Al-Samit: "Arbitration Law" is a significant legislative step in regulating dispute resolution mechanisms in the country
- Integrating judicial arbitration rules into the new law to establish a unified framework under a single legislation
Justice Minister Counselor Nasser Al-Samit stated that the draft decree-law on arbitration, approved by the Council of Ministers in its meeting today, Wednesday, represents a significant legislative advancement in regulating dispute resolution mechanisms in the State of Kuwait.
Counselor Al-Samit told the Kuwait News Agency (KUNA) that the draft repeals the Judicial Arbitration Law and also abolishes Chapter 12 of the Civil and Commercial Procedure Law, which regulated arbitration. It integrates and develops the rules of judicial arbitration within the new law, thereby establishing a comprehensive arbitration system encompassing its various forms under a single legislative framework, rather than 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 formulating provisions tailored to the nature of Kuwait’s legal system and the needs of the country’s commercial and investment environment.
He noted that unifying the arbitration system achieves a greater degree of clarity and legislative consistency, addresses issues revealed through practical application—such as the length of certain procedures and the multiplicity of governing provisions—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 timelines for the stages of arbitration, strengthens guarantees of neutrality, transparency, and confidentiality, and regulates arbitration centers and oversight of them. It also permits the use of electronic means in procedures, hearings, and the exchange of documents.
The Minister 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.
The Council of Ministers approved the draft decree-law enacting the Arbitration Law during its meeting today and decided to submit it to His Highness Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, the Amir of the State of Kuwait.
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 chosen from among those possessing expertise and impartiality, to render a final and binding award with the force of a judicial judgment. Arbitration is distinguished by the speed of resolution, the specialization of the decision-maker, the confidentiality and flexibility of its procedures, and its suitability to the nature of commercial transactions.
