Kuwait Issues New Arbitration Law to Streamline Civil and Commercial Disputes

18/10/2026

Kuwait Issues New Arbitration Law to Streamline Civil and Commercial Disputes

KUWAIT CITY, Oct 18: Kuwait has issued a new Arbitration Law under Decree-Law No. 120 of 2026, establishing a legal framework for resolving civil and commercial disputes through arbitration and introducing rules governing arbitration agreements, arbitrators and arbitration proceedings.

The decree-law was issued by His Highness the Amir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah on October 13, 2026, following a proposal by the Minister of Justice and approval by the Council of Ministers. It was published in the Official Gazette, Kuwait Alyoum, Issue No. 1813, dated October 18, 2026.

The new legislation replaces the existing arbitration provisions under Chapter 12 of the Civil and Commercial Procedures Law and repeals Law No. 11 of 1995 concerning judicial arbitration in civil and commercial matters, as amended by Law No. 102 of 2013. Any other provisions that conflict with the new law are also repealed.

Written agreements mandatory

Under the new law, an arbitration agreement must be in writing to be valid. It may be included in a contract signed by the parties, exchanged through paper or digital correspondence, or incorporated by reference to another document containing an arbitration clause.

An agreement may also be established when one party asks a court to refer a dispute to arbitration and the other party expressly agrees. Parties may further agree to arbitration by adopting a model contract or international convention containing arbitration provisions.

The law allows arbitration agreements to be concluded either before a dispute arises, through a contractual clause or separate agreement, or after a dispute has emerged. In the latter case, the subject matter must be specified in the agreement and recorded in the court hearing minutes; otherwise, the arbitration will be void.

Rules governing arbitrators

The legislation sets out eligibility and independence requirements for arbitrators. An arbitrator must have full legal capacity, accept the appointment in writing and disclose any personal interest or circumstances that could raise serious doubts about their impartiality or independence.

Individuals who are employees or members of the arbitration department at the Ministry of Justice are not eligible to serve as arbitrators under the law.

Arbitration panels must consist of either a single arbitrator or an odd number of arbitrators. If the parties fail to agree on the number, the default panel consists of three arbitrators, unless the appointing authority decides otherwise.

Where the parties cannot agree on the appointment of arbitrators within the prescribed periods, the head of the competent court or a designated representative may appoint them from the register maintained by the Ministry of Justice's Arbitration Department. In institutional arbitration, the selected arbitration center appoints arbitrators according to its own rules.

The law also establishes procedures for challenging arbitrators when circumstances raise serious doubts about their impartiality or independence. In ad hoc arbitration, a party generally has 15 days to submit a reasoned challenge after becoming aware of the appointment or the grounds for challenge. The legislation sets further deadlines for referral to the competent court when the challenge is not resolved.

State contracts and arbitration

The new law introduces specific approval requirements for arbitration agreements involving contracts concluded by state entities.

For contracts concerning the development and exploitation of non-oil natural resources, arbitration agreements require the approval of the Council of Ministers. For other government contracts, approval must be obtained from the competent minister in accordance with rules established by the Council of Ministers. The minister cannot delegate this authority.

Arbitration involving contracts related to the Kuwait Petroleum Corporation and its subsidiaries will follow procedures and conditions determined by the Supreme Petroleum Council.

Court proceedings and arbitration

The legislation provides that courts must decline jurisdiction over disputes covered by valid arbitration agreements when the defendant objects to taking any further action in the case, unless the court determines that the agreement is null and void or unenforceable. Courts may examine the validity of an arbitration agreement on their own initiative when public-order provisions are involved.

The filing of a court case does not, by itself, prevent arbitration proceedings from commencing or continuing or an arbitral award from being issued.

The law also permits parties to delegate the determination of arbitration procedures to a third party, including an arbitration institution or center in Kuwait or abroad. Agreeing to the rules of a particular arbitration center constitutes an implicit delegation to that center to organize the proceedings under its rules, subject to the mandatory provisions of Kuwaiti law.

Existing arbitration centers given one year

Arbitration centers operating when the new law enters into force must bring their status into compliance with its provisions and implementing decisions within one year from the date the law takes effect.

The decree-law further stipulates that arbitration proceedings already underway when the new legislation enters into force will remain governed by the previous framework, even where they are based on earlier arbitration agreements. Procedures validly completed under previous legislation will remain valid.

In matters not specifically addressed by the new Arbitration Law, the Civil and Commercial Procedures Law will continue to apply, provided its provisions do not conflict with the new legislation.

The Minister of Justice is authorised to issue the necessary decisions to implement the law, while ministers are responsible for implementation within their respective jurisdictions.

Under Article 24, an arbitration request must include the names, nationalities, addresses and descriptions of the parties, along with an electronic means of communication that enables proof of delivery or receipt. It must also set out the facts supporting the claim, identify the issues in dispute, specify the relief sought and provide the legal grounds or arguments supporting the request.

The request must also include a proposal to appoint an arbitrator if the arbitration panel has not already been named, in accordance with the law's requirements.

Defendants must submit evidence and counterclaims

Article 25 requires the respondent to submit a defense memorandum within the period specified by the arbitration agreement or the arbitral tribunal. The memorandum must contain the parties’ identifying details, a verifiable electronic means of communication, any incidental or counterclaims the respondent wishes to raise, and all supporting documents and evidence.

Under Article 26, either party may amend or supplement its claims or defenses during arbitration proceedings unless the arbitral tribunal decides otherwise.

Arbitration to proceed despite absence

The law allows arbitration proceedings to continue when a party fails to submit documents or attend hearings within the prescribed deadlines.

Under Article 27, the arbitral tribunal may proceed and issue its award based on the available evidence and documents. However, the tribunal must not treat the respondent's absence as an admission of the claimant’s allegations.

Article 22 requires the arbitral tribunal to respect fundamental principles of litigation and public order, administer proceedings efficiently without unnecessary delays or expenses, and treat both parties equally by providing them with equal opportunities to present their claims and defenses.

Parties may choose the place and procedures

Article 28 allows the parties to agree on the arbitration venue, whether in Kuwait or abroad. If they do not reach an agreement, the arbitral tribunal may select a suitable location after considering the circumstances of the case and the parties’ interests.

The tribunal may also meet elsewhere, when necessary, to conduct proceedings, including to hear the parties or witnesses.

Article 23 allows the parties to agree on the tribunal's procedures, including adopting the rules of an arbitration organization or center in Kuwait or abroad. If no agreement exists, the tribunal may determine the appropriate procedures, provided they comply with the law, fundamental principles of litigation and applicable international conventions to which Kuwait is a party.

Replacement of arbitrators and liability

The legislation also addresses situations in which an arbitrator’s mandate ends because of a successful challenge, removal, withdrawal or another reason.

Under Article 20, a replacement arbitrator must be appointed using the same procedures used to select the original arbitrator. Proceedings completed before the replacement’s appointment remain valid unless the reconstituted tribunal issues a reasoned decision finding that a procedure violated the rights of the defense or the integrity of the tribunal’s composition.

Article 21 stipulates that arbitrators and arbitral tribunals are not liable for errors committed during arbitration proceedings, except for tort liability in cases of fraud or gross negligence.

The new provisions form part of Kuwait’s broader legal framework for arbitration, which also governs arbitration agreements, the appointment and challenging of arbitrators, disputes involving government contracts and the relationship between arbitration proceedings and court cases.