Nawaf Al-Zayani to Al-Watan: Developing specialized arbitration rules for maritime transport disputes that suit the challenges of waterways

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• – The center is based in the Kingdom of Bahrain and its system was approved by the Riyadh Gulf Summit in 1993
• – Providing an arbitration environment based on neutrality, independence and transparency in accordance with international standards
• The Center is working to develop a specialized arbitration system that meets the requirements of the energy sector
• – Completely digital transformation and simplification of procedures to accelerate the resolution of commercial disputes
• The Gulf Commercial Arbitration Academy prepares a generation of specialized Gulf arbitrators
• – The “Emergency Arbitrator” service issues urgent decisions to protect rights and prevent the aggravation of the dispute

The Chairman of the Board of Directors of the Commercial Arbitration Center for the Cooperation Council for the Arab States of the Gulf, and a representative of the Kingdom of Bahrain, Nawaf Al-Zayani, revealed that the Center seeks to develop specialized rules for arbitration in maritime transport disputes, commensurate with the nature of the challenges in international waterways, noting that the “emergency arbitrator” service available within the Center’s work allows the issuance of urgent decisions within a short period of time to protect rights and prevent the aggravation of the dispute.

He explained in an interview with Al-Watan that the center is working to develop a specialized arbitration system that meets the requirements of the energy sector, by updating procedural rules in accordance with international best practices, stressing the importance of spreading the culture of arbitration in commercial circles as an alternative to the judiciary. He said that the Center has launched a set of initiatives aimed at accelerating the settlement of disputes, including the complete digital transformation of arbitration procedures with fast and effective arbitration mechanisms that help parties reach practical solutions without disrupting industrial activities. Below is the text of the dialogue:

We would like to learn about the Gulf Arbitration Center, its origins, mechanisms, and the laws followed in commercial arbitration disputes

During the fourteenth Riyadh Summit in December 1993, Their Majesties and Highnesses, the leaders of the Gulf Cooperation Council countries, approved the establishment of the Commercial Arbitration Center for the Gulf Cooperation Council countries and the center’s system. The regulation of arbitration procedures was approved in the following year 1994, then some amendments were made in October 1999, and the center’s headquarters was chosen to be in the Kingdom of Bahrain.

The center has a board of directors consisting of six members. The chambers of commerce and industry in each of the GCC countries appoint a member. The board meets at least once every six months or whenever necessary. The presidency of the board of directors is rotating in accordance with what is practiced in meetings of the Cooperation Council. The board of directors appoints from among its members the president and his deputy. The position of Secretary-General is assumed by Dr. Engineer Kamal bin Abdullah Al Hamad. Currently, I chair the board of directors and represent the Kingdom of Bahrain, while the position of vice president is held by our colleague Hussein bin Abdul Qader Al Abdul Qader, representative of the Kingdom of Saudi Arabia, with the membership of Dr. Ali Saeed bin Harmal Al Dhaheri, representative of the United Arab Emirates, Saleh bin Hamad Al Sharqi, representative of the State of Qatar, and Ali Salem Hamad Al Kasibi, representative of the Sultanate of Oman.

But does the center have an independent character?

– It is truly an independent, stand-alone center that has an independent legal personality. It specializes in examining commercial disputes between citizens of the Gulf Cooperation Council countries or between them and third parties, whether natural or legal persons, and commercial disputes arising from the implementation of the provisions of the economic agreement and the decisions issued in implementation thereof, if the two parties agree in writing in the contract or in a subsequent agreement to arbitrate within the framework of this center. We are also keen to ensure the administrative, financial and professional independence of the center, in a way that ensures achieving its goals in applying the principles of justice, impartiality and honesty in its work and achieving Integrity in practicing the arbitration process.

What is the applicable law in arbitration disputes?

– The parties have the freedom to determine the law that the arbitrators must apply to the subject of the dispute. In the event that the parties do not specify the applicable law, whether in the contract or in the arbitration agreement, the arbitrators shall apply the law determined by the conflict of laws rules that they deem appropriate, whether it is the law of the place of concluding the contract, the law of the place of its implementation, the law of the place where it must be implemented, or any other law, taking into account the condition of the contract and the rules and customs of international trade.

Can you tell us about the centre’s arbitration rules?

– Arbitration shall be conducted in accordance with the rules of the Arbitration Center’s Procedures Regulations, unless a different provision is stated in the contract, and the rules of procedure applicable to arbitration shall be the rules in effect at the time of its commencement, unless the two parties agree otherwise.

With the exception of the list of arbitrators’ names, the Centre’s papers and documents shall be confidential and no one other than the parties to the arbitration case and the arbitrators may view them or take a copy of them except with the express approval of the parties to the dispute, or if the arbitration panel deems this necessary to settle the dispute.

It must be noted that the agreement of the two parties to submit the dispute to the arbitration panel at the Centre, as well as the ruling of this panel on its jurisdiction to consider the dispute, prevents this dispute or any procedure followed when it was considered before any other judicial body in any country, and also prevents the arbitration award from being appealed or any of the procedures required when it was considered before any other judicial body in any country.

The ruling issued by the arbitral tribunal in accordance with these procedures shall be binding on the two parties and final, and shall have enforcement force in the States Parties after ordering its implementation by the competent judicial authority.

