The Balancing Act: International Arbitration´s Developing Role in the Middle East

The key to effective management of dispute risk in the Middle East, as elsewhere, is a thorough assessment of the various factors before agreeing upon your dispute resolution regime in the contract.

With the development of international trade and commerce in the Middle East, and the increasing numbers of companies doing business there, there is growing interest in managing dispute risk. As with most international transactions, these companies have a choice as to the forum in which any disputes will be heard: the local courts of either party, or international arbitration.

Local courts have traditionally not been seen as an attractive prospect in part because of the very significant differences in both legal approach and business culture. In these circumstances the only other final and binding forum available has been international arbitration.