An Analysis of the Enforcement of Foreign Arbitration Awards in Palestine

What is it about?

This article highlights the gaps and difficulties, which face the enforcement of foreign arbitration awards in the Palestinian courts. In addition, it constructs recommendations for legal and judicial approaches the Palestinian Authority should adopt to create a ‘pro-arbitration’ system. The article firstly provides a general analysis of the regulatory deficiencies in the enforcement of foreign arbitration awards, which include the inapplicability of the New York Convention, the existence of the reciprocity principle as a condition of enforcement, and the lack of presumptive obligation of recognizing the validity of arbitration awards in Palestine. Afterward, the article focuses on the procedural level of enforcing foreign arbitration awards and addresses difficulties that face the award-creditor when attempting to enforce the award through the competent court as well as the Palestinian courts’ approach when reviewing the exequatur, and how this attitude affects the granting enforcement.

Featured Image

Photo by Tingey Injury Law Firm on Unsplash

Photo by Tingey Injury Law Firm on Unsplash

Why is it important?

By highlighting the gaps of the arbitration enforceability in the Palestinian law, this article provides examples from the approaches and the legal texts of the Palestinian arbitration rules versus the Dutch and the UAE arbitration rules. This comparative analysis leads to a better understanding of the flaws in the Palestinian legal system by providing useful examples of how the enforcement deficiencies were resolved in two ‘civil’ legal systems, one from a developed state and the other from a developing state. The Dutch legal system provides an ideal basis for comparison because The Netherlands has a developed legal and judicial approach towards international commercial arbitration and hosts one of the leading arbitration institutions, namely The Hague Permanent Court of Arbitration, which has played a significant role in international commercial arbitration for quite some time. Also, part of this research has been done from inside The Netherlands, which has given the author a better understanding of the Dutch legal system in judicial practices. On the other hand, this article considers the United Arab Emirates (UAE) as a model for implementing arbitration within the region. The UAE has recently introduced essential developments in the field of arbitration, including institutional rules, legislative modifications, and notable court decisions concerning enforcement of arbitral awards, which have the potential to impact the arbitration environment in the Arab region, including Palestine. Currently, UAE arbitration institutions, such as the Dubai International Arbitration Centre, are considered the most popular forums in the Middle East for international commercial parties operating businesses within the region.