the frameworks which deal with the international disputes based on the arbitration clause which included by the parties at the time they concluded the contract. It deemed to be international when the disputes belong to what we so call the conflict of laws. The disputing parties shall be individual entities whether they are legal or natural individuals. The process of such arbitration will commence by one of the disputing parties submitting a RESQUEST FOR ARBITRATION to the institution set forth in the arbitration clause. After the filling of the request of arbitration, the parties will be invited to appoint an impartial arbitrator or panel of arbitrators to decide the dispute and render a final arbitration award which deemed to be international and enforceable globally. The enforceability of the arbitration awards comes as a result of the New York convention 1958 which was ratified by 140 counties and was the main reason to improve the international trade and encourage the ventures to move their capital to a foreign state and respectively increase the arbitration cases around the globe. the parties to dispute guarantee that the final award rendered by the arbitration tribunal will be recognized and enforced in other foreign jurisdictions “please make sure the country where you will enforce the arbitration award is a party to the above convention”. The distinction between domestic and international arbitration is essential as it will affect the enforcement of the award, therefore the applicable law of the arbitration process is determined. The easiest way to determine whether the arbitration is domestic or international is to look at the places of business for parties, if the parties’ facts extend beyond a single jurisdiction, regardless of their nationalities, it is considered international arbitration.

There are huge numbers of arbitration institutions around the world and each of them applies different rules and different cost as well. Some of them adopted the UNCITRAL Model Law governing the arbitration proceeding which is created by UNCITRAL and is legally considered one of the best governing law for the arbitration procedures.

How can I choose suitable arbitration clause to be included in the agreement?

Depending on which arbitration institution you will refer your future dispute, a unique clause created by a chosen institution should be included in the agreement subject to dispute. The reason behind that is the institution in which the dispute will be presented. The institution wants to ascertain that it will have a legal jurisdiction over the dispute and no parties can argue whether the arbitration institution has the right to decide the dispute. In addition, it is advisable to determine the language, the number of the arbitrators and the way to appoint them, the governing law as well as the place of the arbitration. All of these factors will play very important role when you commence the arbitration procedures.

As we all know the virtue of any law is to prevail justice and present equity and fairness regardless of any other factors such as nationality, color, power or etc. in this regard it’s very important to review the arbitration act which is created by the host country where the arbitration will take place. Some of the countries regulate a legal framework to govern the arbitration process and these regulations may not be suitable with you. The arbitration agreement must be valid in accordance with the law which governs it. This will usually be the law governing the substantive contract in which the arbitration clause is embedded; also, the arbitral procedure itself should comply with the mandatory rules of law in host country.

Why it is advisable to settle any commercial dispute through arbitration?

The following elements will summarize the reasons why it is appropriate to settle commercial dispute through arbitration:

– Enforceability:

The international enforceability of the arbitration award is the most essential element which encourages the parties in commercial dispute to settle it through arbitration. So basically, you can enforce the award anywhere in the world unless the country where you will enforce the arbitration decision is not party to 1958 (the New York Convention). but how are arbitration Awards enforced in a foreign country?

There is a procedure already in place in most of the countries where the parties can register the award with the national courts and the court affirms it, so in that way that the court’s order is adjudgment and then the award can be enforced through the court’s executive power just like any other local adjudgments. Therefore, you can use the similar court methods that exist in the foreign state for enforcing the arbitrator’s award in the same way that you would enforce a judgment.

– Parties’ discretion to determine the arbitration procedures

At the Point when parties draft an arbitration agreement, they can enjoy a broad discretion to construct a dispute resolution mechanism in accordance with their choice including ad hoc institution. The parties can appoint or nominate the arbitrators and their qualifications as well as the number of arbitrators. They are free to alter the place or arbitration and the matters relevant to the procedure. This broad freedom which given to the parties to decide the arbitration process aims to eliminate the obstacles imposed in regular litigations and pave the way for the new era of globalization which resulted in increasing number of the cases presented before the arbitration institutions.

– Time and cost efficiency

According to the most arbitration institutions rules, the parties can designate the timeline of the process and the time limitation to decide the dispute. Despite the fact that in some cases the designated period of time will be exceeded especially in the cases where the dispute is complicated and the case materials which provided by the parties are immense. But by any means, the required time for the arbitration process is much less than the time it takes to decide a dispute by litigations. There are many reasons behind this but the main reason is the fact that the arbitration award is final which means there is no appellate mechanism in arbitration contrary the litigations.

 

The arbitration process involves different costs that are paid by the parties, the cost of the arbitration procedures will depend on several elements such as types of the contract you have with the other party, the complexity of the dispute, amount of dispute, the requested compensation, how fast you wish the arbitrators decide your case “The expedited arbitration procedure”?, the arbitrators’ rates and other costs are partially non- refundable. In general, there are two types of costs in arbitration (administrative fees including filing fees, hearing fees, hearing room fees and arbitrator’s compensation fees) all of these fees will be collected by the arbitration institution in most cases and arbitrators will receive their compensation fees directly by the institution. Normally arbitrators do not have additional expenses but when arbitrators have to travel longer distances to attend hearings, the parties may have to pay for the arbitrator’s travel time, hotel, meals, plane ticket and other expenses. Once the arbitrator has paid or is required to pay the expenses, the parties must pay this amount and it is non-refundable. Finally, and even with mentioned fees above in most cases the cost of the arbitration will be less than regular litigation cost.

 

– The binding final aword

One of the main discrepancies between litigation and arbitration is the final pending award (Arbitral Award) which made in writing by the Arbitral Tribunal to end and resolve the dispute raised by the parties throughout the arbitration proceeding. The arbitral award shall be final and pending on the parties (which can’t be appealed by any parties)

– Free to choose who will represent you before the arbitral tribunal and throughout the arbitration proceeding.

In accordance with the common arbitration’s rules, the parties are free to choose a representative who will present their cases before the arbitral tribunal, contrary the litigation where most of the countries require a national legal representative to represent the case before the court which allow the parties to hire or use a representative from their own countries to act legally on behalf of them.​