Kuwait raises small-value claims threshold to 2,000 dinars with new decree-law
The amendments were deemed necessary to address procedural reluctance and modernize the litigation process in accordance with current judicial practices and legislative developments
In a significant development aimed at modernizing litigation procedures, Decree-Law No. 72 of 2025 has been issued, amending key provisions of Decree-Law No. 46 of 1989 concerning small-value financial claims.
The new legislation raises the threshold for such claims from 1,000 dinars to 2,000 dinars. This amendment reflects the government’s efforts to align the law with contemporary economic realities and judicial needs, ensuring a more efficient handling of minor disputes within the judicial system, reports Al-Rai daily.
Under the newly issued law, Article (1) of the original decree has been modified to reflect the new threshold. In addition, the texts of Articles (2) and (9) have been revised to enhance procedures and improve clarity. Article (2) now stipulates that court clerks are responsible for notifying defendants of the date of the first session by traditional means or through modern, retrievable electronic communication methods, such as email.
These updates reflect the legal recognition of electronic notifications as equivalent to personal service, in line with rulings from the Court of Cassation and the Civil and Commercial Procedures Law.
Article (9), meanwhile, introduces a more streamlined format for judicial rulings on small-value lawsuits. Judgments in these cases are now expected to contain a brief summary of the facts and concise legal reasoning, rather than extensive justifications.
The law also clarifies that such rulings are final and enforceable by nature, with no right of appeal, as stated under Article (192) of the Civil and Commercial Procedures Law. This change aims to accelerate the resolution process while still maintaining essential legal safeguards.
A new paragraph added to Article (9) addresses situations where the defendant does not respond to a properly notified claim and the court rules in favor of all the plaintiff’s demands.
In such cases, the court is no longer required to provide reasoning for the judgment, mirroring existing provisions under Article (115) of the Civil and Commercial Procedures Law. This streamlines the court’s workload and reflects the practical realities of uncontested small-value claims.
Furthermore, the law introduces a safeguard to ensure that a court’s refusal to award attorney’s fees is not interpreted as a partial rejection of the plaintiff’s claims. This clarification prevents any misinterpretation of the judgment’s intent and supports the law’s overarching goal of simplifying legal procedures in minor disputes.
The accompanying explanatory note emphasizes that over 35 years have passed since the enactment of the original decree-law. During this period, small-value lawsuits have continued to constitute the majority of cases handled by district courts—approximately 75 percent according to recent statistics.
The amendments were deemed necessary to address procedural reluctance and modernize the litigation process in accordance with current judicial practices and legislative developments.
Lastly, Article Two of the decree-law mandates the Prime Minister and relevant ministers to implement its provisions, with the law taking effect immediately upon its publication in the Official Gazette. The reform signifies Kuwait’s ongoing efforts to update its legal infrastructure and promote greater judicial efficiency in resolving minor financial disputes.
