The choice between arbitration and the courts is usually made when the contract is drafted, not when the dispute arises — so it pays to understand the differences before signing.
Advantages of arbitration
- Confidentiality, compared with public court hearings.
- Arbitrators with expertise in the subject matter.
- Flexibility on procedure, language and seat.
- International enforceability — Kuwait is a party to the New York Convention on the recognition and enforcement of foreign arbitral awards.
Advantages of the courts
- Lower cost in most cases.
- Appeal stages that allow the judgment to be reviewed.
- Easier joinder of additional parties.
How to choose
The choice depends on contract value, the parties' nationalities, where assets for enforcement are located, and how important confidentiality is. For large international contracts arbitration is often the better fit; for smaller domestic contracts the courts may be more suitable.
Drafting the clause
A poorly drafted arbitration clause can create a further dispute about jurisdiction. Specify the institution, seat, language and number of arbitrators clearly.
Content on this website is for general information only and does not constitute legal advice.