LEBANON Law and Practice Contributed by: Mohamed Alem, Mazen Ghosn and Rana Kahwagi, Alem & Associates
Alem & Associates 126 Foch Street, Beirut Central District Beirut, 2012 6609 Lebanon Tel: +961 1 999717 Email: info@alemlaw.com Web: www.alemlaw.com
1. General 1.1 Prevalence of Arbitration
often referred to international and regional arbitration institutions, such as the International Chamber of Commerce (ICC) and the Dubai International Arbitra - tion Centre (DIAC), the rules of which Lebanese courts are familiar with. For all these reasons, Lebanon is considered one of the most arbitration-friendly jurisdictions in the Mid - dle East, where arbitration is considered a standard method of settling disputes. Trends in Arbitral Decisions in Lebanon In recent years, there have been a number of pro- arbitration decisions confirming the liberal approach of the Lebanese courts to arbitration. Arbitration arising from commercial representation agreements The first issue that has received some attention con - cerns the arbitrability of disputes arising from com - mercial representation agreements. By way of back - ground, Decree-Law 34/67 (DL 34/67) of 5 August 1967 governs commercial representation in Lebanon. Article 5 of DL 34/67 grants Lebanese courts jurisdic - tion to settle disputes arising from commercial rep - resentation agreements, which has traditionally been considered exclusive, with the aim of protecting the interests of Lebanese agents/commercial representa - tives against those of their foreign principals. Accord - ingly, disputes arising from commercial representation agreements have historically been considered non- arbitrable. In a decision rendered in 2015, the Court of First Instance of Beirut concluded that Article 5 of DL 34/67
Over the years, Lebanon has established itself as a reliable seat for international arbitration, ranking high on the list of the most frequently considered seats in the Middle East and North Africa (MENA) region. This is partly due to the fact that there are a number of skilled and experienced arbitration practitioners in Lebanon who have a deep understanding of dif - ferent legal systems, including French civil law and English common law, which contributes to promoting Lebanon as an arbitration-friendly jurisdiction and a trustworthy seat. In addition, Lebanon has a sophisticated and depend - able legal framework. The current Lebanese Arbitra - tion Law, codified in the new Civil Procedure Code (NCPC) (Articles 762 to 821), is largely inspired by the 1981 French arbitration law, which preceded the current French legislation of 2011, and is considered to be pro-arbitration. The NCPC ensures that arbitral proceedings are conducted in a flexible and timely manner and that arbitral awards are promptly recog - nised and enforced. In addition, the Beirut Chamber of Commerce and Industry established the Lebanese Arbitration and Mediation Center (LAMC) in 1995, to provide admin - istrative and supervisory services for arbitration in Lebanon. LAMC has recently undertaken a compre - hensive overhaul of its arbitration rules in order to align with the latest trends and best practices in the field of arbitration. Arbitrations initiated in Lebanon are also
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