International Arbitration 2023 Comparisons

It is safe to say that arbitration in general as a method of dispute settlement – including international arbitration – was not widely preferred among domestic parties in Syria. The issuance Arbitration of Law No 4 in 2008, which was issued in tandem with the investment promotion law of 2008, was expected to increase this trend; nevertheless, the impact would be difficult to assess due to the current circumstances in Syria.

Notwithstanding this, up until 2011, there was a growth in the choice of arbitration as a method of settlement, especially where foreign contracting partners were involved, and the number of arbitration claims filed since 2011 has been on the rise especially in relation to major construction, contracting, supply and commercial transactions involving a foreign contracting party.

More recently, domestic parties are resorting to local Arbitration under Law No 4 of 2008. However, where a foreign party is involved in the transaction, international arbitration is more prevalent. Although, previously, many international arbitrations were seated in Syria, due to current circumstances, Damascus is no longer favoured as a seat of arbitration. That being said, even if parties opt to apply the Syrian arbitration law, this law allows the parties to agree on the place of arbitration being outside Syria. Article 29 of the Syrian Arbitration Law further provides that: “It [the Tribunal] shall hold its hearing at the place agreed by the two parties or the place determined in accordance with the provision of this Act, to enable each of the two parties to expose his case and submit his arguments and evidence.” Failing such agreement, the place of arbitration shall be determined by the arbitral tribunal, but the procedural rules of Syria do not address the issue of whether a virtual location is permissible under Syrian law.

Due to the current situation in Syria, it is not possible to track a general per industry trend with regard to international arbitration activity; however, it is safe to say that the COVID-19 pandemic has further increased international arbitration activity, which has already been on the rise due to the Syrian economic and security circumstances, sanctions and inability to complete and/or implement contracts and projects across industries.

The arbitral institution most used in Syria is the ICC. An ICC National Committee is also present in Syria. Other institutions like UNCITRAL are also used but with less frequency. The Syrian Arbitration Law No 4 of 2008 also introduced and regulated the establishment of arbitration in Syria; however, not many have been established or widely referred to.

Jurisdiction in relation to arbitration matters that are within the scope of the Syrian Arbitration Law are vested with the court of appeal in whose circuit the arbitration is conducted, unless the parties to the arbitration agree on the jurisdiction of another court of appeal in Syria.

Law No 4, issued on 25 March 2008 and entering into force on 1 May 2008, on settlement of civil, economic and commercial disputes, is the Syrian Arbitration Law governing international arbitration in Syria (Law No 4/2008). Arbitration is defined by Law No 4/2008 as a legal consensual dispute settlement method in lieu of the judicial system, whether the body entrusted to carry out the arbitration procedures by virtue of agreement of the parties is an institution or a permanent arbitration centre or not. Law No 4/2008 governs any arbitration conducted in Syria as well as any international commercial arbitration conducted abroad if the two parties agree to subject it to Law No 4/2008.

Excluded from the scope of Law No 4/2008 are disputes in respect of administrative contracts which are governed by the provisions of Article 66 of the Public Procurement Law No 51 of 2004. It is not uncommon to find an arbitration agreement clause in public procurement contracts of certain complexity or importance. However, arbitration in this case will be according to the rules of arbitration of the Council of State, where agreement on arbitration in a public procurement contract requires prior approval of the relevant minister.

Definition of International Commercial Arbitration

International Commercial Arbitration is defined as the arbitration in which the subject matter of the dispute is related to international trade, even if the arbitration is conducted in Syria, as in the following cases.

• If the two parties to an arbitration agreement have, at the time of the conclusion of that agreement, their principal places of business in two different states; if a party has more than one place of business, the place of business is that which has the closest relationship to the arbitration agreement; and if the party does not have a place of business, reference is to be made to their habitual residence.
• If the principal place of business of the two parties is located in the same state at the time of conclusion of the arbitration agreement, and one of the following places is situated outside that state:
1. the place of arbitration as determined in, or pursuant to, the arbitration agreement;
2. the place where a substantial part of the obligations of the commercial relationship between the parties is to be performed;
3. the place with which the subject matter of the dispute is most closely connected; and
4. the dispute governed by the arbitration agreement relates to more than one country.

Law No 4/2008 is based on the Egyptian Arbitration Law (1994), the UNCITRAL Model Arbitration Law and French law. Law No 4/2008 deviates from the UNCITRAL Model by providing that arbitration agreements concluded before the enforcement of Law No 4 shall remain governed by arbitration provisions applicable at the time of its conclusion whether arbitration proceedings have been initiated or not (Article 65).

There have been no significant changes to the national arbitration law in the past year and there is no pending legislation that may change the arbitration landscape in the Syrian jurisdiction in the near future. That being said, it is worth noting that the new Investment Promotion Law No 18, issued in 2021, has reiterated the right of investors benefiting from an investment licence to avail protections provided under bilateral and multilateral international agreements related to investment and investment guarantees that are in force in Syria and signed with other countries and international organisations. In many cases, this includes the right to resort to arbitration according to the rules and conditions set out in the relevant investment treaty.

