THE CONSTITUTION OF THE ARBITRAL TRIBUNAL - Chapter 5 - MENA Leading Arbitrators’ Guide to International Arbitration
Originally from The MENA Leading Arbitrators’ Guide to International Arbitration
“Arbitration is only as good as its arbitrators.”
International arbitration has become the most attractive dispute resolution mechanism for parties seeking to resolve their international disputes in a neutral forum. Many arbitrations arise in industries that involve high levels of technical expertise with significant stakes, both in terms of monetary value and strategic business importance. Corporations operating in these fields, and across borders, are reluctant to entrust local courts with the resolution of their commercial disputes, especially in jurisdictions known for the inconsistency and unpredictability of their courts, as well as in cases involving a state party. More generally, international corporations tend to display some scepticism about the idea of bringing their case before a court in a country other than their own.
By contrast, international arbitration offers the parties the possibility to exercise some control over the procedure and to enjoy some flexibility in the conduct of the arbitration. The constitution of the tribunal is one of the most important decisions that a party must make in the life of an arbitration. The choice of the arbitrators not only has the potential to enhance the fairness and the efficiency of the arbitration but may also have a direct impact on the outcome of the case.
In the Middle East and North Africa (MENA), several jurisdictions have adopted new legislation in the last decade governing international arbitration. Some legal barriers to the appointment of arbitrators, which were largely inspired by cultural traditions, have now been lifted.