Arbitration Law in Syria
Arbitration Law in Syria is governed by the Syrian Code of Civil Procedure (CCP), specifically Articles 749–771, which regulate domestic and international arbitration. However, Syria has faced significant challenges in the implementation and practice of arbitration due to the ongoing conflict in the country. Despite these challenges, Syria’s legal framework for arbitration still adheres to general principles of arbitration and provides a basis for resolving disputes outside the court system.
Key Aspects of Arbitration Law in Syria:
1. Legal Framework
- Syrian Code of Civil Procedure (CCP): Arbitration is primarily governed by Part Four of the CCP (Articles 749–771), which regulates both domestic and international arbitration. The law emphasizes party autonomy, allowing the parties to determine the arbitration procedure, subject to certain rules and limitations under Syrian law.
- International Treaties: Syria has signed various international treaties, including the New York Convention (1958), which facilitates the recognition and enforcement of foreign arbitral awards. However, enforcement may be complicated in practice due to Syria’s political and economic situation.
- UNCITRAL Model Law: While Syria’s arbitration framework is influenced by international standards, including the UNCITRAL Model Law on international commercial arbitration, Syria’s legal provisions are more tailored to local requirements.
2. Arbitration Agreement
- Written Agreement: To be valid, an arbitration agreement must be in writing, either as a stand-alone agreement or as an arbitration clause within a contract. This is consistent with international standards.
- Scope: The arbitration agreement must clearly define the scope of the disputes to be arbitrated. It is enforceable as long as it is valid and the dispute falls within its scope.
- Enforceability: Syrian courts typically respect arbitration agreements. If a party seeks to bring a dispute before the court while there is an existing arbitration agreement, the court will generally refer the case to arbitration if the agreement is valid.
3. Arbitral Tribunal
- Number of Arbitrators: The parties are free to agree on the number of arbitrators, though one or three arbitrators is the norm. The parties can specify whether they want the tribunal to consist of an odd number of arbitrators to avoid tie votes.
- Appointment of Arbitrators: The parties can agree on the procedure for selecting arbitrators. In case the parties fail to agree, the Syrian courts may appoint the arbitrators. Typically, arbitration institutions like the Damascus Chamber of Commerce or the Syrian Center for International Commercial Arbitration may assist in arbitrator appointments.
- Impartiality and Independence: Arbitrators must be impartial and independent. The parties have the right to challenge arbitrators on grounds of bias, conflict of interest, or lack of qualifications.
- Qualifications: There are no specific requirements for arbitrators in Syrian law. However, it is common for arbitrators to have expertise in the subject matter of the dispute.
4. Arbitration Procedure
- Party Autonomy: Similar to other jurisdictions, Syria’s arbitration law heavily emphasizes party autonomy. The parties can agree on the procedural rules and institutions governing the arbitration. If no agreement exists, the tribunal has the authority to determine the procedural rules.
- Institutional and Ad Hoc Arbitration: Both institutional and ad hoc arbitration are allowed. Institutions such as the Syrian Center for International Commercial Arbitration (SCIICA) administer cases, while ad hoc arbitration can also be conducted with the parties' chosen rules.
- Language of Arbitration: The parties can freely choose the language of arbitration, although Arabic is commonly used, especially in domestic arbitration.
- Interim Measures: Syrian courts have the authority to grant interim measures in support of arbitration, such as freezing assets or preserving evidence, to ensure the effective conduct of the arbitration.
- Confidentiality: While not explicitly addressed by the CCP, confidentiality is generally expected in the arbitration process, especially in institutional arbitrations.
5. Arbitral Awards
- Final and Binding: Arbitral awards in Syria are final and binding on the parties, and must be complied with. If a party does not comply with the award, the other party may seek enforcement through the courts.
- Types of Remedies: The arbitrators have the authority to grant various forms of relief, including monetary compensation, specific performance, and injunctive relief, depending on the nature of the dispute.
- Written Award: The award must be written, and the tribunal must provide reasoning for its decision, although in certain cases, a simplified award may be issued.
