International Commercial Arbitration in Arab Countries: Experiences and Prospects

Introduction:

International commercial arbitration is one of the most prominent alternative methods for resolving commercial disputes that arise between international parties. It is characterized by flexibility and speed in decision-making compared to traditional judicial systems. With the growth of international trade and cross-border investments, arbitration has become a preferred means for large companies and investors, particularly in Arab countries aiming to attract more foreign investments. In this context, Arab countries have witnessed significant development in their laws and regulations related to international commercial arbitration, as they strive to provide a favorable legal environment that enhances trust between foreign and local investors.

Experiences of Arab Countries in International Commercial Arbitration:

The experiences of Arab countries in international commercial arbitration vary. Some have made significant progress in modernizing their laws and aligning with international standards, while others still require more legal and legislative reforms. For instance, the United Arab Emirates is considered one of the leading Arab countries in the field of arbitration, having established high-level international arbitration centers, such as the Dubai International Arbitration Centre (DIAC) and the Abu Dhabi Commercial Conciliation and Arbitration Centre.

On the other hand, Egypt has had significant experiences in international commercial arbitration for decades, particularly through the Cairo Regional Centre for International Commercial Arbitration (CRCICA), which has played a major role in resolving international commercial disputes in the region. In contrast, other countries like Iraq and Yemen face challenges in this area due to political and economic conditions.

Challenges Facing International Commercial Arbitration in Arab Countries:

Despite the notable progress in some countries, there are still many challenges facing international commercial arbitration in the Arab world. Among the most prominent challenges are:

1-Lack of Unified Legislation: Arab countries lack a unified legal framework to regulate international commercial arbitration, leading to significant differences in how arbitration cases are handled.

2-Bureaucracy and Judicial Procedures: In some countries, bureaucracy and judicial intervention still heavily influence the arbitration process, reducing the effectiveness of this mechanism as a fast and flexible means of dispute resolution.

3-Recognition and Enforcement of Arbitral Awards: Although most Arab countries have joined the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, the enforcement of such awards may face challenges due to local law interpretations or governmental interventions.

Future Prospects for International Commercial Arbitration in Arab Countries:

The future trends of international commercial arbitration in Arab countries show promising potential. With the continuous growth of foreign investments and the increasing need for effective solutions to commercial disputes, the region is expected to witness further developments. Arab countries are increasingly seeking to update their laws, provide a conducive legal environment for investment, and strengthen existing international arbitration centers while developing new ones.

For example, recent initiatives taken by Saudi Arabia as part of its Vision 2030 aim to enhance the Kingdom’s role as a major hub for international commercial arbitration in the region, boosting the attractiveness of the Saudi economy to foreign investors. Additionally, regional cooperation initiatives among Arab countries are expected to increase to unify laws and standards related to arbitration.

Conclusion:

International commercial arbitration is a key pillar for resolving commercial disputes in the Arab world amid increasing investments and trade exchanges. Despite the challenges it faces in some Arab countries, the future outlook points to positive developments toward a more balanced and effective legal environment. By improving local legislation and enhancing regional and international cooperation, Arab countries can play a larger role in the international commercial arbitration landscape, which will contribute to attracting more investments and strengthening their position on the global trade stage.