Faster Justice... for Stronger Investment
- Legislative amendments to enhance judicial specialization and improve efficiency in dispute resolution
- E-litigation as the foundation for economic courts, with recourse to other methods as an exception
- Ensuring that judges in economic courts possess appropriate expertise in economic disputes
- Extending the jurisdiction of economic courts to matters arising from disputes or compensation claims within their purview
- Establishing a dispute resolution and conciliation office under the technical office of the economic court
- Setting a 15-day period for dispute resolution and conciliation between parties, extendable to three months before a ruling is issued
The system for litigating economic disputes enters a new phase with the draft law on the establishment of economic courts, which the Cabinet approved on Tuesday. This legislation forms a fundamental judicial pillar for Vision 2035’s transformation into an attractive financial and commercial hub for investment, by accelerating dispute resolution and enhancing contract enforcement efficiency, both of which are key determinants of a country’s competitiveness in international business environment indicators.
The draft law establishes a comprehensive framework for economic disputes by unifying the forum for litigation, preparing cases before they are presented to the court, and instituting a path for settlement and conciliation, alongside e-litigation and e-enforcement, while providing specialized expertise in economics and investment. The law establishes specialized economic courts at the Court of First Instance, the Court of Appeal, and the Court of Cassation, staffed by judges with specialized experience and training. They are assisted by a technical office comprising experts in economics and investment. This framework unifies judicial perspectives on disputes arising from major economic laws, including those governing capital markets, banking, companies, direct and foreign investment, public-private partnerships, and competition protection.
The law introduces a case preparation office responsible for regulating the litigation process and completing documentation before presenting cases to the court. It also mandates a compulsory settlement and conciliation path within a period not exceeding three months, with conciliation records carrying the force of an executive instrument. Furthermore, it relies on an electronic platform for all litigation and enforcement procedures, an electronic file for each case, and a database of published rulings and judicial principles.
Regarding enforcement, the law provides for the establishment of a specialized department and direct electronic linkage with banks and relevant entities, enabling the swift issuance of attachment and freezing orders and the adoption of electronic auctions. It also introduces a mechanism to unify legal principles when rulings conflict, and explicitly grants jurisdiction over disputes involving non-Kuwaiti capital investment, while encouraging direct investment.
The legal text is based on three primary objectives: designating an economic court and assigning a judge to it, with this specialization extending to experts appointed to conduct expertise in disputes heard before it; simplifying and accelerating litigation procedures; and achieving legislative flexibility by delegating regulatory matters concerning remote litigation procedures, electronic notification methods, and the organization of the case preparation office to the law’s executive regulations.
The law stipulates that one or more economic courts shall be established at the Court of First Instance, with their location determined by a ministerial decision following approval from the Supreme Council of the Judiciary. These courts shall have exclusive jurisdiction to rule on the economic disputes specified in this law.
Article 4 stipulates the time limits for appealing judgments issued by the Economic Division. It sets the period for appealing judgments rendered in urgent matters at fifteen days from the date of pronouncement or notification of the judgment, whichever applies, and the period for appealing orders on petitions at ten days from the date of notification of the order to the appellant. This aims to standardize and unify these time limits.
Article 5 outlines the ordinary appeal process for initial judgments issued by the Economic Divisions of the Court of First Instance. It establishes specialized Economic Divisions within the Court of Appeal, granting them exclusive jurisdiction to rule on appeals against such judgments. To rationalize litigation and prevent overburdening the Court of Cassation with disputes of limited value, this article provides that judgments issued by the Economic Division of the Court of Appeal shall be final and not subject to appeal to the Court of Cassation, provided the value of the claim does not exceed thirty thousand dinars.
Furthermore, Article 5 assigns the Economic Division of the Court of Cassation jurisdiction to hear appeals against judgments issued by the Economic Division of the Court of Appeal when the value of the claim exceeds thirty thousand dinars, taking into account the seriousness of the dispute and its financial impact. This restricts appeals to the Court of Cassation to disputes of significant financial importance, thereby preventing the division from being overwhelmed by appeals that are not justified by the value of the dispute. It also grants this division the authority to rule on appeals against judgments issued by the Economic Division regarding lack of jurisdiction, aiming to unify judicial opinions on jurisdictional matters and prevent conflicting rulings.
The time limit for appealing to the Court of Cassation is set at thirty days, a period consistent with the nature of cassation appeals and designed to balance the opportunity to appeal with the need to ensure the stability of judgments and avoid prolonging litigation.
Article 7 establishes a mechanism for unifying legal principles in cases of conflicting judgments issued by the Economic Divisions. It empowers the President of the Court of Appeal, either on his own initiative or upon request by one of the Economic Divisions of the Court of Appeal, to refer the matter to the panel formed within the Court of Cassation to unify the judicial opinion on the legal issue at hand, whenever a conflict arises in judgments concerning the same legal matter between different parties. This aims to ensure uniformity in judicial interpretation, consolidate legal certainty, and prevent inconsistency in rulings on identical issues.
