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Country Q&A: Arbitration 2010/11

September 2010 - Litigation & Dispute Resolution. Legal Developments by Afridi & Angell.

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Please give a brief overview of the use of commercial arbitration in your jurisdiction, including any recent trends. What are the general advantages and disadvantages of arbitration compared to court litigation in your jurisdiction?

Historically, parties preferred litigation and were generally reluctant to opt for arbitration. Arbitration was considered relatively expensive and there was an element of uncertainty surrounding the enforcement of arbitral awards. In addition, legal costs are only awarded in a token amount by the courts. However, following the real estate boom between 2004 and 2008, driven by the opening up of the real estate sector to foreign investment, developers and investors began including arbitration agreements in the contracts of sale for off-plan property. Since the recent off-plan real estate market correction, there has been a significant increase in arbitrations in relation to the sale and purchase of off-plan properties, and also in the construction sector.

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First published in PLC (Practical Law Company) CROSS-BORDER HANDBOOKS www.practicallaw.com/arbitrationhandbook

 


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