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Kuwait: Bankruptcy Law Amended to Streamline Court Structures

Times Kuwait, 5 July 2026: Kuwait has issued Kuwait Decree‑Law No. 69/2026 amending the Kuwait Law No. 71/2020 on the Issuance of the Bankruptcy Law to improve efficiency and flexibility in bankruptcy court operations.

Published in the Official Gazette Kuwait Alyawm, the amendments revise Article 4 and 7 of Kuwait Law No. 71/2020, restructuring the formation of bankruptcy courts within the Court of First Instance. Under the new provisions, a Bankruptcy Court may consist of one or more circuits, each composed of three judges, with the head of each circuit holding a rank not lower than that of a court agent. Judges will be selected by the General Assembly of the court.

The reforms also establish a dedicated Bankruptcy Department within the Court of First Instance, headed by a judge of at least court agent rank and supported by a panel of Bankruptcy Judges. The system allows for the appointment of auditors to assist the courts, with remuneration set under executive regulations.

According to the explanatory memorandum, the changes aim to balance judicial flexibility with efficiency, ensuring panels can be formed without delay while maintaining consistency in rulings. Authorities noted that previous restrictions on judicial ranks had caused delays in forming bankruptcy circuits, slowing urgent commercial dispute resolution.

The law took effect upon publication, with relevant ministers mandated to implement its provisions.

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