Economic courts to boost Kuwait’s investment edge

Minister of Justice Nasser Al-Sumait

Al-Sumait believes that this step will expedite dispute resolution, develop procedures for enforcing court rulings, and expand electronic litigation, thereby raising the efficiency of contract enforcement and boosting public trust in the legal and investment environment of the country. He revealed that the law establishes special economic circuits in the courts of First Instance, Appeals and Cassation, adding that these circuits will handle the economic, commercial and investment disputes specified in the law. He said the law aims to shorten the duration of dispute resolution through the case preparation office that completes the necessary documentation before the case is presented to the court.

He indicated that this includes regulating procedural and appeal deadlines and establishing a settlement and reconciliation track before the dispute is adjudicated. He then clarified that a settlement agreement is an enforceable instrument. He pointed out that digital transformation is a pillar of the law, through an electronic platform for litigation, enforcement of judgments, an electronic case file, and a database of rulings and judicial principles. He added that the law stipulates the establishment of a specialized department for the execution of court rulings, its electronic linking with relevant entities, and the adoption of electronic auctions. He stressed that the law improves the competitive level of the country, strengthens its ability to attract investments, and reinforces the rule of law in economic disputes.

It is worth noting that the Cabinet approved the draft decree-law on establishing economic judicial circuits during its meeting on Tuesday. This move aims to align with modern global and regional legislation, and utilize advanced technology in ensuring justice for everyone.

According to the law, one or more economic circuits, each consisting of three judges, will be established within the Court of First Instance. These circuits will have exclusive jurisdiction over economic disputes and related substantive enforcement disputes. Their rulings are final if the value of the claim does not exceed KD10,000. In the same manner, an economic circuit consisting of three judges will be established in the Court of Appeals.

The ruling of this circuit is final if the value of the claim does not exceed KD30,000. An economic circuit in the Court of Cassation will have jurisdiction over appeals if the value of the claim is more than KD30,000 or if the value of the claim is undetermined. This circuit will also handle cases of jurisdictional errors and conflicting rulings that have acquired the force of res judicata. The deadline for submission of appeals to the Cassation Court is set at 30 days, 15 days for appeals against urgent rulings, and 10 days for appeals against orders issued on petitions.

The jurisdiction of these circuits includes disputes involving banks, financial companies, financial markets, companies, partners, shareholders, direct investment, non-Kuwaiti capital, oil contracting, public- private partnerships, competition protection, trademarks, patents, and companies developing cities and residential areas. This is in addition to handling financial and contractual disputes related to public tenders and other administrative contracts whose value exceeds KD100,000 in accordance with the regulations and exceptions stipulated by the law. Moreover, the Dispute Resolution and Conciliation Office is established to review cases before referring them to the court, except the urgent matters, orders and administrative cancellation requests.

This office must attempt a settlement within 15 days and can be extended in accordance with the agreement of the parties, for a total period not exceeding three months. The approved settlement agreement serves as an enforceable document that terminates the dispute. If settlement proves impossible, the case is referred to the Case Preparation Office to complete the necessary documents and notifications before being presented to the court. The law stipulates the creation of an electronic platform for litigation and enforcement, along with an electronic file for each case. It includes a specialized department for the execution of judgments and a direct link with banks, the Land Registry, Ministry of Commerce and Industry, and other entities concerned with issuing seizure, transfer and ownership transfer orders.

The law grants the enforcement judge the power to seize and freeze accounts, impose travel bans, issue precautionary orders, suspend financial transactions if the debtor delays payments or conceals assets, while settlements, payment schedules and electronic auctions are permitted as well. The first objection automatically suspends the enforcement, while the second and subsequent objections only suspend enforcement through a court decision. The law shall take effect on Oct 1, 2027 and the Justice Minister is mandated to issue its implementing regulations before this date.

On the other hand, Al-Sumait said the Cabinet’s approval of the Judicial Organization Law is a milestone in the development of the judicial authority and the largest reform process it has ever witnessed in its history. Al-Sumait pointed out that the law is in compliance with the directives of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah on reforming and developing the judicial system to raise its efficiency and safeguard its independence. He affirmed that His Highness the Amir paid special attention to this law and followed up its stages of preparation until the completion of the constitutional procedures. He explained that the law reorganizes a number of fundamental aspects of judicial work, such as the selection, promotion and assessment of members of the judiciary according to clear rules that guarantee competence and integrity, and preserve the prestige of the judiciary. He said the law establishes well-defined rules for filling up senior administrative positions in the judiciary and sets the term of office at four years, renewable once, to allow the rotation of qualified individuals.

He added that the implementation of the law requires reforming the Supreme Judicial Council as per the new regulations. He revealed that the law provides solutions to the discrepancies and conflicts in judicial principles through the Unification of Principles Committee at the Court of Cassation, such that the principle decided by the committee is binding on all courts and must be followed in subsequent cases. He added that this step consolidates the unity of judicial interpretation and reduces the disparity or conflict in rulings. He confirmed that the law strengthens the guarantees of due process, activates the role of the Public Prosecution in monitoring detention centers, and regulates electronic trials. He indicated that the law supports the plan of the country to nationalize the judiciary by reducing the required promotion period to expedite the appointment of qualified Kuwaiti nationals to higher judicial positions. He asserted that the rule of law and the integrity of the judiciary are pillars of a legal state, stressing that the Kuwaiti judiciary has always been a source of public trust and pride.