Kuwait has issued Decree-Law No. 120 of 2026 on the issuance of a new Arbitration Law, establishing a comprehensive national framework aimed at accelerating dispute resolution while introducing strict safeguards for public funds and arbitration involving state contracts

The new legislation consists of 108 articles divided into 15 chapters. It represents a standalone and comprehensive legal framework for arbitration, drawing on established international practices while preserving the specific characteristics of Kuwait’s legal and procedural system.

One of the law’s key objectives is to reduce the time required to settle disputes by establishing clearer deadlines and streamlined procedures. It also introduces mechanisms for temporary and precautionary measures designed to protect assets and rights during arbitration proceedings.

The legislation establishes specific safeguards governing arbitration in contracts concluded by state entities. The framework seeks to balance the need to encourage investment and provide flexible dispute-resolution mechanisms with the requirement to protect public funds and maintain appropriate government oversight.

The new system also regulates both ad hoc and institutional arbitration, while introducing a licensing and oversight framework for arbitration centers. It further provides for official registers for arbitrators and arbitration centers under the supervision of the relevant department at Kuwait’s Ministry of Justice.

The law also reflects developments in modern arbitration practices by allowing greater use of technology in arbitration proceedings and addressing key issues involving confidentiality, arbitral awards, enforcement and challenges.

A notable feature is the comprehensive regulation of arbitration procedures, requiring arbitral tribunals to respect fundamental principles of litigation and public order, manage proceedings efficiently and ensure equal treatment of all parties.

The legislation also contains a dedicated penalties chapter covering Articles 100 through 105. According to the explanatory memorandum, this makes the law one of the first arbitration laws in the region to include a comprehensive penal chapter.

The provisions are designed to protect the integrity of the arbitration system, maintain public confidence in its procedures and safeguard confidentiality, while keeping the arbitrator’s liability primarily within the civil framework specified by the law.

The final chapter contains the concluding provisions and assigns the relevant arbitration department at the Ministry of Justice responsibility for maintaining official registers of arbitrators and arbitration centers, as well as establishing the rules, requirements and fees governing registration and removal.

The new legislation is expected to strengthen Kuwait’s business environment by providing a clearer, faster and more flexible framework for resolving commercial disputes, supporting investment and reinforcing the country’s ambitions to develop its position as a regional financial and commercial hub.