Arbitration

Ad hoc and Institutional Arbitration
International Arbitration

Arbitration has been traditionally known and accepted as a major means of settling disputes since the establishment of modern Jordan. The first formal statute to regulate arbitration was the Arbitration Law of 1953 and its amendments, which was annulled by the current Arbitration Law of 2001. The Law of 2001 is mainly based on the United Nations Commission on International Trade Law (UNCITRAL) Model Law of 1985 on International Commercial Arbitration.

Ad hoc and Instiutional Arbitration

The parties either agree in advance to the specific issues or certain types of dispute that will be arbitrated, or after a dispute arises, they enter into an ad hoc agreement to arbitrate. In ad hoc agreements in Jordan, the parties in a business contract might negotiate a whole set of custom-made arbitration rules establishing procedures to fit their needs and address all eventualities. Or the parties might suffice with a simple arbitration clause to be included in their contract with a simple reference to statutory procedures such as the Jordanian Arbitration Law, or adopt rules crafted specifically for ad hoc arbitral proceedings such as the UNCITRAL rules.

International Arbitration

Jordan has acceded to important bilateral and multilateral conventions and treaties concerning arbitration and enforcement amongst which are the Riyadh Arabic Treaty on Judicial Collaboration, the Amman Arabic Treaty on Commercial Arbitration, the Settlement of Investment Disputes in the Arab Countries Treaty, and the Arabic Treaty on Commercial Arbitration. The Arabic Treaty on Commercial Arbitration stipulates that an Arabic Center for Commercial Arbitration shall be established, although this has yet to materialize.

Jordan is also a party to numerous other bilateral agreements and treaties concerning ADR mechanisms, especially regarding arbitration.

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