19/07/2025
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19/07/2025
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Adapted and expanded from an original interview conducted by journalist Abdullah Othman and published in Al-Nahar on July 18, 2025. This version has been updated to reflect current legal developments and strategic judicial reform initiatives. In a progressive move aimed at accelerating the resolution of commercial disputes and enhancing Kuwait’s competitiveness, Minister of Justice Counselor Nasser Al-Sumeit recently issued a ministerial decision forming a specialized committee to draft a decree-law for the establishment of specialized economic courts, along with its explanatory memorandum.
The committee, chaired by Counselor Abdullah Al-Qusaimi, includes representatives from key national institutions such as the Central Bank, the Ministry of Commerce, the Kuwait Bar Association, and Kuwait University. It is tasked with delivering a framework that reflects international best practices while addressing the complex realities of Kuwait’s evolving economy. This governmental initiative is both timely and visionary. However, to truly transform the justice system and support economic modernization, Kuwait must go beyond establishing a single economic court. What is required is a fully integrated system of specialized courts structured by value, subject matter, and legal complexity. This will ensure that commercial and financial disputes are resolved swiftly, competently, and in line with global standards.
Why Judicial Specialization Is Strategic. Specialized courts are no longer an administrative preference.
They are a structural necessity. In modern economies, disputes span a wide range of sectors including taxation, customs, capital markets, insolvency, anti-money laundering, intellectual property, cross-border finance, and complex commercial fraud. Each domain carries unique legal and regulatory requirements that demand judicial expertise. Placing all these matters under one general economic court risks jurisdictional overlap, inefficiency, and procedural delay. A segmented and specialized judiciary, on the other hand, empowers judges to build sectoral depth, improves case flow, and enhances investor confidence. This is a key driver behind the Minister’s initiative
They are a structural necessity. In modern economies, disputes span a wide range of sectors including taxation, customs, capital markets, insolvency, anti-money laundering, intellectual property, cross-border finance, and complex commercial fraud. Each domain carries unique legal and regulatory requirements that demand judicial expertise. Placing all these matters under one general economic court risks jurisdictional overlap, inefficiency, and procedural delay. A segmented and specialized judiciary, on the other hand, empowers judges to build sectoral depth, improves case flow, and enhances investor confidence. This is a key driver behind the Minister’s initiative
Global Best Practices and Local Relevance
Kuwait’s proposed judicial reform should mirror the legal sophistication of mature economies. Models such as the UK’s Business and Property Courts and the Delaware Court of Chancery in the United States provide strong benchmarks. These systems offer specialized procedures, expert judges, and value-based jurisdiction. This leads to faster litigation cycles, improved consistency, and greater legal certainty for commercial actors. Kuwait must now build a framework that translates those advantages into its local context.
Kuwait’s proposed judicial reform should mirror the legal sophistication of mature economies. Models such as the UK’s Business and Property Courts and the Delaware Court of Chancery in the United States provide strong benchmarks. These systems offer specialized procedures, expert judges, and value-based jurisdiction. This leads to faster litigation cycles, improved consistency, and greater legal certainty for commercial actors. Kuwait must now build a framework that translates those advantages into its local context.
A Framework for Kuwait’s Specialized Judiciary
In response to the Ministry’s directive, the following structural proposal is recommended: 1. Value-Based Specialization
In response to the Ministry’s directive, the following structural proposal is recommended: 1. Value-Based Specialization
- High-Value Commercial Court: Jurisdiction over disputes exceeding KD 5 million, or those involving cross-border or institutional finance. 2. Subject-Matter Specialization
- Tax and Customs Court
- Capital Markets and Investment Court
- Insolvency Court (with separate civil and criminal divisions)
- Economic Crimes Court
- Intellectual Property and Technology Court
- Competition and Consumer Protection Court This segmentation ensures that each dispute is handled by a judiciary with domain-specific competence and procedural efficiency.
Anticipated Impact on Kuwait’s Investment Climate
The Minister’s initiative reflects a broader realization. A modern economy requires a modern judiciary. If properly implemented, judicial specialization will yield profound benefits, including:
The Minister’s initiative reflects a broader realization. A modern economy requires a modern judiciary. If properly implemented, judicial specialization will yield profound benefits, including:
- Faster resolution of commercial and investment disputes
- Reduced reliance on international arbitration
- Greater legal certainty for investors and businesses
- Alignment with global standards in dispute resolution
- Direct support for Kuwait Vision 2035 as a legal and financial center Kuwait’s message to the global investment community will be unmistakable. This is a jurisdiction that protects capital through competence, speed, and legal clarity.
