Kuwait targets faster economic litigation

Al-Tahnoon explained that the long litigation process, which could extend from two to four years, is due to the shortage of experts and the complexities of financial matters. “This leaves some companies lacking the means to defend themselves and present evidence, forcing them into bankruptcy, complete closure or the freezing of their capital and disruption of their operations,” he added. He said the economic courts will expedite the conclusion of disputes, thus, preventing the affected companies from incurring more losses. Attorney Salem Al-Kandari stressed that this government initiative is imperative for protecting local and foreign investors. He explained that this regulatory step will have a direct and profound impact on the volume of investment flows into the country, leading to unprecedented economic growth and strengthening the position of Kuwait as a regional financial center. He pointed out that the traditional judiciary faces challenges related to lengthy litigation due to the accumulation of diverse cases.

“This underscores the importance of economic courts in providing judges and financial experts with the required qualifications and capability to understand the market dynamics and trade patterns, thereby, ensuring swift and accurate judicial rulings. He believes the specialized courts will send a clear message of reassurance to the global investment community that rights are protected under an efficient and transparent judicial system based on international standards. He added that legislative stability remarkably reduces the sovereign and regulatory risks that investors fear. He stated that this step will raise the ranking of Kuwait in the World Bank’s Ease of Doing Business and Global Competitiveness indices.

Lawyer and legal consultant on economic disputes Hamad Al-Mutairi confirmed that the country has transformed into an attractive investment environment and garnered international admiration, thanks to its diligent work and excellent planning. He emphasized that establishing specialized economic courts, alongside commercial courts, is an urgent necessity to keep pace with developments and clearly define judicial jurisdiction. He explained that foreign capital is characterized by its cautious nature and will not enter local markets to inject investments without a thorough study of the expected impact on the national economy. He stressed the importance of simplifying and expediting litigation procedures in economic cases to raise the efficiency of the entire economic cycle.

He affirmed that allocating courts to handle economic cases will contribute to the rapid reinvestment of funds that were frozen due to legal disputes into the national economy, hence, increasing liquidity and supporting comprehensive and sustainable development. He said the establishment of specialized economic courts is a turning point for improving the business environment and financial performance, especially since traditional litigation takes a long time, ranging from 500 to 650 days, to resolve commercial disputes. He pointed out that specialized courts, supported by digital platforms, could reduce litigation period by up to 60 percent and resolve complex cases in just 90 to 120 days. He added that judicial security is directly proportional to the flow of capital, indicating that the specialized judiciary will help increase foreign direct investment by about 15 percent to 25 percent in the first three years.