RABAT, 15 July 2004 — While there has been an expansion
of investment projects in all countries, it has created among developing nations a variety
of international disputes arising among individuals of diverse cultures with different
laws and customs.
Saudi Attorney Dr. Khalid Alnowaiser emphasized this during the deliberations of the 5th Conference of the Arab International Arbitration Union, which ended in Rabat,
Morocco after a three-day run on July 3. Speaking on the significance of international
arbitration for the growth of capital for investment projects, Dr. Alnowaiser confirmed the expansion of investment projects in all countries. “It has, however, created a variety of international disputes arising among individuals of diverse countries with different laws and customs, particularly among developing nations.”
The conference was held under the auspices of Morocco’s King Mohammed VI. Prince
Dr. Bandar ibn Salman ibn Mohammed Al-Saud, chairman of the Saudi Arbitration
team, was among those present. Dr. Alnowaiser said arbitration had become the most common way of settling disputes arising from contractual relations inherent in investment project contracts.
“Indeed, such contracts almost always contain an arbitration provision.”
He indicated that arbitration was the best means of resolving international investment disputes. In discussing implementation, Dr. Alnowaiser stressed the importance of following the law and customs of the country where the contract is executed to determine
the shape and form of the contract of arbitration. “Place prevails over the shape and
form of the contract,” he said, adding that the contract will be legally valid so long as it is
consistent with the laws of the country where it is executed. This, therefore, requires that
one is well aware of the procedures followed by the arbitrators as to the decision rendered.
Although procedures vary from one country to the other, arbitrators remain subject to the laws of the country where they sit to judge and decide any case.
Dr. Alnowaiser noted the current popularity of arbitration, as major national investment projects embody foreign elements deemed essential and indispensable in such projects.
“Arbitration has become a condition that virtually every investor seeks to have incorporated in contracts to resolve disputes.”
Disputes are more quickly settled if arbitration is utilized. This actually gives confidence to the contracting parties that any disputes will be resolved fairly and efficiently. As a result, arbitration promotes the opportunities of national investments and encourages the contracting parties to engage in major investment projects, thus furthering their success and prosperity and increasing the investment of national and foreign capital, he said. “Arbitration thus strengthens trade relations, boosts judicial cooperation, and facilitates a number of agreements essential to multinational investment projects,” he added.
Dr. Alnowaiser also enumerated the features and characteristics of the arbitration
law, specified in International Center for Settlement of Investment Disputes (ICSID)
agreements signed on March 17, 1965, which is applied and supervised by ICSID.
Discussing some of the arbitration rules central to the law, he said: “Disputes must
be legally resolvable, arbitration must be subject to independent procedures, the parties
involved must have the ability to choose the law which shall govern the dispute,” Dr.
Alnowaiser said.
The conference was attended by a number of judges, lawyers, professionals and legal scholars having an interest in international and Arabian arbitration.