Two different arbitration systems govern arbitration in Kuwait:
The first is regulated under Articles (173-188) (Chapter Twelve) of the Civil and Commercial Procedure Law No. (38) of 1980. This system is referred to as "voluntary arbitration" since it requires a written arbitration agreement between the parties of a dispute who agree to refer their dispute to arbitration under these rules.
The second is the judicial arbitration by the Ministry of Justice, which was governed by the Judicial Arbitration Law No (11) for 1995. Under this system, arbitration procedures are conducted under the authority of one or more arbitration tribunals consisting of two arbitrators appointed by the parties and three judges from the Court of Appeals appointed by the Supreme Judiciary Council. This system applies when parties agree to refer their disputes under the Arbitration Law No (11). However, it is mainly designed for disputes involving the state when it trades commercially. It also applies, in particular, between government, ministries or other government bodies and companies that are fully owned by the government, or between these companies, or between individuals or private legal entities and government ministries and other public bodies, and generally between any parties that agree to its arbitration.
Kuwait lacks a dedicated national arbitration institution. Consequently, parties often resort to international institutions such as the International Chamber of Commerce (ICC) or the London Court of International Arbitration (LCIA) to administer arbitration proceedings. The Kuwait Mediation and International Arbitration Chamber has been mentioned in discussions about establishing a regional arbitration centre, though detailed information about its activities remains limited.
The competent legislative authorities in Kuwait are drafting a law to reform judicial arbitration. This proposed legislation seeks to replace Law No. 102 of 2013, remove restrictions on the jurisdiction of the arbitration body, and align with regional trends to promote arbitration as a method of resolving disputes.
NEW YORK CONVENTION, 1958
Date of accession: 28 April 1978.
Entry into force for: 27 July 1978.
Declarations:
"The State of Kuwait will apply the Convention to the recognition and enforcement of awards made only in the territory of another Contracting State.
"It is understood that the accession of the State of Kuwait to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done at New York, on the 10th of June 1958, does not mean in any way recognition of Israel or entering with it into relations governed by the Convention thereto acceded by the State of Kuwait."