Shahista Sultana

By Shahista Sultana

In today’s global marketplace, businesses frequently enter into cross-border contracts where disputes can arise across multiple legal systems. International arbitration has become the preferred method for resolving these disputes, offering privacy, neutrality, and efficiency compared to traditional court litigation.

Confidentiality and Neutrality
Unlike court proceedings, arbitration hearings are private. This protects sensitive commercial information and preserves business relationships. Parties can also choose a neutral venue and arbitrators with specific industry expertise, avoiding any perception of home-court bias.

Flexibility and Efficiency
Arbitration allows procedures to be tailored to the dispute, ensuring a fair yet streamlined process. Leading institutions such as the Singapore International Arbitration Centre (SIAC) and the London Court of International Arbitration (LCIA) have modernised their rules to encourage faster and more cost-effective resolutions, including expedited procedures for smaller claims.

Growth in the Middle East
Across the Middle East, jurisdictions are actively strengthening their arbitration frameworks. Centres such as the Saudi Center for Commercial Arbitration (SCCA), the DIFC-LCIA in Dubai, and the Qatar International Center for Conciliation and Arbitration are aligning with international best practices, making the region an increasingly attractive hub for commercial dispute resolution.

Why It Matters
For both multinational corporations and SMEs, arbitration offers enforceability of awards under the New York Convention and helps manage legal risk in cross-border trade. Including arbitration clauses in commercial contracts is now a practical necessity for any business operating internationally.

Conclusion
International arbitration provides businesses with a fair, efficient, and enforceable mechanism for resolving global disputes. As legal systems evolve, arbitration continues to stand out as the most practical tool for maintaining commercial certainty and confidence worldwide.