Referral of "Capital Market" Disputes to Economic Courts by Decree-Law

The Official Gazette, “Kuwait Today,” published in its issue No. 1809, Decree-Law No. 91 of 2026 amending certain provisions of Law No. 7 of 2010 concerning the establishment of the Capital Markets Authority and the regulation of securities activities. The decree transfers the jurisdiction to adjudicate non-criminal disputes arising from the application of the law to the Civil and Commercial Economic Circuit or the Administrative Circuit established by Decree-Law No. 88 of 2026.

The decree-law stipulates that the Capital Markets Court shall continue to hear the lawsuits and appeals registered with it prior to the effective date of its provisions, until a final ruling is issued, thereby establishing a transitional provision for cases pending before the implementation of the new regulatory framework.

The decree replaces the definition of “Competent Minister” in the law with “the Minister designated by the Council of Ministers,” instead of specifying the Minister of Commerce and Industry. Meanwhile, the definition of “Competent Court” now includes the Civil and Commercial Economic Circuit or the Administrative Circuit established by Decree-Law No. 88 of 2026, and the competent court according to the rules prescribed in the Code of Civil Procedure and Commercial Litigation, as applicable.

Furthermore, the decree-law substitutes the phrases “Competent Minister” and “Competent Court” with “Minister of Commerce and Industry” and “Capital Markets Court” wherever they appear in Law No. 7 of 2010.

The decree provides for the repeal of articles related to the establishment of the Capital Markets Court, certain special procedures regarding it, and appeals against its rulings. This is in light of the transfer of non-criminal disputes arising from the application of the Capital Markets Authority Law to the jurisdiction of the Economic Circuit, while crimes stipulated in the law are subject to general rules of jurisdiction and criminal procedures.

The explanatory memorandum clarified that Law No. 7 of 2010 had established a special regulatory framework for disputes arising from the application of its provisions by creating the Capital Markets Court, defining its jurisdiction, and organizing the procedures followed before it, given the nature of these disputes and the need for swift resolution.

It added that the issuance of Decree-Law No. 88 of 2026 concerning the establishment of Economic Circuits, and assigning them the task of adjudicating non-criminal disputes arising from the application of the Capital Markets Authority Law, necessitated the new legislative amendments to align with the newly established judicial organization.

The memorandum noted that amending the definition of “Competent Minister” aims to avoid the need for future legislative amendments in the event that the administrative affiliation of the Capital Markets Authority is transferred to another minister or a different ministerial portfolio. Meanwhile, designating the Economic Circuit as the competent court for civil, commercial, and administrative disputes, while subjecting crimes stipulated in the law to the general rules contained in the Code of Civil Procedure and Commercial Litigation, ensures consistency.

It emphasized that the transitional ruling included in the decree ensures the continued jurisdiction of the Capital Markets Court over pending lawsuits and appeals before it at the time the law enters into force, until they are resolved.

Decree-Law No. 91 of 2026 enters into force from the date Decree-Law No. 88 of 2026, issuing a law on the establishment of Economic Circuits, enters into force. It also repeals any provision conflicting with its articles and obligates ministers, each within their respective competence, to implement its provisions and publish it in the Official Gazette.