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Kuwait on October 13 promulgated Law No. 120 of 2026 concerning the issuance of the Arbitration Law, a comprehensive statute of 108 articles across 15 chapters that creates an independent national framework for dispute resolution. The legislation sets clear deadlines for each stage of proceedings, introduces streamlined procedures and limits avenues for challenging arbitral awards in a move designed to reduce delays that have long affected commercial cases. According to the explanatory memorandum published with the law, the statute also establishes a licensing and oversight regime for arbitration centers while positioning arbitration as a reliable alternative to overburdened courts.
The new law abolishes the existing Judicial Arbitration Law and repeals the dedicated arbitration chapter in the Civil and Commercial Procedures Law, folding those provisions into a single unified text. Minister of Justice Counselor Nasser Yousef Al-Sumait told local media that the reform draws on the UNCITRAL Model Law on International Commercial Arbitration together with international best practices while preserving distinctive features of the Kuwaiti legal system. The Cabinet had approved the draft in mid-September before its formal issuance this week, Kuwait Times reported.
Provisions governing contracts involving state entities impose graduated safeguards to protect public money without closing the door to arbitration, the memorandum stated. Arbitrators face liability limited to civil accountability only in cases of fraud or gross error, and the law introduces specific mechanisms for interim and precautionary measures using terminology consistent with national procedural norms. Times Kuwait noted that these rules aim to give investors swift and certain outcomes while maintaining necessary oversight.
Electronic hearings, digital document exchange and remote sessions receive explicit authorization under the statute, reflecting updates in arbitration practice across recent decades. The framework requires arbitral tribunals to respect core principles of due process, equality of parties and public-order considerations without imposing unnecessary costs or delays. A dedicated administrative unit within the Ministry of Justice will oversee licensing and regulation of arbitration institutions, according to the law’s explanatory materials.
Kuwait had previously stood as the only GCC member without a standalone arbitration law, an anomaly highlighted in a 2025 Times Kuwait analysis that linked the gap to lower rankings in contractual justice and ease of doing business indices. Other Gulf states have maintained and updated dedicated statutes since the late 1990s, a benchmark the new legislation now addresses. The reform forms part of broader judicial modernization that includes the Economic Courts Law issued earlier in 2026, which creates specialized circuits for commercial and investment cases set to become operational in 2027.
Al-Sumait described the law as making arbitration faster through fixed timeframes, safer through neutral and licensed arbitrators, and less complex with a single statute and streamlined recourse. The memorandum accompanying Law No. 120 of 2026 emphasized that transforming Kuwait into a financial and commercial hub capable of drawing investment requires a modern arbitration environment that inspires confidence among traders and investors alike. Officials expect the changes to ease pressure on ordinary courts while reinforcing the country’s competitiveness under the Kuwait Vision 2035 development plan.