Law No 18/2021 generally provides for three methods of investment dispute settlements including amicable settlement, arbitration and competent courts. Under arbitration, it provides for local arbitration by a new arbitration centre to be established at the Federation of Chambers of Commerce, which is yet to be established. For international arbitration, the law only tackles the enforcement of foreign arbitral awards.

Law No 4/2008 defines an arbitration agreement as an agreement by which the two parties agree to resort to arbitration to resolve all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.

According to the provisions of Chapter 2 of Law No 4/2008 the arbitration agreement should be in writing, otherwise it is deemed null and void. An agreement is deemed a written agreement when it is included in a contract, an official or ordinary document, or minutes recorded before the chosen arbitral tribunal or if included in any exchange of correspondence if such correspondence establishes the common intent of their senders on choosing arbitration as the method of dispute settlement.

Arbitration agreements may be concluded by natural or legal persons having capacity to dispose of their rights under the applicable law.

Arbitration Law No 4/2008 generally covers all disputes of a civil, economic and/or commercial nature. However, it explicitly prohibits arbitration in matters where conciliation is not allowed subject to applicable laws; or in matters that are contrary to public order. The law also excludes arbitration from determining matters related to nationality and personal status (ie, matrimonial, inheritance and custody matters), except where it concerns the financial effects resulting from such matters.

Article 2(1) of the Syrian Arbitration Law 4 of 2008 provides that:

“Without prejudice to the international conventions in force in the Syrian Arab Republic, the provisions of the present Law shall apply to any arbitration with a seat in Syria; it shall also apply to any international commercial arbitration conducted abroad if the two parties agree to subject it to the provisions of this Law.”

As such, the law governing the arbitration agreement shall be governed by the law chosen by the parties and Law No 4/2008 shall apply to arbitration with a seat in Syria.

Syrian courts would recognise valid arbitration agreements and would decline jurisdiction over claims filed before the court in the event that a valid arbitration clause exists.

An arbitration clause shall still be considered valid even if the rest of the contract in which it is contained is invalid. Law No 4/2008 recognises the rule of separability in its application to arbitration clauses contained in invalid agreements and explicitly provides that the arbitration clause is deemed an independent agreement from the other terms of the contract.

According to Article 11 of Law No 4/2008, unless the parties to the arbitration clause have agreed otherwise, the expiration, nullity, repudiation, revocation or termination of a contract does not affect the arbitral clause contained in the contract, provided the arbitration clause itself is valid.

With the exception that the arbitrator must not be a minor (ie, less than 18 years old), the Syrian Arbitration Law does not set limits on the parties’ autonomy to select arbitrators. Additionally, persons acting as arbitrators should not have previously been the subject of an injunction or deprived of civil rights by a judicial order for a felony or misdemeanour contrary to morality.

Without prejudice to the above, the parties, based on the pacta sunt servanda principle, are free to agree any other requirements for the appointment of arbitrators such as gender, nationality, etc, as well as agreeing on the number of arbitrators. It should be noted, however, that the number of arbitrators should always be an odd number, otherwise this condition is deemed null and void. In the event that the number of arbitrators is not agreed, the tribunal shall be composed of three arbitrators. The arbitrators can be named in the arbitration agreement or can be appointed later once the dispute arises, according to the number and requirements set out in the arbitration agreement.

In the event that the parties do not agree on the appointment of the arbitrators, the court of appeal may appoint the arbitrators. The court of appeal will follow and apply the following rules for appointment.

• If there is one arbitrator, the arbitrator shall be appointed by the court of appeal upon request of one of the parties.
• If the tribunal is composed of three arbitrators, each party shall appoint one arbitrator and the two arbitrators shall appoint the third arbitrator.
• If one of the parties fails to appoint an arbitrator within 30 days of receipt of a request to do so from the other party, or if the two appointed arbitrators fail to agree on the third arbitrator within 30 days of the more recent appointment, the court of appeal shall, upon request of one of the parties, appoint the third arbitrator by order taken in the deliberation room.
• The above rules shall also apply if the arbitral tribunal is composed of more than three arbitrators.

Law No 4/2008 does not address the issue of appointment of arbitrators in multiparty disputes; however, the same principles of appointment of arbitrators in a two-party dispute would apply in the case of a default.

The court of appeal does not intervene in the selection of arbitrators, and, as stated above, only intervenes in the appointment once the parties disagree on the appointment. When appointing arbitrators, the court of appeal observes the conditions required by Law No 4/2008 as well as those agreed upon by the parties to arbitration for appointment of arbitrators. Its decision in this regard shall be final and not be subject to appeal.

Law No 4/2008 sets grounds, rules and procedures for challenging arbitrators; however, it prohibits a party from challenging their appointed arbitrator except if that party becomes aware of grounds for challenge after the appointment has taken place. It also does not allow challenging the same arbitrator in the same arbitration and on the same grounds more than once.

Generally, an arbitrator may be challenged where they cease to meet their appointment conditions or on the same grounds of challenging judges as set out in the Syrian Civil Procedures Law. These grounds are mainly related to an existing relationship or interest of the arbitrator with one of the parties and/or the dispute.

