MALTA Trends and Developments Contributed by: Antoine Cremona, Clement Mifsud-Bonnici, Luisa Cassar Pullicino and Yasmine Ellul, Ganado Advocates
Towards a Modernised Arbitration Framework in Malta: The Case for Legislative Reform Introduction Malta’s arbitration framework is built on a strong foun - dation, having been shaped from its inception on the UNCITRAL Model Law on International Commercial Arbitration of 1985 (the “UNCITRAL Model Law”) and the UNCITRAL Arbitration Rules of 1976 (the “UNCITRAL Arbitration Rules”). Arbitration, including the recognition and enforcement of foreign awards, had long been recognised in Malta, but this legisla - tive alignment, coupled with a centralised institutional framework under the Malta Arbitration Centre (MAC), was intended to offer a legally secure and procedur - ally sound environment for arbitration. In recent years, arbitration has seen steady growth in key sectors in Malta, driven by its inherent flexibility, confidentiality, and party autonomy. To continue ensuring this growth and to further strengthen Malta’s position as a seat for international commercial arbitration, targeted legislative refinement is now warranted. The current Arbitration Act (Chap - ter 387 of the Laws of Malta) (the “Arbitration Act” or the “Act”) and Arbitration Rules (Subsidiary Legisla - tion 387.01) (the “Arbitration Rules” or the “Rules”) are based on the original 1985 UNCITRAL Model Law and 1976 UNCITRAL Arbitration Rules. Moreover, a number of practical and procedural challenges – par - ticularly in areas such as recognition and enforcement, form requirements, and procedural consistency – have highlighted the need for modernisation in line with global trends. This article identifies areas where Malta can build on its current strengths to ensure that its legal framework remains responsive to contemporary commercial real - ities and emerging arbitral practices. With thoughtful reform, Malta can consolidate its reputation as a reli - able, arbitration-friendly jurisdiction for both domestic and cross-border disputes. Current legal framework and a need for reform Arbitration in Malta is governed by the Arbitration Act and the Arbitration Rules, which together provide a structured legal framework for the conduct of arbitral proceedings. The MAC acts as the central institu - tion responsible for administering both domestic and
international arbitrations seated in Malta, where the parties have not agreed to submit their dispute to a different arbitral institution. Its functions include the appointment of arbitrators, registration of awards, and general procedural support to arbitral tribunals. This institutional framework is underpinned by an acces - sible legal system and a judiciary that is generally sup - portive of arbitration. The Act incorporates, in full, the UNCITRAL Model Law as its First Schedule. As a result, the core principles of international arbitration – party autonomy, compe - tence-competence, limited judicial intervention, and equal treatment of parties – are firmly embedded in Maltese law. The Arbitration Rules, largely based on the 1976 UNCITRAL Arbitration Rules, provide pro - cedural guidance applicable to both domestic and international arbitrations. Malta is also a party to key international instruments that support the enforce - ment of arbitration agreements and awards, including the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 (the “New York Convention”). The Act makes a distinction between domestic and international arbitration, with different provisions applying depending on the nature of the dispute. While this bifurcation is not unusual, it intro - duces certain procedural differences that may ben - efit from clarification or harmonisation, particularly as more disputes span multiple jurisdictions. As international arbitration continues to evolve – driv - en by complex cross-border transactions, technologi - cal advancement, and procedural innovation – Malta’s arbitration regime must be updated to remain com - petitive and aligned with global standards. Although litigation remains the primary method of dispute reso - lution locally, particularly due to its relatively low cost and the familiarity of court procedures, arbitration is the preferred dispute resolution mechanism across an increasing spectrum of economic activity having a link with Malta. There has been a noticeable rise in the use of arbitration clauses in areas such as construction, public procurement, intellectual property and share - holder agreements, signalling growing awareness of its advantages, including procedural flexibility, con - fidentiality, and the ability to appoint sector-specific arbitrators. Sustaining and expanding this momentum
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