Issue File: Economic Courts... Between Developing the Legal Environment and Practical Challenges

Jassim Al-Saadoun, an economic expert and chairman of the board of directors at Al-Shal Economic Consulting, stated: “Yes, as an isolated factor, it can bolster confidence in the business environment. However, Kuwait’s business environment is unattractive. Foreign direct investment (FDI) has not exceeded $4.5 billion over the past five years (2021–2025), while, conversely, domestic capital outflows for overseas investment from Kuwait during the same period amounted to approximately $86.8 billion.”

Al-Saadoun noted that economic conditions are inherently prone to rapid change. Therefore, the swift resolution of financial and commercial disputes and the prompt enforcement of rulings are two critical factors. Delays can diminish the value of even legally sound judgments, reducing their impact on the disputing parties at the time the dispute arises. For instance, changes in the prices of disputed assets serve as one example, while shifts in the political and geopolitical landscape represent another.

He added that specialized courts can contribute to attracting foreign investment. In a country like Kuwait, which experiences a surplus of capital and a scarcity of investment opportunities, the initial focus should be on stabilizing domestic direct investment. If Kuwait succeeds in achieving this, it will inevitably be followed by an influx of foreign direct investment, making economic courts a safe and efficient haven for both domestic and foreign investors.

The measure of success lies in achieving the intended objectives. If specialized courts are established with all necessary components, supported by experts in finance and business affairs, and if they issue swift rulings that are enforced immediately and within the stipulated deadlines, they will have successfully fulfilled their purpose.

For his part, economic expert Abdulrahman Abdulhamid Al-Hamoud discussed economic courts and the multiple factors influencing economic activity, investment, and banking, the most important of which is timely decision-making.

Al-Hamoud clarified that when decisions are made promptly, success becomes an ally to the investment process. Time is a decisive factor in the success of investment activities, and disputes are inevitable in this sector—whether between investment institutions themselves or with clients, particularly in the banking sector. Resolving such disputes quickly, finding appropriate solutions, and issuing decisive rulings save the parties involved time and effort.

He noted that with the advancement of technology and the use of modern tools and methods, the pace of work has accelerated. Paper and physical documents are no longer the primary medium for transactions; instead, computers and electronic correspondence have become the domain of business interactions.

From this perspective, in order for these financial institutions and their counterparties to effectively resolve their disputes, it is essential to have courts and dispute-resolution departments separate from ordinary court proceedings, which often involve lengthy negotiations and are crowded with other types of cases. Additionally, these ordinary courts may lack familiarity with the laws and regulations governing institutions with specific economic and financial characteristics.

First, resolving disputes and reaching final judgments by experts knowledgeable in such matters instills reassurance and satisfaction in the disputing parties.

Second, the speed with which appropriate judgments are rendered relieves the parties of the waiting period, which could otherwise disrupt business operations.

Third, the existence of such courts instills confidence and trust in foreign investors considering substantial investments. They feel that the presence of these courts supports the climate of confidence, and that any dispute they may have with any entity, whether private or governmental, can be presented to a trusted authority to safeguard their rights.

Fourth, given the fragility of the financial and administrative situation of small and medium-sized enterprises (SMEs), their capacity to withstand legal issues and engage in disputes with large companies and government agencies is limited. Delays in winning lawsuits can result in losses that may lead to the failure of such institutions and companies. Therefore, the existence of such courts serves as a protection for them.

Fifth, the classification of a country’s investment climate by global institutions that provide such ratings will be supported by the presence of specialized economic courts, which will help these countries achieve a high rating. This, in turn, will contribute to building confidence among funding and investment entities in the country, as well as among international economic institutions.

He clarified that the existence of such courts fosters a sense of security for investors and those dealing with foreign entities, and enhances the country’s credit standing.

However, he added that there are many conditions and commitments that must be met in such economic courts to enable them to fulfill their assigned role and gain the trust of local and international stakeholders. These include the following:

1. The establishment of these specialized economic courts must be backed by a law, a defined structure, and jurisdiction granted by the highest judicial authority.

