Al-Samit to Al-Rai: New Arbitration Law Is Faster, Safer, and Less Complex

The goal is to ensure that citizens, merchants, and investors can trust that their disputes will be resolved fairly and swiftly, without spending years in the corridors of the courts.

The Council of Ministers approved a draft decree-law enacting an Arbitration Law, given that arbitration is a fundamental pillar of prompt justice and a cornerstone of confidence in the business environment, owing to its speed in resolving disputes, specialization in adjudicating them, and flexibility in its procedures.

During its meeting chaired by Sheikh Fahad Al-Yousef, Acting Prime Minister and Minister of Interior, the Council clarified that the draft decree-law was prepared “to serve as a comprehensive, standalone arbitration legislation that draws on the best established international systems and practices, while simultaneously preserving the distinctiveness of the Kuwaiti legal system and its established procedural terminology, and striking a precise balance between the parties’ autonomy of will—which is the essence of arbitration—and the constraints of public policy, which underpin state sovereignty.”

Justice Minister Adviser Nasser Al-Samit stated that the draft decree-law on arbitration “represents a significant legislative leap in regulating dispute resolution mechanisms in Kuwait.”

Al-Samit told Al-Rai newspaper that “the new law makes arbitration in Kuwait faster, with set deadlines for each step; safer, through impartial arbitrators and licensed centers; less complex, by establishing a single law and a single avenue for challenge; and more modern, by enabling remote hearings and electronic signatures. The aim is to ensure that citizens, merchants, and investors can trust that their disputes will be resolved fairly and quickly, without losing years in the corridors of the courts.”

The draft decree-law specifies matters that are not subject to arbitration, namely those in which settlement is not permitted, such as personal status matters and criminal offenses. Arbitration is not permitted in such cases, although it is permissible for financial rights arising from them.

According to the draft, if the parties fail to agree on an arbitrator within 15 days, the President of the Court shall appoint one from the register of accredited arbitrators within an additional 15 days. Previously, the appointment process took nearly a year; now it will not exceed one month, and the appointment decision is not subject to appeal.

Arbitrators must have no interest in the dispute and are required to inform both parties of any circumstance that may raise doubts about their impartiality throughout the arbitration proceedings. The arbitral award must be issued within the agreed timeframe, or, failing that, within 12 months of the completion of the arbitral tribunal, extendable by six months.