution mechanisms
Justice Minister Counselor Nasser Al-Samit stated that the draft decree-law on arbitration, approved by the Council of Ministers in its meeting today, Wednesday, represents a significant legislative advancement in regulating dispute resolution mechanisms in the State of Kuwait.
Counselor Al-Samit added, in a statement to KUNA, that the draft repeals the Judicial Arbitration Law and abolishes Chapter 12 of the Civil and Commercial Procedure Law, which governs arbitration. It consolidates and develops the provisions of judicial arbitration within the new law, thereby establishing a unified arbitration system encompassing its various forms under a single legislative framework, rather than dispersing its provisions across multiple laws.
He explained that the draft was guided by several principles established in the UNCITRAL Model Law on International Commercial Arbitration, issued by the United Nations Commission on International Trade Law (UNCITRAL). It also took into account best international practices while formulating provisions tailored to the nature of Kuwait’s legal system and the needs of the country’s commercial and investment environment.
Al-Samit noted that unifying the arbitration system enhances legislative clarity and consistency, addresses practical challenges identified in implementation—such as the length of certain procedures and the multiplicity of governing texts—and provides a faster and more flexible means of resolving disputes, particularly commercial and investment-related ones.
He pointed out that the new law sets clear timelines for the various stages of arbitration, strengthens guarantees of neutrality, transparency, and confidentiality, and regulates arbitration centers and the oversight of their operations. It also permits the use of electronic means in procedures, hearings, and the exchange of documents.
The Minister emphasized that the importance of the law extends beyond expediting dispute resolution and alleviating the burden on courts; it also serves to bolster confidence in the country’s legal and economic environment, provide clearer guarantees for business operators and investors, and reinforce Kuwait’s position as an attractive financial and commercial hub for investment.
