Obtaining an arbitration award in favor of your company is not the end; the most important step is "execution" and recovering your financial rights or compelling the other party to fulfill their obligations.
A New Guarantee for Investors (The New York Convention)
In a significant step to enhance the investment environment, Iraq recently joined the 1958 New York Convention. This development means that arbitration awards issued in foreign countries can now be officially and legally enforced within Iraq against losing companies or parties.
How is the Award Executed Locally?
The process of executing arbitration awards goes through clear and simplified legal steps:
Court Ratification: The arbitrators' decision is submitted to the competent court to verify the validity of the procedures and ensure they do not violate Iraqi laws, after which the award is ratified.
Acquiring Final Status: A waiting period is observed until the legal timeframe allowed to appeal the decision expires, making the judgment final and enforceable.
Approaching the Execution Directorate: The lawyer opens a file with the competent Execution Directorate, which in turn notifies the losing party of the necessity to pay or comply with the arbitration award.
Compulsory Attachment: If the losing party refuses to comply voluntarily, executive attachment measures are taken against their funds, real estate, or bank accounts to forcefully fulfill the creditor's rights.
