International Commercial Arbitration at Albania
International Commercial Arbitration in Albania
1. Legal Framework
Albania has established a legal environment conducive to international commercial arbitration, aligned with international standards:
Arbitration Law (Law No. 9372, dated 21.05.2005) — The primary statute governing arbitration in Albania, including international commercial arbitration. It is largely based on the UNCITRAL Model Law on International Commercial Arbitration (1985, amended 2006), promoting uniformity with global arbitration practices.
Code of Civil Procedure — Contains provisions that support arbitration proceedings, enforcement of arbitral awards, and judicial intervention limited to specific cases.
New York Convention (1958) — Albania is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, facilitating enforcement of international arbitration awards within its jurisdiction.
2. Scope and Application
The Arbitration Law applies to both domestic and international arbitration, with special provisions to accommodate international commercial disputes.
Parties are free to agree on arbitration for their disputes, including the choice of arbitrators, place of arbitration, applicable law, and procedural rules.
The law allows party autonomy and minimal court interference, respecting the independence of the arbitration process.
3. Key Features
Arbitral Tribunal Composition: Parties may appoint arbitrators; if they fail to do so, courts may intervene to appoint arbitrators under limited circumstances.
Arbitral Procedure: The tribunal manages the procedure with broad discretion to conduct hearings, admit evidence, and make decisions, consistent with fairness and due process.
Interim Measures: Arbitrators can grant interim relief; courts may also assist in such measures to preserve assets or evidence.
Recognition and Enforcement: Courts in Albania enforce domestic and foreign arbitral awards unless grounds for refusal under the New York Convention or Arbitration Law exist (e.g., lack of jurisdiction, public policy issues).
Judicial Support and Supervision: Courts have a limited role, mainly to assist arbitration (e.g., appointing arbitrators when parties fail, enforcing awards) and only intervene to annul awards in strict circumstances.
4. Arbitral Institutions
While Albania does not have a well-known national arbitration institution exclusively for international commercial arbitration, parties commonly use:
Ad hoc arbitration under UNCITRAL rules or other agreed rules.
International institutions such as ICC (International Chamber of Commerce), LCIA (London Court of International Arbitration), or SIAC (Singapore International Arbitration Centre).
Local arbitration centers may exist but are less prominent for international disputes.
5. International Treaties and Memberships
Albania’s accession to the New York Convention ensures international arbitral awards are respected and enforced.
Albania is a member of the International Centre for Settlement of Investment Disputes (ICSID), which governs arbitration in investment disputes.
Summary
Albania provides a modern, arbitration-friendly legal framework largely modeled on the UNCITRAL Model Law, ensuring:
Party autonomy,
Fair and efficient arbitral procedures,
Limited court intervention,
Enforceability of both domestic and international arbitration awards.
This framework facilitates Albania as a viable venue or seat for international commercial arbitration in the Balkans.
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