Kuwait’s proposed economic courts aim to speed up commercial disputes
- A new system for economic disputes, Settlement and Reconciliation Office before reaching the court
- Electronic litigation to become the general rule, with digital case files and an electronic platform.
- Economic appellate rulings will generally be final for claims up to KD30,000, subject to specified exceptions.
- A specialized enforcement department would handle economic judgments electronically, with links to relevant authorities.
Kuwait’s draft law establishing specialized economic courts will create a dedicated judicial system for economic, financial, investment and commercial disputes, with the aim of making litigation faster, more specialized and increasingly digital.
The explanatory memorandum, published by the Ministry of Justice on August 20, outlines three main goals: specialization, simpler procedures and legislative flexibility.
Key changes under the draft law
The proposed system would establish economic circuits at the Court of First Instance, Court of Appeal and Court of Cassation. Specialized judges would be supported by trained experts, while a dedicated enforcement department would oversee the implementation of judgments.
The economic circuits would have exclusive jurisdiction over disputes covered by the law, including cases involving financial markets, banks, companies, investment, competition, trademarks and major commercial and administrative contracts.
Disputes involving employees and workers would not be treated as economic disputes, while economic crimes would continue to be governed by the existing Criminal Procedures and Trials Law. The draft makes electronic litigation the general rule, with an electronic platform and digital case files covering court procedures and enforcement.
A Case Preparation Office would review lawsuits and supporting documents before cases reach judges, while procedural deadlines would be shortened to help prevent delays.
The proposed system would also require most eligible economic disputes to first go through a settlement and reconciliation process before reaching a court. Settlement proceedings could last up to 15 days initially, with extensions by agreement, but the total period could not exceed three months.
If an agreement is reached, the settlement record would have the force of an enforceable instrument, allowing the dispute to be resolved without a full court case. The draft would also limit appeals before the Court of Cassation in lower-value economic disputes.
Economic appellate rulings would generally be final when the value of the claim does not exceed 30,000 dinars, subject to specified exceptions. The Economic Chamber of the Court of Cassation would generally hear cases exceeding that amount.
The aim is to focus the highest court on disputes of greater financial and legal importance while avoiding unnecessary pressure from lower-value cases.
The draft also provides a mechanism for resolving conflicting legal principles among economic circuits, allowing the matter to be referred to a designated body of the Court of Cassation to establish a unified interpretation.
Faster enforcement of judgments
A specialized enforcement department would handle economic judgments, orders and settlement agreements. It would be supported by specialists in areas such as accounting, securities and asset valuation. Enforcement procedures would also be conducted electronically, with planned links to banks and relevant government and financial authorities.
The execution judge would have powers to order measures including the seizure or freezing of assets and bank accounts in specified circumstances. The draft also provides safeguards allowing affected parties to challenge such orders within prescribed deadlines.
The proposed law contains 32 articles divided into six chapters. Existing cases before the Capital Markets Court and relevant judicial departments would continue under the current system until final judgments are issued.
The Ministry of Justice will have until October 1, 2027 to issue the executive regulations. The transition period is intended to give judges, experts and other personnel time for training and preparation.
The proposed economic court system is designed to bring greater specialization to economic disputes while combining faster procedures, mandatory settlement, digital litigation and stronger enforcement mechanisms.
Combines specialized courts, mandatory settlement, digital procedures, faster litigation and stronger enforcement to streamline economic disputes.
