Kuwait Cabinet Approves Draft Law Creating Specialised Economic Courts

The Council of Ministers approved a draft decree-law issuing the Law Establishing Economic Circuits at its meeting on Tuesday 18 August 2026. Minister of Justice Counsellor Nasser Al-Sumait described the law to the state news agency KUNA the following day as a qualitative shift in Kuwait's economic justice system, built on specialised courts across all three levels of litigation.

The draft, prepared by the Fatwa and Legislation Department of the Council of Ministers, creates dedicated economic circuits at the Court of First Instance, the Court of Appeal and the Court of Cassation. These circuits will hear the economic, commercial and investment disputes listed in the law, supported by a specialised technical office of judges and experts.

The full text reviewed by WEFAQ runs to 32 articles. Before any dispute reaches a judge, it must first pass through a new settlement office; if the parties settle, the settlement minutes carry the force of an executory instrument, meaning they can be enforced directly like a judgment. The draft also sets up a case preparation office to complete filings before the first hearing, an electronic platform for all litigation and enforcement steps, and a specialised enforcement department linked electronically to banks and government bodies, with asset sales conducted by electronic auction.

Under the draft, the law would take effect on 1 October 2027, with the Minister of Justice issuing the executive regulations before that date. Cases already pending before the Capital Markets Court and the existing court circuits would remain there until decided; only new cases would go to the economic circuits.

WEFAQ's view: the draft still needs to be issued as a decree-law and published in the Official Gazette, but Cabinet approval means the architecture is now settled. Businesses with contracts or disputes in Kuwait should start factoring the new forum, and its mandatory settlement stage, into their planning.

Read more: for the full analysis, read our companion blog article: 'Kuwait's New Economic Courts: What the Draft Law Means for Your Business'.