Arbitration law in Afghanistan

Arbitration law in Afghanistan is primarily governed by the Commercial Arbitration Law (2007) and relevant provisions in the Civil Procedure Code. Here’s an overview:

1. Legal Framework

  • Commercial Arbitration Law (2007): This law provides the primary rules for arbitration in Afghanistan, including the selection of arbitrators, arbitration proceedings, and enforcement of awards.
  • Civil Procedure Code: It also contains provisions on arbitration, particularly in civil disputes.
  • New York Convention (1958): Afghanistan became a signatory in 2005, meaning it recognizes and enforces foreign arbitral awards.

2. Key Features of Arbitration in Afghanistan

  • Freedom of Parties: Parties can choose arbitration as a dispute resolution method.
  • Arbitration Agreement: Must be in writing and signed by both parties.
  • Selection of Arbitrators: Usually, parties choose their own arbitrators, and if they cannot agree, the court appoints one.
  • Confidentiality: Arbitration proceedings are generally confidential.
  • Enforcement of Awards: Domestic and international arbitral awards are enforceable through Afghan courts, subject to certain conditions.

3. Challenges in Arbitration in Afghanistan

  • Judicial Intervention: Courts sometimes interfere in arbitration matters.
  • Lack of Awareness: Many businesses and individuals are unaware of arbitration as an alternative dispute resolution mechanism.
  • Security Concerns: Political instability and security issues can impact arbitration proceedings, especially for international parties.

4. Arbitration Institutions in Afghanistan

  • Afghanistan Centre for Commercial Dispute Resolution (ACDR): Established to promote alternative dispute resolution (ADR), including arbitration and mediation.

 

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