Commercial arbitration is an effective and fast tool for resolving disputes between companies and investors, serving as an alternative to traditional courts. In the business world, where time and confidentiality are critical success factors, the role of arbitration truly stands out.
Why Do Companies Prefer Arbitration?
Companies choose to include arbitration in their contracts for several practical reasons:
Speed: It significantly reduces the time required compared to court proceedings, which can take years.
Strict Confidentiality: It keeps contracts, as well as financial and commercial information, completely confidential and away from public hearings.
Expertise of Arbitrators: This process allows parties to select experts who specialize in the specific nature of the dispute (e.g., engineers for construction contracts, or financial experts for banking disputes).
The Legal Foundation in Iraq
Arbitration in Iraq is primarily governed by the Civil Procedure Code. For an arbitration to be legally valid, the law requires the agreement to be in writing, and the dispute must involve matters that are subject to settlement (conciliation) and do not violate public order or morals.
