Economic Circles in the Eyes of the Business Community: Responding to 'Vision 2035' to Enhance Kuwait's Investment Competitiveness
In a move classified as a fundamental shift in the judicial system and aligned with the requirements of Kuwait Vision 2035, the Cabinet approved a draft law decree to establish Economic Courts. This reflects a long-awaited legislative response that keeps pace with local and international economic transformations aimed at accelerating the resolution of commercial and investment cases, thereby enhancing Kuwait’s competitiveness and attractiveness as an investment and trade hub, supported by a surge in confidence in the local business environment following the enactment of this law.
Economists and executives argue that the creation of specialized economic courts within the Court of First Instance, the Court of Appeal, and the Court of Cassation, which handle economic, commercial, and investment disputes, represents an integrated economic judicial system covering all levels of litigation. They describe it as a fundamental requirement for encouraging investment and protecting investors, no longer a luxury but a necessity of the current stage, especially given the rapid development witnessed by the national economy and the need for a specialized judicial environment that contributes to speeding up the resolution of commercial and investment cases.
They noted that the approval of the law solidifies the relationship between the economic and legislative environments in Kuwait, marking a qualitative leap that provides strong engines to accelerate dispute resolution, develop enforcement procedures, and expand e-litigation.
They emphasized that establishing Economic Courts represents a good and important regulatory step in keeping pace with international requirements and standards related to the economic sector, thereby supporting the investment climate, raising the efficiency of litigation in financial and economic cases, and subsequently enhancing Kuwait’s status and economic depth, as well as improving perceptions of its investment and business environment.
At the outset, Adel Al-Majid, Deputy Chairman and CEO of Boubyan Bank, told Al-Rai that establishing judicial courts specializing in economic, commercial, and investment disputes in Kuwait is a necessary step to support the investment climate and business environment, emphasizing its importance in improving the local business environment and enhancing the attractiveness of the Kuwaiti market, supported by the accelerated resolution of commercial and investment cases.
Al-Majid pointed out that the approval of the “Economic Courts” supports Kuwait’s competitiveness, enhances its investment attractiveness, and raises confidence in the investment and legal environment. He added that it falls within the required legislative reforms that constitute a qualitative leap in the judicial system and are a necessity of the current stage in Kuwait, due to its broad role in developing enforcement procedures. He explained that establishing a pre-litigation settlement pathway enhances Kuwait’s competitiveness amid the rapid development witnessed by the national, regional, and global economies, and the need for a specialized judicial environment that speeds up the resolution of commercial and investment cases.
Al-Majid noted that developing enforcement procedures and expanding e-litigation enhance contract enforcement efficiency and deploy advanced technological systems in the service of justice, enabling the faster and less costly resolution of some disputes. This is alongside simplifying litigation procedures by reducing certain procedural deadlines, while granting legislative flexibility.
For his part, Abdullah Al-Mulla, President of the Exchange Companies Union, said that strengthening the relationship between the economic and legislative environments in Kuwait to achieve sustainable growth constitutes one of the most significant gains achieved through the approval of the “Economic Courts” draft law.
He told Al-Rai that the current stage witnesses major transformations in the directions of development projects locally and regionally, making the establishment of a specialized economic court essential. Such a court would understand the precision and complexities of economic issues and be able to address the problem of delays in resolving economic cases, strategically focusing on enhancing Kuwait’s competitiveness and improving its business environment.
Al-Mulla pointed out that establishing “economic circuits” constitutes one of the fundamental pillars for strengthening the investment environment, given their confirmed role in accelerating the resolution of financial and commercial disputes and consolidating confidence in the judicial system. He noted that this addition to the judicial structure would reflect greater stability and attractiveness for the country’s business environment.
He emphasized that this warranted step takes international experiences into account and constitutes a genuine response to the needs of the local market in supporting the investment climate and raising the efficiency of litigation in cases with a financial and economic nature. He explained that the presence of economic courts enhances the local investment environment and develops the judicial system in alignment with the “Kuwait 2035” vision.
Al-Mulla stressed the importance of this step as one of the most prominent drivers for supporting economic growth, localizing investments, and attracting foreign capital. He added that it is also a decisive factor in increasing job opportunities and strengthening the prospects for social stability and welfare.
For his part, Faisal Sarrouh, Vice Chairman of the Board of Directors of Boubyan Bank and Chief Executive Officer of KAMCO Investment Company, stated that the approval of “economic circuits” ensures in the business community more precise adjudication driven by streamlined procedures. This will lead to accelerating the transformation in development performance indicators and increasing the confidence of financial institutions and investors in the local market.
Sarrouh told Al-Rai that amidst the government’s efforts to improve the local competitive environment and link it to global indicators, the approval of establishing a specialized, advanced, and electronic economic court system is gaining prominence. This is especially true given that such courts ensure investors a swift resolution of their cases. He clarified that adjudicating investors’ and investment-related cases through an integrated judicial system contributes to raising the level of stable capital inflow, due to the reassurance it creates for investors, as well as its alignment with local and international legislative and economic changes.
Sarrouh noted that commercial affairs have evolved to a degree of complexity that makes them difficult for non-specialists to understand and decipher. Therefore, the existence of specialized courts that achieve the principle of unity, specialization, and deep understanding of economic and commercial disputes helps in the development of the economy and the prosperity of the country’s development through sustainable mechanisms.
For his part, former Minister of Commerce Fahad Al-Shaer told Al-Rai that economic litigation already exists in Kuwait, but the creation of “economic circuits” represents a good and important regulatory step toward organizing and accelerating litigation procedures in economic and commercial disputes.
Al-Shaer affirmed that Kuwait enjoys a secure legal environment and legislation that guarantees investors’ rights. He pointed out that anyone who resorts to the judiciary will ultimately obtain their rights, regardless of the other party in the dispute. He considered that the level of legal security in Kuwait may exceed that available in some regional countries.
Al-Shaer explained that this step also comes within the framework of keeping pace with international requirements and standards related to the economic sector, including anti-money laundering legislation requirements and international commercial laws. He noted that the importance of this step is not limited to accelerating litigation procedures but extends to enhancing the country’s status and economic depth, and improving its investment image, which will reflect positively on society and the economy in general.
