International Commercial Arbitration at Jordan
International Commercial Arbitration in Jordan: Overview
Jordan has established itself as a prominent seat for international commercial arbitration in the Middle East, supported by a modern legal framework and active institutions. It benefits from its strategic geographic location, stable legal environment, and commitment to arbitration-friendly laws aligned with international standards.
1. Legal Framework
Jordanian Arbitration Law No. 31 of 2001
Jordan’s principal arbitration legislation is based largely on the UNCITRAL Model Law on International Commercial Arbitration. This law governs both domestic and international arbitrations conducted in Jordan.
New York Convention (1958)
Jordan is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) since 2001, making Jordan a reliable jurisdiction for enforcement of international arbitration awards.
2. Key Features of Arbitration in Jordan
Modern Arbitration Law:
Jordan’s Arbitration Law provides a comprehensive framework that promotes the autonomy of parties, impartiality and independence of arbitrators, limited court intervention, and clear enforcement procedures.
International Arbitration Friendly:
The law favors arbitration by allowing parties to freely choose arbitrators, the place of arbitration, procedural rules, and applicable law.
Judicial Support:
Jordanian courts support arbitration by enforcing arbitration agreements and arbitral awards, limiting intervention primarily to setting aside or enforcement proceedings.
Confidentiality:
Arbitration proceedings in Jordan are generally confidential, protecting parties’ sensitive information.
3. Arbitration Institutions in Jordan
Amman Chamber of Commerce Arbitration Center (ACAC):
The primary arbitration institution in Jordan that administers international and domestic arbitration cases, with its own set of arbitration rules aligned with international standards.
Other regional institutions such as the Dubai International Arbitration Centre (DIAC) and International Chamber of Commerce (ICC) are also commonly used by parties in Jordan.
4. Enforcement of Arbitral Awards
Recognition & Enforcement:
Under the New York Convention, foreign arbitral awards are recognized and enforced in Jordanian courts, provided they meet the Convention’s criteria.
Grounds for Refusal:
Grounds for refusal of enforcement under Jordanian law mirror the New York Convention, including invalid arbitration agreement, due process violations, excess of authority, public policy, or improper notice.
5. Advantages of Arbitration in Jordan
Strategic location linking Asia, Africa, and Europe.
Robust arbitration legal framework based on the UNCITRAL Model Law.
Membership in the New York Convention, facilitating enforcement worldwide.
Active arbitration institutions with rules consistent with international best practices.
Supportive judiciary with limited intervention.
Flexibility and party autonomy in arbitration procedures.
6. Challenges and Practical Tips
Arbitration infrastructure is still developing compared to global hubs.
Parties should ensure clear drafting of arbitration clauses regarding seat, language, and rules.
Local legal advice is recommended to navigate court interaction and enforcement procedures.
Sample Arbitration Clause for Jordan
Any dispute arising out of or in connection with this contract shall be finally settled by arbitration administered by the Amman Chamber of Commerce Arbitration Center in accordance with its arbitration rules. The seat of arbitration shall be Amman, Jordan. The arbitration shall be conducted in English/Arabic. The arbitral tribunal shall consist of [one/three] arbitrator(s). The decision of the arbitral tribunal shall be final and binding on the parties.
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