2. This law must be disseminated to all economic entities, institutions, banks, and parties dealing with these entities.

3. Handling financial and economic cases requires that staff and judges in these courts have knowledge and expertise in such matters. They must be supported by a team of specialists in banking, central bank law, and financial and economic laws and regulations, including the financial center and its implications for individuals and companies.

Al-Humoud concluded his statement by emphasizing that the presence of a specialized economic court, staffed with judges and personnel who possess expertise in economic and financial laws and have the legal authority to rule on economic and financial complaints, will be a valuable asset to institutions, companies, banks, and their stakeholders, and will enhance the country’s credit rating.

Hussein Al-Kharafi, President of the Industrialists Union, affirmed that the establishment of economic courts represents a positive and progressive step reflecting deep vision. He noted that specialization in this area will greatly facilitate the business environment and enhance the speed of resolving disputes in the economic and financial sectors.

Al-Kharafi stated that reducing the time spent on economic disputes lowers costs and prevents both parties to a conflict from incurring losses. He described this as a crucial and beneficial step for all participants in economic activities, expressing optimism that litigation periods will decrease compared to the past, when some cases dragged on for years.

He pointed out that the private sector, across all its segments and levels, will benefit significantly. Such courts will protect rights more quickly and enable everyone to obtain faster services at lower costs. This is particularly important since some companies cannot afford the high costs of prolonged litigation.

Al-Kharafi highlighted that one of the key advantages of specialized economic courts is alleviating pressure on corporate budgets and accelerating business operations. He credited the government for its continued efforts to improve the business environment and meet the requirements supporting the private sector.

He added: “As a business community, we are optimistic and anticipate positive outcomes from this step, particularly because the specialized commercial and economic judiciary will provide a flow of personnel and expertise that contributes to establishing justice in the commercial and economic sectors, in line with their nature characterized by profit and loss, as well as ensuring cases proceed through a swift process based on awareness of private sector claims. This will reinforce accountability within a single specialized jurisdiction, which will undoubtedly contribute to economic growth, both locally and internationally. Indeed, the more the general framework is strengthened with advanced and rapid legal requirements for adjudicating rights, the more attractive the business environment becomes.”

He emphasized that this step is well-deserved and will enhance trust and achieve the flexibility sought by the private sector, representing one of the most significant positive achievements.

For his part, Saleh Al-Salimi, Chairman of the Board of International Financial Consulting Holding (EVA), stated that economic courts are a positive step in the right direction, which will be built upon to drive further development of the Kuwaiti economy, considering them among the most important requirements and obligations.

Al-Salimi added: “If we look back, it will become evident that our group was among the first to advocate for the necessity of establishing specialized economic courts, given their many positive benefits for the business environment, the speed of litigation, and the swift resolution of financial rights affected by prolonged delays.”

He noted that financial disputes in the economy impose a dual cost on the assets in question, as their value fluctuates up or down, or opportunities are lost due to frozen assets until a ruling is issued. The presence of economic courts will undoubtedly improve the adjudication of financial and commercial rights through flexibility and speed.

He believed that the business environment will improve and become more stimulating, keeping pace with advanced markets, while strategic investors will find everything needed to provide them with confidence, security, and a refuge that can be accessed at a speed appropriate to the nature of economic activities.

He added that disputes lasting years mean frozen funds, stalled projects, and missed opportunities. Shortening the litigation cycle reduces costs, restores liquidity to economic activity, encourages Kuwaiti capital to invest locally, and attracts foreign investments.

The strength of the law lies in the specialization of judges and advisors, and the utilization of economic and financial expertise, which enhances the understanding of complex disputes, improves the efficiency and speed of adjudication, facilitates amicable settlements, and simplifies litigation procedures.

Perhaps the most prominent feature of the law is the establishment of a special administration for the enforcement of judgments, comprising specialized judges and experts in accounting, securities, and asset valuation. This administration leverages electronic integration with relevant authorities to expedite seizure, transfer, and asset sale procedures in accordance with legal regulations. A judgment whose enforcement is delayed keeps capital idle, regardless of how quickly it is issued.