Finally, the arbitral tribunal shall transmit to the Secretary General of the Center a copy of the award issued by it, and he shall provide possible assistance in filing or registering the award whenever this is necessary under the law of the country in which the award is implemented.

Published statistics showed that 97% of energy, oil and gas disputes are settled outside the centers of the Gulf Cooperation Council countries. How does the Center plan to enhance the confidence of major companies in this vital sector to attract these disputes locally?

Enhancing the confidence of major companies in the energy, oil and gas sector

The Center is working to develop a specialized arbitration system that meets the requirements of the energy sector, by updating procedural rules in accordance with international best practices, and attracting highly specialized technical and legal expertise. It also focuses on building strategic partnerships with major international companies and institutions, and providing fast and flexible arbitration services that enhance investor confidence and encourage them to choose the region as a main center for settling their disputes.

Figures indicate that 84% of commercial and investment disputes are also settled outside the GCC countries, while more than 700,000 commercial and economic cases lie in the corridors of the traditional judiciary. What initiatives does the Center offer to shift this burden from the judiciary to arbitration to ensure speedy adjudication?

Second: Shifting the burden from traditional judiciary to arbitration

The Center launched a set of initiatives aimed at accelerating the settlement of disputes, including the complete digital transformation of arbitration procedures, simplifying procedures, and providing mediation and amicable settlement services before resorting to arbitration. It also works to spread the culture of arbitration in commercial circles, which contributes to reducing the number of cases pending before the traditional judiciary and accelerating the wheel of business.

There is a large gap in reliance on local competencies, as 98% of disputes are settled by non-Gulf arbitrators and experts. What is the role of the “Center Academy” and the “International Fellowship and Arbitrator Qualification” programs in changing this equation and empowering the Gulf arbitrator?

Empowering Gulf competencies in the field of arbitration

The Gulf Commercial Arbitration Academy seeks to consolidate its position as a leading center for educating and training specialists in the field of commercial arbitration and for them to acquire the knowledge and skills necessary to raise the level of arbitration and enhance their participation in the international arena. The Academy plays a pivotal role in qualifying a new generation of specialized Gulf arbitrators who are able to face global challenges and contribute effectively to the development of the arbitration industry in the world, through specialized training programs and internationally accredited professional certificates. International fellowship programs also contribute to transferring global expertise to local competencies, thus enhancing the presence of The Gulf arbitrator increases his reliance in managing and settling disputes.

In light of the current geopolitical tensions, what are the most prominent legal challenges facing companies in drafting an “arbitration clause” to ensure the continuity of contracts despite circumstances of force majeure or “emergency circumstances” resulting from armed conflicts?

Legal challenges in drafting an arbitration clause

In light of geopolitical tensions, the importance of drafting flexible and comprehensive arbitration clauses that include clear mechanisms for dealing with cases of force majeure and emergency circumstances is highlighted. The center works to provide advice and advanced contractual models that help companies ensure continuity of contracts and reduce legal risks resulting from disputes

The threat of closing the Strait of Hormuz will lead to severe disruptions in supply chains and higher insurance and shipping costs. How can the Center help companies manage these increasing “contract disputes” and ensure that industrial activities do not stop?

Managing contract disputes in light of supply chain disruptions

The Center provides integrated solutions for managing disputes arising from supply chain disruptions, through fast and effective arbitration mechanisms, which help parties reach practical solutions without disrupting industrial activities, ensuring business continuity and reducing losses.

Does the Center see the need to develop special rules for arbitration in “shipping and maritime transport disputes” to confront possible scenarios in international waterways in the region?

Developing arbitration rules for shipping and maritime transport disputes

The Center is studying the development of specialized rules for arbitration in maritime transport disputes, commensurate with the nature of the challenges in international waterways. This aims to provide a flexible and effective legal framework that addresses the specificity of this type of dispute and enhances the parties’ confidence in choosing arbitration as a first option.

The center provides the “emergency arbitrator” service within its electronic platform.. How can this mechanism provide urgent solutions to companies affected by the closure of commercial routes before the conflict escalates?

The role of the “emergency arbitrator” in urgent solutions

The “Emergency Arbitrator” service allows for issuing urgent decisions within a short period of time to protect rights and prevent the escalation of the dispute, especially in cases that require immediate intervention, such as closing commercial routes. This mechanism represents an effective tool to ensure business continuity and reduce damage.

The center is currently focusing on programs such as “The Art of Professional Negotiation and Settlement Management” and “The Uses of Artificial Intelligence to Improve the Performance of Arbitrators. To what extent do these technical and skill tools contribute to accelerating the pace of issuing arbitration awards so that commercial activities can return to operating efficiently?”

The effect of technical and skill programs on class speed

Training programs on professional negotiation and the use of artificial intelligence contribute to raising the efficiency of arbitrators and accelerating arbitration procedures. Modern technologies also help in analyzing cases more accurately, which reflects positively on the speed of issuing judgments and the return of commercial activities to normal.

What is the message that the Center sends to investors in the region to enhance the “legal security” of their contracts in light of the instability of the political situation, and how does the Center’s system ensure “neutrality, independence and transparency” in these sensitive circumstances?

– The Center affirms its commitment to providing a reliable arbitration environment based on neutrality, independence and transparency, in accordance with the highest international standards. It calls on investors to rely on its system as a safe option for resolving disputes, in a way that enhances legal stability and protects their investments in light of regional and international challenges.