A Comprehensive Overview of the Nature, Conditions, and Regulations of Arbitration

The arbitration system in Kuwaiti legislation represents an advanced legal mechanism for resolving commercial and civil disputes. The Kuwaiti legislator strikes a balance between safeguarding public order and granting the parties to the dispute the necessary flexibility and speed to resolve their cases.

First: Conditions and Requirements for the Validity of an Arbitration Agreement

Kuwaiti law requires the presence of several essential elements to ensure the validity and enforceability of an arbitration agreement:

Written Form: The law requires that the arbitration agreement be explicitly in writing, whether included in the original contract or in a separate agreement (arbitration clause).

Legal Capacity: The parties to the agreement must possess full legal capacity to act; therefore, a person acting on behalf of another may not agree to arbitration without specific authorization.

Lawfulness of the Subject Matter: Arbitration is prohibited in cases involving rights that are not amenable to settlement, such as criminal matters, personal status issues, and disputes that implicate public order.

Second: Conditions and Requirements for the Formation of the Arbitral Tribunal

Legal provisions have established criteria for the formation of the arbitral tribunal to ensure impartiality and integrity:

Odd Number of Arbitrators: The number of arbitrators must be odd (1, 3, 5, etc.) to avoid a tie in voting when making a decision.

Arbitrator Independence: The arbitrator is required to disclose any circumstances that may raise doubts about their impartiality or independence with respect to any of the parties to the dispute.

Arbitrator Qualifications: The law grants the parties the freedom to select arbitrators based on their technical or legal expertise relevant to the dispute.

Third: Grounds for Challenging an Arbitral Award

Although arbitral awards are binding, Kuwaiti legislation permits filing a challenge to annul the award in specific, exhaustively listed cases to protect the rights of the parties.

Riyadh Habib Qambar

College of Business Studies, Law Department