THE AUTHORS:
Michel Madkour, Associate at Madkour Law Firm
Ghady Rizk, Associate at Madkour Law Firm
Souad Ajami, Trainee Lawyer at Madkour Law Firm
Nour Karam, Trainee Lawyer at Madkour Law Firm
The Middle East and North Africa (“MENA”) region has witnessed significant developments in the field of arbitration in recent years. This article aims to provide a comprehensive overview of the key trends, legislative changes, and institutional developments shaping the arbitration landscape in the MENA region.
Notable Legislative Reforms
United Arab Emirates (“UAE”)
In September 2023, the UAE amended its Arbitration Law (Law No. 6 of 2018) through Law No. 15 of 2023. These amendments bolster the UAE’s role as a global arbitration hub with key changes:
- Arbitrator Appointment: Article 10 prohibits arbitrators from having direct relationships with parties, though the term remains undefined. Article 10bis allows arbitrators serving on arbitration boards to act in cases with party consent. It is noteworthy that non-compliance may lead to award annulment or legal challenges.
- Procedural Aspects: Article 23 now enables parties to choose arbitration rules, with tribunals determining procedures if no agreement is reached.
- Virtual Proceedings: Article 28 permits in-person or virtual hearings, with the tribunal deciding the format if parties disagree. Institutions must although provide technical support.
- Tribunal Powers: Article 33 grants tribunals authority over key procedural aspects and defaults confidentiality of the arbitration unless otherwise agreed.
Meanwhile, India and the UAE signed a new Bilateral Investment Treaty (“BIT”) on February 13, 2024, in Abu Dhabi, which came into effect on August 31, 2024. This treaty replaces the previous Bilateral Investment Promotion and Protection Agreement (“BIPPA”), which expired on September 12, 2024. This development is significant, as the UAE accounts for 3% of India’s Foreign Direct Investment, and Indians represent the largest expatriate community in the UAE.
Kingdom of Saudi Arabia (“KSA”)
The Saudi Civil Code (Royal Decree No. 191 of 1444H), enacted in June 2023 and effective from December 16, 2023, marks a significant step toward legal modernization in alignment with Saudi Arabia’s Vision 2030 to foster investment and economic growth. It represents a shift from the previous reliance on uncodified Islamic Sharia principles, such as those derived from the Quran and Hadiths, by codifying substantive legal rules to provide a structured framework for commercial and contractual relationships. This development has a profound impact on arbitration, establishing clear legal principles for arbitral tribunals applying Saudi law as the governing law (lex causae), thereby enhancing legal predictability and stability for both local and international disputes.
Morocco
Morocco’s Arbitration and Mediation Code, Law No. 95-17, published in June 2022, modernizes its framework. Specifically, the law updates provisions on interim measures and allows judicial intervention in specific events (Article 19). Additional reforms include the integration of technology in arbitration processes, such as electronic hearings and filings (Articles 33 and 35).
Iraq
Iraq acceded to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (“New York Convention”) on March 4, 2021. This milestone marks Iraq’s commitment to aligning with international arbitration standards. Iraq applies the reciprocity and commerciality reservations under the NYC, meaning it recognizes only awards from other contracting states and disputes considered commercial under its laws.
Libya
In July 2023, Libya enacted its Commercial Arbitration Law No. 10 of 2023, modernizing its arbitration framework by replacing outdated provisions in the 1953 Code of Commercial and Civil Procedures. Aligned with the UNCITRAL (United Nations Commission On International Trade Law) Model Law on International Commercial Arbitration (2006) and regional arbitration standards, the law introduces a licensing process for arbitration centers, tax exemptions, and regulatory oversight. It outlines enforcement procedures for domestic and foreign arbitral awards, although Libya’s non-membership in the New York Convention poses challenges. Notably, it also establishes a framework for electronic arbitration, supported by digital laws on electronic crimes and transactions.
Institutional Developments
Saudi Center for Commercial Arbitration (SCCA)
The SCCA has taken several steps to strengthen its position as a leading regional forum, including the enactment of new Arbitration Rules effective 1 May 2023 (1) and the introduction of new model clauses (2).
