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Why International Arbitration is the go-to option in MENA cross-border disputes

In recent years, the Middle East and North Africa (MENA) region has undergone significant changes in how commercial disputes are resolved. International arbitration, a method of resolving disputes outside of the court system, has become increasingly popular, especially among law students and novice practitioners. As a law student myself, I’ve noticed that this interest isn’t just theoretical, but that it is genuinely what many of us choose to study and pursue professionally. International networks and youth-driven platforms like Young ICCA continue to organise workshops, forums, and mentorship opportunities in the region, giving students and young practitioners direct exposure to real arbitration discussions and skills that go far beyond classroom theory. Recent events include the “AI in Arbitration” conference held in Dubai in November 2025, as well as participation in the 13th ICC MENA Conference on International Arbitration. 

 

Arbitration is often seen as a more efficient, neutral, and flexible way to handle disputes compared to traditional court litigation. This shift has been driven by the region’s growing economic importance, as well as continuous efforts to modernize legal systems and appeal to international investment. 

 

Although arbitration has deep historical roots in Arab and Islamic legal traditions, particularly through the concept of “تحكيم”, the modern use of international arbitration remained limited for much of the 20th century. During that period, commercial disputes in the MENA region were primarily handled by domestic courts, often operating within legal systems influenced by civil law and Sharia principles. Which meant that international arbitration was not as widespread. 

However, there has been a consequential shift in recent years. Countries like the United Arab Emirates (UAE), Qatar, and Saudi Arabia have recognized the benefits of arbitration and have taken major steps to modernize their legal frameworks, and establish themselves as leading arbitration centers.

 

Historically, Cairo played a pioneering role in the development of international arbitration in the MENA region. The establishment of the Cairo Regional Centre for International Commercial Arbitration (CRCICA) in 1979 marked a significant milestone, positioning Egypt as the region’s earliest arbitration hub operating under internationally recognized standards. For many years, CRCICA served as the primary forum for international commercial disputes involving parties from the Arab world, Africa, and beyond.

 

Within the same geographical scope, the UAE has emerged as one of the world’s leading hubs for international arbitration, in particular with its economic success and strategic location. Dubai has positioned itself as a key player in the arbitration landscape through the establishment of the Dubai International Arbitration Centre (DIAC), which handles a large number of international commercial disputes. Dubai's rules, which have evolved to include provisions for virtual hearings and faster procedures, are now among the most widely acclaimed.

 

Similarly, Qatar has invested heavily in creating an arbitration-friendly environment. The Qatar International Center for Conciliation and Arbitration (QICCA) was established to support international dispute resolution in line with global standards, and Qatar has been increasing its efforts to attract international investors with its world-class infrastructure and efficient legal framework.

 

While Lebanon may currently lack the institutional prominence of arbitration hubs such as Dubai or Doha, its legal framework and jurisprudence have long been considered arbitration-friendly. Lebanese courts have traditionally demonstrated strong support for arbitration, particularly in enforcing arbitration agreements and arbitral awards, often adopting a more pro-arbitration stance than some neighboring jurisdictions.

In May 2025, Lebanon hosted Beirut Arbitration Days, a conference designed to promote Lebanon as a hub for international arbitration. This initiative is part of a broader strategy to align Lebanon’s arbitration laws and procedures with international best practices, such as the UNCITRAL Model Law (a widely recognized international framework for commercial arbitration). This event highlighted Lebanon’s growing role as a neutral venue for dispute resolution, particularly for businesses operating in the MENA region and beyond.

 

One of the most exciting trends in international arbitration today is the integration of technology. The COVID-19 pandemic accelerated the shift to virtual hearings, which many institutions, including those in the MENA region, have adopted permanently. Virtual hearings and electronic filing systems have made arbitration proceedings faster, more cost-effective, and more accessible, particularly for parties from different parts of the world.

For example, DIAC and QICCA both offer virtual hearings, which allow parties to participate in arbitration from anywhere, reducing travel costs and delays. Additionally, technology has helped reduce administrative obligations, making arbitration proceedings smoother and faster.

The adoption of Artificial Intelligence tools paved the way for efficiency in the world of arbitration. 

In the UAE, the National Strategy for Artificial Intelligence has encouraged the use of AI to assist in legal proceedings. For instance, tools like the NOOR NLP model are being used to review documents and assist with decision-making in arbitration cases. These technological advancements improve the speed and accuracy of the arbitration process, which is crucial for both productivity and fairness.

 

Despite the rapid growth of international arbitration in the MENA region, several challenges remain. One of the main concerns is the enforcement of arbitral awards. Although most MENA countries, including Lebanon, are signatories to international treaties like the New York Convention (which facilitates the enforcement of foreign arbitral awards), the practical application of these conventions can still be problematic in some countries. Local legal systems and political influences sometimes complicate enforcement, particularly in countries where Sharia law or public policy considerations may conflict with arbitration rulings.

For example, in Saudi Arabia, arbitral awards must comply with both Sharia principles and public policy. This creates uncertainty about whether or not a foreign arbitral award will be recognized and enforced. Similarly, Lebanon, while improving its arbitration infrastructure, must ensure that its judiciary fully supports international arbitration and that the courts respect and enforce arbitration awards.

 

The future of arbitration in the MENA region looks bright. The region is making concerted efforts to improve its arbitration frameworks and integrate modern technologies. With institutions like DIAC, QICCA, and SCCA leading the way, and countries like Lebanon expanding their role, the region is becoming an increasingly important destination for international dispute resolution. As students watching these developments unfold, it’s exciting to know that we are not only learning about this transformation, but we are slowly becoming part of it.

 

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