Arbitration Rules
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  1. Part i

    Rules of Arbitration Proceedings

    Article 1 - 16

    Article (1) Definitions

    In applying the provisions of these Rules, the following words and expressions shall have the meanings assigned thereto below, unless the context otherwise requires:

    Centre The G.C.C Commercial Arbitration Center.
    Rules The rules governing commercial arbitration proceedings at the Centre.
    Secretary-General The Secretary-General of the Centre.
    Claimant The Party requesting arbitration, and may be one person or more.
    Respondent The Party against whom the arbitration is requested, and may be one person or more.
    Parties to the Arbitration The Claimant or the Respondent, even if there is more than one of them.
    Arbitrator The person appointed to adjudicate the dispute referred thereto.
    Expert The person assigned by the Arbitration Tribunal to submit an Experts' Report in a particular area entrusted thereto.
    Arbitration Tribunal Secretariat (Secretary) The person who is appointed to provide administrative and technical support to the arbitral tribunal.
    Tribunal or Arbitration Tribunal The Arbitration Tribunal formed in accordance with the provisions of the Rules.
    Arbitration Agreement The written agreement of the Parties to resort to arbitration made either prior to the emergence of a dispute (the arbitration clause) or thereafter (the arbitration compromise).
    List of Arbitrators List of Arbitrators accredited to the Centre.
    Experts Roll List of Experts accredited to the Centre.
    List of Secretaries List of Secretaries accredited to the Centre.

    Article (2) Scope of Application

    The arbitration before the Centre shall be conducted pursuant to these Rules unless there is a provision to the contrary in the Arbitration Agreement. The Parties may select further arbitration proceedings before the Centre, provided that such proceedings shall not impair the authority of the Centre or Arbitration Tribunal stipulated in these Rules.

    Article (3) Arbitration Agreement

    1. Agreement to arbitrate in accordance with the provisions of these Rules before the Centre precludes the submission of the dispute to any other Party or its appeal against the Arbitration Tribunal's award.
    2. In the event of recourse to arbitration, it is recommended that the following wording in the Arbitration Agreement should include "all disputes arising out of or relating to this contract shall be definitively settled in accordance with the regulations of the G.C.C Commercial Arbitration Center."

    Article (4) Presumption of Validity

    All agreements and stipulations referred to arbitration before the Centre shall be presumed valid unless evidence is provided establishing the invalidity thereof.

    Article (5) Eligibility for the Agreement to Arbitrate

    1. The agreement to arbitrate shall be entered into only by the natural person having the capacity to dispose of the rights or by the representative of the legal person authorised to conclude the agreement to arbitrate; otherwise, the agreement is thereby invalid.
    2. The Arbitration Agreement does not terminate upon its expiration or the demise of a Party, and may be enforced by or against that Party's legal successor unless the Parties agree otherwise.

    Article (6) Writing of the Arbitration Agreement

    For the Arbitration Agreement to be valid, it must be in writing and signed by the Parties concerned, whether it is written in a contract or agreement between the Parties or contained in letters or telegrams exchanged or other modern means of electronic communication that allow the agreement to be proven in writing.

    Article (7) Forms of Arbitration Agreement

    1. The Arbitration Agreement may be prior to a dispute, whether it is independent in itself or contained in a particular contract regarding all or certain disputes that may arise between the Parties (arbitration clause).
    2. The agreement to arbitrate shall be permissible after the dispute has been established, even if proceedings have been instituted before a judicial authority, in which case the agreement must specify the matters covered by arbitration (arbitration compromise).
    3. The agreement to arbitrate shall be impermissible in matters in which no reconciliation may be granted.
    4. The agreement to arbitrate shall be deemed to be any reference in the contract to a document containing an arbitration clause if the reference is clear that this clause is part of this contract.

    Article (8) Autonomy of the Arbitration Clause

    Unless otherwise expressly agreed, the agreement to arbitrate shall be deemed independent of the contract in dispute. If the contract is invalid for any reason, the Arbitration Agreement shall remain in force.

    Article (9) Notifications and Correspondence

    1. Correspondence shall be sent to and from the Centre addressed in the name the Secretary-General.
    2. Parties shall submit to the Centre notifications or written correspondence and the documents attached thereto electronically.
    3. After the Centre notifies the Parties of the constitution of the Tribunal, all correspondence between the Tribunal and the Parties shall be conducted directly, and copies thereof shall be transmitted simultaneously to the Centre.
    4. Notifications and correspondence and the documents attached thereto shall be sent to the Party to be notified or its representative at the address provided by the sender and shall be delivered by any means that provides written evidence to the effect of sending, such as registered mail, private mail, e-mail, or any other means.
    5. Unless otherwise agreed, the notice through notification or correspondence and the documents attached thereto shall be deemed to result from the effects of delivery to the Party to be personally notified, regardless of its location, or to the Party’s representative at the address provided by the sender. If this address cannot be reached, the notification shall be notified at the habitual residence, place of business, or mailing address of the Party to be notified. And, in the event that it is not possible to reach any of these addresses after the requisite investigation has been conducted, the notification shall be sent to the last known place of residence, business, or address of the Party to be notified by any means that serves the purpose of sending.