In international experiences, disputing parties chose the courts of the Dubai International Financial Centre (DIFC) to adjudicate 243 cases during the first half of 2026, representing 30 percent of the total registered cases, reflecting the attractiveness of specialized judiciary and the confidence placed in it by market participants. Singapore also offers a well-established experience, having created its International Commercial Court in 2015.

The success of this step remains contingent upon the efficiency of its implementation, the continuous qualification of judges, advisors, and experts, and the measurement of the actual duration for resolving disputes and enforcing judgments, so that judicial speed becomes a competitive advantage for the Kuwaiti economy. When the protection of rights and the swift recovery thereof become a tangible reality, Kuwaiti capital’s confidence in domestic investment will increase, and Kuwait’s attractiveness to foreign investment will expand.

Oil expert and consultant Dr. Abdul Sami’ Bahbahani stated that the success of investment, particularly in the oil and gas sector, is linked to judicial certainty and the swift resolution of disputes. An oil contract may be worth hundreds of millions, while a dispute over it may last for years.

He added: “From this perspective, the importance of Law-Decree No. 88 of 2026 establishing Economic Courts becomes evident. This decree, which will take effect in October 2027, introduces specialized judiciary covering all three levels of litigation, integrating specialization, amicable settlement, digital transformation, expert organization, and enforcement. He noted that oil contracts are not traditional commercial contracts; they may combine law, geology, engineering, accounting, and modern technologies, with dispute amounts being substantial.

He asked: “Will the new system succeed in accommodating this special nature? Can it reconcile international judicial customs with local expertise without turning complex technical issues into a new source of delay?”

He stated that personal experience demonstrates the complexity of disputes arising from contracts that appear sound and clear at signing. For instance, he cited a case where an electricity company contracted with a source company to purchase a daily product from a gas field under a “Take or Pay” principle, at a fixed price based on a guaranteed reservoir inventory, for a specific contract period. He pointed out that a subsequent dispute did not stop at proving the existence and adequacy of the inventory; it extended to the nationalities of the arbitrators and the precision of the technologies used to prove the disputed geological maps. The legal teams of both parties included lawyers, geologists, and reservoir engineers, and later, an information technology specialist was added. However, due to the inability of the arbitrators to reach an agreement, an independent technical expert arbitrator acceptable to both parties was selected, and his findings became the basis for the final decision.

He emphasized that this experience confirms that an oil contract, however meticulously drafted, remains subject to rapid technical, scientific, legal, and geographical changes, making specialized technical expertise an essential component of the speed and fairness of resolving oil disputes.

He noted that the Court of Accounts’ reports on the oil sector reveal a recurring pattern in the contractual relationship between Kuwait Oil Company (KOC) and contractors, rather than isolated incidents. The problem often appears as an integrated contractual cycle: a contract, followed by delays, changes, or disputes over interpretation and execution, leading to financial claims by the contractor, and then negotiation, settlement, or arbitration. Conversely, the company imposes penalties, deductions, and claims against the contractor. The Court’s figures reveal the scale of these disputes: as of March 31, 2018, contractors’ financial claims against KOC amounted to approximately 1.104 billion dinars, of which 843.647 million dinars were related to a contract referred to international commercial arbitration. More significantly, the arbitration result later obligated the company to pay only about 1.114 million dinars from the original claim, representing merely 0.13 percent of it.

He added, however, that the Court of Accounts’ reports and the Budget Committee’s discussions do not place responsibility solely on contractors. The committee pointed to the recurrence of the Court of Accounts’ observations regarding the execution of oil projects and the failure to address the root causes of these observations, which leads to project delays and increased contractor claims.

He further noted that the Court of Accounts identified contractor failures, such as non-compliance with specifications or failure to achieve contracted capacity. For instance, one facility did not exceed 69,000 barrels per day against a design capacity of 120,000 barrels. Thus, the picture is not merely one of “contractors suing Kuwait Oil Company,” but rather a complex contractual relationship where both parties make claims against each other, with some disputes ending in expert appraisal, arbitration, and settlements. He emphasized that the most important question remains: Why do these disputes recur despite the accumulation of expertise and the Court of Accounts’ observations?

