Kuwait issues decree-law to restructure Bankruptcy Courts, speed up resolution of dispute
- A new decree-law has amended Kuwait’s Bankruptcy Law to restructure court circuits, improve flexibility in judicial appointments, and accelerate the resolution of commercial disputes.
Kuwait has issued Decree-Law No. 69 of 2026, amending key provisions of the Bankruptcy Law No. 71 of 2020, with the aim of improving the efficiency and flexibility of bankruptcy court structures and speeding up the resolution of disputes.
Published in the Official Gazette Kuwait Alyawm, the amendments revise Articles 4 and 7 of the law, restructuring the formation of bankruptcy courts within the Court of First Instance.
Under the new provisions, a Bankruptcy Court may consist of one or more circuits, each made up of three judges from the Court of First Instance.
The head of each circuit must hold a rank not lower than that of a court agent, and judges will be selected by the General Assembly of the court.
The system also allows for the appointment of auditors to assist the courts, with their remuneration and financial allocations set under executive regulations.
The amendments also establish a dedicated Bankruptcy Department within the Court of First Instance, headed by a judge of at least court agent rank and supported by a panel of judges known as Bankruptcy Judges.
According to the explanatory memorandum, the reforms are intended to strike a balance between judicial flexibility and efficiency, ensuring that court panels can be formed without delay while maintaining the quality and consistency of rulings.
The authorities noted that the previous restrictions on judicial ranks had made it difficult to form bankruptcy circuits in some cases, leading to delays in handling urgent commercial disputes.
The new law, which became effective upon publication in the Official Gazette, mandates that relevant ministers implement its provisions within their respective jurisdictions.
