Overview
Law No. 11 of 1995 on Judicial Arbitration in Civil and Commercial Matters, together with the arbitration provisions in the Civil and Commercial Procedures Law No. 38 of 1980, governs arbitration procedures in Kuwait as an alternative means of resolving commercial disputes outside the ordinary courts.
Advantages of Arbitration Over Litigation
- Relative speed: arbitration proceedings often conclude in less time than the three tiers of ordinary litigation.
- Confidentiality: the facts and details of the dispute remain outside the public exposure typical of ordinary court hearings.
- Freedom to select arbitrators with specific technical expertise relevant to the dispute.
- Easier international enforcement of arbitral awards in states party to the 1958 New York Convention.
When Arbitration Is the Right Choice
Including an arbitration clause is advisable in commercial contracts with complex technical dimensions (such as construction contracts and joint ventures), or contracts involving parties of different nationalities, where the neutrality of the arbitration seat and its agreed rules provide fair common ground for the parties.
Practical Advice When Drafting an Arbitration Clause
A poorly drafted arbitration clause (failing to specify the arbitral institution, seat, or governing law) can itself become a source of dispute before the substance of the case is even reached. Its drafting therefore deserves careful legal attention at the time the contract is signed, not after a dispute has arisen.