The Arbitration Laws in GCC Countries

The Arbitration Laws in GCC Countries.

By Fawzan Rafeek MRICS MCIArb

This note will summarise the most of the recent development of Arbitration Laws in Gulf Cooperation Council (GCC) countries.

Qatar

Arbitration in Qatar are governed by Qatari Law No. 2 of 2017 Promulgating the Civil and Commercial Arbitration Law (the Arbitration Law). The Arbitration Law repeals a number of Articles from Law (chapter 13) 13 of 1990 such as regulated arbitration process from the arbitration agreement, formation of arbitral tribunals, procedures, award, challenging arbitral award, enforcement and recognition of arbitral awards and arbitration institutions. The new Law which relatively mirror the rules under the UNICTRAL model law.

UAE

UAE Federal Law No.(6) of 2018 on Arbitration. The new arbitration law annuls articles 203 to 218 of the UAE Civil Procedures Law No. 11 of 1992. The Law applies if any arbitration conducted in the UAE, unless the parties agree that another law should govern the arbitration, provided it is not in conflict with the public order of the state or any international commercial arbitration conducted abroad, if the parties chose this law to govern such arbitration or any arbitration arising from a dispute in respect of a legal relationship, whether contractual or not, governed by UAE law, unless it is excluded by a special provision. The new arbitration law contains 61 articles and is largely based on the UNCITRAL arbitration rules.

Saudi Arabia

Arbitration in the KSA is governed by the Arbitration Regulation issued under Saudi Arabia Royal Decree No. M34/1433 Arbitration Law of 2012 (“Arbitration Law”). The New Arbitration Law has many features that will be familiar to those practicing in other jurisdictions that have adopted the UNCITRAL Model Law. Furthermore, under the new law, different recognition and enforcement regimes apply to different types of arbitration awards.

Kuwait 

Arbitrations in Kuwait are governed by Chapter 12 of Kuwait Decree-Law No. 38/1980 Promulgating the Law of Civil and Commercial Procedures and Kuwait Law No. 11/1995 on Judicial Arbitration with Respect to Civil and Commercial Matters and the Judicial Arbitration in Civil and Commercial Matter Law, Law No 11 of 1995 as amended by Law No 12 of 2013 (“Judicial Arbitration Law”). Kuwait does not have a stand-alone arbitration law. 

Bahrain

Bahrain Law No. 9 of 2015 promulgating the Arbitration Law (the “New Arbitration Law”) came into effect on 9 August 2015. As a result of the promulgation of the New Arbitration Law, Chapter 7 on arbitration and Article 253 from the Civil and Commercial Procedures Act promulgated by Decree No. 12 of 1971 will be repealed. The International Commercial Arbitration Law promulgated by Decree No. 9 of 1994 will also be repealed. Article 1 of the New Arbitration Law provides provisions of the UNCITRAL Model Law.

Oman

Oman Sultani Decree No. 47/1997 amended by Oman Sultani Decree No. 03/2007 on the Promulgation of the Law of Arbitration in Civil and Commercial Disputes (the “Oman Arbitration Law”). The Oman Arbitration Law incorporates some aspects of the Model Law on International Commercial Arbitration adopted by UNCITRAL (the “UNCITRAL Model Law”). Furthermore, Article 14 of Royal Decree No. 102/1994 the Omani Foreign Capital Investment Law (“OFCIL”) permitted disputing parties to settle their disputes by arbitration and Royal Decree 26/2018 Establishing Oman Commercial Arbitration Center.

Finally, the legal frameworks for arbitration of the Gulf Cooperation Council (GCC) countries are well established with the standalone arbitration laws based on the UNCITRAL Model Law except the Kuwait.