Arbitration Agreement - Form and Content

Overview

  • This Practice Note deals with arbitration agreements in Kuwait pursuant to Kuwait Decree-Law No. 38/1980 Promulgating the Code of Commercial and Civil Procedures (CCCP) and Kuwait Law No. 11/1995 on Judicial Arbitration with Respect to Civil and Commercial Matters.

  • While dealing with form and content of an arbitration award, this Practice Note will touch upon questions of arbitrability in Kuwait as well as the practical requirements and third party participation to an arbitration agreement.

Practical Guidance

Arbitrability

According to article 173 of Kuwait Decree-Law No. 38/1980, arbitration is not permissible in those matters in which conciliation is not permitted (e.g., criminal, employment, civil rights, insolvency).

Disputes between private parties and relating to matters such as IP, competition, intra-company disputes and securities transactions, may be referred to arbitration.

Unlike other countries in the region, the Kuwait Cassation Court has ruled that disputes arising from commercial agency and distributorship contracts may be referred to arbitration.

Requirements

The CCCP requires that the arbitration agreement be in writing and the subject matter of the dispute be defined in the arbitration agreement or during the arbitration proceedings, otherwise the arbitration shall be null and void.