Justice Minister on the Law Decree Approved by the Council: Unifying the Arbitration System in a Single Legislation
Justice Minister and Legal Advisor Nasser Al-Samit described the draft decree-law on arbitration, which was approved by the Council of Ministers in its meeting today (Wednesday), as a significant legislative leap in regulating dispute resolution mechanisms in Kuwait.
Al-Samit told KUNA that the draft repeals the Judicial Arbitration Law, as well as Chapter 12 of the Civil and Commercial Procedure Law that governs arbitration. It merges 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 instead of 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, issued by the United Nations Commission on International Trade Law (UNCITRAL). It also took into account best international practices while incorporating provisions tailored to the nature of Kuwait’s legal system and the needs of the country’s commercial and investment environment.
Regarding the speed of resolution, Al-Samit noted that unifying the arbitration system achieves greater clarity and legislative consistency. It addresses issues revealed through 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 deadlines for the various stages of arbitration, strengthens guarantees of neutrality, transparency, and confidentiality, and regulates arbitration centers and the oversight of their activities. It also permits the use of electronic means in procedures, hearings, and the exchange of documents.
Al-Samit emphasized that the importance of the law extends beyond expediting dispute resolution and alleviating the burden on 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.
Arbitration is defined as a legal means of resolving disputes outside the courts, whereby the parties to a legal relationship agree to submit any dispute arising between them to a single arbitrator or a panel of arbitrators selected from among experienced and neutral individuals. The arbitrators render a final and binding award with the force of a judicial judgment. Arbitration is distinguished by the speed of resolution, the expertise of the decision-makers, the confidentiality and flexibility of its procedures, and its suitability to the nature of commercial transactions.
