Law No. 14 of 2002 Approving the Establishment of the Commercial Arbitration Centre for the States of the Cooperation Council for the Arab States of the Gulf and Its Statute

Law No. 14 of 2002
Approving the Establishment of the Commercial Arbitration Centre for the States of the Cooperation Council for the Arab States of the Gulf and Its Statute

Promulgation Articles

Article One

The establishment of the Commercial Arbitration Centre for the States of the Cooperation Council for the Arab States of the Gulf, and the Statute of this Centre, the texts of which are attached to this Law, are hereby approved, in implementation of the decision of the Supreme Council of the States of the Cooperation Council for the Arab States of the Gulf issued at its fourteenth session, held in Riyadh from 20 to 22 December 1993.

Article Two

The Ministers, each within his competence, shall implement this Law, which shall come into force from the date of its publication in the Official Gazette.

Statute of the Commercial Arbitration Centre for the States of the Cooperation Council for the Arab States of the Gulf

Chapter One – Establishment, Jurisdiction and Seat of the Centre

Article 1

An arbitration centre shall be established in the States of the Cooperation Council for the Arab States of the Gulf, to be named (the Commercial Arbitration Centre for the States of the Cooperation Council for the Arab States of the Gulf). It shall be independent and self-standing and shall have independent legal personality.

Jurisdiction

Article 2

The Centre shall have jurisdiction to hear commercial disputes between citizens of the GCC States, or between them and third parties, whether natural or legal persons, as well as commercial disputes arising from the implementation of the provisions of the Economic Agreement and the decisions issued in implementation thereof, if the two parties have agreed in writing, in the contract or in a subsequent agreement, to arbitration within the framework of this Centre.

Seat of the Centre

Article 3

The seat of the Centre shall be in the State of Bahrain.

Chapter Two – Organs of the Centre

Article 4

The Centre shall consist of:
(a) The Board of Directors.
(b) The Secretary-General.
(c) The Arbitration Panel.
(d) The Secretariat of the Arbitration Panel.

Board of Directors

Article 5

The Centre shall have a Board of Directors composed of six members, the Chambers of Commerce and Industry in each of the GCC States appointing one member. The Board shall meet at least once every six months, or whenever necessary. The chairmanship of the Board of Directors shall rotate in accordance with the practice followed in the meetings of the Cooperation Council, and the Board of Directors shall appoint a Vice-Chairman from among its members.

Article 6

The term of membership of the Board of Directors shall be three years, renewable once only. The Board of Directors shall meet in the State where the Centre has its seat, or in any of the GCC States if necessary, at the invitation of its Chairman, or of the Vice-Chairman in the absence of the former. A meeting of the Board shall not be valid unless at least four of its members are present, including the Chairman or the Vice-Chairman. The decisions of the Board shall be issued by a majority of the votes of the members present; in the event of a tie, the side including the Chairman shall prevail.

Powers of the Board of Directors of the Centre

Article 7

The Board of Directors shall work to achieve the objectives of the Centre and to carry out its functions, and it shall, in particular, exercise the following:
(a) Approving the financial and administrative regulations of the Centre.
(b) Appointing the Secretary-General of the Centre.
(c) Approving the annual budget of the Centre.
(d) Approving the annual report on the work and activities of the Centre.

Secretary-General of the Centre

Article 8

The Arbitration Centre shall have a Secretary-General from among the citizens of the GCC States, who shall be appointed by the Board of Directors, which shall determine his terms of service, duties and entitlements, provided that he is a person of experience and specialisation. The Secretary-General shall be the legal representative of the Centre before the courts and before public and private entities.

Article 9

The Secretary-General shall be assisted by a sufficient number of employees, who shall be appointed in accordance with the employment provisions contained in the organisational regulations issued by the Board of Directors.

Arbitration Panel

Article 10

The Arbitration Panel shall be formed of a single arbitrator or of three arbitrators, according to the agreement of the parties in the submission agreement or the contract. If there is no agreement, the Rules of Procedure issued by the Board of Directors shall apply.

Article 11

The Centre shall keep a list of arbitrators prepared by the Chambers of Commerce and Industry in the member States of the Council. The parties concerned may consult that list and choose arbitrators from it or from outside it.
An arbitrator shall be required to be a member of the legal profession or the judiciary, or a person of high expertise and broad knowledge in commerce, industry or finance, and to be of high moral character, good reputation and independent opinion.

Applicable Law

Article 12

The parties shall be free to determine the law that the arbitrators are required to apply to the subject matter of the dispute. If the parties have not designated the applicable law, whether in the contract or in the submission agreement, the arbitrators shall apply the law determined by the rules of conflict of laws they deem appropriate, whether it be the law of the place where the contract was concluded, the law of the place of its performance, the law of the place where it is required to be performed, or any other law, taking into account the terms of the contract and the rules and customs of international trade.

Rules of Arbitration at the Centre

Article 13

(a) Arbitration shall be conducted in accordance with the Rules of Procedure of the Arbitration Centre, unless the contract provides otherwise.
(b) The rules of procedure applicable to the arbitration shall be the rules in force at the time it commences, unless the two parties agree otherwise.
(c) Except for the list of the names of arbitrators, the papers and documents of the Centre shall be confidential, and no one other than the parties to the arbitration proceedings and the arbitrators may consult them or take a copy of them, except with the express consent of the parties to the dispute, or if the Arbitration Panel deems this necessary for deciding the dispute.