    Article (10) Representation of Parties

    The Parties shall, at any stage, designate their representatives, whether lawyers or others. The names, addresses, and means of communication shall be determined and notified in writing by the Centre and the other Party.

    Article (11) Periods and Deadlines

    The dates and periods set forth in these Rules shall be calculated from the day following the day on which notification or correspondence is deemed to have been made in accordance with the provisions of Clauses (4) and (5) of Article (9). Should the date on which notification or correspondence takes place coincide with a public holiday or a working holiday at the sender's headquarters or place of business, the period shall begin to be calculated from the first official working day thereafter, and public holidays or working holidays within the period shall be counted as normal days. However, if the last day of the period is a public holiday or a working holiday at the sender's headquarters or place of business, the period prescribed expires at the end of the first official working day after the set date.

    Article (12) Request for Arbitration

    1. Claimant’s name, surname, capacity, nationality, address, and other contact addresses.
    2. Respondent’s name, surname, capacity, nationality, address, and other contact addresses.
    3. Statement of claim (statement of the dispute and its facts and evidence, detailing the requests and amounts claimed).
    4. A copy of the Arbitration Agreement and documents relating to the dispute.
    5. The name of the selected Arbitrator, if any.
    6. Official agency.

    The Secretary-General shall ensure that all documents necessary for the proper conduct of the arbitration proceedings are available and, in the event that the required documents are incomplete, shall notify the requestor (Claimant) of the requirement to satisfy thereof, in addition to half of the requestor's estimated fees and expenses within thirty days from the date of notification thereof.

    Article (13)

    Every request for arbitration for which arbitration expenses have not been paid to the Centre shall be cancelled after three months from the date on which the Party is notified of payment. The Party shall retain the right to resubmit its request again as a new request.

    Article (14)

    Upon receipt of the request for arbitration, completion of the required documents, and payment of the fees and expenses referred to in the preceding Article, the Secretary-General shall notify the requestor of the receipt of the request and notify the Party against whom arbitration is sought (Respondent) through a copy thereof within seven days of receipt of the request with a registered letter with acknowledgement of receipt.

    Article (15) Brief in Reply / Counter-Request

    The Party against whom arbitration is sought (Respondent) must submit, within twenty days from the date of notification of the request, a brief in reply containing the pleas and counter-requests, if any, and the name of the selected Arbitrator, accompanied by the evidence and documents possessed. The Secretary-General may grant the Party an additional period not exceeding twenty days upon request. The Respondent's failure to respond shall not preclude the conduct of the arbitration proceedings.

    Article (16)

    The Tribunal at the Centre shall guarantee all the defence rights of the disputing Parties, treat them equally, and give each of them the full opportunity in all procedures to present their case.

    Article (17) Criteria for the Appointment of the Arbitration Tribunal

    1. To be a specialist in the subject of the dispute.
    2. To be conversant with the language of arbitration.
    3. To be registered with the Centre's List of Arbitrators if the Centre is competent to appoint.

    Article (18)

    The Tribunal shall constitute of a single or three Arbitrators as agreed by the Parties. In the event of no agreement, the Secretary-General shall constitute the Tribunal from Single Arbitrator , unless it is found that the nature of the dispute requires it to be constituted of three Arbitrators.

    Article (19)

    1. If the Tribunal is constituted of a single Arbitrator, the Parties must agree to appoint the said Arbitrator within twenty days from the date of notification thereof. If the Arbitrator is appointed by a Party, and the other Party does not express consent or objection, the Arbitrator appointed by the Party shall be certified as a single Arbitrator for the dispute.
    2. If the Arbitrator appointed by the other Party is objected, the Secretary-General shall, within two weeks, provide the Parties with three Arbitrators from among the Centre's List of Arbitrators to select two therefrom within three days. Thereafter, the Secretary-General shall appoint one of the previously selected Arbitrators and notify the Parties of such an appointment.
    3. If the Tribunal is constituted of three Arbitrators, the Secretary-General shall, within two weeks, provide the Parties with five Arbitrators from among the Centre's List of Arbitrators to select four therefrom within three days. Thereafter, the Secretary-General shall appoint two of the previously selected Arbitrators and notify the Parties of such an appointment.
    4. If the requestor of arbitration (Claimant) did appoint the Arbitrator selected in the request, the Secretary-General shall, within two weeks, provide the requestor of arbitration (Claimant) with three Arbitrators from among the Centre's List of Arbitrators to select two therefrom within three days. Thereafter, the Secretary-General shall appoint one of the previously selected Arbitrators and notify the Parties of such an appointment.
    5. If the Party against whom arbitration is sought (Respondent) did appoint the selected Arbitrator within the period provided for in the preceding Article, the Secretary-General shall, within two weeks, provide the Party against whom arbitration is sought (Respondent) with three Arbitrators from among the Centre's List of Arbitrators to select two therefrom within three days. Thereafter, the Secretary-General shall appoint one of the previously selected Arbitrators and notify the Parties of such an appointment.
    6. The Secretary-General shall invite the Arbitrators of both Parties to select a third Arbitrator to preside over the Tribunal. If an agreement is not reached within twenty days from the date of the proceeding, the Secretary-General shall, within two weeks, provide the (Arbitrators) with three Arbitrators from among the Centre's List of Arbitrators to select two therefrom within three days. Thereafter, the Secretary-General shall appoint one of the previously selected Arbitrators a Presiding Arbitrator of the Tribunal and notify the Parties of such an appointment.
    7. When appointing and constituting the Arbitration Tribunal, the Parties to the dispute shall be granted a period of (3) three working days to render an opinion, after which the dispute file shall be transmitted to the Tribunal for the commencement of the arbitration proceedings.

