Justice Minister Nasser Al-Sumait stated that the new law establishing economic courts across all three levels of litigation represents a major step forward for Kuwait’s judicial system in handling economic, commercial and investment cases with dedicated technical support. The minister explained that specialized circuits of three judges each will operate in the courts of first instance, appeals and cassation with exclusive authority over disputes related to banks, financial markets, companies, shareholders, foreign investment, public-private partnerships, competition protection, trademarks, patents and major public tenders exceeding KD100,000. This framework introduces a case preparation office to ensure complete documentation before trial along with a mandatory settlement track that produces enforceable agreements if successful, according to details provided after the Cabinet session. The approach aims to reduce resolution times while maintaining procedural safeguards.
The legislation prioritizes digital transformation through an electronic litigation platform, digital case files, a rulings database and direct electronic linkages for judgment enforcement with banks, the land registry and the Ministry of Commerce and Industry, Al-Sumait noted. Enforcement judges gain powers to freeze accounts, impose travel bans, issue precautionary orders and conduct electronic auctions when debtors delay payments or hide assets, with the first objection automatically suspending action and later ones requiring court approval. These measures form part of a broader push to modernize enforcement procedures and integrate technology across the judicial process.
Value thresholds determine finality of rulings under the law, with decisions final at first instance for claims not exceeding KD10,000 and at the appeals level up to KD30,000 while the cassation circuit handles higher-value cases, jurisdictional conflicts or contradictory judgments, the minister indicated. Appeal deadlines stand at 30 days for standard cassation submissions, 15 days for urgent matters and 10 days for petition orders. The full law takes effect on October 1, 2027, after which the justice minister will issue implementing regulations to guide operations.
This approval follows Al-Sumait’s 2025 announcement of Kuwait’s most extensive judicial reform initiative in its history, which included review of multiple laws to cut backlogs and harness digital tools for greater accessibility. The accompanying Judicial Organization Law sets clear criteria for judge selection, promotion and evaluation to ensure competence and integrity while limiting senior administrative terms to four years renewable once for better rotation. It also creates a principles unification committee at the Court of Cassation whose binding decisions will apply to all courts, reducing inconsistencies in legal interpretations.
Kuwait revised its foreign direct investment law in 2024 to permit foreign companies to open branches independently without a local agent, according to the BTI 2026 Kuwait Country Report. World Bank assessments in its Doing Business series had scored Kuwait at 61.4 on contract enforcement, underscoring delays that affected business confidence relative to other Gulf markets. The specialized courts seek to tackle these longstanding issues by focusing expertise and streamlining processes in key economic sectors.
A dedicated Dispute Resolution and Conciliation Office will examine cases prior to court referral, excluding urgent matters, and must pursue settlement within an initial 15 days that parties may extend up to three months total, the released law summary showed. Unresolved cases advance to the preparation office for notifications and documentation before judicial review. The circuits will additionally address related substantive enforcement disputes and administrative contracts meeting specified value criteria.
