SUDAN Trends and Developments Contributed by: Omer Ali Abdelrahman, Omer Ali Law Firm
• the wider scope of intervention by local courts in arbitration proceedings under domestic law; and • the local law’s requirement to suspend proceed - ings pending the resolution of a challenge to an arbitrator and/or to decide on a case of challenge of jurisdiction as a preliminary question. These and other points add to the points already dis - cussed regarding compromising the finality of arbi - tral awards in the case of several-stage appeals in an annulment case, and the non-enforceability of interest if made as part of an arbitration award. Based on the above points, it can be argued that Sudanese arbitration law should be reformed so as to remove these contradictions with the Model Law. On the other hand, the author has seen the argument that it is advisable to not in all cases simply follow the Model Law and similar model laws recommended by international agencies, as these model laws are designed primarily in a manner favourable to the pro - tection of the interests of multinational corporations and ignoring the interests of developing countries, such as Sudan. In order to decide which argument to follow, policy - makers in Sudan need to strike a balance between either encouraging foreign investors to invest in the country even at the expense of compromising certain elements of national interest (supposing the counter- argument is correct) or prioritising and safeguarding the country’s interests at the expense of discouraging foreign investors from coming to Sudan.
As regards multiplicity of appeals, there are grounds to argue in favour of going back to the rule under the old law, which allowed for a one-stage application for annulment cases. Again, here a balance needs to be struck between the desire of the parties to arbitration for speedy resolution of their disputes and ensuring justice by allowing several levels of appeal in cases seeking the setting-aside of arbitration awards. As regards making interest enforceable, on the basis that the current government has taken a liberal approach by excluding banking and financial services from the prohibition of interest, it can be argued that such exclusion should be extended to foreign arbitra - tion awards sought to be enforced in Sudan. Here, the balance to be struck is between the favourable treat - ment of foreign investors – who would expect to be allowed a mechanism for calculating compensation for breach of contract or for delay in performance or payment through interest – and sticking to the rules on the basis of being in line with Islamic law teachings. As regards arbitrators’ fees fixed in a schedule to the Arbitration Act, the schedule can simply be deleted and the fees left to the agreement between the arbitra - tors and the parties to the arbitration.
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