Faster Benches: What Kuwait's Specialized-Court Reforms Mean for Business

On 5 July 2026 the Official Gazette (Kuwait Al-Youm, Issue 1798) carried a coordinated set of four decree-laws, Nos. 68 to 71 of 2026, all signed on 28 June 2026, that change how Kuwait staffs its specialized judicial circuits. Read together, they share a single design idea: the composition of a specialized bench should be governed by the court's General Assembly and a floor grade, rather than by a rigid, higher grade that is hard to fill. Three of the four reforms bear directly on commercial life.

Why this matters

Specialized circuits only deliver their promised speed if they can actually be constituted. The explanatory memoranda accompanying the decree-laws are candid: tying circuit membership to a narrow judicial grade, such as counsellor or court-deputy, repeatedly left benches unable to sit, which delayed urgent applications and the resolution of disputes. For businesses, a bench that cannot convene is not a procedural footnote; it is time, cost, and uncertainty. These amendments target that bottleneck.

Bankruptcy: a more resilient Bankruptcy Court

Decree-Law No. 69 of 2026 rewrites Article 4 and the first paragraph of Article 7 of the Bankruptcy Law (Law No. 71 of 2020). Under the new Article 4, the Bankruptcy Court at the Court of First Instance is composed of one or more circuits whose seat is fixed by decision of the Minister of Justice with the approval of the Supreme Judicial Council. Each circuit is formed of three judges chosen by the court's General Assembly, provided its president holds at least court-deputy grade, assisted by a sufficient number of auditors selected from those registered with the Capital Markets Authority, whose remuneration is set by the Executive Regulations and funded by the Ministry of Finance. The new Article 7(1) allows the Bankruptcy Administration to be led by a judge of at least court-deputy grade. In practice this widens the pool of eligible judges, making it far easier to keep a functioning insolvency bench in session, which matters to lenders enforcing security, suppliers proving claims, and debtors seeking a timely restructuring.

Capital markets: flexibility for the Capital Markets Court

Decree-Law No. 71 of 2026 amends items (1) and (2) of Article 108 of the Capital Markets Authority Law (Law No. 7 of 2010). The criminal and non-criminal circuits of the Capital Markets Court previously each required a member of at least counsellor grade. Because counsellors ordinarily sit in the Court of Appeal and reach the Court of First Instance only by secondment, that requirement often stalled the formation of the very circuits meant to resolve securities disputes. The amendment lowers the threshold to court-deputy grade, giving full flexibility to constitute the circuits that hear matters arising under the capital-markets regime. For issuers, brokers, and investors, the reform points toward more predictable listing of enforcement and dispute cases before a specialized bench.

Debt enforcement: travel bans decided sooner

Decree-Law No. 68 of 2026 amends the first paragraph of Article 297 of the Civil and Commercial Procedure Code (Decree-Law No. 38 of 1980). The authority to issue a travel-ban order against a debtor, alongside the Director of the Execution Department, is no longer confined to the deputies of the court; it may be assigned to judges of the Court of First Instance chosen by its General Assembly. Because deputy grade is an intermediate rung that is thinly staffed and sometimes vacant, applications had been backing up. Widening the pool is intended to secure a decision as soon as an application is filed, a meaningful lever for creditors while remaining an exceptional measure that debtors can contest.

The through-line, and one to watch

Decree-Law No. 70 of 2026 makes the same structural move for the juvenile court under Law No. 111 of 2015, confirming that this is a system-wide recalibration of court formation rather than a one-off. Separately, Issue 1798 also approved, by Decree No. 105 of 2026, a Kuwait and United Arab Emirates memorandum of understanding on consumer protection and commercial oversight, a cross-border cooperation signal worth tracking for consumer-facing and e-commerce businesses.

WEFAQ advises clients with pending or anticipated insolvency, securities, or debt-enforcement matters to revisit their litigation timelines in light of these changes, and to watch for the implementing decisions of the Minister of Justice that will fix the seat and formation of the new circuits. Our Litigation and Capital Markets teams are ready to assess what the reforms mean for a specific case or portfolio.

Source: Kuwait Al-Youm Issue 1798, pages 2A to 6A, dated 5 July 2026 (Decree-Laws Nos. 68 to 71 of 2026 and Decree No. 105 of 2026, signed 28 June 2026).

This article is provided for general information only and does not constitute legal advice. For advice specific to your circumstances, please contact WEFAQ Law Firm.