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The Kuwaiti Cabinet has approved a comprehensive draft decree-law on arbitration that abolishes the existing Judicial Arbitration Law and repeals the dedicated chapter in the Civil and Commercial Procedures Law, according to Times Kuwait. Minister of Justice Counselor Nasser Yousef Al-Sumait described the measure as a significant legislative step that unifies all forms of arbitration under a single statute rather than scattering provisions across multiple texts. The new framework incorporates and develops judicial arbitration rules while drawing on international best practices yet preserving core elements of the Kuwaiti legal system.
Al-Sumait told the Kuwait News Agency that the unified approach addresses practical problems uncovered during implementation, including lengthy procedures caused by overlapping regulations. The proposed legislation establishes fixed timelines for each stage of arbitration proceedings and bolsters safeguards for neutrality, transparency and confidentiality. It also sets standards for the operation and oversight of arbitration centers while permitting electronic tools for hearings, document exchange and overall case management.
The Cabinet presented the draft law as a means to provide specialized expertise and procedural flexibility in dispute resolution, particularly for commercial and investment matters, Times Kuwait reported. This development forms part of a wider national plan to modernize Kuwait’s legislative framework, which has already produced measurable improvements in judicial efficiency. Ministry of Justice data cited by Arab Times in June 2026 showed total court cases falling from 534,226 to 422,713, a decline of 20.88 percent, after earlier reforms.
Kuwait Times noted in September 2026 that the Court of Cassation faced a backlog exceeding 81,000 appeals in July 2025, prompting multiple initiatives to clear dockets through virtual hearings and unified legal principles. The arbitration law seeks to divert suitable cases away from formal litigation, thereby reducing pressure on judges and shortening resolution times for businesses. Related measures approved in August 2026 created specialized economic courts to handle commercial disputes with streamlined procedures and digital filing options.
Provisions within the draft address arbitration involving government contracts, place limits on arbitrators’ liability and offer investors streamlined recourse with fewer avenues for challenge, the Cabinet indicated in its statement. The legislation attempts to strike a balance between parties’ autonomy to select arbitration and the state’s interest in upholding public order. Officials submitted the draft decree-law to Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah for further review and potential issuance.
Al-Sumait has repeatedly linked such reforms to broader goals of improving the investment climate and contract enforcement, as outlined in statements covered by both Times Kuwait and Arab Times throughout 2026. The justice ministry anticipates that the new arbitration statute, alongside pending laws on commercial procedures and the legal profession, will contribute to additional reductions in annual caseloads that currently approach one million. These steps continue a reform trajectory that has seen the Court of Cassation resolve 17,434 appeals in the 2025-2026 judicial year, a 17.7 percent increase over the prior period according to official figures.
