ع
Kuwait has issued a new arbitration law under Decree-Law No. 120 of 2026 that establishes an integrated national framework for resolving civil and commercial disputes, Arab Times reported on October 18. His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah promulgated the legislation on October 13 following a proposal from the Minister of Justice and endorsement by the Council of Ministers. The decree was published in the Official Gazette Kuwait Alyoum in Issue No. 1813 on the same day as the report. It repeals the arbitration chapter in the Civil and Commercial Procedures Law along with the 1995 judicial arbitration statute as amended in 2013 and cancels any conflicting provisions.
The legislation consists of 108 articles organized into 15 chapters and requires that any arbitration agreement be made in writing to ensure validity, according to the Arab Times account of the decree. Such agreements can appear in signed contracts, be exchanged via paper or electronic correspondence or be incorporated by reference to a document that contains an arbitration clause. Times Kuwait reported that the law draws on the UNCITRAL Model Law while adapting its provisions to fit Kuwait’s legal system and commercial needs. Justice Minister Nasser Yousef Al-Sumait described the statute as creating faster proceedings with fixed deadlines, greater neutrality through licensed centers and reduced complexity via a single regulatory text.
The explanatory memorandum accompanying the law stresses that Kuwait’s development objectives as a financial and commercial hub demanded a contemporary arbitration environment to build business and investor confidence, a Times Kuwait review found. It introduces specific safeguards for arbitration clauses in contracts signed by state entities so that public funds receive protection without barring such parties from the process. The legislation further creates a licensing and supervisory regime for arbitration centers that will be managed by a specialized department within the Ministry of Justice.
Scope of the new law is defined by both a territorial test for arbitrations seated in Kuwait and a consent-based test that allows parties to select its application to proceedings held abroad, LexisNexis noted in a legal briefing. Those rules remain subject to Kuwait’s international treaty obligations and mandatory domestic norms. The statute recognizes electronic procedures including remote hearings and digital signatures while adding mechanisms for interim and precautionary measures during arbitration. Arbitrators face civil liability only in cases of fraud or gross negligence rather than criminal sanctions for their decisions.
Cabinet approval for the draft came in mid-September 2026 after the government reviewed its alignment with international best practices, Kuwait Times stated. The unified text merges judicial arbitration with institutional and ad hoc forms so that all variants fall under one statute instead of multiple separate texts. Al-Sumait told local media that the reform would prevent disputes from lingering in ordinary courts for years by supplying specialized expertise, flexible steps and clear timelines for each stage.
Recent Court of Cassation rulings from 2024 and 2025 that refined the boundaries of arbitration enforceability provided additional context for the legislative update, Global Arbitration Review observed in its 2026 regional analysis. The Ministry of Justice will now implement the oversight system and maintain a register of approved arbitrators to support the law’s operation. Publication in the official gazette brings the provisions into immediate effect across applicable cases.
