THE AUTHOR:
Dalila Djamane, Legal Advisor
This series explores the evolving landscape of arbitration and alternative dispute resolution (ADR) in the Middle East, with a focus on innovation, legal reform, and regional best practices. Each article offers insight into emerging trends—from digital transformation and legal tech to cross-border enforcement and institutional developments. Stay tuned as we unpack key themes shaping the future of dispute resolution in the region.
Smart Contracts: Automating Agreements and Triggering Arbitration
One direct application of blockchain in dispute resolution is the smart contract—a self-executing agreement with terms embedded in code. These contracts can include arbitration clauses that automatically trigger dispute resolution procedures when specific conditions are met, such as non-payment or delivery failure.
For instance, in a cross-border commercial transaction, if a delivery isn’t confirmed within a set timeframe, the contract can initiate arbitration through a pre-selected digital platform. This automation eliminates delays in initiating claims and reduces the need for human intervention in early-stage disputes.
Legal Challenge: Ensuring enforceability under current arbitration rules remains a concern. While major arbitral institutions, such as the ICC and SIAC, have yet to fully incorporate smart contract-specific procedures, there is a growing appetite for adaptation.
Evidence Authentication & Immutable Records
Blockchain’s immutability provides robust solutions to persistent arbitration challenges, like tampering and evidentiary disputes. Once a piece of evidence—such as an email, image, or contract—is hashed and stored on a blockchain, it becomes tamper-proof and verifiable.
This ensures:
- Quick validation of evidence authenticity during proceedings.
- Transparent and traceable chain of custody.
- Assurance that documents remain unaltered after the dispute.
These features are particularly relevant in virtual arbitration, where concerns about digital forgeries and manipulated documents are prevalent.
Decentralized Arbitration Platforms: A Parallel Ecosystem?
Emerging decentralized justice platforms, like Kleros, offer blockchain-based arbitration where users stake tokens and vote on disputes. While these platforms remain outside mainstream legal practice, they introduce new procedural models:
– Juror-based decision-making.
– Publicly auditable verdicts.
– Open-source procedural codes.
Though not yet compatible with formal enforcement under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (“New York Convention”), these platforms push boundaries and may influence institutional reform over time.
Blockchain in the MENA Arbitration Landscape
The region’s unique legal structure—often a blend of Sharia law, civil law, and common law systems—presents both challenges and opportunities for blockchain integration. Countries like the UAE and Saudi Arabia have been actively investing in blockchain infrastructure, including Dubai’s ambition to become the world’s first blockchain-powered government.
Arbitration centers in the region, such as the DIFC-LCIA in Dubai and the CRCICA in Egypt, are ideally positioned to pioneer pilot programs that integrate blockchain into case filing, document authentication, and secure communications. These initiatives could help resolve common concerns in the region, including cross-border enforcement and trust between disputing parties.
In practice, a smart contract governing a real estate transaction in Dubai or an energy services agreement in Saudi Arabia may include blockchain-backed arbitration clauses, enabling faster and more transparent resolution if disputes arise. This is particularly attractive to foreign investors who value both speed and enforceability in unfamiliar jurisdictions.
The Middle East has witnessed a surge in blockchain initiatives, including Dubai’s Blockchain Strategy and Bahrain’s regulatory sandbox for digital assets. Arbitration institutions in the region can play a pivotal role by:
- Recognizing blockchain-verified evidence in their procedural rules.
- Training arbitrators in digital verification and smart contract disputes.
- Partnering with legaltech platforms to pilot blockchain-based case management systems.
Given the MENA region’s emphasis on infrastructure development and foreign investment, reliable and efficient dispute resolution mechanisms are vital, and blockchain offers tools to deliver that assurance.
Key Legal Considerations
While blockchain’s benefits are promising, practitioners must address several legal uncertainties:
- Jurisdiction and Applicable Law: If a smart contract is hosted across multiple nodes in different jurisdictions, determining the location of the dispute becomes complex.
- Confidentiality: Blockchain’s inherent transparency raises concerns about preserving privacy obligations in arbitration.
- Enforceability: Courts and tribunals continue to operate within traditional frameworks. Hybrid approaches—using blockchain for processes and courts for enforcement—may be necessary.
Conclusion: A Strategic Opportunity for Innovation
Blockchain isn’t a panacea for arbitration challenges, but it serves as a strategic enabler of transparency, automation, and trust. Legal practitioners, institutions, and arbitrators—especially those in tech-forward or reform-minded regions—should consider piloting and adapting blockchain solutions within the procedural framework of arbitration.
As legal systems globally evolve, early adopters of these tools will be better positioned to offer clients faster, fairer, and more efficient dispute resolution.
ABOUT THE AUTHOR
Dalila Djamane is an international Legal Advisor with a focus on cross-border contracts, governance, and regulatory compliance. She brings a unique perspective shaped by experience across diverse jurisdictions, including Egypt, Algeria, Saudi Arabia, the UAE, the United States, and France. Bridging both civil and common law traditions, Dalila has advised on high-value real estate transactions, international trademark portfolios, and strategic investments in the MENA region. A strong advocate for legal innovation, she regularly writes on the intersection of law, technology, and international dispute resolution.
*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.
