Increasing Confidence in Economic Justice and Foreign Investment: The Role of the specialised Economic Court in Modernising Kuwait’s Judicial Infrastructure

4 min 14 sec January 16, 2026 (Edited)

Introduction

Leading in foreign investment, and indeed local cross-border commercial activity, requires the development of a sophisticated judicial system. Investors require confidence that they will be protected and supported by an efficient, modern and fair judiciary.

Kuwait is placing serious investment into ensuring such a system is established, including a specialised Economic Court. As a member of the legislative drafting committee entrusted with formulating the Economic Court Law, the opportunity has been presented to delve into to the structural and procedural challenges posed by economic disputes; to reflect on how best to adjudicate disputes and to present a modern, future-forward response to these challenges. One that integrates novel technological advances with procedural efficiency and judicial expertise, whilst meeting international expectations of legal certainty and investor protection.

Economic Courts as Institutional Signals to Investors

It is common practice for investors to assess the efficiency and reliability of local dispute resolution mechanisms, alongside checking substantive commercial law, prior to committing to investments. Delays or even failure in adjudication or enforcement, are often, understandably, cited as deterrents to investment, particularly in emerging and reforming economies, as judicial risk outweighs regulatory or market risk to long-term investments.

The creation of a specialised Economic Court sends a clear signal that the state welcomes international investment and recognises the distinct nature of economic disputes and is committed to providing tailored, expediated expertise to resolving them.

Judicial Specialisation and Legal Predictability

The defining aspect of establishing an Economic Court is judicial specialisation. It allows for fast and accurate judgements in economic disputes, ranging from financial sectors such as capital markets and investment instruments to complex financial transactions and administrative economic decisions. General courts may not have the technical and commercial understanding to hand, leading to delays in judgements. However, the assignment of such disputes to specialised civil, commercial, and administrative economic chambers, staffed by judges of appropriate seniority and supported by expert technical bodies, enhances the quality and coherence of judicial reasoning. This advantageously also develops consistent jurisprudence and provides investors with greater confidence in their legal outcomes and lowers litigation risk, lowering the overall cost of investment.

Procedural Efficiency and Speed as Investment Safeguards

The speed of adjudication is not merely a matter of administrative convenience, the prolonged litigation of an economic dispute can immobilise capital, ultimately undermining the commercial viability of a project or investment. The Economic Court law addresses this concern by shortening timelines and streamlining the procedural mechanisms, introducing structured case preparation, mandatory documentation at filing, and limiting avenues for dilatory tactics.

The new legal system also aims to rationalise the appeal mechanisms. Extraordinary appeals have been restricted to clearly defined and exceptional circumstances, balancing the right to judicial review with the need for finality, reducing what would be considered a systemic risk of a prolonged, multi-tiered litigation.

Digital Justice and Alignment with Global Practice

The new Economic law will follow global best practice, integrating contemporary technology, introducing electronic litigation and digital case management as default. All cases brought to the Economic Court will be filled electronically, with digital notifications, remote hearings, and online enforcement tools. These aim to reduce procedural friction and enhance accessibility for non-resident litigants. These aspects also improve transparency, traceability, and compliance, which are essential in scouting and evaluating jurisdictions for financial investments.

Enforcement Certainty and Investor Confidence

A state must back up the law with viable enforcement. If the judiciary and policing institutions have no way to monitor compliance or to enforce it, judicial reform is pointless, and there will be no confidence to invest in the jurisdiction.  Kuwait plans to introduce a specialised economic enforcement authority, supported by financial and investment expertise. By prioritising monetary judgments, regulating the order of enforcement measures, and limiting the automatic suspensive effect of procedural challenges, the system ensures that judicial victories translate into actual economic recovery, an important measure to investors.

Economic Courts and the Investment Ecosystem

Kuwait’s new Economic Court will contribute to the broader investment ecosystem. It reinforces contractual discipline, encourages compliance with regulatory frameworks, and supports the integrity of financial markets. This will allow Kuwait to establish itself as a trusted financial jurisdiction from a judicial point of view, for private contractual parties, multi-national investors and public authorities. In this sense, the Economic Court functions as both a dispute resolution mechanism and an economic governance institution, reinforcing the state’s commitment to rule-based market participation.

Conclusion

The formation of a specialised Economic Court and the drafting of the new, associated legal system, represents a strategic investment in Kuwait’s judicial infrastructure; one that aligns legal reform with economic policy objectives. By combining specialisation, procedural efficiency, the integration of digitalisation and robust enforcement, the framework addresses known challenges in the field and responds directly to the expectations of foreign investors operating in a competitive global environment, providing a competitive investment environment.

From the beginning the objective of legislative drafting has been to facilitate and accelerative the judicial process, and in doing so demonstrate Kuwait’s credibility to provide economic justice. With successful implementation, the Economic Court should position Kuwait as a legally secure jurisdiction for international investment.