Legislative Feasibility and Institutional Readiness
Kuwait’s constitutional and legal framework fully supports this direction. Articles 164 and 166 of the Constitution grant the legislature authority to structure the judiciary, provided that the principle of dual-instance litigation is upheld. Additionally, the newly enacted Judicial Fees Law No. 78 of 2025 introduces a proportional fee of 1 percent for cases exceeding KD 5 million. This serves as a significant policy tool supporting the creation of value-based judicial channels. The Ministry’s inclusive committee, comprising stakeholders from the judiciary, academia, financial regulators, and investment authorities, provides a strong foundation for building consensus and shaping a specialized court system rooted in Kuwait’s legal identity.
Kuwait’s constitutional and legal framework fully supports this direction. Articles 164 and 166 of the Constitution grant the legislature authority to structure the judiciary, provided that the principle of dual-instance litigation is upheld. Additionally, the newly enacted Judicial Fees Law No. 78 of 2025 introduces a proportional fee of 1 percent for cases exceeding KD 5 million. This serves as a significant policy tool supporting the creation of value-based judicial channels. The Ministry’s inclusive committee, comprising stakeholders from the judiciary, academia, financial regulators, and investment authorities, provides a strong foundation for building consensus and shaping a specialized court system rooted in Kuwait’s legal identity.
Academic and Comparative
Insights Legal education in Kuwait has long acknowledged the importance of specialization. At Kuwait International Law School, advanced courses such as Economic Crimes I and II reflect the layered complexity of modern litigation, where financial understanding and legal analysis intersect. Assigning such cases to general criminal courts or bundling them into a single economic court undermines their intricacy. Instead, they must be addressed within specialized judicial tracks, managed by judges trained in both law and financial systems. Internationally, Egypt’s experience with economic courts offers valuable lessons. While pioneering in the region, Egypt’s model faces challenges from jurisdictional overlap and the merger of civil and criminal cases into a single court. Kuwait should avoid this approach.
Insights Legal education in Kuwait has long acknowledged the importance of specialization. At Kuwait International Law School, advanced courses such as Economic Crimes I and II reflect the layered complexity of modern litigation, where financial understanding and legal analysis intersect. Assigning such cases to general criminal courts or bundling them into a single economic court undermines their intricacy. Instead, they must be addressed within specialized judicial tracks, managed by judges trained in both law and financial systems. Internationally, Egypt’s experience with economic courts offers valuable lessons. While pioneering in the region, Egypt’s model faces challenges from jurisdictional overlap and the merger of civil and criminal cases into a single court. Kuwait should avoid this approach.
Conclusion: Aligning Legal Reform with Economic Ambition
The decision to establish specialized courts is a critical and welcome milestone. But Kuwait must now look beyond a single economic court and embrace a full architecture of judicial specialization. It must be modular, expert-driven, and tailored to the modern business environment. This is not merely a reform of the courts. It is a structural investment in Kuwait’s economic future. A truly competitive economy is built on three pillars: sound regulation, business-friendly policy, and judicial certainty. Kuwait is now poised to lead by building a legal infrastructure that reflects its aspirations, supports its investors, and upholds its role as a regional leader in law, finance, and governance.
The decision to establish specialized courts is a critical and welcome milestone. But Kuwait must now look beyond a single economic court and embrace a full architecture of judicial specialization. It must be modular, expert-driven, and tailored to the modern business environment. This is not merely a reform of the courts. It is a structural investment in Kuwait’s economic future. A truly competitive economy is built on three pillars: sound regulation, business-friendly policy, and judicial certainty. Kuwait is now poised to lead by building a legal infrastructure that reflects its aspirations, supports its investors, and upholds its role as a regional leader in law, finance, and governance.
By Dr. Fawaz Khaled Alkhateeb
Managing Partner, Taher Group Law Firm
Visiting Professor of Law, Kuwait International Law School
For inquiries or comments: [email protected]
For inquiries or comments: [email protected]