    Article (20) Acknowledgement of Acceptance of the Assumption of the Arbitration Function

    The Arbitrator shall sign an acknowledgement of acceptance of the assumption of the arbitration function after having been informed of the summary of the facts of the dispute and claims, as well as the Centre’s regulations, bylaws, and rules of procedure.

    Article (21) Time Frame of Commitment to the Arbitration Function

    1. The Arbitrator shall commence the mandated functions from the time of receipt of the file transmitted thereto and until the award is rendered or the Arbitrator ceases to exercise the functions entrusted thereto in the cases mentioned in Article (54) of the Rules Organising Arbitration Proceedings.

    Article (22) Confidentiality

    The Arbitration Tribunal shall refrain from disclosing the statements listed below to non-parties to the dispute, their representatives, and the Arbitration Centre:

    1. Any contentious information related to the dispute, whether the names and nationalities of the Parties and their representatives, the subject of the dispute, the Parties' submissions, the communications issued and received, the names of the members of the Arbitration Tribunal, experts, witnesses, and the arbitration procedures of the dispute.
    2. Adjudications of the Tribunal.
    3. Deliberations.

    Article (23) Multiple Parties

    1. If there are multiple Parties, whether plaintiffs or defendants, and if the dispute is to be transmitted to a Tribunal constituted of a single Arbitrator, all Parties must consent to the selection of the Arbitrator.
    2. If there are multiple Parties, whether as Claimants or Respondents, and if the dispute is to be transmitted to a Tribunal constituted of three Arbitrators, the multiple Claimants must select an Arbitrator, as must the multiple Respondents.
    3. Should the Parties fail to appoint the Arbitrators as indicated above, all Arbitrators, including the Presiding Arbitrator of the Tribunal, shall be appointed by the Secretary-General from among the Centre's List of Arbitrators. Thereafter, the Secretary-General shall notify the Parties of such an appointment.
    4. The Secretary-General shall invite the Arbitrators of the multiple Parties to nominate a third Arbitrator to be Presiding Arbitrator of the Tribunal. If an agreement is not reached within twenty days from the date of the proceeding, the Secretary-General shall, within two weeks, appoint the third Arbitrator from among the Centre's List of Arbitrators. Thereafter, the Secretary-General shall notify the Parties of such an appointment.

    Article (24)

    If either Party disputes the validity of an Arbitrator's appointment, the Secretary-General shall adjudicate the dispute within two weeks by a final decision, provided that the dispute is expressed prior to the hearing established for the consideration of the dispute.

    Article (25)

    In the event of an Arbitrator’s demise or inability, or if a force majeure prevented the carrying out or the continuance of the function mandated thereto, another Arbitrator shall be appointed in the same manner in which the original Arbitrator was appointed.

    Article (26)

    1. Any Party may request the appointment of an Emergency Arbitrator prior to the formation of the Arbitration Tribunal. The request must include the type, reasons, and legal basis of the measures required.
    2. The requestor must pay Emergency Arbitrator fees according to the fees specified in the Regulation of Arbitration Expenses
    3. The Centre shall be required to appoint an Emergency Arbitrator within 48 hours of receiving the request.
    4. The Emergency Arbitrator must disclose any circumstances that may affect his/her impartiality or independence. Either of the Parties may request a challenge (recusation) of the Emergency Arbitrator after the submission of a reasoned written request to the Secretary-General within 24 hours. The Secretary-General must decide on the request within another 24 hours.
    5. The Emergency Arbitrator shall determine the request procedures and provide a timetable for deciding on the emergency request after hearing the defences of Parties.
    6. The Emergency Arbitrator shall have the same powers as the Arbitration Tribunal.
    7. The Emergency Arbitrator must reason the order to take the interim or provisional measure to protect and preserve the right.
    8. The Emergency Arbitrator must decide on the request within two weeks of appointment.
    9. An order or award rendered by an Emergency Arbitrator may be conditional on the appropriate guarantee of the requestor of the emergency measure.
    10. The Emergency Arbitrator shall submit a copy of the order or award to the Centre for notification and the provision of a copy to the Parties.
    11. The Emergency Arbitrator cannot proceed with the functions mandated thereto after the appointment of the Arbitration Tribunal.
    12. The submission of a request for provisional measures by a judicial authority is not incompatible with these awards and is not a waiver of the right to arbitration.
    13. The Arbitration Tribunal shall have the power to rectify or annul orders or awards rendered by the Emergency Arbitrator.
    14. The Emergency Arbitrator may not be a member of the Arbitration Tribunal except with the approval of all Parties.

