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Times Kuwait reported that Kuwait issued Decree-Law No. 120 of 2026 on October 13 promulgating a new Arbitration Law that establishes a standalone national framework for resolving civil and commercial disputes. The legislation, published in the official gazette on October 18, contains 108 articles divided into 15 chapters covering arbitration agreements, tribunals, procedures, awards and institutional oversight. It repeals the arbitration chapter in the Civil and Commercial Procedures Law and the 1995 Judicial Arbitration Law, according to the Times Kuwait coverage.
The explanatory memorandum accompanying the decree stated that the law was necessary to support Kuwait’s development plans aimed at transforming the country into a financial and commercial hub. Previous provisions no longer met contemporary requirements, prompting the shift to a modern, independent statute that draws on international best practices while respecting Kuwait’s legal characteristics, the memorandum explained. The statute applies to any arbitration seated in Kuwait, whether involving private parties or public-private disputes, legal analyses from GLA & Company indicated.
An arbitration agreement must be in writing to be valid and may be incorporated in contracts or through correspondence, according to the new provisions detailed by Arab Times. For contracts with state entities, particularly those concerning development of non-oil natural resources, the law requires specific approvals including from the Council of Ministers in certain cases to protect public funds, the report added. The framework introduces emergency arbitration, online hearings, firm deadlines for proceedings and limited grounds for annulment of awards.
Licensing and supervision of arbitration centers will be handled by a specialized department at the Ministry of Justice while judicial arbitration is now integrated into the single text, Times Kuwait stated. Arbitrators enjoy protection from liability except in instances of fraud or gross error, and the law sets a 30-day deadline for filing actions to annul awards. These changes bring Kuwait’s regime closer to international standards and those adopted across the Gulf, according to the GLA & Company assessment.
The reform constitutes a legislative milestone strengthening investor confidence and aligning with Gulf and international developments, as described by Times Kuwait. A committee member preparing related economic court legislation told Al Arabiya that the statute represents a complete legislative revolution to empower the national economy and meet Kuwait Vision 2035 objectives. The update is expected to provide clearer legal guarantees for traders and investors, reducing pressure on ordinary courts.
The explanatory memorandum highlighted that arbitration offers speed, specialization, flexibility and confidentiality, qualities valued in a competitive business environment. Businesses are advised to review their dispute resolution clauses to ensure compliance with the new writing requirements and to consider provisions for emergency relief and institutional rules, the GLA & Company analysis recommended. The law takes effect in accordance with its transitional provisions following publication.