He pointed out that Law Decree No. 88 of 2026 establishes a new framework for handling economic disputes. From an oil sector perspective, its importance lies in three interrelated objectives: specialization, simplification of litigation procedures, and legislative flexibility. The law establishes economic circuits in the Court of First Instance, the Court of Appeal, and the Court of Cassation, presided over by judges with expertise or specialized training, along with a judge for temporary and urgent matters, and shortened timelines for appealing urgent issues. It also streamlines the appeal process so that the Court of Cassation is not burdened with low-value disputes, setting a threshold of 30,000 dinars within a defined scope. He added that, crucially for the oil sector, the law creates a technical support office for the economic circuits, leveraging experts and specialists in economic and investment fields, and dedicating expertise to disputes presented before these circuits.

The law requires experts to deposit their reports within 60 days of commencing their assignment, aiming to reduce one of the most time-consuming stages of economic disputes. It also established a settlement and conciliation office before referring cases to the judiciary, ensuring that disputes reach the court only when settlement proves impossible, with exceptions for urgent cases. The regulatory framework extends to the enforcement phase through a specialized administration for the rulings of the economic circuits, and it establishes a mechanism to unify legal principles when judgments conflict.

He noted that the jurisdiction covers foreign investment disputes, oil contracts, and construction contracts, making the law directly relevant to the relationship between Kuwait Oil Company and local and international contractors. He highlighted that the law grants concerned authorities approximately one year before its enforcement on October 1, 2027, to prepare the executive regulations and qualify judges, experts, the technical office, and the electronic infrastructure.

He hinted that the true impact of the law will be determined here: Will there be sufficient technical oil expertise capable of understanding the complexities of geology, reservoirs, engineering, and contracts, or will specialization remain purely legal? More importantly, from a customary perspective, is the law technically applicable to oil disputes, not just legally? These questions require dynamic flexibility to test the law’s practical effectiveness by comparing figures and expert opinions.

He stated that the real question is not whether the new law is faster than the previous system on paper, but whether it can handle the specific nature of oil disputes. A dispute over a major oil contract may involve, in a single case, geological, reservoir, drilling, production, engineering, contracting, accounting, cost, delay, force majeure, and compensation issues. Its value may reach tens or hundreds of millions of dinars. Therefore, setting a 60-day deadline for depositing the expert’s report does not necessarily mean the dispute will be resolved within that period. The data collection process and the appointment of the expert may precede the report, while objections, requests for additional information, or new expert opinions may follow.

He pointed out that the true test emerges here: Will the law reduce years of litigation, or will it simply shift the bottleneck from the court to the expert assessment? Will the speed of issuing judgments be accompanied by the speed of enforcement and the right holder’s receipt of their dues? The law provides important tools: judicial specialization, settlement and compromise, regulation of expert assessments, procedural simplification, and specialization in enforcement. However, the volume of technical and financial records in oil disputes means that the success criterion is not the speed of a single procedure, but the total time from filing the lawsuit to judgment and enforcement. He added that a natural comparison arises with arbitration. The economic judiciary offers specialized judges, a judicial hierarchy, procedural safeguards, and enforcement through the judicial system, whereas arbitration allows greater procedural flexibility and the possibility of selecting arbitrators with precise oil expertise.

Bahbahani clarified that in contracts worth hundreds of millions, this flexibility and specialized expertise may remain reasons for continuing to prefer arbitration, although the establishment of specialized economic courts may narrow the gap between the two paths. From this point arise questions that practical experience should answer: What is the current average duration of oil disputes? What percentage of cases require expert assessment? Is there a list of specialists in geology, drilling, reservoirs, production, engineering, and petroleum economics? What is the realistic time required to resolve a major oil dispute? Where does the delay actually occur: in filing the lawsuit, its progression, expert assessment, briefs, levels of litigation, or enforcement? Oil companies should also be asked about the most frequent types of disputes, the average time to reach a final judgment, and their current reliance on arbitration.

He continued: As for lawyers and experts, the most important question for them is whether the problem lies with the judiciary itself or with the nature of the technical lawsuit and the expert assessment it requires. The most important question... is whether the economic judiciary can make itself a convincing alternative to arbitration in major oil disputes? We leave the answer to data and experts.