    Article (27) Challenge (Recusation) of Arbitrators and Objection Thereto

    1. Each party may request the challenge (recusation) of an Arbitrator for reasons set out in its request. The request for challenge (recusation) shall be submitted to the Secretary-General within seven days of knowledge of the circumstances justifying the request.
    2. No party may request the challenge (recusation) of the Arbitrator whom it appointed or was involved in the appointment thereof unless upon a reasoned request, or if there are circumstances which give rise to doubts as to the Arbitrator's impartiality or independence or evidence of doubt as to the qualifications required.
    3. Failure to submit a challenge (recusation) of an Arbitrator within the specified period is a waiver of the Party's right to challenge (recusation).

    Article (28)

    1. In the event of a Party's request for a challenge (recusation) of an Arbitrator, the other Party may consent to the challenge (recusation). The Arbitrator whose challenge (recusation) is requested may recuse voluntarily from the consideration of the dispute, and a new Arbitrator shall be appointed in the same manner as the original Arbitrator.
    2. If the other Party disagrees with the request for challenge (recusation), and the Arbitrator challenged does not recuse voluntarily from the consideration of the dispute, the Secretary-General shall decide on the request for challenge (recusation) within three days of receipt of the request.
    3. If the Secretary-General decides to dismiss the Arbitrator upon the request to challenge (recusation), a new Arbitrator shall be appointed in accordance with these Rules. This decision shall be communicated to each Arbitrator whose dismissal is decided and to the Parties.

    Article (29) Termination of the Arbitrator’s Function

    If the Arbitrator is unable to perform the mandated function or fails to perform it in such a way as to cause unjustified delay or take measures that indicate a lack of knowledge in arbitration proceedings, recusal is a must. If the Arbitrator does not recuse voluntarily or if the Parties do not grant or consent to the removal, the Secretary-General may terminate the Arbitrator’s function after the Arbitrator and the other Parties have made their observations.

    Article (30) Replacement of Arbitrators

    1. The Arbitrator shall be replaced by another during the course of the arbitration proceedings in the event of demise, recusal, or agreement by the Parties to remove him/her or to accept his/her dismissal from the Secretary-General by restitution, termination, or the omission and negligence in the performance of his/her function in accordance with the preceding Article.
    2. Upon replacement of the Arbitrator and on the basis of the report of the Secretariat of the Arbitration Tribunal, the Secretary-General shall decide, as to what is deemed appropriate, whether or not to pay the fees and expenses for Arbitrator’s services, if any.
    3. The Arbitrator shall not be entitled to any fees in the event of a dismissal due to failure to comply with the duties and responsibilities mandated thereto.
    4. Once reconstituted and after exploring Parties' observations, the Tribunal shall determine the extent and limitations of some or all of the measures previously taken.

    Article (31) Impartiality and Independence

    1. A person selected to be an Arbitrator must declare in writing his/her acceptance of the arbitration function and must disclose any information that may lead to doubts as to his/her integrity and independence.
    2. After the appointment and in the performance of arbitration functions mandated thereto, the Arbitrator undertakes to disclose immediately to both Parties any new circumstances that may affect his/her integrity and independence, unless previously declared.

    Article (32) Duties and Restrictions Imposed on the Arbitration Tribunal

    1. Members of the Tribunal must adhere to:
      • Disclosing to the Parties the connection or relationship that has an impact on impartiality and independence, including the financial, commercial, or professional relationship or personal relationship with the Parties to the dispute, their representatives, other lawyers, witnesses, and experts.
      • Ascertaining the validity and non-nullity of the Arbitration Agreement.
      • The arbitration tribunal shall decide on the subject matter of its jurisdiction over the dispute within 20 days from the date of the first procedural hearing.
      • Respecting the fundamental principles of litigation, such as equality of Parties and respect for the principle of confrontation between litigants.
      • Exercising due diligence in the performance of duties and responsibilities to avoid unnecessary delay and expenditure.
      • Allocating sufficient time to the consideration of the dispute.
      • Respecting the regulations of the Centre.
      • Not contravening the rules of public order.
      • Exercising the highest standards of impartiality, fairness, politeness, and respect when dealing with the Parties in the course of the arbitration proceedings.
      • Not exceeding jurisdiction in the consideration of the dispute.
      • Not overlooking the adjudication of the Parties' requests.
      • Obtaining core competencies and skills of deep knowledge and experience in the subject of conflict, as well as sophisticated linguistic abilities.
      • Not receiving a bribe under the name of a gift or donation.
      • Avoiding gross, egregious miscalculation of the facts or legal solutions adopted to resolve the dispute, or in carrying out the arbitration proceeding incorrectly.
      • Not overlooking any fact or request that may affect the award, provided that such omission is not the result of dereliction or negligence by either Party.
      • Refraining from acting in bad faith in such a way as to cause probable and improbable harm to either one or both of the Parties or others, and the need for the causation between the error committed and the harm caused to the aggrieved.
    2. Members of the Tribunal must refrain from:
      • Expressing impartiality to one of the disputing Parties or any person or other entity.
      • Receiving instructions from any Party or individual on any matter relating to the measures taken in the dispute.
      • Being influenced by any type of relationship, whether financial, commercial, professional, personal, past, current, or potential in the future.
      • Exploiting the position to achieve financial or personal interests from one of the disputing parties or from the results of the dispute settlement procedures.
      • Performing any function or accepting any advantages in such a way as to affect the performance of the duties entrusted thereto.
      • Performing any conduct affecting, ostensibly, the lack of independence or impartiality.
      • Corresponding with or notifying one Party without the other.
      • Conducting an inspection or investigation of a common issue related to the dispute in the presence of one Party without the other's knowledge.
      • Telephoning the Parties.
    3. The Arbitrator shall not act as a legal representative, witness, or expert in any other dispute before the Centre.
    4. The Arbitrator must have the capacity to make independent and substantive decisions during the consideration of the dispute, and not receive any instructions or guidance regarding the expected results or ways of addressing the issues raised during the course of the proceedings.