Article 14

The consent of the two parties to submit the dispute to the Arbitration Panel of the Centre, as well as the ruling of that Panel that it has jurisdiction to hear the dispute, shall preclude the submission of that dispute, or of any procedure followed in its hearing, to any other judicial authority in any State. They shall likewise preclude any challenge to the arbitral award, or to any of the procedures required in its hearing, before any other judicial authority in any State.

Article 15

The award rendered by the Arbitration Panel in accordance with these procedures shall be binding on the two parties and final, and shall be enforceable in the States Parties once its enforcement has been ordered by the competent judicial authority.

Article 16

The Arbitration Panel shall refer to the Secretary-General of the Centre a copy of the award it has rendered, and the Secretary-General shall provide such assistance as is possible in depositing or registering the award whenever this is required under the law of the country in which the award is to be enforced.

Secretariat of the Arbitration Panel

Article 17

The Secretariat of the Arbitration Panel shall be part of the General Secretariat of the Centre; it shall work under the supervision of the Secretary-General and shall report to him administratively.

Article 18

This Secretariat shall be competent to receive the requests for arbitration referred to it by the Secretary-General and to receive all papers, correspondence and documents submitted by the parties to the dispute in accordance with the Rules of Procedure and the provisions of this Statute. It shall record the minutes of the sessions of the Arbitration Panel and implement its decisions issued during the hearing of the case and before it is decided.

Chapter Three – Budget of the Centre

Article 19

A provisional budget shall be established for the Centre from the date of its establishment until the beginning of the first following financial year. The Bahrain Chamber of Commerce and Industry shall finance the budget of the Centre until the end of the third financial year, and the Chambers of Commerce and Industry in the member States of the Cooperation Council shall finance the budget of the Centre in the following years equally among themselves.

Article 20

The Centre shall have an annual budget whose revenues shall consist of the following:
(a) The fees charged by the Centre in consideration of its services and of the expenses it incurs for that purpose.
(b) The gifts and donations received by the Centre and accepted by its Board of Directors.
(c) The proceeds from the sale of the Centre’s publications and periodicals.
(d) The amounts paid to this Centre by the Chambers of Commerce and Industry in the member States equally among themselves.

Chapter Four – Additional Assistance Provided by the Centre

Article 21

(a) Where the Centre is authorised to select arbitrators in accordance with the Rules of Procedure, the Secretary-General of the Centre shall undertake that task in accordance with the provisions of the Rules.
(b) The Centre shall charge fees determined by the Rules of Procedure, and in determining them, regard shall be had to the administrative expenses of the Centre, its volume of work, and the actual costs it incurs.

Article 22

If the two parties agree to settle their dispute by arbitration other than through the Centre, the Secretary-General of the Centre may, upon a written request from the two parties, provide or arrange the facilities and assistance necessary to conduct the arbitration proceedings requested by the two parties.
The necessary facilities and assistance may include providing a suitable venue for the sessions of the Arbitration Panel and assistance with secretarial work, translation, and the safekeeping of documents and arbitration papers.

Chapter Five – Arbitration Costs

Article 23

(a) The Secretary-General of the Centre shall prepare a provisional estimate of the arbitration costs, and shall require each of the two parties to the dispute to deposit a specified equal amount as an advance on those costs. The two parties may also be required to make supplementary deposits during the course of the arbitration proceedings.
(b) If the required deposits are not paid within thirty days of receipt of the request, the Secretary-General shall notify the other parties thereof in accordance with the Rules of Procedure.
(c) After the award of the Arbitration Panel in the disputes has been rendered, the Secretary-General shall provide the two parties to the dispute with a statement of the deposits and expenses, for the purpose of the final settlement by refunding any excess of the amounts deposited or collecting the remainder of the expenses, in accordance with the provisions laid down in the Rules of Procedure.

Chapter Six – Immunities and Privileges

Article 24

The Chairman and members of the Board of Directors, the Secretary-General of the Centre, the members of the Arbitration Panel, and the members of the Secretariat of that Panel shall enjoy the following immunities:
(a) Immunity from any legal proceedings in the exercise of their functions, unless the Centre decides to waive that immunity by a decision of the Board of Directors.
(b) The immunities and privileges accorded to members of the diplomatic corps that are granted to them in connection with travel. They shall also be exempt from any restrictions on the circulation of currency, if any.
The provisions of paragraph (b) shall not apply to citizens of the host State.

Article 25

The Centre and all its property and assets shall enjoy immunity from any judicial or administrative proceedings in the exercise of its work in accordance with this Statute.

Article 26

The papers, documents and archives of the Centre shall enjoy immunity from any measure of any kind.

Chapter Seven – Tax Exemptions

Article 27

The Centre, its property, assets and resources, and its financial operations carried out in accordance with the provisions of this Statute shall be exempt from all types of taxes, if any, and from customs duties.
Nor may the Centre be subjected to any claims in this regard.
Amounts paid by the Centre to the Secretary-General shall not be subject to any tax that may be imposed.
Nor shall the wages, expenses and any other payments made to the staff of the Secretariat of the Arbitration Panel be subject to such tax. This exemption shall not apply to citizens of the host State.
The foregoing provisions shall apply to the fees and expenses paid to arbitrators in the exercise of their work in accordance with the provisions of this Statute.

Chapter Eight – General Provisions

Article 28

The Arbitration Rules of Procedure shall be prepared by legal experts from the member States within three months from the date of approval of this Statute, and shall become enforceable upon ratification by the Commercial Cooperation Committee.

Article 29

Any of the member States of the Cooperation Council may request the amendment of this Statute, and the amendment shall enter into force three months after the date of its approval by the Supreme Council.

Article 30

This Statute shall enter into force three months after the date of its approval by the Supreme Council of the Cooperation Council for the Arab States of the Gulf.