Kuwait is introducing specialised Economic Circuits and a new framework for handling economic disputes under Decree-Law No. 88 of 2026 on the Establishment of Economic Circuits.
The new framework covers the progression of economic disputes from settlement and case preparation through to hearings and enforcement. The significance lies not only in the disputes the new Economic Circuits will hear, but also in how those disputes will be managed. The new framework places greater emphasis on settlement, case preparation and technical expertise before matters reach the bench.
What does the law establish?
Specialised Economic Circuits will operate at all three levels of the Kuwaiti judiciary:
- Court of First Instance
- Court of Appeal
- Court of Cassation
The Economic Circuits will have jurisdiction over a broad range of economic and commercial disputes, including:
- significant banking and capital-markets disputes;
- corporate and shareholder litigation;
- foreign investment disputes;
- significant public contracts and tenders;
- construction contracts relating to the oil sector;
- competition matters;
- public-private partnership disputes;
- intellectual property matters;
- disputes arising from administrative contracts, other than employment matters; and
- recognition and enforcement of foreign judgments and orders where the underlying dispute falls within the jurisdiction of the Economic Circuits.
The scope of the new jurisdiction means that businesses will need to consider at an early stage whether a dispute falls within the Economic Circuits and the procedures that will apply.
How will economic disputes be handled?
The law introduces several changes to how economic disputes will progress through the courts.
Settlement will generally come before litigation.
Most claims will first pass through a settlement office before proceeding to court. Where a settlement is reached and approved, it will become directly enforceable.
Cases will be prepared before reaching the bench.
Cases that proceed beyond settlement will go through a dedicated case-preparation stage. The responsible office will verify pleadings, documents and service before the case reaches the judicial bench.
Technical expertise will form part of the process.
Specialised judges will be supported by technical advisers and experts where required. Expert reports will generally be expected within 60 days, providing a defined timeframe for technical input into proceedings.
Proceedings will be managed through an integrated electronic platform.
The framework provides for an electronic platform covering key stages of the dispute process, including filing, service, hearings and enforcement.
What should businesses consider?
For businesses and their legal advisers, the new framework will change the rhythm of litigation. Cases will need to be litigation-ready much earlier, with key strategic and procedural issues considered before proceedings commence. Key considerations include:
Jurisdiction: Businesses should determine at an early stage whether a potential dispute falls within the jurisdiction of the Economic Circuits and what procedural requirements will apply.
Document preservation: Relevant documents and evidence should be identified and preserved early, particularly in light of the case-preparation stage that will precede the hearing.
Expert strategy: Businesses should consider whether technical advisers or experts will be required and factor the applicable timeframe into their case strategy.
Settlement strategy: As settlement will generally precede litigation, businesses should consider their objectives and settlement parameters before commencing proceedings.
Enforcement: Enforcement requirements should be considered as part of the dispute strategy from the outset.
When will the law take effect?
The Law will come into force on 1 October 2027, allowing time for the necessary regulatory, technological and institutional preparations.
For further information on the new Economic Circuits or their potential implications for your business, please contact ASAR’s Litigation and Arbitration team.
