Kuwait Economic Courts Law to boost investor confidence, speed up commercial disputes
. . . reshape Kuwait’s commercial justice system from 2027
Kuwait’s new Economic Courts Law, issued in August and scheduled to take effect in October 2027, marks a major legislative move to modernize the country’s economic justice system and keep pace with developments in financial markets, technology and commercial activity.
The law establishes specialized economic circuits at the Court of First Instance, Court of Appeal and Court of Cassation to handle economic, commercial and investment disputes. It also provides for a specialized technical office to support the courts with expertise in complex financial and economic matters.
A central objective is to speed up the resolution of commercial disputes, strengthen enforcement and expand electronic litigation, measures expected to improve contract enforcement and reinforce confidence in Kuwait’s legal and investment environment.
The legislation introduces a case-preparation office tasked with reviewing documents, completing deficiencies, notifying parties and facilitating the exchange of legal memoranda before cases reach judges. It also sets clearer procedural and appeal deadlines, with the aim of reducing delays.
The law places greater emphasis on settlement and reconciliation before litigation. Settlement agreements recorded under the system will have the force of enforceable instruments, potentially allowing businesses to resolve disputes more quickly while preserving commercial relationships and reducing pressure on the courts.
Digital transformation is another major element. The law provides for an electronic platform for litigation and enforcement, electronic case files, and a database of published judgments and judicial principles. A specialized enforcement department will also be electronically linked with relevant government authorities, while seizure procedures will be developed and electronic auctions adopted.
Business and legal experts interviewed by KUNA said the new framework could reduce litigation costs and risks, accelerate the return of disputed funds to productive economic activity and strengthen Kuwait’s competitiveness as an investment and commercial destination.
Kuwait Chamber of Commerce and Industry Director General Rabah Al-Rabah said faster dispute resolution and effective enforcement are important to investor confidence. He noted that lengthy commercial disputes can delay projects and contracts and place additional burdens on companies, particularly small and medium-sized enterprises.
Investment Interests Company Deputy CEO and Kuwait Economic Society Secretary-General Mohammad Al-Jouaan said specialized economic circuits could strengthen Kuwait’s position as a commercial and financial centre. He emphasized that specialization should extend beyond faster proceedings to improving the quality of judgments and enabling judges to better understand modern financial instruments and commercial practices.
Al-Jouaan also stressed the need for specialized judges and continuous training in areas including financial instruments, commercial transactions, fraud, financial crimes and money laundering.
Kuwait University Law Professor Dr Meshal Johar Hayat described the legislation as an important shift in the way economic disputes are handled. He highlighted the case-preparation office and the role of economic and investment specialists within the technical office, saying they could provide specialized financial opinions and reduce reliance on external experts.
Hayat also pointed to the importance of pre-litigation settlement and electronic procedures, which could reduce paperwork, save time and costs and ease pressure on courts while preserving the rights of litigants. He stressed, however, that effective enforcement remains essential and will require stronger mechanisms and electronic coordination with relevant authorities.
Gulf University for Science and Technology Assistant Dean Dr Osama Al-Falah said specialized economic circuits recognize that efficient commercial justice is part of a country’s economic infrastructure. He said judicial specialization could build expertise in complex financial and commercial transactions and improve the speed and quality of rulings.
Al-Falah added that predictable and efficient commercial justice is particularly important for foreign investors because legal uncertainty can increase investment risks and influence decisions on where to invest. Effective implementation, he said, could enhance Kuwait’s competitiveness as a regional financial and commercial destination.
Former Kuwait University College of Commerce and Economics and Political Science Dean Dr Sadeq Al-Bassam described the legislation as a form of market infrastructure reform. He said prolonged disputes impose legal costs on companies while tying up capital that could otherwise be used for investment, expansion and other economic activity.
The real measure of the law’s success, Al-Bassam said, will be its implementation. He called for performance indicators covering case duration, enforcement time, the number of pending cases, settlement rates and litigant satisfaction. Ultimately, he said, the impact should be assessed by the time saved for companies and investors, the amount of capital returned to economic activity and the reduction in the costs and risks of doing business in Kuwait.
— KUNA