- New Arbitration Rules: Key updates emphasize technology integration and procedural efficiency. Provisions now allow electronic document transmission and virtual hearings (Article 25(2), 29(2)). On the organizational side, the SCCA Court oversees administrative tasks, including arbitrator appointments (Article 16), removals (Article 18), cost determinations (Articles 41, 42) and award review (Article 36(4)). The update also provides updated rules for joinder (Article 12), consolidation (Article 13), and coordination of proceedings (Article 14).
Other innovations pertain to:
- Online Dispute Resolution Procedure: Automatically applicable for small claims below a set threshold (Appendix IV).
- Transparency: Non-parties with an economic interest, including third-party funders, must now disclose their involvement (Article 17(6)).
- Model Clauses: In June 2023, the Saudi Minister of Finance issued Resolution No. 1321/1444, introducing model arbitration agreements. These clauses allow parties to tailor key elements, including arbitrator numbers, selection process, venue, and language.
- Cooperation and Agreements: On March 6, 2024, the SCCA entered into strategic agreements with the International Centre for Settlement of Investment Disputes (ICSID) and the Singapore International Arbitration Centre (SIAC) to strengthen its position in international arbitration. The cooperation agreement with ICSID facilitates knowledge-sharing and activates Article 63 of the ICSID Convention, allowing ICSID cases to be heard at SCCA facilities. The Memorandum of Understanding (“MoU”) with SIAC promotes arbitration in Saudi Arabia and Singapore through joint events and preferential rates for SCCA hearings in Singapore and SIAC hearings in Saudi Arabia.
Riyadh successfully hosted its first International Disputes Week (RIDW25) from February 23 to 27, 2025, bringing together over 5,300 attendees and 471 speakers.
Dubaï International Arbitration Centre (DIAC)
DIAC has also undergone notable changes:
- Court Updates: In 2023, DIAC appointed a new Registrar and established an arbitration court with 13 international experts. Innovations include a metaverse platform for dispute resolution, AI integration, and new mediation rules enabling legally enforceable settlements. Technology remains a key focus, with strategic partnerships, including one with the Silicon Valley Arbitration and Mediation Center (SVAMC), enhancing technology integration.
- New Statute: Dubai Decree No. 34 of 2021 merged DIFC-LCIA and Emirates Maritime Arbitration Centre into DIAC, making it Dubai’s main arbitration center. Updated rules, effective March 21, 2022, introduced:
- Default Seat: Arbitration in DIFC unless agreed otherwise (Article 20.1).Modern Procedures: Virtual hearings and electronic award signing (Articles 20.2, 23.2, 26, 27.6, 34.6).Expedited Proceedings: For disputes under 1 million AED or urgent cases (Article 32.1).Consolidation and Joinder: Streamlined claims and third-party inclusion (Articles 8, 9).
- Third-Party Funding: Permitted with mandatory disclosure (Article 22).
According to its 2023 Annual Report, DIAC’s caseload reached 355 cases in 2023. Concerning gender parity, women represented 47% of the Arbitration Court and have secured 31% of arbitrator appointments from 29 countries, reinforcing DIAC’s leading role in the MENA region.
Abu Dhabi International Arbitration Center (ArbitrateAD)
The Abu Dhabi International Arbitration Centre (ArbitrateAD) was established by the Abu Dhabi Chamber of Commerce & Industry through Resolution No. 75 on November 30, 2023, with its Arbitration Rules effective from February 1, 2024. Replacing the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC), ArbitrateAD designates the Abu Dhabi Global Market (ADGM), a leading financial free zone, as the default seat for arbitration, enhancing its appeal as an international arbitration hub.
Qatar International Center for Conciliation and Arbitration (QICCA)
Qatar’s Arbitration Act, introduced in 2017, aligns with the UNCITRAL Model Law. Effective January 1, 2025, QICCA updated its rules, introducing key innovations similar to those of DIAC. Notable advancements include technology adoption, expedited procedures (Articles 42–49), and emergency arbitration (Articles 50–61). Updates also address cost structure changes (Articles 73–75).
