For instance, as reflected in the widely known award rendered in 1952 in Sheikh of Abu Dhabi v. Petroleum Development, Lord Asquith disqualified Abu Dhabi law (which is based on Shariaa law) and instead applied what he called the "general principles of law recognized by civilized nations." He sought to justify this approach on the basis that "it would be fanciful to suggest that in this very primitive region there is any settled body of legal principles applicable to the construction of modern commercial instruments." As a result, international arbitration was viewed for decades as a tool for Western dominance over the Middle East.
With the introduction of an improved legal framework and a new guiding philosophy, courts across the Middle East are now recognising their supportive role in arbitration. Consequently, in many (though not all) Middle Eastern jurisdictions, arbitration is increasingly seen as the preferred method for resolving commercial disputes through flexible rules and procedures that contrast with those of the local courts, which still very much adhere to specific, rigid formalities.
Most recently, the Abu Dhabi Chamber of Commerce and Industry (ADCCI) launched in 2024 the Abu Dhabi International Arbitration Centre (ADIAC). ADIAC replaced the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADIAC), which had previously served as Abu Dhabi's principal arbitration centre. One of the key features of ADIAC is the creation of a stand-alone Court of Arbitration, which operates independently from ADCCI. The arbitration rules for ADIAC came into force on 1 February 2024. These rules provide that ADGM will be the default seat of arbitration where the seat is not agreed.
In addition, CRCICA, QICCA and the Lebanese Arbitration and Mediation Center (LAMC) have all recently adopted new rules, signalling a shift towards modernised legislative frameworks that prioritise procedural efficiency, transparency, and alignment with international best practice.
CRCICA's new arbitration rules, effective 15 January 2024, replace the 2011 rules. They are available in English, Arabic and French. Among the new developments, Section VI titled 'other provisions' addresses issues not dealt with under the UNCITRAL Arbitration Rules, such as consolidation of arbitrations, arbitrations arising out of multiple contracts, early dismissal of claims and third-party funding. The new rules have also introduced online filing of the notice of arbitration and the response to the notice of arbitration, and encourage the use of technology in arbitration proceedings, including in communications and hearings.
QICCA’s updated arbitration rules, effective 1 January 2025, represent a significant evolution from the 2012 rules, expanding from 38 to 78 articles across seven chapters. The new rules enhance procedural flexibility – enabling consolidation, joinder, bifurcation, and expedited processes – while embracing a digital-first approach with electronic submissions and filings. They also promote greater transparency through clearer provisions on arbitrator appointments, disclosures, and the publication of awards, offering a modern and reliable platform for both regional and international dispute resolution, as the centre witnesses an increasing caseload.
LAMC's new arbitration rules, effective 1 July 2024, replace the 1995 rules. Among their main features, they address the consolidation of arbitrations, third-party joinders, emergency and expedited arbitrations, interim measures, and the ability to exclude mandatory award scrutiny and award correction and interpretation.
The Dubai Court of Cassation, in Case No. 735 of 2024 (Civil) dated 29 October 2024, ruled that unilateral or asymmetric arbitration agreements are not valid under UAE law, diverging from the practice in offshore UAE courts such as the DIFC, which recognise such agreements.
The Amman (Jordanian) Court of Appeal, in Decision No. 5137/2024 on 31 July 2024, determined that a settlement agreement constitutes a standalone contract, thereby nullifying any arbitration clauses in prior agreements.
In Oman, the Supreme Court's Decision (709/8103/2024) oddly retained the Omani courts' jurisdiction to hear annulment proceedings against an arbitral award pertaining to an arbitration seated in London, justifying the decision on the basis that the respondent in the arbitration was an Omani entity.
The Kuwait Court of Cassation, in Case No. 62/2021 on 21 January 2024, reaffirmed Article 187 of the Code of Civil Procedure, mandating the Kuwaiti courts that set aside an arbitral award to hear the subject matter of the dispute and decide on the merits, highlighting a unique aspect of Kuwaiti arbitration law.
These cases collectively underscore the evolving landscape of arbitration in the region and the varying positions taken by different courts in respect of arbitration-related issues.
Modernisation of the arbitration legal framework
Thanks to the progress of international order, including developments in the political landscape and legal instruments, the Middle East's perception of arbitration has changed significantly. Over the past thirty years, numerous sovereign States have reformed their arbitration legal frameworks. They have adopted modern frameworks, inspired for instance by the 1985 UNCITRAL Model Law on International Commercial Arbitration. Egypt and Tunisia were pioneers in this movement and other sovereign States followed suit, either adopting the Egyptian version of the UNCITRAL Model Law or the French law.With the introduction of an improved legal framework and a new guiding philosophy, courts across the Middle East are now recognising their supportive role in arbitration. Consequently, in many (though not all) Middle Eastern jurisdictions, arbitration is increasingly seen as the preferred method for resolving commercial disputes through flexible rules and procedures that contrast with those of the local courts, which still very much adhere to specific, rigid formalities.