    Article (33)

    1. The arbitration tribunal Shall nominate a secretary after the parties have agreed to this and the Secretary General has approved it.
    2. The Secretary's fees are set at a rate of 300 Bahraini dinars per month, provided that the total fees do not exceed 1,500 Bahraini dinars during the duration of arbitration.
    3. Upon assuming the function of Secretariat, the Secretary shall sign a confidentiality declaration and undertaking containing the following text:

    "I, [name], a [nationality] national, holder of Passport Number [passport number] and Identity Card Number [card number], acknowledge having read the Rules Organising Arbitration Proceedings of the G.C.C Commercial Arbitration Center and affirm that there is no association with the parties to the dispute that would prevent me from assuming the function of Secretariat of the Dispute No. [Dispute No.] registered with the Centre. I undertake to maintain the complete confidentiality of all information and documentation relating to the dispute. I also approve the fees determined for me by the arbitration tribunal in an amount amounting to [fees amount] Bahraini dinar.”

    Article (34) Responsibilities of the Secretary

    1. The Secretary shall be subject to the direct supervision of the Arbitration Tribunal and shall follow the instructions of the Tribunal, abide by its decisions, and not exceed the scope of the functions entrusted thereto. The Arbitration Tribunal shall be responsible in all cases for the work of the Secretary relating to arbitration proceedings.
    2. The Secretary of the Arbitration Tribunal shall cooperate with the Arbitration Tribunal by performing administrative functions (sending documents and making communications on behalf of the Arbitration Tribunal, organising meetings and hearings, taking notes and minutes of meetings, recording witnesses' statements at hearings, and preparing and filing the dispute).
    3. The Secretary of the Arbitration Tribunal shall receive submissions from the Parties to the dispute, as well as decisions, orders, and correspondence.
    4. The Secretary of the Arbitration Tribunal shall perform functions relating to the arbitration hearings and the organisation thereof, including: booking the arbitration hearing halls; verifying the completion of all administrative arrangements related thereto; and informing the Parties of any changes to the date of the hearings as per the schedule previously agreed with the Arbitration Tribunal.
    5. The Secretary of the Arbitration Tribunal shall record the minutes of the hearings in the manner prescribed by the Arbitration Tribunal. The minutes of the hearings shall include the following:
      • The date and time of the hearing and the time of its conclusion.
      • Dispute statement.
      • The names of the members of the Arbitration Tribunal, the names of the Parties and their representatives present, and the witnesses and experts present at the hearing.
      • Proof of the agency bond or representation on behalf of the Parties.
    6. The Secretary of the Arbitration Tribunal shall send the draft transcript of the meeting to the Arbitration Tribunal for comment and observations prior to its adoption and final signature by the Presiding Arbitrator. The minutes shall also be signed by the Secretary of the Arbitration Tribunal, unless the Arbitration Tribunal determines otherwise.

    Article (35) Restrictions on the Secretary of the Arbitration Tribunal (Secretariat)

    1. To not attend the Arbitration Tribunal's deliberations, unless the Tribunal determines otherwise.
    2. To not make individual contacts with the Parties to the case, unless the Arbitration Tribunal decides otherwise.
    3. To abide by the Arbitrator's obligation to preserve the confidentiality of arbitration proceedings and arbitration award.
    4. To not receive a gift or remuneration on the occasion of the performance of the duties of the function mandated thereto.
    5. Under no circumstances shall the Arbitrator authorise the Secretariat of the Arbitration Tribunal to perform the Arbitrator's duties.

    Article (36)

    Referral of the Dispute File to the Tribunal - Commencement of the Function

    The Secretary-General shall transmit the dispute file to the Tribunal within seven days from the date of its constitution in advance. The Tribunal shall commence its function within fifteen days from the date of notification thereof.

