Minister of Justice to 'Al-Siyasa': Completion of the Economic Circuits Bill

A legislative leap to consolidate a specialized and efficient judiciary that enhances investor confidence and supports the business environment

The project aims to accelerate dispute resolution and strengthen the investment climate

Specialized economic courts at all levels of jurisdiction

An integrated digital platform for remote litigation

Mediation offices and case preparation units to reduce litigation duration

Expanded executive powers to protect rights and expedite rulings

Unification of judicial principles and enhancement of legal security for investors

Granting execution judges conservatory powers, including attachment, freezing of accounts, and travel bans

Developing procedures and keeping pace with technological and economic developments without the need for frequent legislative amendments

Minister of Justice and Advisor Nasser Youssef Al-Sumeit affirmed that the Ministry of Justice has completed the draft law establishing economic courts, as part of the national plan for updating the legislative system and developing the justice system, in line with economic changes and to enhance the competitiveness of the State of Kuwait as an attractive investment environment.

Al-Sumeit stated in a special statement to "Al-Siyasa" that "the project represents a qualitative leap in the Kuwaiti judiciary by creating a specialized and swift judicial track for resolving economic, investment, and commercial disputes."

He clarified that the project is based on three main pillars: judicial specialization, simplification of litigation procedures, and leveraging the latest technological means and digital transformation, which contribute to the speedy resolution of cases, achieving final justice, and enhancing the stability of economic and commercial transactions.

Economic Courts

He added that the project provides for the establishment of specialized economic courts at the Court of General Jurisdiction, the Court of Appeal, and the Court of Cassation, which will exclusively handle disputes within their jurisdiction. This aims to unify judicial precedent and improve the efficiency of resolving this type of case, which requires specialized legal and technical expertise.

Al-Sumeit pointed out that the project places great emphasis on qualifying judicial personnel by assigning judges with experience in economic disputes to undergo continuous specialized training programs tailored to the nature of banking, investment, commercial, and technical disputes. This ensures keeping pace with the rapid developments in economic and financial activities.

He explained that the jurisdiction of the economic courts covers a wide range of disputes, including those in the banking sector, capital markets, direct investment, foreign capital investment, corporate disputes, and disputes among partners and shareholders. It also covers competition protection, trademarks, patents, industrial designs and models, oil contracts, as well as the economic and financial aspects of industrial projects, and financial and contractual disputes arising from the implementation of major administrative contracts and tender contracts.

The Minister of Justice noted that the project includes the establishment of a technical support office for the economic courts, comprising consultants and judges, with the option to engage specialized experts in economics and investment. This enhances the quality of rulings and ensures the utilization of necessary technical expertise in cases of a complex nature.

Dispute Resolution Office

Regarding the development of litigation procedures, Al-Sumeit clarified that the project introduced a dispute resolution and mediation office, where cases must be referred before being submitted to the court, aiming to settle disputes amicably within a specified period. He noted that an approved mediation record will carry the force of an executive document, contributing to the resolution of a significant proportion of disputes without the need to complete litigation procedures.

He added that the project also established a pre-litigation office responsible for verifying the completeness of documents, the accuracy of notifications, and the exchange of memoranda between parties before the case is presented to the competent chamber. This measure reduces procedural adjournments and accelerates the adjudication process.

Al-Sumait emphasized that the project simplifies litigation procedures and reduces certain deadlines, while establishing clear guidelines for submitting memoranda and documents and appealing judgments. This aims to achieve a balance between the speed of adjudication and the guarantees of justice.

He clarified that the project took into account streamlining the levels of litigation in disputes of limited value, while maintaining the oversight of the Court of Cassation in major cases and matters concerning jurisdiction and conflicting judgments. This approach ensures swift adjudication without compromising judicial guarantees.

Al-Sumait explained that the project also introduced a legal mechanism to unify judicial principles when final economic judgments conflict regarding the same legal issue. This enhances the stability of judicial precedent and provides legal certainty for market participants.