The enactment of arbitration laws and regulations in the emerging common law freezones
Whilst Middle Eastern laws are rooted in the Civil law tradition, many free zones (for instance, the Dubai International Financial Centre (DIFC), the Qatar Financial Centre (QFC) and the Abu Dhabi Global Market (ADGM) ) have been established in the Middle East which have adopted commercial laws inspired by the common law. These freezones have their own courts, presided over by judges trained in the common law tradition, who deliver judgments in English on behalf of the sovereign State where the freezone is located. The freezones have utilised their regulatory authority to enact their own arbitration laws and regulations, which are influenced by the UNCITRAL Model Law.The rise and evolution of arbitral institutions
In view of the change of perception towards arbitration in the Middle East, arbitration institutions started to emerge in the region, with the foundation in 1979 of the Cairo Regional Centre for International Commercial Arbitration (CRCICA). Today, there are numerous institutions in the Middle East, including the Dubai International Arbitration Centre (DIAC) established in 1994, the Kuwait Commercial Arbitration Centre (KCAC) founded in 1999, the Qatar International Center for Conciliation and Arbitration (QICCA) established in 2006, the Saudi Center for Commercial Arbitration (SCCA) founded in 2014, and the Oman Commercial Arbitration Centre (OCAC) established in 2018.Most recently, the Abu Dhabi Chamber of Commerce and Industry (ADCCI) launched in 2024 the Abu Dhabi International Arbitration Centre (ADIAC). ADIAC replaced the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADIAC), which had previously served as Abu Dhabi's principal arbitration centre. One of the key features of ADIAC is the creation of a stand-alone Court of Arbitration, which operates independently from ADCCI. The arbitration rules for ADIAC came into force on 1 February 2024. These rules provide that ADGM will be the default seat of arbitration where the seat is not agreed.
In addition, CRCICA, QICCA and the Lebanese Arbitration and Mediation Center (LAMC) have all recently adopted new rules, signalling a shift towards modernised legislative frameworks that prioritise procedural efficiency, transparency, and alignment with international best practice.
CRCICA's new arbitration rules, effective 15 January 2024, replace the 2011 rules. They are available in English, Arabic and French. Among the new developments, Section VI titled 'other provisions' addresses issues not dealt with under the UNCITRAL Arbitration Rules, such as consolidation of arbitrations, arbitrations arising out of multiple contracts, early dismissal of claims and third-party funding. The new rules have also introduced online filing of the notice of arbitration and the response to the notice of arbitration, and encourage the use of technology in arbitration proceedings, including in communications and hearings.
QICCA’s updated arbitration rules, effective 1 January 2025, represent a significant evolution from the 2012 rules, expanding from 38 to 78 articles across seven chapters. The new rules enhance procedural flexibility – enabling consolidation, joinder, bifurcation, and expedited processes – while embracing a digital-first approach with electronic submissions and filings. They also promote greater transparency through clearer provisions on arbitrator appointments, disclosures, and the publication of awards, offering a modern and reliable platform for both regional and international dispute resolution, as the centre witnesses an increasing caseload.
LAMC's new arbitration rules, effective 1 July 2024, replace the 1995 rules. Among their main features, they address the consolidation of arbitrations, third-party joinders, emergency and expedited arbitrations, interim measures, and the ability to exclude mandatory award scrutiny and award correction and interpretation.
Significant recent judgments affecting arbitration
In recent judicial developments across the Middle East, several notable decisions have been rendered regarding arbitration.The Dubai Court of Cassation, in Case No. 735 of 2024 (Civil) dated 29 October 2024, ruled that unilateral or asymmetric arbitration agreements are not valid under UAE law, diverging from the practice in offshore UAE courts such as the DIFC, which recognise such agreements.
The Amman (Jordanian) Court of Appeal, in Decision No. 5137/2024 on 31 July 2024, determined that a settlement agreement constitutes a standalone contract, thereby nullifying any arbitration clauses in prior agreements.
In Oman, the Supreme Court's Decision (709/8103/2024) oddly retained the Omani courts' jurisdiction to hear annulment proceedings against an arbitral award pertaining to an arbitration seated in London, justifying the decision on the basis that the respondent in the arbitration was an Omani entity.
The Kuwait Court of Cassation, in Case No. 62/2021 on 21 January 2024, reaffirmed Article 187 of the Code of Civil Procedure, mandating the Kuwaiti courts that set aside an arbitral award to hear the subject matter of the dispute and decide on the merits, highlighting a unique aspect of Kuwaiti arbitration law.
These cases collectively underscore the evolving landscape of arbitration in the region and the varying positions taken by different courts in respect of arbitration-related issues.
Conclusion
Arbitration in the Middle East has advanced substantially over the last three decades. This is evident from the recent proliferation of Middle Eastern arbitration institutions. Nonetheless, the effective operation of the new legal framework(s) is largely dependent on a supportive and capable judiciary. Although courts in the Middle East have generally moved towards a pro-arbitration mindset, this does not apply in every jurisdiction, nor in every case. Therefore, it is essential to seek legal advice prior to entering into an arbitration agreement that designates a Middle East jurisdiction as the seat of arbitration, in order to best understand and evaluate the implications of this agreement.
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