    Article (37)

    The Arbitration Tribunal shall observe the provisions of these Rules or any other rules applicable to arbitration proceedings in such ways as the Tribunal finds appropriate, provided that the Parties shall be treated on an equal footing and that each Party shall, at all stages of the proceedings, be afforded the full and equal opportunity to present its defence.

    1. The Presiding Arbitrator shall decide on all matters relating to the procedures unless another member is authorised thereby to do so.
    2. All submissions, documents, papers, and information provided by any of the Parties must be sent to the Centre, Arbitration Tribunal, and other Parties to the dispute.

    Article (38) Rules Applicable to the Procedures:

    The procedures before the Arbitration Tribunal shall be governed by rules agreed by the Parties and, in the absence of an agreement applying the rules of the Centre's procedures, if there is no provision addressing the matter, the Tribunal shall determine the appropriate rule to be followed that is closely relevant to the dispute before it.

    Article (39) Rules Applicable to the Subject Matter of the Dispute The Tribunal shall adjudicate the dispute in accordance with the following:

    1. The contract between the Parties and any subsequent agreement therebetween.
    2. The law chosen by the Parties.
    3. The law most closely linked to the subject matter of the dispute in accordance with the conflict-of-laws rules that the Tribunal deems appropriate.
    4. The norms of domestic and international trade.

    Article (40)

    The GCC's regulations, resolutions, texts, and interpretations of the Unified Economic Agreement are applicable to disputes arising from the implementation thereof.

    Article (41)

    1. If the Parties fail to reach an agreement on the place of arbitration, the Centre shall be the place specified for the arbitration.
    2. The Tribunal may, after consultation with the Parties, hold some of its hearings and meetings anywhere it deems appropriate, unless otherwise agreed by the Parties.
    3. The Tribunal may conduct the deliberation anywhere it deems appropriate.
    4. In any event, the award shall be deemed to have been rendered at the place designated for arbitration and on the date set forth thereon.

    Article (42) Language of Arbitration

    Where the Parties are at variance, the Tribunal shall determine the language or languages used in the arbitration proceedings, taking into account the circumstances relating to arbitration, including the language of the contract and the correspondence exchanged.

    Article (43) New Requests and Amendment of Existing Requests

    Any Party may amend its requests or add new requests during the course of the arbitration proceedings unless the Tribunal deems this inadmissible in view of the nature of such requests, the stage reached by the arbitration proceedings, or any other relevant circumstances.

    Article (44) Plea the Arbitration Tribunal’s Lack of Jurisdiction

    The arbitration tribunal shall decide on defences relating to its lack of jurisdiction within twenty days from the date of the first procedural hearing, including defences based on the absence, nullity, expiry, or non-coverage of an arbitration agreement. These defences must be presented at the first procedural hearing and before entering into the subject matter of the dispute.

    Article (45)

    At the request of either Party at any stage of the proceedings, the Tribunal shall hold oral proceedings or hear the testimony of witnesses or experts. If neither Party makes such a request, the Tribunal shall have the choice between holding such hearings or proceeding on the basis of documents and papers, provided that at least one hearing has already been held.

    Article (46)

    1. In the event of oral proceedings, the Tribunal shall inform the Parties well in advance of the hearing's date, time, and place.
    2. In the event of proof of witness testimony, the Party with the onus of proof shall inform the Tribunal and the other Party at least seven days in advance of the testimony hearing of the names, addresses, matters in which such witnesses will testify, and language used in the testimony.
    3. The Tribunal shall make the necessary arrangements for the translation of the oral statements submitted at the hearing if such statements are not in Arabic, and the Tribunal shall record the minutes of its meeting.
    4. Proceedings and hearings of witnesses shall be confidential unless otherwise agreed by the Parties, and the Tribunal shall be free to determine the manner in which witnesses are questioned.
    5. The Tribunal shall decide whether or not to approve or deny the evidence and whether or not it relates to the merits of the case and the significance of the evidence submitted.
    6. The hearing of witnesses and experts shall be without taking oath.
    7. The Tribunal may manage and hold arbitration hearings remotely through modern means of communication.

    Article (47)

    The Tribunal may, on its own initiative or at the request of one of the Parties to the dispute, decide at any time after the closure of the proceedings and before the award is pronounced to reopen the proceedings for substantial reasons.

    Article (48) Non-Attendance

    If a Party fails to attend the hearings called by the Tribunal and does not provide, within a time period specified by the Tribunal, an acceptable excuse for the reasons for its absence, the absence does not preclude further arbitration.

    Article (49) Appeal Against Falsification

    1. If a Party alleges falsification in the documents submitted to the Tribunal, the Tribunal has the option to continue considering the subject matter of the dispute if it determines that adjudicating on the matter of falsification is not necessary to determine the dispute itself. If the Tribunal decides otherwise, the arbitration proceedings shall stay interim, with the result that the deadline for rendering the arbitration award will be suspended and rescheduled from the day after the Tribunal's notification of the elimination of the reason for the stay of the proceedings.
    2. The Tribunal shall transmit the allegation to the competent committee for investigation and decision.
    3. If the fact of falsification is established, the Tribunal shall order the cancellation of documents that have been found to be falsified.

