International Construction Law Review
CONSTRUCTION CONTRACTS IN THE MIDDLE EAST: EXPECT THE UNEXPECTED
NAEL G BUNNI
B Sc, M Sc, Ph D, C Eng, FICE, FIEI, FI Struct E, FCI Arb, FIAE, R Cons EI
Abstract
Unexpected consequences in arbitration proceedings in the Middle East may emanate from the quality of arbitration law and the practice of arbitration in the jurisdiction. These two aspects differ greatly from one jurisdiction to another although four factors have exerted some influence: first, the UNCITRAL Model Law on International Commercial Arbitration; secondly the Egyptian Arbitration Law of 1994, which itself was based on the UNCITRAL Model Law; thirdly Islamic law; and fourthly French law. This paper deals with these four aspects and provides some specific examples of the unexpected consequences that may result and the lessons that must be learned.
1. Introduction
I have made two assumptions in writing this paper. The first is that the arbitration clause or the arbitration agreement has been properly drafted; and the second is that the arbitration is an institutional arbitration. Were it otherwise, nothing could be considered unexpected.
Bearing this in mind, the type of unexpected events that may arise in the conduct of an arbitration could be as a result of the quality of the arbitration law within the particular jurisdiction concerned, or it may well be the practice of arbitration within the particular jurisdiction within which one is operating. Taking these two areas of the law and the practice of arbitration within the Middle East, one finds that arbitration law in the Middle East differs greatly from one jurisdiction to another although there are four factors that have exerted significant influence in the region:
- (1) the UNCITRAL Model Law on International Commercial Arbitration;
- (2) the Egyptian Arbitration Law of 1994, as modified in 2000 that itself was indeed based on the UNCITRAL Model Law;
- (3) Islamic law; and
- (4) French law.
The UNCITRAL Model Law was adopted by Bahrain in 1994, without any amendments being made to the legislation. During that year, Egypt also adopted the Model Law but rewrote the text and furthermore incorporated
Pt 4] Construction Contracts in the Middle East
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