Bahrain International Commercial Court (BICC)
The Bahrain International Commercial Court (BICC) was established on August 27, 2024, under Royal Decree Law No. (9) of 2024, following a BIT with Singapore (2003) allowing appeals in Singapore. It has exclusive jurisdiction over disputes with party consent and handles arbitration-related matters, including provisional measures, arbitrator appointments, and award annulments. Modeled after the Singapore International Commercial Court (SICC), the BICC conducts proceedings in English and Arabic.
Cairo Regional Centre for International Commercial Arbitration (CRCICA)
CRCICA introduced new arbitration rules in 2023, which came into force in 2024, aiming to modernize its procedures and reinforce its position in the MENA region. Notable updates include:
- Applicable Law to the Arbitration Agreement: The updated rules specify that the law governing the arbitration agreement will be the law of the place of arbitration, unless the parties agree otherwise in writing (Article 36(4)).
- Expedited Arbitration Rules: The updated rules allow parties to opt for Expedited Arbitration Rules to fast-track their disputes (Article 1 of Annex 3).
Lebanese Arbitration and Mediation Center (LAMC)
LAMC has also updated its rules, main features now include:
- Consolidation of Arbitrations: Permits consolidation when claims arise from compatible agreements or the same legal relationship (Articles 11(3), 20(2)-(4)).
- Third-Party Joinders: Allows third-party joinders post-tribunal formation under specific conditions (Article 20(1)).
- Emergency and Expedited Arbitration: Strengthened provisions for emergency and expedited procedures (Articles 12, 51).
- Interim Measures: Empowering arbitrators to grant interim measures (Article 29).
- Exclusion of Mandatory Award Scrutiny: Exempting awards from mandatory scrutiny if the parties agree otherwise (Article 38).
- Award Correction and Interpretation: Allowing parties to request corrections or interpretations of arbitration awards (Articles 41, 42).
Emerging Trends
Preference for Institutional Arbitration
In 2024, Hogan Lovells released in collaboration with Middlesex University Dubai the MENA Arbitration Survey 2024. This survey studied trends, preferences, and challenges in arbitration practices across the MENA region and revealed a strong preference for institutional arbitration in the region. According to the survey:
- A preference for arbitration institutions outside the MENA region (78%) marginally surpasses that for regional institutions (61%).
- For MENA-related disputes, the DIFC is the overwhelmingly preferred seat. It is followed by Abu Dhabi, Doha, and Riyadh.
- DIAC is among the most frequently chosen institutions for the quality, expertise, and experience of its arbitrators.
- Globally, London dominates as the top seat, surpassing Paris and Singapore significantly.
Technology Integration and Artificial Intelligence
There is a growing emphasis on integrating technology into arbitration proceedings. Except for LAMC, all institutions have taken steps to enhance technological integration. Features like remote hearings and electronic exchanges reflect this trend toward greater technological adoption.
In a broader perspective, the UAE is advancing tech integration through its National Strategy for Artificial Intelligence 2031 (“UAE’s AI Strategy”), which tends to promote the integration of AI across various sectors, including legal and arbitration. The UAE has developed “NOOR”, the world’s largest Arabic NLP model, designed to address translation challenges, document review, speech recognition and decision-making, thereby reducing time and costs. Other initiatives like Jais AI from Mohamed bin Zayed University aim to boost Arabic generative AI and tech-assisted reviews, improving efficiency in arbitration practices.
Focus on Efficiency and Transparency
Recent rule updates across various institutions in the region demonstrate a commitment to increasing efficiency and transparency in arbitration proceedings. This includes shortened timelines for rendering awards and potential publication of awards. The commitment to transparency also stems from the regulations pertaining to Third-Party Funding and the obligation to disclose potential funding and associated parties.
Challenges and Opportunities
Enforcement and Invalidation of Awards
Despite progress, enforcing domestic and foreign arbitration awards remains a focus, with Saudi Arabia being one example. Under Article 55(2) of the Arbitration Law (Royal Decree No M/34, dated 24/5/1433 AH), an award must comply with Sharia and Public Order to be enforceable. Article 50(2) allows for invalidation if these principles are not met. However, these principles are often difficult to define due to their uncodified nature. Notable cases have assessed the compliance of awards with Sharia and Public Order for enforcement or invalidation:
- Enforcement of the award: Judgment of the Supreme Court of Saudi Arabia 4339/1442H, 21 August 2020, para. 3.