    Article (50)

    At any stage of arbitration, the Tribunal may request the Parties to submit documents or other evidence, conduct an inspection of the place in dispute, and take such requests and defences as it deems appropriate, including the use of experts.

    Article (51) Appointment of Experts

    At any stage of the arbitration, the Tribunal may engage the experts and determine their fees by the Arbitration Tribunal, subject to the signature of the confirmation of the assumption of function.

    Article (52) Replace the expert

    The arbitration panel may replace the expert if he fails to fulfill the mission entrusted to him by the arbitration panel, or if he fails to submit the report by the specified deadline, or if there are circumstances that raise doubts about his impartiality and independence, or evidence that casts doubt on his qualifications

    Article (53) Provisional and Conservative Measures

    The Tribunal may, at the request of one of the Parties, take such interim measures as it deems necessary on the subject in dispute, including actions to preserve the disputed goods, such as ordering their placement with others or the perishable sale thereof, as required by the rules of procedure of the state in which the interim measure is taken.

    Article (54) Termination of Procedures (Amicable Settlement Between the Parties)

    The Parties to the dispute may authorise the Tribunal to reconcile therebetween and may at any stage request the Tribunal to demonstrate the conciliation or settlement it has agreed upon, and the Tribunal shall render an award in that regard.

    Article (55) Circumstances of the Stay of Arbitration Procedures

    1. Non-payment of arbitration expenses.
    2. Challenge (recusation) of the Arbitrator
    3. Legal violations of arbitration proceedings by the Arbitrator.
    4. Dismissal/exclusion of the Arbitrator.
    5. Demise or loss of capacity of the Arbitrator.
    6. Recuse/resignation of the Arbitrator.
    7. Appeal against the falsification of documents.
    8. Suspension of the litigation at the request of the Parties or the Arbitration Tribunal.
    9. Cessation of the litigation due to the demise of a litigant, the loss of eligibility, or extinction of the capacity the person on whose behalf the litigation was initiated.

    Article (56) Deliberation and Awarding

    If there are multiple Arbitrators and the pleading is closed, the Tribunal shall meet to deliberate and render the award. The deliberation shall be confidential except as permitted by the applicable rules. If the Tribunal is constituted of a single Arbitrator, the award shall be rendered after the closing of the pleading.

    Article (57)

    1. If there are multiple Arbitrators, the award shall be rendered unanimously or by majority vote, and in any event, the award shall be rendered within a maximum period of 100 days from the date of submission of the case file to the Tribunal unless the Parties agree on a further duration for the rendering of the award. The Parties undertake to implement the award immediately. In the absence of a majority-voted award, the dissenting member's opinion shall be recorded on a separate paper and annexed to the award without being considered part thereof.
    2. The Tribunal may render awards on certain or part of the requests before rendering the award to terminate the entire litigation.
    3. Before signing an arbitration award, the Arbitration Tribunal shall submit the draft award to the Centre at least ten days prior to its announcement. The Centre shall review the award to ensure that it meets all formal requirements without prejudice to the content of the award.
    4. If the Arbitration Tribunal's views differ without majority agreement regarding the award, the Presiding Arbitrator of the Tribunal shall render the final award.
    5. If there is a dissenting opinion from the other members of the Arbitration Tribunal, the dissenting opinion shall be rendered and signed and added to the final award.
    6. The arbitration award shall be reasoned and shall include the names of the Arbitrators, their signatures, the names of the Parties, the date and place of the award, the facts of the case, the requests of the litigants, the summary of their submissions and defences, the response thereto, and the Party which bears the expenses and fees in whole or in part.
    7. The Arbitration Tribunal may conduct deliberations and sign and render the award by modern means of communication. In any case, the award shall be made at the Centre's headquarters.
    8. The award may be published only with the consent of all Parties.

    Article (58) Extension of the Period for the Issuance of the Arbitration Award

    1. The period referred to above may be extended by a decision of the Secretary-General upon a reasoned request from the Tribunal. If the Secretary-General is not satisfied with the reasons articulated by the Tribunal for the request for an extension, the Secretary-General shall impose a time limit in consultation with the Parties to the dispute, during which the Tribunal shall render its award and its function shall conclude.
    2. An extension request shall be submitted within one week of the expiration of the specified period.

    Article (59) Filing of the Arbitration Award

    The final award shall be filed with the Centre and signed by the Arbitration Tribunal with original copies in the number of all Parties and the Centre. The Centre shall notify the Parties of the final award and deliver an original to each Party by any means deemed proof of receipt.

    Article (60)

    1. The Tribunal shall send a copy of the award to the Secretary-General for filing and registration, if necessary, under the law of the state in which the award is enforced.
    2. The Secretariat of the Tribunal shall send a copy of the award to each of the Parties by registered letter with acknowledgement of receipt within three days of the render thereof.

