International Commercial Arbitration: A Comparative Study between Sharia, Saudi Arabia and English. Overview Commercial arbitration has become the main and preferred method to resolve nearly all commercial disputes among countries, companies and even individuals.1 This is particularly true in the case of industrial and developing countries and the Middle East because of its numerous advantages.2 34For instance, the employment of arbitration enables states to protect and promote national interests because it works within a fair and balanced framework recognized and institutionalized in the international trading community…
Local courts cannot offer the option to accelerate procedures and it cannot do away with the unnecessary legal processes that are either substantive or procedural in nature. Commercial arbitration is also attractive because it provides confidentiality and reduces costs.5 It is for these reasons why international commercial arbitration flourished along with the development and evolution of the international trade system.6 In the Kingdom of Saudi Arabia (Kingdom), the legislature has been keen to regulate arbitration since the establishment of the Kingdom government.7 This was expected because the Islamic Sharia (Sharia) encourages arbitration as a means to resolve disputes. The Saudi government also found that encouraging arbitration in commercial dispute resolution tend to attract foreign investors.8 In recent years, however, there is a growing concern both in the domestic and international levels regarding the efficacy of commercial arbitration in the Kingdom. ...
The case was the same with the applicable law where the Law mandates for the arbitral tribunal to comply with what is stated in both applicable regulations as well as the provisions of Sharia. Secondly, there is the ambiguity of the Sharia, which is the dominant law in the Kingdom. For many businesses, investors, entrepreneurs, legal experts and even international jurors and arbitrators, the law is confusing and unclear. This is evidenced in many international case laws.10 Such ambiguity can be attributed to both the non-codification of Sharia and the unpublished judicial judgements. Third, the SAL 1983 provided a wide power for the judicial authority in the Kingdom to supervise arbitration since the commencing of the arbitration process until rendering the arbitral award. Moreover, although the Kingdom has joined many regional and international conventions that are concerned with the enforcement of foreign arbitral awards such as the New York Convention 1952, the recognition and enforcement of arbitral awards whether domestic or international remain widely criticized. A key objective of the Saudi government is to improve the investment environment and attract more foreign investment in the Kingdom. For this purpose, it is now focusing on improving the judicial system in general and arbitration in particular. The most recent of these improvements is the enactment of the Saudi Arbitration Law 2012 (SAL 2012) which is inspired by the Model Law that is regarded as a developed model of international commercial arbitration. But this law has stirred some degree of controversy due to issues raised regarding its coverage: the extent of the reform and whether the initiatives would, indeed, improve the arbitral environment in Saudi Arabia. For ...
Cite this document
(“International Commercial Arbitration: A Comparative Study between Essay”, n.d.)
Retrieved from https://studentshare.net/law/99104-international-commercial-arbitration-a-comparative
(International Commercial Arbitration: A Comparative Study Between Essay)
“International Commercial Arbitration: A Comparative Study Between Essay”, n.d. https://studentshare.net/law/99104-international-commercial-arbitration-a-comparative.
‘(Collins English Dictionary, 2011)’2. However, in business contexts, litigation is defined as an action or charge brought in a court of law in order to enforce a particular and specific right. Litigation is also defined as a process by which the case is taken to a court.
In the paper, we will discuss about the current financial practices of the country. Specifically, the paper is focused on the conventional financing practices and Murabaha financing practices. The first section of the paper is an introductory section in which some general information about mode of financing will be discussed.
Literally, the word ‘islam’ means submission to the Almighty God. The teachings and ideologies of the Prophet Muhammad are embedded in Islam. For the people who follow Islam, Quran is the Word of God. “It was revealed in the Arabic language as a sonoral revelation which the Prophet repeated to his companions.” Like the Bible in the Christian world, Quran is regarded as holy and divine in the Muslim world.
In the response to the difficulties caused by conflicts in laws and contract disputes, international commercial arbitration devised a way in which such conflicts could be avoided and disputes solved easily out of court. This paper will assess whether the principle of privity of contract undermines the application and functioning of ICA in that it causes unnecessary disputes that have little to do with the actual contract and more to do with the method of arbitration, the conduct of arbitrations and the recognition of awards and orders.
. The application of international commercial arbitration cannot be conducted in a vacuum; it must operate with the support of domestic courts, such as in the taking of evidence, or in the conduct of limited review.2 Areas where international commercial arbitration and conflict of laws overlap in the following issues: The arbitration agreement, its validity and scope, extension to non-signatories, termination, formal requirements, evidential aspects, state immunity, and lis pendens concerning arbitration proceedings in parallel courts.3 Subjective and objective arbitrability, including the persons who can become parties to an arbitration agreement, and which disputes may be submitted to arbit
2- What is the role of Saudi courts in international commercial arbitration at the commencement of, during the arbitral process, and in the process of the implementation of the arbitral award: Is it critical in the success of the arbitral process or does it serve as an interference, adversely affecting the efficiency of the arbitral tribunal; and, how such role is different from those that are carried out by the English courts?
About 120 nations have consented to the” New York Convention “which compels contracting nations to implement arbitration awards and accords subject to limited and specified exemptions.
UK is a party to the” New York Convention on the