- Invalidation of the award: Claimant v. Adel Muhammad Jamil Mosli, Judgment of the Court of Appeals of Jeddah 433736892, 27 June 2022, para. 4.
Innovations such as the Saudi Civil Code will undoubtedly help in overcoming these challenges by providing clearer and more structured legal principles, which can enhance predictability and consistency in the enforcement of arbitration awards.
State Involvement in Arbitration
Arbitration disputes involving states, state organs, and state-owned enterprises are subject to varying fluctuations without being jurisdiction specific. This presents both challenges and opportunities for further development of arbitration practices in the region. Cases such as Yukos Capital v. Russia and Crystallex v. Venezuela are striking instances. In the MENA, a notable example is the El Kharafi saga, which demonstrates the complications (and evolving landscape) of enforcement against states. In 2021, the Egyptian Court of Cassation upheld an arbitral award against Libya, reversing a lower court’s decision that annulled the award.
Regional Competition
As various jurisdictions in the MENA region strive to position themselves as arbitration hubs, there is increasing competition among arbitration centers. This competition is likely to drive further improvements in arbitration frameworks and practices across the region.
Conclusion
The MENA region is undeniably witnessing a period of rapid growth. The multiple legislative reforms and institutional rules refresh reflect a strong desire to position the region as an arbitration hub. The attention to technology and transparency further enhances its position as an increasingly attractive forum for dispute resolution. Although challenges remain, the overall trend points towards a more arbitration-friendly environment in the MENA region. As the ecosystem continues to evolve, collaboration between practitioners, institutions, and policymakers will be crucial in addressing remaining challenges and capitalizing on emerging opportunities.
ABOUT THE AUTHORS
Michel Madkour is an Associate at Madkour Law Firm and a member of the Beirut Bar Association. He holds an LL.B. and a Master 1 in Business Law from Saint Joseph University of Beirut and a Master 2 in Arbitration and International Trade from Paris 1 Panthéon-Sorbonne University. He joined the firm in 2023 after an internship with a leading American arbitration firm in Paris. Michel specializes in international arbitration and commercial disputes, advising clients across Lebanon, Cyprus, France, and the UAE. He has experience in institutional and ad hoc arbitration under various rules.
Ghady Rizk is an Associate at Madkour Law Firm and a member of the Beirut Bar Association. He holds an LL.B. and a Master 1 in Business Law from Saint Joseph University of Beirut, as well as a Master 2 in Private International Law and International Commerce from Paris-Panthéon-Assas University. Ghady specializes in international dispute resolution. He frequently advises on cross-border disputes and complex civil and commercial matters under both Lebanese and French Law.
Souad Ajami is a trainee lawyer at Madkour Law Firm, holding a bachelor’s degree in law from Phoenicia University. She has developed strong legal research skills through her prior experience as a paralegal. In her current role, she has successfully worked on large, high-value, and complex cases. Her key sector experience includes both arbitration and litigation, with a primary focus on labor and civil matters.
Nour Karam is an LL.M. candidate at Columbia Law School and a trainee lawyer (currently on educational leave from Madkour Law Firm). She holds an LL.B. from Saint Joseph University of Beirut and a Master’s degree in International and White-Collar Criminal Law from Paris 1 Panthéon-Sorbonne University. Nour is also a member of the Beirut Bar Association. Before pursuing her LL.M., she gained valuable experience as a trainee at prominent U.S. law firms in Paris, specializing in white-collar crime, cross-border investigations, and international sanctions. She also interned at Lebanon’s Permanent Mission to the UN in New York, working on Sixth Committee matters of the General Assembly.
*The views and opinions expressed by authors are theirs and do not necessarily reflect those of their organizations, employers, or Daily Jus, Jus Mundi, or Jus Connect.