    Article (61) Failure to Challenge the Arbitration Award and Its Validity and Force

    1. The Tribunal's rendered award in accordance with these procedures shall be binding and final. It shall have force in the Member States of the Cooperation Council after ordering its implementation by the competent judicial authority.
    2. The competent judicial authority shall order the implementation of the Arbitrators' award unless a litigant appeals an annulment in accordance with the following cases exclusively:
      • If it has been rendered in the absence of an Arbitration Agreement, on the basis of an Arbitration Agreement, or on the basis of an invalid Agreement, or if it expired due to exceeding the deadline, or if the Arbitrator arbitrated beyond the limits of the Agreement.
      • If the award has been rendered by Arbitrators who have not been appointed in accordance with the law or some of whom have not been authorised to arbitrate in the absence of others, or on the basis of an Arbitration Agreement, the subject matter of the dispute for which has not been specified, or by a person who has no capacity to agree on arbitration.

    In the event of any of the above paragraphs, the competent judicial authority must verify the validity of the request for annulment and rule that the Arbitrators' award is not to be enforced.

    Article (62) Rectification and Interpretation of the Arbitration Award

    The Tribunal may, on its own initiative or at the written request of one of the Parties through the Secretary-General, rectify any material errors that may have occurred from the award or the like after notifying the other Party of the request. The request for rectification shall be submitted within fifteen days from the date of receipt of the award; the rectification shall be written to be considered part of the award, and the parties shall be notified thereto.

    Article (63)

    Each party may request the Tribunal within seven days of receipt of the award to interpret the ambiguity that occurred thereto, if any, provided that the other Party to the request is notified thereof. The Tribunal shall provide the interpretation of the award in writing within 20 days of receiving the request. The interpretation shall be considered to be an integral part of the award in all respects.

    Article (64) Omission of Requests and the Additional Award

    1. Any Party to the dispute may submit an omission of requests within fourteen (14) days from the date of receipt of the final award, provided that the other Party so declares. The Tribunal shall adjudicate on the request within thirty (30) days from the date of its submission and may extend it for a further thirty (30) days.
    2. The Tribunal shall adjudicate the request submitted thereto and render an additional award enclosed as a supplement to the original arbitration award, to which its provisions shall apply.

    Miscellaneous Provisions

    Article (65) Exemption from Liability

     The Centre, any of its employees, the Tribunal, or the expert appointed by the Tribunal shall not be liable to any of the Parties or others for any conduct, act, or omission relating to the arbitration made in good faith.

     Article (66) Confidentiality of Arbitration Proceedings

    Unless otherwise agreed, the Parties are obliged to preserve the confidentiality of arbitration provisions, proceedings, and all documents, papers, and expert reports submitted in the case, as well as witnesses' statements and all proceedings.

    Article (67)

    Each request for arbitration shall be subject to a fee of 50 Bahraini dinars or its equivalent to be collected by the Centre.

    Article (68)

    1. The Centre shall charge a fee for the services provided thereof to the Parties. It shall be taken into account that the fee shall not exceed 2% of the value of the dispute to be adjudicated and shall not be less than 3,000 Bahraini dinars.
    2. The Secretary-General proposes a table of service charges in accordance with the former-mentioned Paragraph (1). The table shall become effective after its approval by the Board of Directors.

    Article (69)

    1. The Secretary-General shall prepare a provisional estimate list of Arbitrators' fees and other arbitration expenses, such as relocation expenses of Arbitrators, witnesses, expert fees, translators, and fees for the services of the Centre. Supplementary deposits may also be charged to the Parties during the course of the arbitration proceedings.
    2. If the required deposits are not fulfilled within thirty days from the date of receipt of the fees charged, the Secretary-General shall inform the Parties for payment by one of them. If no Party initiates the payment thereof, the Tribunal may order the stay or termination of the arbitration proceedings.
    3. Following the Tribunal's rendering of the award, the Secretary-General shall provide a disclosure of deposits and expenses for the final settlement of the reimbursement or collection of the remaining amounts.
  2. Part i i

    Regulations Organising Arbitration Expenses

    Article 1 - 4

    Article (1)

    1. The requestor of arbitration (Claimant) shall pay an amount of 50 Bahraini dinars as a registration fee for the request for arbitration (Article 65 of the Rules). This fee shall not be refundable.
    2. The Centre shall charge an administrative fee for the services provided to the Parties. It shall be taken into account that the fee shall not exceed 2% of the value of the dispute to be adjudicated and is not refundable.
    3. The administrative fee shall be calculated as a percentage of the disputed amount, as shown in Table No. (1) attached. The administrative fee shall be calculated by adding the amounts calculated for each other's segment in total, but not less than 3,000 Bahraini dinars.
    4. The amount disputed shall be valued on the basis of the total value of all claims, counter-claims and rights upheld for the purpose of set-off.
    5. The Claimant shall pay the owed 50% share of the arbitration expenses to the Centre prior to the commencement of the submission of the dispute file to the Arbitration Tribunal and the commencement of the arbitration proceedings.
    6. The Board of Directors may amend the attached Table No. (1) upon the proposal of the Secretary-General.