Article 10 stipulates that judges assigned to work in the Economic Divisions must possess appropriate expertise in disputes of an economic nature or have received specialized training in this field.
Article 11 defines the subject-matter jurisdiction of the Economic Division by enumerating a specific category of disputes of an economic, financial, investment, commercial, and administrative nature that fall under its purview. This implements the principle of judicial specialization, ensuring that the Economic Division handles all disputes within its scope according to their nature, thereby clarifying jurisdictional rules and minimizing conflicts over jurisdiction.
Article 12 confirms that the jurisdiction of the Economic Division extends to matters derived from or connected to disputes within its competence, as well as disputes arising from contracts whose subject matter falls within its jurisdiction, regardless of the legal basis upon which the claim is founded. It also covers incidental and connected requests related to disputes within the division’s jurisdiction, as well as compensation claims arising from disputes within its competence.
Chapter Four of the Law, specifically Article 13, provides for the establishment of a Dispute Resolution and Conciliation Office attached to the Technical Office of the Economic Division. The presidency of this office is entrusted to one of the judges assigned to work there, ensuring the neutrality of the conciliation procedures and lending reliable judicial character to these processes.
Article 14 defines the Office’s role in examining the dispute and mediating between the parties to reach a settlement or compromise, setting a time limit not exceeding fifteen days from the date of filing the request, in order to ensure swift resolution and avoid prolonging the litigation. This period may be extended by mutual agreement of the parties for one or more additional periods, provided that the total duration does not exceed three months from the date of filing the request.
Article 15 regulates the legal effect of a settlement or compromise. If an agreement is reached, a record shall be drawn up, signed by the parties or their representatives and by the competent official of the Office, and authenticated by its head. Such a record shall carry the force of an executive instrument.
Article 18 establishes electronic litigation as the primary means for conducting all proceedings before the Economic Court, in accordance with the system prescribed by the aforementioned Civil and Commercial Procedures Law. This aligns with the legislative trend toward digital transformation and the modernization of the justice system. The article provides for the establishment of a dedicated electronic platform for the Economic Court, through which all procedures shall be conducted, including the registration of lawsuits and requests, exchange of memoranda, and management of litigation and enforcement procedures. This contributes to simplifying procedures and accelerating the resolution of disputes.
This is accompanied by safeguards for privacy and data confidentiality, and the concealment of any information that could reveal the identities of the parties to the dispute or their personal, commercial, financial, or confidential data, in accordance with technical and regulatory controls issued by a decision of the Minister of Justice, after obtaining the opinion of the Supreme Council of the Judiciary.
The article emphasizes that resort to non-electronic litigation shall occur only when necessary, thereby establishing the electronic system as the general rule, while maintaining exceptions in the narrowest possible scope, taking practical circumstances into account.
Article 11 specifies the exclusive jurisdiction of the Economic Court over the following economic disputes:
4. Disputes among partners, shareholders, or holders of shares, or between any of them and the company, as well as requests for the dissolution and liquidation of the company and the accounting of its directors in joint-stock companies, regardless of their capital, and in commercial companies where their capital exceeds 100,000 dinars, and in companies holding a license from “Direct Investment,” regardless of their capital.
17. Enforcement of judgments and orders issued in a foreign state, provided that their subject matter relates to a dispute that falls within the jurisdiction of the Economic Court if it had been initially brought before the Kuwaiti judiciary.
Article 25 provides for the establishment of a specialized unit for enforcing judgments, orders, decisions, and settlement records issued. This article also stipulates the inclusion of specialized experts in accounting, securities, and asset valuation to provide technical opinions on matters related to the identification, valuation, or sale of assets subject to enforcement, recognizing the complex technical and economic nature of such assets in this type of dispute. These experts may be engaged by decision of the Minister of Justice.
Article Nine provides for the establishment of a Technical Office for the Economic Courts at the Court of First Instance, serving as a supporting body aimed at enhancing judicial work in cases of an economic and investment nature, which require specialized technical study and precise legal analysis. This is consistent with the legislative trend toward strengthening judicial specialization, improving the efficiency of dispute resolution, and achieving speed and accuracy in case processing, without undermining judicial independence or jurisdiction.
This article entrusts the Supreme Council of the Judiciary with determining the jurisdiction of the Technical Office by a decision issued by it, affirming the Council’s fundamental role in organizing judicial affairs and ensuring judicial independence, and ensuring that the Office’s jurisdiction aligns with the requirements of judicial work and the nature of the disputes presented.
2. A sufficient number of advisors and judges are appointed by a decision of the Minister of Justice, following the approval of the Higher Judicial Council, for a period of two years, renewable.
3. Engagement of experts in economics and investment, by a decision of the Minister of Justice specifying their duties, working regulations, duration of engagement, and the remuneration to be provided to them.
