Kuwait has brought its arbitration rules together in a single standalone statute. Decree-Law No. 120 of 2026 promulgating the Arbitration Law was issued on 13 October 2026 and published in the Official Gazette on 18 October.

Until now, arbitration provisions were split between the Civil and Commercial Procedures Law and Law No. 11 of 1995 concerning Judicial Arbitration.

The new law adopts core principles of international arbitration. These include the separability of the arbitration agreement from the underlying contract and the tribunal's power to rule on its own jurisdiction, known as competence-competence. It also respects party autonomy in choosing arbitrators, procedures and the applicable law.

The law recognises electronic arbitration agreements. It gives legal validity to the use of modern communication technologies for proceedings, hearings, document exchange and electronic signatures. It also regulates emergency arbitration, as well as interim and conservatory measures available before a tribunal is constituted.

Other provisions set time limits for issuing awards and strengthen confidentiality. Parties must disclose any third-party funding of arbitration costs. The law also covers the establishment, licensing and supervision of arbitration centres, and sets safeguards for arbitration in contracts involving state entities.

Under Article 79, and subject to Article 78, the Court of Appeal will decide the merits of a dispute when it sets aside an arbitral award. The aim is to avoid unnecessary time and expense.

Writing in Times Kuwait, Tareq Yousef AlShumaimry, former Secretary-General of the GCC Commercial Arbitration Centre, said the law closely reflects the principles of the UNCITRAL Model Law on International Commercial Arbitration of 1985, as amended in 2006, while retaining distinct domestic provisions. He said the law brings Kuwait into the wider modernisation of arbitration legislation across the GCC.