He noted that the results and recommendations ultimately concern not only the importance of economic courts in resolving cases quickly, but also the judicial certainty and clarity of rights and obligations they provide, which are essential elements for attracting investment and localizing capital.

He said that the new law offers a set of important tools: pre-litigation settlement and compromise, digital transformation, streamlining appeals before the Court of Cassation, judicial specialization, a technical office, regulation of expert assessments, and specialization in enforcing judgments.

He added: However, the real test will begin before the law takes effect in October 2027. The transitional period allows for preparing the executive regulations, qualifying judges and experts, and establishing the technical office and the electronic platform.

He proposed that the oil sector be given a clear technical pathway within the expertise framework, encompassing specialties such as geology, reservoir engineering, drilling, production, engineering, accounting, asset valuation, and petroleum economics, because oil disputes cannot be reduced to a mere interpretation of contractual text. He added: "I also see the need to review oil contract models in parallel with the establishment of economic courts, particularly clauses that prolong disputes, create jurisdictional conflicts, or complicate mechanisms for modification, compensation, and penalties. Courts do not rewrite existing contracts, but judgments can reveal contractual loopholes, leading to improved drafting and management in future contracts."

He continued: "Arbitration will not necessarily disappear and may remain more suitable for certain major projects, especially when disputes require arbitrators with precise oil industry expertise or procedural mechanisms defined by the parties. He clarified that in complex technical disputes, the importance of an independent technical expert or arbitrator remains significant when the results of the parties’ experts conflict.

He concluded: "From my analytical perspective, the law may represent a major leap in the 'adjudication' of economic and oil disputes, but its impact on 'contract management' will depend on how it is implemented. If we were to express this numerically, I estimate that the change in the litigation structure could reach 50–60 percent, whereas its direct impact on resolving oil disputes as a whole may not exceed 20–30 percent unless accompanied by a review of contract management and technical expertise. These are analytical estimates, not official figures."

Oil expert Mohammed Al-Shatti stated that the speed of resolving disputes helps reduce the cost and delay of implementing major oil projects. He added that the faster the dispute resolution, the lower the cost of delays and project disruptions, and the faster the pace of implementation and completion. The impact can be measured through reduced litigation duration, shortened periods of project downtime, and improved adherence to schedules for strategic projects.

Al-Shatti pointed out that economic courts enhance Kuwait’s image as a more stable and transparent business environment. Economic courts bolster the confidence of global oil companies and foreign investors, as investors seek specialized and swift justice that ensures the protection of rights and enforcement of contracts, which positively reflects on attracting investments and long-term partnerships.

He predicted that the law would drive the drafting of more professional and clear contracts, encouraging the adoption of international best practices in risk management and dispute resolution, thereby limiting disagreements and enhancing trust between contracting parties.

He noted that by building a base of specialized experts in oil, energy, and major projects, leveraging digital solutions, and setting specific timeframes for preparing technical reports, there would be a guarantee of expediting expert procedures to reach swift rulings without compromising the quality of judgments.

He emphasized that economic courts would have a significant impact in reducing financial losses resulting from disputes and project delays, as these courts would shorten the duration of disputes, reduce legal, operational, and financing costs, and accelerate the realization of economic returns from projects. This supports spending efficiency and raises the return on national investments.

He mentioned that the main challenges facing this law include attracting specialized judicial and technical expertise, completing the digital transformation, and ensuring the swift execution of judgments, thereby achieving final justice that aligns with Kuwait’s developmental and economic aspirations.

Al-Shatti concluded by stating that economic courts represent a qualitative leap in developing Kuwait’s legal and economic environment, as they contribute to enhancing investor confidence, accelerating project implementation, improving contract enforcement efficiency, and solidifying Kuwait’s position as an attractive hub for business and investment, in line with development goals and Kuwait’s future vision.

