Kuwait has issued a new arbitration law aimed at modernizing dispute resolution, strengthening investor confidence and protecting public funds. Decree-Law No. 120 of 2026, issued on Tuesday, establishes a comprehensive national framework governing arbitration proceedings, arbitration institutions and related regulatory requirements.
The legislation comprises 108 articles divided into 15 chapters. According to its explanatory memorandum, the law is intended to support Kuwait’s ambition to become an attractive financial and commercial hub by creating a modern arbitration environment aligned with international practices while preserving the country’s legal principles. It replaces an older framework that the memorandum said no longer adequately addressed contemporary arbitration requirements.
The law introduces safeguards for arbitration in contracts concluded by state entities without excluding them from arbitration. It also establishes procedures for interim and precautionary measures, incorporates judicial arbitration and distinguishes between ad hoc arbitration and proceedings administered by arbitration centres. Parties may agree on procedural rules, including those of arbitration centres inside or outside Kuwait, while tribunals must ensure equal treatment, respect public order and avoid unnecessary delays and costs.
The legislation also provides for licensing and oversight of arbitration centres through a specialized department at the Ministry of Justice. The department will maintain registers of arbitrators and arbitration centres, with further rules on registration, removal and fees to be issued by the Minister of Justice. The law covers arbitration seated in Kuwait and, where the parties agree, certain proceedings conducted abroad, subject to applicable international agreements and mandatory legal provisions.
Chapters 14 and 15 address penalties, confidentiality and regulatory responsibilities. The explanatory memorandum states that arbitrators will remain subject to civil liability for fraud or gross negligence, while their judicial work will not be subject to criminal penalties under the framework. The new law seeks to improve the reliability of arbitration, protect public interests and strengthen Kuwait’s appeal as a destination for investment and commercial dispute resolution.