Regarding technical expertise, the Minister of Justice stated that the project restricted expert work to specialized experts from the General Administration of Experts and forensic experts, obliging them to deposit their expert reports within a period not exceeding sixty days. The court was granted the authority to shorten or extend this period if the nature of the dispute so requires, thereby limiting the prolongation of litigation.

Digital Transformation

He affirmed that digital transformation represents one of the project’s key pillars. It stipulated the creation of an integrated electronic platform to handle all litigation procedures, including the electronic registration of cases, submission of memoranda and documents, service of judicial notifications, access to case files, holding hearings, and remote litigation. This aims to save time and effort while enhancing the efficiency of judicial work.

He added that the project included the establishment of a database for economic judicial principles and rulings, to be published after redacting the parties’ data and any information affecting their privacy. This aims to enhance transparency, unify judicial applications, and facilitate the use of legal precedents.

He noted that the project also mandated direct, secure electronic linkage with relevant government and financial authorities to execute seizure orders, freeze accounts, transfer ownership, and sell assets without the need for paper correspondence. This contributes to the swift execution of judgments and reduces administrative procedures.

Regarding the enforcement of judgments, the Minister of Justice clarified that the project established a specialized enforcement administration comprising enforcement judges and experts in accounting, securities, and asset valuation. This aligns with the nature of economic disputes and ensures the speed and efficiency of enforcement.

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He added that the project granted enforcement judges broad conservatory powers, including the seizure of funds, real estate, and intangible rights, freezing accounts and securities, and preventing debtors from traveling when there are serious indications of asset smuggling or harm to creditors’ rights. These measures protect litigants’ rights and ensure the effectiveness of enforcement.

He pointed out that the project also regulated the mechanism for selling assets subject to enforcement through electronic or public auctions, with bidding conducted electronically under the supervision of the competent judge. This enhances transparency and achieves the best value for the assets being enforced.

Legislative Flexibility

Al-Sumait affirmed that the project adopted an approach of legislative flexibility by referring many changing regulatory and technical matters to the executive regulations. This allows for the development of procedures and adaptation to new technological and economic developments without the need for repeated legislative amendments.

The Minister of Justice concluded his statement to “Al-Siyasa” by emphasizing that the draft law establishing economic courts represents a strategic step in the development of the Kuwaiti judiciary, embodying the state’s vision to provide a specialized, effective, and swift judicial system that enhances investor confidence, consolidates the stability of commercial and economic transactions, and strengthens Kuwait’s position as an attractive regional and international hub for investment.

Key features of the draft law:

● Establishment of specialized economic courts at the Court of First Instance, Court of Appeal, and Court of Cassation.

● Judges specialized in economic disputes, supported by continuous training programs.

● Jurisdiction covering banks, capital markets, companies, investment, oil contracts, intellectual property, competition, and tenders.

● A pre-litigation mediation office, with settlement agreements carrying executive enforceability.

● A case preparation office to complete documentation, exchange memoranda, and reduce adjournments.

● Simplification of litigation procedures, reduction of certain deadlines, and expedited resolution of disputes.

● Harmonization of judicial principles in cases of conflicting final economic rulings.

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● Restricting expert appraisal work to specialized experts, with reports completed within 60 days.

● An integrated electronic platform for registering cases, remote litigation, exchanging memoranda, and publishing notices.

● A database of economic rulings and principles, with parties’ data anonymized.

● Direct electronic linkage with competent authorities to execute seizure orders, freeze accounts, and transfer ownership.

● A specialized unit for enforcing economic judgments, comprising enforcement judges and financial experts.

● Granting enforcement judges precautionary powers, including seizure, freezing of accounts, and travel bans.

● Auctioning assets through electronic bidding under judicial supervision.

● Adopting legislative flexibility by delegating regulatory and technical aspects to the implementing regulations.