On 8 September 2026, Kuwait issued Decree-Law No. 88 of 2026 on the Establishment of Economic Courts, marking a significant milestone for the country’s commercial justice system. Published in the Kuwait Official Gazette on 13 September 2026 and set to take effect on 1 October 2027, the law creates a dedicated judicial framework for resolving economic and commercial disputes with speed, specialization, and technological sophistication.

For businesses operating in or connected to Kuwait, this legislation represents a fundamental shift in how commercial disputes will be handled. Below, we examine the Decision’s key features and implications.

A Specialized Three-Tier Court Structure

The law establishes dedicated economic divisions at all three levels of the Kuwaiti judiciary:

• Economic Court of First Instance: Composed of panels of three judges, these courts have exclusive jurisdiction over economic disputes. Judgments are final for claims up to KD 10,000. The courts include both civil/commercial and administrative sub-divisions.
• Economic Court of Appeal: Also comprising three-judge panels, the appellate division renders final judgments for disputes valued up to KD 30,000.
• Economic Division at the Court of Cassation: Jurisdiction is limited to claims exceeding KD 30,000, rulings on jurisdictional questions, conflicting final judgments, and violations of jurisdiction rules.

This structure ensures that economic disputes are adjudicated by judges with specialized expertise at every stage, from initial hearing through final appeal.

Broad Jurisdiction Covering 17 Categories of Disputes

Article 11 of the law grants the economic courts exclusive jurisdiction over 17 categories of disputes, encompassing virtually every major area of economic activity in Kuwait. These include:

• Banking and Central Bank regulatory disputes
• Capital Markets Authority disputes
• Client-bank disputes exceeding KD 100,000
• Shareholder and corporate disputes (public companies at any capital level; other companies with capital exceeding KD 100,000; companies licensed by the Direct Investment Authority)
• Foreign capital investment and direct investment disputes
• Oil contracting disputes within Kuwait
• Public-private partnership and public tender disputes over KD 100,000
• Competition protection, industrial regulation, and patent/industrial design disputes
• Enforcement of foreign judgments and arbitral awards in economic matters

The courts also have extended jurisdiction over contractual disputes, incidental claims, and associated compensation claims.

The inclusion of competition protection disputes within the economic courts’ exclusive jurisdiction is particularly significant. Kuwait’s competition regime, established under Law No. 72 of 2020 Concerning the Protection of Competition, prohibits a wide range of anti-competitive conduct: horizontal agreements such as price-fixing, market allocation, output restrictions, and collusive bidding (Article 5); horizontal practices that may distort, restrict, or prevent competition (Article 6); vertical agreements and concerted practices that may lessen competition (Article 7); and abuse of a dominant position (Article 8). The Competition Protection Agency (CPA) has authority to investigate violations, impose corrective measures, and refer matters to the Disciplinary Board, which may impose financial penalties of up to 10% of a violator’s total revenues.

Focus on Competition Law: Enhanced Jurisdiction and Enforcement

The law also contains a leniency mechanism: under Article 38, any person who reports and discloses to the Agency their participation in a prohibited horizontal agreement, providing evidence before detection, is exempted from financial penalties. This “first-in” immunity is designed to encourage cartel participants to come forward, a tool that has proven effective in competition enforcement regimes worldwide.

With competition disputes now routed to judges who have specialized training and access to economists and investment specialists through the Technical Bureau, parties can expect more informed analysis of complex market dynamics, dominance assessments, and concentration effects. This is a marked departure from the general courts, where judges may have limited exposure to economic theory or competitive analysis.

Merger Control: New Financial Thresholds Now in Effect

Notably, Kuwait’s competition regime underwent a significant change earlier this year. On 5 April 2026, the CPA issued Board Resolution No. 32 of 2026, which substantially revised the financial thresholds for mandatory merger control filings, replacing the previous thresholds set in 2021. Under the new rules, a filing is required where any of the following criteria are met:

• Any party achieves annual sales in Kuwait exceeding KWD 1,500,000 (previously KWD 500,000);
• The combined annual sales of the parties exceed KWD 3,000,000 (previously KWD 750,000), provided that the target achieves annual sales in Kuwait of at least KWD 1,500,000; or
• The registered assets of the parties in Kuwait exceed KWD 7,500,000 (previously KWD 2,250,000).

These increases represent a substantial recalibration of the regime, with individual sales thresholds rising by 200%, combined sales by 300%, and asset thresholds by approximately 233%. The introduction of a minimum target threshold requirement aligns Kuwait’s approach more closely with international merger control practice. Critically, Kuwait maintains a mandatory, suspensory system: parties that meet any threshold must still obtain CPA clearance before completing the transaction. Failure to notify a notifiable concentration can result in financial penalties of up to 10% of total revenues. Parties must file at least 60 days before preparing the transaction agreement, and the CPA has 90 days (extendable by a further 90 days) to assess the application.

Disputes arising from merger control proceedings and CPA decisions will now be heard by the economic courts’ administrative sub-division at first instance, with appeals following the new streamlined timelines. The combination of specialized judges and the robust enforcement powers of the new courts should bring greater rigor and efficiency to competition law adjudication.

Mandatory Pre-Litigation Dispute Settlement

One of the law’s most significant innovations is the establishment of a mandatory Dispute Settlement and Mediation Office. Before any case may proceed to trial, parties must first attempt resolution through this office, which is staffed by seconded judges. The initial settlement period is 15 days from filing, extendable by agreement of the parties up to a maximum of three months, and settlement agreements carry the force of enforceable instruments. All mediation proceedings are confidential, and limitation periods are tolled during the settlement process.

