Minister of Justice: Arbitration Law is a significant legislative milestone for regulating dispute resolution mechanisms in the country - Sarmad
(KUNA) – Justice Minister and Legal Advisor 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.
Al-Samit added, in a statement to the Kuwait News Agency (KUNA), that the draft repeals the Judicial Arbitration Law and abolishes Chapter 12 of the Civil and Commercial Procedure Law, which governs arbitration. It integrates and develops the provisions of judicial arbitration within the new law, thereby consolidating the arbitration system in 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 in the UNCITRAL Model Law on International Commercial Arbitration, issued by the United Nations Commission on International Trade Law (UNCITRAL). It also takes into account best international practices while incorporating 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 texts—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 deadlines 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 the resolution of disputes 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.
Earlier today, the Council of Ministers approved the draft decree-law enacting the Arbitration Law and decided to submit it to His Highness the Amir of the State of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, may God protect him and keep him safe.
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 selected 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 of its procedures, and their flexibility, which suit the nature of commercial transactions.
