Claiming Interest In Arbitrations In The Middle East

Sharia law shapes the legal frameworks in the Middle East. Traditionally, it was the primary uncodified source of law in the region. However, throughout the 20th century, many Middle Eastern countries developed their own Civil Codes, which continue to be rooted in Sharia principles. One of the key areas where Sharia law exerts substantial influence is in the banking and financial sectors. Consequently, several jurisdictions in the Middle East forbid the recovery of interest in civil cases, and the ability to claim interest in arbitrations is closely tied to the governing law of the dispute.

This note provides an overview of the possibility of claiming interest in arbitration in the Middle East, focusing on Saudi Arabia, the United Arab Emirates (UAE), Egypt, and Bahrain. Each country demonstrates a different interpretation and application of Sharia principles. Understanding these differences is crucial for legal professionals navigating arbitrations in the Middle