How much does arbitration cost for a small business?

Costs combine the institution's administrative fees, the arbitrators' fees and lawyers' fees, usually calculated on the amount in dispute. For modest contracts, a sole arbitrator and expedited procedure rules keep the budget under control.

Can an arbitral award be appealed?

As a rule, no. An award can only be challenged through an annulment action before the courts of the seat, on limited grounds such as lack of a valid agreement, breach of due process or violation of public policy.

Which arbitration centre should I choose in the Middle East and North Africa?

Choose a centre close to the parties or to their assets, with rules in the language of the contract. Commonly used options include the CCAT in Tunis, CIMAC in Casablanca, DIAC in Dubai, SCCA in Riyadh and CRCICA in Cairo.

Clause templatesDisputes

Arbitration clause

An arbitration clause commits the parties to settle their disputes before one or three arbitrators rather than state courts. It offers confidentiality, a neutral forum and an award that can be enforced in most countries. A poorly drafted clause, however, can paralyse the dispute for months.

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Clause template

1. Any dispute, controversy or claim arising out of or relating to this contract, including its formation, validity, interpretation, performance, breach or termination, shall be finally resolved by arbitration under the Rules of [ARBITRATION INSTITUTION] in force on the date of the request for arbitration. 2. The arbitral tribunal shall consist of [ONE / THREE] arbitrator(s) appointed in accordance with those Rules. 3. The seat of arbitration shall be [CITY, COUNTRY]. The language of the arbitration shall be [LANGUAGE]. 4. The law applicable to the merits of the dispute shall be the law of [COUNTRY]. 5. The award shall be final and binding on the parties, who undertake to carry it out without delay. 6. Nothing in this clause prevents a party from seeking urgent interim measures from a competent court before the tribunal is constituted.

Replace the bracketed items before use.

Variants

Ad hoc arbitration (UNCITRAL Rules)

Any dispute arising out of or relating to this contract shall be settled by arbitration under the UNCITRAL Arbitration Rules. The tribunal shall consist of [NUMBER] arbitrator(s). If the parties fail to agree on an appointment within [30] days, the appointing authority shall be [INSTITUTION OR AUTHORITY]. The seat shall be [CITY, COUNTRY] and the language [LANGUAGE].

Tiered clause with prior negotiation

The parties shall first attempt to settle any dispute through good-faith negotiation between their senior management for [30] days from written notice of the dispute. Failing settlement within that period, the dispute shall be finally resolved by arbitration under the Rules of [ARBITRATION INSTITUTION], with a seat in [CITY, COUNTRY] and in [LANGUAGE].

When to use it

Cross-border contracts where neither party wants to litigate in the other's courts
High-value supply, construction or technology contracts that need a specialised decision-maker
Shareholder or partnership agreements where confidentiality matters
Contracts with a counterparty whose assets are located in a New York Convention country

Mistakes to avoid

Naming an institution that does not exist or using its wrong name, which makes the clause pathological
Forgetting to state the seat, which determines the supporting courts and the annulment procedure
Choosing three arbitrators for a low-value contract, which can make costs disproportionate
Adding a clause conferring jurisdiction on state courts without explaining how it fits with arbitration

Country-specific notes

Tunisia
Arbitration is governed by the Arbitration Code issued by Law No. 93-42 of 26 April 1993. The arbitration agreement must be in writing, and the main arbitral institution is the Tunis Conciliation and Arbitration Centre (CCAT).
Source: Legal 500, Tunisia: International Arbitration
Morocco
The Casablanca International Mediation and Arbitration Centre (CIMAC), set up in 2001 at the initiative of the Casablanca Chamber of Commerce, Industry and Services, administers commercial arbitration and mediation.
Source: CGEM, partnership with CIMAC
United Arab Emirates
Decree No. 34 of 2021 transferred the activity of the DIFC Arbitration Institute to the Dubai International Arbitration Centre (DIAC). Under the DIAC Rules in force since 21 March 2022, the default seat is the DIFC unless the parties choose otherwise.
Source: K&L Gates, The DIAC Publishes Its 2022 Arbitration Rules
Saudi Arabia
The Arbitration Law issued by Royal Decree No. M/34 of 2012 requires the arbitration agreement to be in writing, electronic form included. Government entities generally need prior approval to agree to arbitration. The Saudi Center for Commercial Arbitration (SCCA) applies its own rules, in force since 1 May 2023.
Source: CMS Expert Guide to International Arbitration: Saudi Arabia

Contracts that use this clause

Frequently asked questions

Costs combine the institution's administrative fees, the arbitrators' fees and lawyers' fees, usually calculated on the amount in dispute. For modest contracts, a sole arbitrator and expedited procedure rules keep the budget under control.

Other Disputes clauses

Sources

Indicative template, to adapt to your situation. It does not replace legal advice.

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Arbitration clause

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Variants

Ad hoc arbitration (UNCITRAL Rules)

Tiered clause with prior negotiation

When to use it

Cross-border contracts where neither party wants to litigate in the other's courts

High-value supply, construction or technology contracts that need a specialised decision-maker

Shareholder or partnership agreements where confidentiality matters

Contracts with a counterparty whose assets are located in a New York Convention country

Mistakes to avoid

Naming an institution that does not exist or using its wrong name, which makes the clause pathological

Forgetting to state the seat, which determines the supporting courts and the annulment procedure

Choosing three arbitrators for a low-value contract, which can make costs disproportionate

Adding a clause conferring jurisdiction on state courts without explaining how it fits with arbitration

Country-specific notes

Tunisia

Arbitration is governed by the Arbitration Code issued by Law No. 93-42 of 26 April 1993. The arbitration agreement must be in writing, and the main arbitral institution is the Tunis Conciliation and Arbitration Centre (CCAT).

Legal 500, Tunisia: International Arbitration

Morocco

The Casablanca International Mediation and Arbitration Centre (CIMAC), set up in 2001 at the initiative of the Casablanca Chamber of Commerce, Industry and Services, administers commercial arbitration and mediation.

CGEM, partnership with CIMAC

United Arab Emirates

Decree No. 34 of 2021 transferred the activity of the DIFC Arbitration Institute to the Dubai International Arbitration Centre (DIAC). Under the DIAC Rules in force since 21 March 2022, the default seat is the DIFC unless the parties choose otherwise.

K&L Gates, The DIAC Publishes Its 2022 Arbitration Rules

Saudi Arabia

The Arbitration Law issued by Royal Decree No. M/34 of 2012 requires the arbitration agreement to be in writing, electronic form included. Government entities generally need prior approval to agree to arbitration. The Saudi Center for Commercial Arbitration (SCCA) applies its own rules, in force since 1 May 2023.

CMS Expert Guide to International Arbitration: Saudi Arabia