The visit of Princess Astrid of Belgium last month to Saudi Arabia with a delegation of more than 150 companies and businessmen has brought to attention the vital role of arbitration and mediation Brussels plays in the international arena achieving resolutions for trade disputes through the country’s credible arbitration and mediation corporation CEPANI, according to the Belgium Embassy here.

The embassy’s observation was addressed to their Saudi business counterparts in the Kingdom highlighting Belgium’s position in arbitration and mediation, which would “positively enhance the trading partnership with some strategic countries around the world like Saudi Arabia,” Marc Vinck, Belgium ambassador, told Arab News on Monday.

“The Belgium mission, which arrived in the Kingdom, should open doors for more bilateral cooperation on multiple levels and through different sectors,” he said. “The diversified market both countries enjoy is an attractive module that complements the well established business relations between Brussels and Riyadh,” he noted.

The remarks came in the light of the recent experience of Saudi Arabia raising concerns from Saudi investors about the unfriendly and complicated arbitration in business disputes in some European countries.

Arbitration is an increasingly popular method of resolving cross-border disputes. Arbitration proceedings are private and settlements confidential, making them particularly attractive for sensitive disagreements. Today, arbitration has become the normal mode of dispute resolution in international trade.

Saudi Arabia recently adopted a new Arbitration Act. “The doors for cooperation between Saudi Arabia and Belgium are wide open,” said Didiler Matrar at the seminar organized in Riyadh last month in the presence of Didier Reynders, federal deputy minister and minister of foreign affairs, foreign trade and European affairs, and Celine Fremault, minister of economy, foreign trade, investment, employment and scientific research of the government of the Brussels-Vapital Region.

The envoy said the Belgian Center for Arbitration and Mediation (CEPANI) was founded in 1969 on the initiative of the Federation of Belgian Businesses and the Belgian National Committee of the International Chamber of Commerce (ICC). It has since evolved into an independent arbitration and mediation center comprising business leaders, professors, corporate legal experts, lawyers, notaries and solicitors. It is the largest arbitration and mediation institution in Belgium.

According to him, CEPANI issued new arbitration rules, which were inspired by the ICC rules of arbitration. It is applicable to all arbitration proceedings, which commenced on or after Jan. 1, 2013, unless otherwise agreed by the parties. They are to be read in conjunction with the new Arbitration Act, which was adopted by the Belgian Parliament in 2013 and which entered into force on Sept. 1, 2013.

“By adopting its modernized Arbitration Act, Belgium has caught up with developments elsewhere and can be considered an attractive and safe seat for arbitration. The updated CEPANI Arbitration Rules are in line with the rules of other major arbitration institutions, such as the ICC,” said Bregje Korthals Altes-van Dijk — expert in litigation, public procurement, energy law, commercial contracts, in her article titled: “Belgium Strengthens Position on International Arbitration Stage.”

However, the CEPANI rules allow better organized multi-party proceedings or proceedings emanating from several contracts.

CEPANI is active on two fronts. First, it promotes the use and the study of arbitration and mediation by organizing symposiums and supporting publications on the subject. Second, it administers arbitration and mediation proceedings under its own sets of rules, unless the parties have agreed to designate themselves.

The center of arbitration appoints expert arbitrators and mediators who undertake to comply with CEPANI’s Rules of Good Conduct. It supervises the progress of the proceedings within the timetable agreed by the parties, as provided for in the rules, and resolves any legal and material difficulties that might emerge.

“In CEPANI, arbitration is based on bright thoughts which are more likely to result in timely justice. In the minds of businesspeople most legal disputes are cost centers and the sooner they end the better. Thus, more businesses will opt for the private justice system of arbitration and mediation,” Flamée Michel, president of CEPANI, said.

Five specific courts have the jurisdiction to hear all ancillary matters relating to arbitral proceedings, including applications for the enforcement or setting aside of an arbitral award. These are the five courts of first instance that have the same seat as the courts of appeal (Antwerp, Brussels, Ghent, Liège and Mons).

All arbitration-related proceedings will be centralized in these five courts, allowing them to become specialized in arbitration matters. As a result, parties should be able to obtain the requisite measures in support of arbitral proceedings from specialized courts as expeditiously and efficiently as possible.