Case Preparation Office, Electronic Litigation and Procedural Discipline

The law introduces a Case Preparation Office that reviews claims before they are referred to court, ensuring completeness of documentation and compliance with procedural requirements. Expert reports must be delivered within 60 days, and strict procedural deadlines apply throughout the process.

All court proceedings are conducted through a mandatory electronic litigation platform, covering everything from case filing and document submission to notifications and enforcement. An electronic case file is created for every matter, with access restricted to authorized parties. The platform also maintains a publicly accessible database of anonymized judgments, promoting transparency and certainty.

Additionally, there are strict procedural obligations introduced by the law at every stage. Once the case preparation phase concludes, parties may not submit further memoranda or documents unless the court is satisfied that the delay was due to an acceptable excuse or technical reasons beyond the party’s control. As a default rule, the economic court may decide the case, or an appeal, in the absence of the parties and without oral argument, unless the court considers a hearing necessary. Where a hearing is ordered, it may be conducted remotely using modern electronic communication technology.

Parties’ failure to prosecute their claims is met with clear consequences. If the claimant fails to arrange service on the defendant within 30 days of filing, the court shall deem the case as if it had not been filed, provided the failure is attributable to the claimant. If both parties fail to attend, the court may either decide the case on the papers or strike it from the roll. A second default by the claimant or appellant triggers a mandatory dismissal rather than a mere striking-out, a provision aimed at discouraging procedural delay.

Expert appointments are also tightly regulated. Expertise work referred by the economic courts is assigned exclusively to experts within the General Department of Experts. Court-appointed experts must submit their reports within 60 days from the date they commence work, and the court retains discretion to shorten or extend this period as circumstances require.

Technical Bureau and Judicial Specialization

The law establishes a Technical Bureau at the Court of First Instance, headed by a judge of at least counsellor rank. The Bureau will be staffed by judges and counsellors seconded for renewable two-year terms, creating a dedicated institutional resource for the courts’ most technically demanding work.

Where a dispute requires specialized analysis, the Bureau may call upon economists and investment specialists to assist with complex financial and commercial issues. Judges assigned to the economic courts must have experience in economic disputes or specialized training. The Kuwait Institute for Judicial and Legal Studies is responsible for developing and delivering continuing programmes for economic court judges, Bureau staff, and court-appointed experts. Together, these measures create a deep bench of specialized judicial talent for increasingly complex financial, investment, and commercial matters.

Streamlined Appeals and Unified Legal Principles

The law imposes compressed appeal timelines designed to expedite case resolution. Appeals against urgent-matter rulings must be filed within 15 days of pronouncement or notification, and challenges to petition orders  must be lodged within 10 days.

Appeals to the Court of Cassation must be filed within 30 days. Cassation review is deliberately limited to four narrowly defined grounds:

• claims exceeding KD 30,000;
• rulings on jurisdictional competence;
• violations of subject-matter or value-based jurisdiction rules;
• and final judgments that contradict an earlier judgment between the same parties that has acquired the force of res judicata.

A distinctive feature of the law is Article 7, which introduces a mechanism for unifying legal principles across the economic courts. Where conflicting final judgments arise on the same legal issue between different parties, the President of the Court of Appeal may, on his own initiative or at the request of an appellate economic division, refer the matter to the designated panel at the Court of Cassation for a binding ruling. This mechanism is designed to ensure consistency in judicial interpretation and prevent divergent case law from undermining legal certainty in economic matters.

The law also preserves access to petitions for review of final economic court judgments, subject to the grounds, timelines, and procedures established under the Civil and Commercial Procedures Law. Judgments rendered on such petitions are final and not subject to further appeal by any means.

Specialized Enforcement Mechanisms

The law establishes a dedicated enforcement department staffed with financial and valuation experts. Enforcement judges are given broad powers, including asset seizure, bank account freezing, travel bans, and emergency orders, which are all executable without prior notice to the debtor in urgent cases. A notable provision allows judges to suspend financial transactions of bad-faith debtors and to order direct electronic linking with banks, investment companies, and the real estate authority for real-time enforcement. Both electronic and public auctions are conducted under judicial supervision.

Transitional Provisions and Implementation Timeline

The implementing regulations must be issued by the Minister of Justice before 1 October 2027, the date on which the decree-law is scheduled to take effect. This period gives courts, practitioners, and businesses time to prepare for the new structure, procedural requirements, and electronic systems.

Cases pending before the Capital Markets Court established under Law No. 7 of 2010, and before other competent judicial divisions, will continue before those courts until final disposition. Cases transferred to the economic courts will follow the new procedural rules from the date of transfer, without affecting the validity of procedures completed before the transferring court.

What This Means for Businesses

The establishment of Kuwait’s economic courts demonstrates a commitment to creating a business-friendly judicial environment. For companies operating in Kuwait, the key takeaways are:

• Faster resolution: Mandatory mediation, strict timelines, and electronic proceedings should significantly reduce case duration.
• Greater predictability: Specialized judges, a published judgments database, and unified legal principles promote consistency and certainty.
• Stronger enforcement: Direct electronic access to financial institutions and robust enforcement powers should improve the enforceability of judgments.
• Comprehensive coverage: The 17 categories of jurisdiction capture the full range of commercial and economic disputes likely to arise in Kuwait.
• Heightened competition scrutiny: With competition disputes now heard by specialized judges with access to economic expertise, businesses should anticipate more sophisticated analysis of competitive effects and market dynamics. The revised merger thresholds, while reducing filing burdens on smaller transactions, maintain a suspensory regime that requires careful transaction planning.

For advice on how these new rules may affect your organization, contact GLA & Co.

Authors: Asad Ahmad, Partner & Head of Anti-Trust and Competition, and Liana Rashed, Trainee Lawyer.