It is time to update arbitration rules

'It is time to update arbitration rules'

By ARAB NEWS

Published: May 2, 2010 00:15 Updated: May 2, 2010 00:15

JEDDAH: Saudi attorney Khalid Al-Nowaiser submitted research on arbitration during the International Commercial Arbitration Conference in Beirut April 15-17.

Al-Nowaiser's paper was entitled "Revision of the UNCITRAL (United Nations Commission on International Trade Law) Arbitration Rules in the Light of 30 Years of Experience: A Look into the Future".

The conference was attended by representatives of many international agencies including the United Nations, current and former governmental ministers, international and Arabian arbitrators, judges, faculty deans and university teachers.

Al-Nowaiser emphasized that arbitration has become one of the most effective means of solving disputes arising from complicated international and local commercial and economic relationships in the global community, open markets and international commercial and trade exchanges.

Arbitration has unique features unlike other means of dispute resolution, such as conciliation, settlement, jurisdiction, etc, that are used by countries and governments to solve international and local commercial disputes.

Al-Nowaiser added that due to its efficiency, international commercial entities have chosen to using arbitration as the original jurisdiction to solve commercial disputes.

However, differences among the various systems and their rules in complying with the regulations of each country and each arbitration chamber has made full global implementation of the arbitration system difficult.

Al-Nowaiser suggested in his conference paper it is now time to update some of the UNCITRAL international commercial arbitration rules in order to make them more suitable for the needs of current international developments created by the overflow of huge technology data.

He focused in his research on five recommendations: (1) revising the first article of the UNCITRAL arbitration rules regarding confirming the arbitration agreement, (2) amending article Nos. 6-8 concerning identifying the authority that chooses the arbitrators, (3) changing some of the procedural rules pertaining to arbitration claims, (4) revising article No. 27 on the appointment of specialists, and (5) amending article No. 32 regarding how long the period should be before an arbitration decision is issued.

Al-Nowaiser highlighted the importance of encouraging continuous communication and the exchange of ideas and views among all persons interested in arbitration in order to develop and update international commercial arbitration rules and procedures to make them more useful in current business arrangements.

The Law of UNCITRAL on International Commercial Arbitration was issued on June 21, 1985 in the form which has been accredited by the United Nation Commission of the International Trade Law, and was last revised by the commission of the United Nations on  June 7, 2006.