News
2003

Arbitration strengthens its position in the Gulf States

The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, otherwise known as the New York Convention, has acquired an increasing number of Gulf States as members over the years. Kuwait led the way in 1978, followed by Bahrain in 1988, Saudia Arabia in 1994 and Oman in 1999. The most recent Gulf State to sign up is Qatar, where the New York Convention will enter into force on 30 March 2003.

The adoption of the New York Convention in 1958 was a landmark in international arbitration and owes much to the work and inspiration of ICC during the preceding years.

The Convention obliges courts in its member states to refer to arbitration any disputes brought before them which are covered by a valid arbitration agreement. It also limits the grounds upon which states may refuse to recognize or enforce foreign arbitral awards to a number of basic principles of due process, arbitrability, public policy and consistency with the parties' arbitration agreement.

Since 1958, the number of states in which the New York Convention is in force has continually increased and, with Qatar, will stand at 133. This leads to greater confidence in the effectiveness of arbitration in such states, which is of considerable importance to parties involved in international business relationships.