For his part, Ibrahim Al-Awadi, President of the Real Estate Union, affirmed that the law establishing economic courts represents a very significant legislative step. Its importance lies in the fact that the Kuwaiti judiciary is entering a stage of institutional specialization by creating specialized courts to adjudicate cases related to economic, investment, and commercial disputes. He noted that this initiative will greatly enhance Kuwait’s environment and attractiveness to foreign investment.

Al-Awadi added that a key aspect of establishing economic courts is strengthening the economic justice system, which is a long-overdue step to keep pace with financial and technological development, as well as investment trends. Undoubtedly, this will boost investor confidence, both local and foreign, and significantly improve Kuwait’s standing in international indicators related to the business and legal environment.

He clarified that a key feature of this project is the presence of specialized economic courts to hear the cases referred to them, alongside specialized judges. He pointed out that the law stipulates that judges and staff in these courts must undergo continuous training programs covering all their jurisdictions, ensuring that judges are highly knowledgeable about all types of cases.

He noted that the law established specialized economic courts and granted them exclusive jurisdiction to adjudicate disputes affecting Kuwait’s business and investment environment. He emphasized that this is crucial for attracting foreign capital and direct investment, as it creates explicit judicial jurisdiction over disputes involving non-Kuwaiti capital, thereby greatly encouraging direct investment by ensuring the swift issuance and enforcement of judgments.

He mentioned that prolonged litigation had been a source of hardship, and this law addresses the issue by establishing a conciliation office before a case is referred to court. The conciliation record carries executive force, and offices have been set up to receive cases, complete all documentation, and exchange memoranda, thereby significantly reducing delays related to the exchange of memoranda between parties.

He added that parties previously faced long delays in reviewing memoranda submitted by opposing sides in lawsuits, leading to cases lasting many years. This will simplify litigation procedures, reduce certain timeframes, and expedite the resolution of judicial disputes.

He explained that one of the key issues the judiciary sought to address and overcome through this law is the stability of legal positions. The law introduced a mechanism to unify judicial or legal principles regarding conflicting judgments and specified the process for appealing certain disputes to the Court of Cassation, defining them as disputes of paramount importance. This will ensure uniformity in judgments to prevent any contradictions.

He indicated that the economic judiciary will enhance technical specialization by enabling the use of modern technology through an electronic platform for all litigation procedures, as well as for enforcement and opening electronic case files.

He emphasized that Kuwait is today transitioning from the traditional litigation phase, which involves attending hearings, submitting defense briefs, and handling other paper-based procedures, to a judicial system reliant on electronic platforms. This shift significantly contributes to consolidating case files and facilitating easy access to them.

He clarified that the law allows for the engagement of any type of specialized expert, setting a specific timeframe for them to complete reports related to these cases. This reflects the legislator’s commitment to reducing the duration of litigation. Furthermore, the law seeks to establish a database of rulings related to this legislation, thereby simplifying access to such precedents.

He noted that one of the challenges they face is the enforcement of judgments. This law aims to enhance the effectiveness of enforcement by creating a specialized enforcement department directly linked to banks and relevant entities, such as the capital market authority, companies, and others. This integration facilitates the recovery of entitled parties’ rights and reduces the effort and burden associated with enforcing final judgments.

He added that this is also achieved through electronic integration with specialized authorities regarding attachment orders, seizure, summons, account freezes, and other related measures.

Al-Awadhi concluded that this law is long overdue and gives Kuwait an economic dimension. It will contribute to strengthening Kuwait’s position as an attractive investment environment and boosting the confidence of both local and foreign private sectors in direct investment, particularly given the presence of specialized economic departments capable of issuing judicial rulings based on expertise, training, experience, and the utilization of experts.

For his part, lawyer Abdulrazzaq Abdullah stated that the objective of Decree No. 2026/88, which establishes the Economic Courts, is to develop the commercial justice system, expedite the resolution of financial and investment disputes, and balance the speed of dispute resolution with the guarantee of the right to litigation and defense.

Abdullah mentioned that the law keeps pace with technological developments by establishing a dedicated electronic platform for economic disputes, covering the initiation of proceedings and realizing the principle of expeditious justice. To accelerate dispute resolution and issue rulings, it created a specialized platform for managing enforcement. The court itself is tasked with handling substantive enforcement disputes and establishing summary divisions to hear interim enforcement disputes, performance orders, orders on petitions, and other urgent matters. These issues are exempt from submission to the Dispute Resolution Office, as are evidence-preparation lawsuits (expert appointments).

