The Lebanese legal framework is in line with international standards, offering equal treatment and protection for local and foreign investors and traders.
Investors and business actors in Lebanon are increasingly including arbitration clauses in their agreements in order to benefit from:
- the speed and flexibility that is offered by arbitration
- The confidential nature of arbitral proceedings.
A – Arbitration
The Lebanese Arbitration Center was established in May 8, 1995 in close affiliation with the Chamber of Commerce, Industry and Agriculture, whose by-laws and regulations are similar to those of the International Chamber of Commerce in Paris. These arbitration proceedings are governed by the Lebanese Code of Civil Procedure (CCP), which are subject to Decree Law 90/83, drawing a distinction between domestic arbitration and international arbitration.
Moreover, all of the bilateral and multilateral treaties, agreements and contracts signed by Lebanon, and which are related to the protection of all commercial issues, include the possibility of resolving disputes by arbitration.
When it comes to international arbitration, the Republic of Lebanon acceded to the New York Convention in 1998 stating that the convection will be applied on the basis of reciprocity, to the recognition and enforcement of awards made in the territory of other contracting States.
In terms of costs, deciding whether the unsuccessful party shall bear the entire costs, is usually left to the arbitral tribunal’s discretion. All elements of costs can be awarded, unlike before domestic courts where the shifting of costs is more limited.
B- Conciliation and Mediation
On September 24, 2018, The Lebanese Parliament passed the Judicial Mediation Law providing the opportunity for parties in conflict to choose mediation as an alternative dispute resolution. This process necessitates the consent of all parties to the conflict. The duration of the mediation consists of 30 working days, subject to renewal upon the approval of all parties. The court may designate a mediation center if the parties fail to agree on one, noting that all mediation centers should be registered with the Lebanese Ministry of Justice.
The Lebanese Arbitration Center has a special procedure for conciliation and mediation, which conforms to international practice.