Kuwait is introducing significant changes to how commercial disputes are resolved through arbitration, with new rules governing arbitration agreements, the appointment of arbitrators, urgent interim relief, and challenges to arbitral awards.
The changes, introduced under Decree-Law No. 120 of 2026 promulgating the Arbitration Law, establish a standalone legislative framework that will come into force on 18 November 2026.
The new Law consolidates Kuwait’s arbitration rules, replacing the arbitration provisions previously contained in the Civil and Commercial Procedures Law and repealing Law No. 11 of 1995 concerning Judicial Arbitration in Civil and Commercial Matters.
For businesses, the changes have practical implications for existing arbitration clauses, future contracts, agreements with State entities, and the management of disputes.
Scope and application of the new Law
The Law applies to arbitrations seated in Kuwait, subject to applicable international conventions and mandatory provisions. Parties to arbitrations conducted outside Kuwait may also agree to apply the Law.
It recognizes both ad hoc and institutional arbitration and allows parties to agree on the procedures governing their arbitration, including the rules of arbitration centres in Kuwait or abroad.
The Law will not apply to arbitrations already pending when it comes into force, and procedural steps taken under the previous legislation will remain valid.
Arbitration involving State entities
The Law establishes specific requirements for arbitration agreements relating to contracts concluded by State entities, including ministries, public authorities and institutions, governmental agencies and wholly State-owned companies.
These requirements include seeking the opinion of the Department of Legal Advice and Legislation and securing the applicable governmental approvals.
The approval process depends on the nature of the contract:
- Non-petroleum natural resources: Approval of the Council of Ministers is required for contracts relating to their development and exploitation.
- Other State contracts: Approval of the competent Minister is required in accordance with rules prescribed by the Council of Ministers. This authority cannot be delegated.
- Kuwait Petroleum Corporation and its subsidiaries: Arbitration agreements are subject to the procedures and conditions determined by the Supreme Petroleum Council.
Businesses contracting with State entities should account for these requirements when negotiating and reviewing arbitration clauses.
What are the key changes?
Arbitration agreements and tribunal jurisdiction
The Law introduces greater flexibility in how arbitration agreements may be documented, recognising agreements made through electronic correspondence, contracts incorporating arbitration provisions by reference, standard-form contracts and international conventions containing arbitration provisions.
It also expressly recognises two important principles:
- Separability: An arbitration agreement remains independent of the underlying contract. The invalidity, rescission or termination of that contract does not affect a valid arbitration agreement, subject to the exception concerning lack of capacity.
- Competence-competence: Arbitral tribunals are empowered to determine objections concerning their own jurisdiction.
Appointment of arbitrators and procedural timelines
Where parties have not agreed on a mechanism for appointing arbitrators, the Law establishes procedures for appointment through the President of the Competent Court or their delegate.
Applications are generally to be determined within 15 days. The resulting orders are not subject to appeal, except where an application is refused, in which case the law provides a specific challenge procedure before the Judge of Urgent Matters.
Emergency arbitrators and interim relief
The Law introduces a dedicated mechanism for obtaining interim and conservatory measures before the arbitral tribunal is constituted. The Explanatory Memorandum identifies this as the mechanism commonly known in international arbitration as an emergency arbitrator.
Unless the parties have agreed on the appointment procedure, the President of the Competent Court or their delegate may appoint the emergency arbitrator within five days of an application. The arbitrator must issue a decision within 15 days of appointment, with a possible extension of up to ten additional days on serious grounds.
The courts also retain the power to order interim or conservatory measures before the tribunal is constituted or an emergency arbitrator is appointed. Seeking such relief from the courts does not constitute a waiver of the arbitration agreement.
Electronic proceedings, confidentiality and funding disclosures
The Law expressly permits arbitration proceedings to be conducted using modern technology, unless the parties agree otherwise.
This includes remote hearings and deliberations, electronic submissions and document exchanges, and electronic signatures. These procedures have the same legal effect as their in-person equivalents.
The Law also establishes confidentiality requirements for arbitration proceedings, subject to the written consent of the parties or disclosure required by law.
Publication of arbitral awards, or any part of them, requires the written consent of all parties, although arbitration centres may publish anonymised extracts for academic and research purposes.
In addition, parties must disclose the sources funding arbitration costs. This requirement addresses potential conflicts of interest associated with third-party funding arrangements.
Challenges and enforcement of arbitral awards
The Law provides that arbitral awards cannot be challenged through ordinary or extraordinary avenues of appeal.
Instead, a party may bring an action to set aside an award before the Court of Appeal on the limited grounds specified in the Law.
The action must be commenced within 30 days of notification of the award, and the Court of Appeal must rule within six months. Its judgment is final and not subject to further appeal.
Commencing an action to set aside an award does not automatically suspend enforcement. However, the Court of Appeal may order a stay where the statutory requirements are satisfied.
Significantly, Article 79 provides that where an award is set aside, wholly or partly, the Court of Appeal shall examine and determine the merits of the dispute, rather than requiring the parties to recommence proceedings.
Regulation of institutional arbitration centres
The Law introduces a licensing and regulatory framework for institutional arbitration centres in Kuwait.
Centres must obtain a licence from the competent department at the Ministry of Justice and, before commencing operations, obtain Ministry approval of their arbitration, conciliation and mediation rules, together with their schedule of fees and charges.
Existing arbitration centres have one year from the date the law comes into force to regularise their status under the new framework and implementing decisions.
What should businesses consider?
The new framework warrants a review of existing dispute resolution arrangements and the approach to future contracts.
Businesses should consider:
- Reviewing arbitration clauses: Assess existing and proposed clauses against the new framework, including the chosen seat, arbitration institution, procedural rules and appointment mechanisms.
- Checking State-contract requirements: Confirm the necessary approvals for arbitration agreements involving State entities have been addressed.
- Planning for interim relief: Consider how the new emergency arbitrator mechanism and court-ordered interim measures may affect dispute resolution strategies.
- Assessing funding arrangements: Review the implications of the new disclosure requirements where arbitration costs are funded by third parties.
- Preparing for challenges and enforcement: Account for the new procedures and statutory deadlines when considering potential challenges to arbitral awards and enforcement strategies.
For further information on Kuwait’s new Arbitration Law or its potential implications for your contracts and disputes, please contact ASAR’s Commercial Litigation & Arbitration team at asar@asarlegal.com.