- Time Limits: Syrian law does not impose a strict time limit for issuing an award. However, arbitrators are expected to issue their decision within a reasonable time frame.
6. Recognition and Enforcement of Arbitral Awards
- Domestic Awards: Domestic arbitral awards made in Syria are enforceable by the Syrian courts. If a party fails to comply with the award, the prevailing party may request enforcement in the Syrian courts.
- Foreign Awards: Syria is a signatory to the New York Convention (1958), which facilitates the recognition and enforcement of foreign arbitral awards. However, due to the country’s political and economic challenges, enforcement of foreign awards in Syria may be difficult in practice.
- Grounds for Refusal: Under the New York Convention, foreign arbitral awards may be refused recognition or enforcement on the following grounds:
- Public Policy: If the award violates Syria’s public policy (ordre public).
- Non-arbitrability: If the dispute involves issues that cannot be arbitrated under Syrian law.
- Procedural Irregularities: If the award was rendered in a way that deprived the parties of due process or their right to be heard.
7. Judicial Review and Setting Aside of Awards
- Limited Grounds for Setting Aside: A party can challenge an arbitral award in Syria on limited grounds, including:
- Excess of Jurisdiction: If the tribunal exceeds its authority or jurisdiction.
- Procedural Irregularity: If there is a violation of due process, such as failure to notify a party or denial of the right to be heard.
- Public Policy Violation: If the award violates Syria’s public policy (ordre public).
- Time Limits: A challenge to an arbitral award must be filed within 30 days of receiving the award. If the challenge is not made within this period, the award is considered final.
- Appeal Process: There is no appeal of an arbitral award in Syria except in exceptional cases where the award is set aside on the limited grounds mentioned above.
8. Role of Courts in Arbitration
- Supportive Role: Syrian courts take a supportive role in the arbitration process. They may assist in appointing arbitrators, granting interim measures, and ensuring the integrity of the process.
- Stay of Court Proceedings: If there is a valid arbitration agreement, Syrian courts will typically stay legal proceedings in favor of arbitration and refer the dispute to arbitration.
- Enforcement of Interim Measures: Syrian courts are empowered to enforce interim measures issued by the arbitral tribunal, even if the arbitration is seated outside Syria.
- Judicial Assistance: Courts may assist in taking evidence and compelling witnesses to testify if needed during the arbitration process.
9. Arbitration Institutions in Syria
- Syrian Center for International Commercial Arbitration (SCIICA): The SCIICA is the main arbitration institution in Syria. It administers both domestic and international arbitration cases. The SCIICA Rules provide a framework for arbitration proceedings in Syria.
- Damascus Chamber of Commerce: The Damascus Chamber of Commerce also plays a role in arbitration in Syria, and it offers arbitration services for resolving commercial disputes.
- Other Institutions: Syria allows parties to use other international arbitration institutions, such as the International Chamber of Commerce (ICC) or UNCITRAL for ad hoc arbitration.
10. Recent Developments and Future Outlook
- Challenges: The ongoing conflict in Syria has significantly impacted the ability to conduct arbitration effectively within the country. The political and economic instability has hindered the enforcement of arbitral awards and created practical difficulties for arbitration in Syria.
- Potential for Growth: Despite the challenges, Syria is likely to continue adhering to international arbitration principles. Once political stability returns, the country may see a resurgence in the use of arbitration for resolving disputes, especially as international parties may seek to avoid Syrian courts due to the ongoing conflict.
- Arbitration Reform: There is potential for reforms in Syrian arbitration law to make the legal framework more attractive and efficient, especially in the context of improving enforcement mechanisms for both domestic and foreign arbitral awards.
Conclusion
While Arbitration Law in Syria is influenced by international standards, such as the New York Convention and the UNCITRAL Model Law, its effectiveness has been severely impacted by the ongoing political instability. The Syrian Code of Civil Procedure (CCP) provides a legal framework for both domestic and international arbitration, with provisions regarding the appointment of arbitrators, arbitration procedures, and the recognition and enforcement of awards. However, due to the conflict, enforcement of awards is complicated, and judicial intervention is often needed. Once stability returns, Syria may once again become
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