Kuwait’s economic courts set to boost investor confidence and speed up disputes
Kuwait is moving to establish specialized economic departments at all three levels of the judiciary in a major step aimed at speeding up commercial and investment disputes, strengthening investor confidence and improving the country’s business environment.
The Cabinet has approved a draft decree-law establishing economic departments at the Court of First Instance, Court of Appeal and Court of Cassation to handle economic, commercial and investment disputes. Business leaders and economists said the move is an important legislative reform that supports Kuwait Vision 2035 and brings the country’s economic judiciary in line with international developments.
Boubyan Bank Vice Chairman and CEO Adel Al-Majed said specialized economic courts would help create a faster and more efficient judicial environment, which is essential for attracting local and foreign investment and supporting sustainable economic growth.
He said the proposed system could also introduce a settlement track before cases reach court, while improved enforcement procedures and wider electronic litigation could simplify proceedings, reduce some deadlines and lower the cost of resolving disputes.
Abdullah Al-Mulla, head of the Exchange Companies Union, said the economic circuits would strengthen the link between Kuwait’s economic and legislative environments. He said specialized judges capable of handling complex financial and commercial disputes would help address delays in economic litigation, strengthen confidence in the judicial system and make Kuwait’s investment environment more attractive.
Al-Mulla added that the initiative would support economic growth, encourage the localization of investments and attract foreign investment, while also supporting employment and social stability. He said the move reflects international experiences and the needs of Kuwait’s local market.
Faisal Sarkhouh, Vice Chairman of Burgan Bank and CEO of Kamco Investment Company, said specialized economic courts would provide more precise and streamlined litigation for businesses and help increase the confidence of financial institutions and investors in Kuwait.
He said faster resolution of investment disputes would provide greater reassurance to investors and support stable capital flows. Sarkhouh also stressed that the growing complexity of modern business requires judges with specialized knowledge of economic and commercial disputes, making judicial specialization increasingly important to economic development.
Former Commerce Minister Fahd Al-Shuraian said economic litigation already exists in Kuwait, but the establishment of specialized economic circuits would provide a stronger organizational framework for accelerating commercial and economic cases.
He said Kuwait already has a secure legal environment and legislation protecting investors’ rights, while specialized courts would further improve the investment climate and the efficiency of economic litigation. He added that the reform would also help Kuwait keep pace with international requirements and standards, including anti-money laundering legislation and international commercial laws.
The business community views the proposed economic judiciary as more than a procedural reform, with the initiative expected to strengthen Kuwait’s competitiveness, improve its investment and commercial environment and reinforce confidence in the country’s economic and legal framework.