He further explained that the law defines the jurisdiction of the Economic Courts according to Article 1, stating that every civil or commercial dispute, in accordance with the provisions of this law or other applicable laws, constitutes an economic dispute. This means that the jurisdiction of the Economic Courts is not limited solely to disputes related to the laws specified in this legislation; rather, jurisdiction applies if the dispute falls within their purview and is subject to the provisions of other laws, such as the Civil Law.

Abdullah clarified that the law repealed all provisions conflicting with it, in accordance with Article 3 of the Decree. Consequently, the Capital Market Court is abolished, but it will continue to handle cases already pending before it until the implementation of this law. The Economic Courts will assume jurisdiction over disputes related to the law establishing the Capital Market Authority. However, some issues require clarification regarding the provision repealing all conflicting provisions in other laws.

He continued: “For example, Article Two stipulates that the Economic Circles have jurisdiction over disputes related to Law No. 7/2020 establishing the Capital Markets Authority, specifically Chapter Eleven on Penalties and Sanctions, Item One. Article 108 provided for the establishment of a specialized prosecution office called the Capital Markets Prosecution and a court named the Capital Markets Court, comprising civil circles and criminal circles. However, the law establishing the Economic Circles did not provide for the creation of criminal circles regarding crimes stipulated in the Capital Markets Authority Law. Does jurisdiction for the Economic Circles extend to hearing criminal cases related to crimes stipulated in the Capital Markets Authority Law, or do ordinary criminal circles have jurisdiction over them? Furthermore, how is the initiation of criminal prosecution handled through the Public Prosecution after the abolition of the Capital Markets Prosecution? And what is the status of the Authority’s Disciplinary Council? Is it still in existence, or do its competencies transfer to the Economic Circles, given that the text explicitly grants jurisdiction over all disputes related to capital markets.

He added: “Moreover, the law does not specify how judicial fees are to be paid. Are the fees assessed and paid during the preparatory phase, or after its completion at the Settlement Office and upon registration? There are many other examples that require clarification and specification. The legislator acted wisely by postponing the implementation of the law for one year, until the issuance of the Executive Regulations during this period, which will clarify the ambiguity surrounding certain provisions.

He emphasized that, given the law’s objectives and to ensure its effectiveness, it entrusted the Kuwait Institute for Judicial Studies with training and preparing specialized judicial cadres to achieve expeditious justice. This also requires lawyers to prepare themselves and their skills to keep pace with the developments introduced by the law, drafting lawsuits with precision in legal characterization when preparing cases related to the jurisdiction of the Economic Circles under this law, so as to avoid congestion of cases at the Case Preparation Office, which would affect the speed of their preparation.

Al-Qattan stressed the importance of this step, particularly for small and medium-sized enterprises (SMEs), more than it might appear. A small enterprise does not always possess the liquidity or administrative capacity to withstand a commercial dispute lasting years. A single delayed financial claim or a protracted contractual dispute can transform from a legal issue into a liquidity crisis that threatens the very survival of the enterprise.

He added: “Therefore, the existence of specialized judicial circles for economic disputes, along with judges experienced and trained in this type of case, alongside mechanisms for case preparation, settlement, conciliation, and e-litigation, can contribute to reducing the duration of disputes and enhancing the efficiency of contract enforcement. This will directly reflect on the stability of enterprises and the confidence of their owners in conducting business.

He stated, ‘We hope that in the coming phase, the executive procedures of the law will take into account the nature of small and medium-sized enterprises, and that there will be simplified and expedited procedures for disputes involving small and medium values, thereby achieving justice while protecting the continuity of the enterprise.’

Al-Qattan concluded by saying that developing the entrepreneurship environment does not begin solely with financing and licenses, but rather with a comprehensive system that protects contracts, safeguards rights, and resolves disputes efficiently and swiftly. We believe that the establishment of the Economic Circles represents an important step in this direction.”