Commercial Arbitration — A Clear Path … and a More Effective Course

The role of commercial and international arbitration has grown significantly in both Western and Arab countries in general, and in the Kingdom of Bahrain in particular. This comes in line with the increasing prevalence of commercial and international disputes within the business sector. Bahrain has witnessed a remarkable leap forward in the field of arbitration, joining several international conventions that emphasize its application. This development has rightly been commended, as it provides an alternative path to ordinary courts, offering companies and business entities a practical avenue for resolving disputes. Undoubtedly, this fosters greater investment growth and prosperity in the Kingdom, thanks to the numerous advantages embedded in the implementation of arbitration.

Arbitration is regarded by legal scholars as an alternative means of dispute resolution outside the judiciary, and numerous theses and studies have been devoted to it. As expressed by Dr. Abdulrazzaq Al-Sanhouri, arbitration is considered a form of “private justice”, whereby two or more parties agree to resolve their disputes through a third party other than the national judiciary of their state—referred to as the arbitrator, or an arbitral tribunal consisting of three or more arbitrators, depending on the case. The decision of the arbitrator or arbitral tribunal to whom the parties submit is binding upon both sides. By choosing this path, the parties explicitly waive a fundamental right—the recourse to ordinary courts. This stands as the clearest evidence and strongest proof of the significant advantages arbitration provides: saving effort, time, and ensuring swift resolution; liberation from the rigid rules and procedures of litigation; and granting the parties the freedom to select the individual with the decisive say in their dispute, based on expertise and the nature of the matter at hand. Moreover, arbitral rulings carry the added benefit of complete confidentiality, away from the public nature of court sessions, ultimately achieving the highly sought-after goal shared by all, particularly businesspeople—expedited justice.