Minister of Justice: Arbitration Law is a significant legislative step to regulate dispute resolution mechanisms
Justice Minister Counselor Nasser Al-Samit stated that the draft decree-law on arbitration, which was approved by the Council of Ministers in its meeting on 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 integrates and develops the provisions of judicial arbitration within the new law, thereby consolidating the arbitration system in 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 by the UNCITRAL Model Law on International Commercial Arbitration, while taking into account best international practices and incorporating provisions tailored to the nature of Kuwait’s legal system and the needs of the country’s commercial and investment environment.
He noted that unifying the arbitration system achieves a greater degree of clarity and legislative consistency, addresses issues revealed by practical application—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 stages of arbitration, strengthens guarantees of neutrality, transparency, and confidentiality, and regulates arbitration centers and their oversight. 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 the courts; it also enhances confidence in the country’s legal and economic environment, provides clearer guarantees for business operators and investors, and supports Kuwait’s position as an attractive financial and commercial hub for investment.
