ARTICLES & UPDATES

𝑫𝒂𝒕𝒆: October 13, 2026
𝑱𝒖𝒓𝒊𝒔𝒅𝒊𝒄𝒕𝒊𝒐𝒏: Kuwait
𝑰𝒔𝒔𝒖𝒊𝒏𝒈 𝑨𝒖𝒕𝒉𝒐𝒓𝒊𝒕𝒚: His Highness the Amir of the State of Kuwait

𝑺𝒖𝒎𝒎𝒂𝒓𝒚

Kuwait has introduced a new Arbitration Law under Decree-Law No. 120 of 2026. The law updates the legal framework for resolving disputes through arbitration and brings the main rules together under one law.

It introduces clearer procedures for arbitration agreements, the appointment of arbitrators, the language and rules of arbitration, online hearings, urgent measures and the enforcement of arbitration awards. It also establishes a 30-day deadline for filing an action to annul an arbitral award and provides a special procedure for judicial arbitration involving government-related disputes.

𝑲𝒆𝒚 𝑪𝒉𝒂𝒏𝒈𝒆𝒔

1. A Unified Arbitration Law

The new law brings together the main rules governing arbitration in Kuwait. It replaces the previous arbitration provisions under the Civil and Commercial Procedures Law and the separate arbitration legislation specified in the Decree-Law. This aims to provide a clearer and more organised legal framework for resolving disputes.

2. Arbitration Agreements

The law sets out the requirements for written arbitration agreements. Parties may agree to refer disputes to arbitration instead of ordinary court proceedings, subject to the applicable legal requirements. They may also agree on the procedures governing the arbitration, within the limits of the law.

3. Language and Rules of Arbitration

The parties may agree on the language in which the arbitration will be conducted. If they do not reach an agreement, the arbitral tribunal determines the language in accordance with the law. The parties may also agree on the procedural rules governing their arbitration, subject to the mandatory provisions of the law and the terms of their agreement.

4. Appointment and Independence of Arbitrators

The law establishes procedures for appointing arbitrators and challenging their appointment. Arbitrators must act independently and impartially throughout the proceedings. These requirements aim to ensure fairness and protect the rights of all parties.

5. Modern Arbitration Procedures

The law allows the use of electronic communications and modern technology in arbitration proceedings. Depending on the applicable rules, hearings and document submissions may be conducted electronically or remotely. These measures can help reduce delays and make the process more convenient.

6. Emergency Measures and Interim Relief

The law provides mechanisms for seeking urgent measures to protect a party’s rights or property while arbitration is ongoing. Such measures may help prevent harm before a final award is issued, subject to the conditions and procedures established by law.

7. Arbitration Awards and Time Limits

The law sets requirements for issuing arbitral awards and establishes rules concerning procedural deadlines and arbitration costs. These provisions aim to improve certainty and clarify the rights and obligations of the parties throughout the arbitration process.

8. Enforcement and Annulment of Arbitration Awards

The law establishes procedures for enforcing arbitral awards and identifies the legal grounds on which an award may be challenged or annulled. An action to annul an arbitral award must generally be filed before the competent court within 30 days from the date the award is notified, subject to the applicable statutory requirements. A party cannot have an award annulled merely because it disagrees with the tribunal’s decision.

9. Judicial Arbitration Involving Government Entities

The law provides for a special judicial arbitration tribunal consisting of three judges and two arbitrators for the matters covered by the judicial arbitration provisions. Each party appoints one arbitrator, while the three judges form the judicial component of the tribunal. The applicable statutory conditions determine which disputes fall within this procedure, including relevant disputes involving government entities.

10. Licensing and Supervision of Arbitration Centres

Arbitration centres must comply with the licensing and regulatory requirements established under the new law. These requirements aim to improve oversight, transparency and the proper administration of arbitration proceedings. Existing centres must comply within the transition period prescribed by the law.

11. Penalties for Violations

The law introduces penalties for certain violations of its requirements. These provisions aim to encourage compliance and ensure that arbitration-related activities are conducted in accordance with the applicable legal framework.

𝑬𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆 𝑫𝒂𝒕𝒆

This Decree-Law was issued on October 13, 2026, and published in the Official Gazette on October 18, 2026. It shall take effect in accordance with the provisions specified in the Decree-Law.

If you have any questions or would like to learn more about the new Arbitration Law, please contact us at info@arazzaqlaw.com.