International Commercial Arbitration at Yemen
Certainly! Here's an overview of International Commercial Arbitration in Yemen:
International Commercial Arbitration in Yemen
1. Legal Framework
Yemen’s arbitration law is primarily governed by the Yemeni Arbitration Law No. 27 of 1997.
This law is influenced by the UNCITRAL Model Law on International Commercial Arbitration (1985) but adapted to Yemen’s legal context.
Yemen is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, having acceded in 2004.
Arbitration agreements and arbitral awards are recognized and enforceable under Yemeni law, provided they meet formal requirements.
2. Key Features
Arbitration Agreement: Must be in writing. The agreement should clearly state arbitration as the dispute resolution mechanism.
Seat of Arbitration: Parties can agree to Yemen as the seat, in which case Yemeni Arbitration Law applies to procedural matters.
Arbitral Tribunal: The law provides rules on appointment, challenge, and jurisdiction of arbitrators.
Court Intervention: Yemeni courts can assist in enforcement and interim measures but tend to have a supervisory role.
Recognition and Enforcement: Domestic and foreign arbitral awards are enforceable. Foreign awards are recognized under the New York Convention provisions.
3. Practical Considerations
Yemen’s ongoing political instability and security challenges may affect the practical aspects of arbitration, especially enforcement.
Many international parties prefer to select arbitration seats in more stable jurisdictions (e.g., Dubai, London) even if Yemen is chosen as the governing law.
Yemeni courts generally respect arbitration agreements and awards but delays and unpredictability may occur.
4. Recommendations
When drafting contracts involving Yemeni parties or assets:
Clearly specify the arbitration clause, including choice of seat and arbitration rules.
Consider choosing a neutral, stable seat with strong arbitration infrastructure for the arbitration proceedings.
Include provisions for enforcement and interim relief.
Utilize institutional arbitration under established bodies such as the Dubai International Arbitration Centre (DIAC) or International Chamber of Commerce (ICC), if appropriate.
Summary Table
| Aspect | Yemen |
|---|---|
| Arbitration Law | Yemeni Arbitration Law No. 27/1997 |
| New York Convention Status | Acceded (2004) |
| Arbitration Institutions | Limited local institutions |
| Arbitration Seat Preference | Usually outside Yemen for stability |
| Enforcement of Awards | Recognized but practical challenges exist |
RELATED Blog
0 comments