Arbitration is a method of resolving disputes wherein the parties agree to settle conflicts arising from an agreement or commercial relationship without resorting to national courts. Instead, they appoint a neutral individual or panel, known as the arbitrator(s), to review their case and issue a binding decision.
The arbitration process differs from traditional court procedures in several ways. The parties select the arbitrator(s) and the applicable law, and the procedures are typically shorter in duration. The goal of arbitration is to achieve the highest possible levels of accuracy, fairness, and efficiency, resulting in a final and enforceable decision. Consequently, the primary objective of opting for arbitration is to avoid lengthy and complex judicial processes.
An arbitration award is any written decision issued by an arbitrator(s) who has jurisdiction according to the terms of the arbitration agreement agreed upon by the parties. The award addresses a substantive or procedural issue based on the law or arbitration agreement.
The nature of the arbitration award requires that it be written, signed by the arbitrator(s), and reasoned (unless the parties agree otherwise). The award must include all relevant information about the parties and the arbitrators. Any violation of these conditions can render the arbitration award null and void.
To enforce an award, a written request must be submitted to the competent judge, accompanied by a copy of the arbitration agreement and the original award or a signed copy in the language it was issued. If the award is in a foreign language, it must be translated into Arabic by an accredited body, unless the parties agree on an alternative enforcement method.
The party against whom the award is invoked was not properly notified of the appointment of an arbitrator or the arbitration proceedings or was unable to present their case for other reasons beyond their control.
The award deals with a dispute not contemplated by or beyond the scope of the arbitration agreement. If separable, parts of the award addressing matters within the arbitration agreement can still be recognized and enforced.
The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties or the law of the country where the arbitration took place.
The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties or the law of the country where the arbitration took place.
The award has not yet become binding on the parties or has been set aside or suspended by a competent authority of the country in which, or under the law of which, the award was made.
If it is found that the arbitration award being recognized or enforced is under appeal for annulment in the country of origin, the competent judge may delay the enforcement decision as deemed appropriate and may require the party seeking recognition or enforcement to provide suitable security.
A foreign judgment is one issued in the name of a foreign country concerning a private law matter (whether commercial, civil, or personal status), and it must be final according to the law of the issuing country. A foreign arbitration award involves at least one foreign party, whether natural or legal, and it can be issued either abroad or domestically as long as one of the parties is foreign.
