Arbitration Agreement
In Light of Law No. 2 of 2017

International arbitration is recognized as a consensual means based on the free will of the disputing parties, comprising individuals of public law. Here, the parties agree on all aspects of the dispute rather than relying on the customary litigation procedures within a particular country’s legal system.

Arbitration is a legal method agreed upon for dispute resolution, serving as an alternative to court proceedings, whether the entity administering the arbitration, per the parties’ agreement, is a permanent arbitration center or not.

An arbitration agreement is a pact between parties, whether legal entities or natural persons with the legal capacity to contract, to resort to arbitration to resolve all or some disputes that have arisen or may arise between them regarding a specific legal relationship, whether contractual or non-contractual. The arbitration agreement may be separate or in the form of an arbitration clause included in a contract.

Accordingly, arbitration is not permitted in matters that cannot be subject to conciliation. The arbitration agreement must be in writing; otherwise, it is void. An agreement is considered written if it is in a document signed by the parties or in the form of paper or electronic correspondence or any other form using communication methods that enable written acknowledgment of receipt.

A reference in a contract to a document containing an arbitration clause is considered an arbitration agreement, provided that such reference clearly recognizes this clause as part of the contract.