Kuwait is moving forward with plans to establish specialized economic courts as part of a broader strategy to modernize its economic and legal frameworks and attract greater foreign investment. The initiative aims to address the prolonged delays in settling commercial disputes that have hampered business activity and investment growth.
Economic expert and lawyer Athbi Al-Tahnoon noted that the country's legal system has struggled to keep pace with the complexity and volume of commercial litigation. Cases involving disputes between companies, or between companies and individuals, often take two to four years to resolve due to a shortage of qualified financial and judicial experts. This lengthy process has led some companies to face bankruptcy or operational disruptions as they lack timely legal recourse.
The creation of specialized courts seeks to accelerate dispute resolution, minimizing financial losses for businesses. Attorney Salem Al-Kandari emphasized that these courts are vital for protecting both local and foreign investors. He said the current judiciary is burdened by an extensive backlog of mixed cases, which contributes to delays. Specialized courts staffed with judges and financial experts trained to understand market and trade dynamics will enable faster and more precise rulings. Al-Kandari added that such reforms are expected to enhance investor confidence by demonstrating Kuwait’s commitment to a transparent and efficient legal system aligned with international standards.
The reform is also anticipated to improve Kuwait’s rankings in the World Bank’s Ease of Doing Business and Global Competitiveness indices by reducing sovereign and regulatory risks that typically concern investors.
Legal consultant Hamad Al-Mutairi highlighted that Kuwait has become an increasingly attractive destination for investment due to careful planning and effective governance. He stressed that specialized economic courts are necessary to keep pace with evolving economic challenges and to clarify judicial jurisdiction over commercial matters. Given the cautious nature of foreign capital, simplifying and speeding up litigation processes is crucial for sustaining investment inflows.
Al-Mutairi noted that commercial disputes currently take between 500 and 650 days to resolve, but digital support for the new courts could reduce this timeframe by up to 60 percent, allowing most cases to be settled within 90 to 120 days. He projected that such judicial reforms could boost foreign direct investment by 15 to 25 percent over the next three years.
Overall, Kuwait’s move to establish specialized economic courts represents a strategic effort to strengthen its legal infrastructure, expedite dispute resolution, and foster a more conducive environment for sustainable economic growth and international investment.