Establishing Economic Directorates... A Decision in the Right Direction
Time is a fundamental component of the economic engine, as it is linked to the continuity of economic entities, the stability of financial flows, market growth, the preservation of jobs, and the creation of new employment opportunities.
Delays in resolving commercial litigation can result in a court ruling in favor of a company only after years of legal proceedings, but by then it may be too late; the company may have already declared bankruptcy, lost its financial standing and market reputation, halted its operations, and laid off its employees.
There are several stalled projects and buildings in key locations across the country that remain suspended. We pass by them daily and wonder about the reasons behind their inactivity (such as the uncompleted Shops building, and the failure to utilize advertising spaces on streets along the Arabian Gulf for tourism projects) due to cases lingering for long periods in the judiciary.
Before entering any market, an investor does not ask only about profits and tax exemptions, but also: How long will it take to recover my rights if a dispute arises? And will my case be heard by a specialized court that understands financing, acquisition, partnership contracts, and capital markets?
A company whose receivables amounting to 10 million dinars are frozen for years may ultimately win the judgment, but it will have lost liquidity, expansion opportunities, and hiring potential. Therefore, the speed of contract enforcement is not merely a legal issue, but a crucial element in calculating the cost of investment.
According to World Bank data for 2025, the size of the Kuwaiti economy is approximately $157.2 billion, and non-oil activities grew by about 3.6 percent in 2024. Nevertheless, oil revenues still account for nearly 87.8 percent of total public revenues, making the attraction of investments and diversification of income sources an urgent necessity that cannot be delayed.
Conversely, foreign direct investment inflows to Kuwait reached approximately $234 million in 2024, according to UNCTAD data, representing less than 0.2 percent of GDP. This modest ratio is inconsistent with Kuwait’s financial strength, its strategic position, its banking infrastructure, and its ambition to transform into a financial and commercial hub.
This situation is not attributable to a single factor, but the slowness of litigation and the difficulty of enforcement are risks that directly influence investor decisions.
The strength of the project lies in establishing economic circuits across the three levels of jurisdiction: primary, appellate, and cassation, staffed by experienced judges, and a technical office comprising specialists in economics and investment.
It also establishes a case preparation office and a settlement and conciliation track that begins within 15 days and may extend to a maximum of three months, with settlement agreements granted the force of an executive instrument. This could resolve many disputes before they enter lengthy judicial processes.
Following the enactment of the law, it is required to publish clear annual indicators: the average duration of case resolution, the percentage of disputes concluded through settlement, the duration of judgment enforcement, and the number of cases completed electronically.
