Cabinet approves draft decree-law issuing the Arbitration Law - Sarmad

(KUNA) – The Council of Ministers approved a draft decree-law issuing the Arbitration Law, recognizing arbitration as a cornerstone of effective justice and a pillar of confidence in the business environment due to its speed in resolving disputes, specialization in adjudication, and flexibility in procedures.

This came during the Council of Ministers’ meeting held today, Wednesday, under the chairmanship of the Acting Prime Minister and Minister of Interior, Sheikh Fahad Youssef Al-Saud Al-Sabah. The Council clarified that the draft decree-law was prepared as a comprehensive, independent arbitration legislation that draws on the most stable international systems and practices, while simultaneously preserving the distinctiveness of Kuwait’s legal system and its established procedural terminology. It strikes a precise balance between the principle of party autonomy, which is the foundation of arbitration, and the safeguards of public order, which underpin state sovereignty.

The Council noted that the draft decree-law establishes a unified framework that reconciles the authenticity of Kuwait’s legal system with the latest developments in comparative arbitration laws. It lays the foundation for an integrated national arbitration system that saves time through fixed timelines and streamlined procedural orders, safeguarding public funds with strict controls for arbitrating contracts of state entities. It also provides arbitrators with limited liability and investors with restricted grounds for appeal, ensuring swift resolution.

The Council of Ministers referred the draft decree-law issuing the Arbitration Law to His Highness the Amir of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, may God protect and guard him.