For challenging an arbitrator, an application should be made to the court of appeal within 15 days from the date of becoming aware of the grounds for challenge, and the court of appeal would issue a final decision after hearing the challenged arbitrator. During this process, the arbitration proceedings will be suspended until the decision of the court of appeal is issued.

Replacement (or removal) of an arbitrator is also possible through an application to the court of appeal. The replacement application is allowed where an arbitrator fails to proceed with their assignment; if circumstances prevent them from proceeding; or where the parties agree on their dismissal. Replacement is also allowed if the arbitrator withdraws from the assignment that they have accepted and, in this case, they will be liable for damages caused to the parties unless their withdrawal is justified.

The appointment of the new arbitrator will follow the same rules and procedures that were followed for appointing the previous arbitrator.

Once an arbitrator is appointed, such appointment should be accepted in writing by either signing the arbitration agreement, a separate document of acceptance or the minutes of the arbitration hearing. The arbitrator will then be bound by a duty of confidentiality of the arbitration proceedings, unless the parties have agreed otherwise. They will also be bound by a duty of impartiality and independence. If at any time an arbitrator becomes aware of circumstances that may raise doubts as to their impartiality, they should immediately disclose the same to the tribunal and the parties in arbitration. Such disclosure applies whether doubts to impartiality were existing at the time of accepting the appointment or later during the proceedings, following which the parties to the arbitration shall have the choice between either accepting that the arbitrator continues the assignment or requesting that the arbitrator steps aside.

Additional duties can be imposed on the arbitrators in the arbitration agreement between the parties.

As stated above, arbitrators can be challenged on grounds of breach of impartiality or independence by application to the court of appeal.

Arbitration Law No 4/2008 generally covers all disputes of a civil, economic and/or commercial nature. However, it explicitly prohibits arbitration in matters where conciliation is not allowed, subject to applicable laws; or in matters that are contrary to public order. The law also excludes arbitration from determining matters related to nationality and personal status (ie, matrimonial, inheritance and custody matters), except where it concerns the financial effects resulting from such matters.

Furthermore, according to Article 21 of Arbitration Law No 4/2008, a plea that the issues raised by the other party exceed the scope of the arbitral agreement shall be immediately raised when the dispute is considered, otherwise the right to assert it shall be lost.

Article 21(1) of Law No 4/2008 sets out the “competence–competence doctrine”, recognised by Syrian jurisprudence long before the issuance of Law No 4 in March 2008, as follows:

“The arbitral tribunal shall rule on any pleas of lack of jurisdiction, including pleas with respect to the non-existence, expiration, nullity or non-inclusion of the subject matter of the dispute. Such pleas shall be raised before any other plea, or otherwise the right to assert it shall be lost.”

As such, Article 21(1) above empowers the tribunal to look into challenges related to its own jurisdiction based on:

• existence of an arbitration agreement;
• its expiry;
• its invalidity; and/or
• its scope.

However, these challenges have to be raised before any other pleas otherwise such right will be lost.

The arbitral tribunal may either rule on a plea with respect to its jurisdiction over the dispute as a preliminary question or decide to join it to the merits and rule upon the two issues together. In both cases, the decision of the tribunal in this regard is considered final.

Strictly speaking, courts cannot address the issue of jurisdiction of an arbitral award based on the competence-competence principle. However, courts can look into the matter of jurisdiction of an arbitral tribunal in two distinct cases.

• First, if an action is brought before the court in relation to a dispute that is subject to an arbitration agreement. If the defendant challenges the jurisdiction of the court at the outset and before any other plea, then the court should reject the case, after satisfying itself concerning the validity of the arbitration agreement.
• Second, if an action is brought before the court of appeal for annulment of the arbitral award based on lack of jurisdiction of the tribunal (ie, after rendering of an arbitral award).

There are no other instances where the court may investigate the jurisdiction of an arbitral tribunal.

The law does not address the review of negative rulings on jurisdiction by an arbitral tribunal as the decision of the tribunal on its own competence is considered final. However, it is safe to conclude that the decision of the tribunal in this case will be deemed an award that is subject to annulment as per the rules set out in Law No 4/2008.

When the case has been filed for arbitration, the challenge to the jurisdiction of the arbitral tribunal can only be made to the tribunal itself and as first plea. A party whose jurisdiction pleas have been rejected by the tribunal may assert them after the award has been rendered by filing a lawsuit for annulment of the arbitral award in accordance with Article 51 of Arbitration Law No 4/2008.

In such case, Article 51 allows a party to apply to the court of appeal for annulment of the award within 30 days from the day of notifying the award to the losing party. The annulment application is admissible even if the applying party has waived this right before issuance of the award. The court of appeal will rule on an annulment application within 90 days from the date of completion of the service process, and its decision is subject to appeal before the court of cassation within 90 days from the date of notification of the court of appeal decision.

The court of cassation shall rule on the challenge to the decision of annulment of the arbitral award within a period of 90 days from the date of receiving the case file.

As stated above, the courts do not have the power to review a jurisdiction decision of the tribunal but would rule on the annulment of the award upon finding that the tribunal had no jurisdiction.

The general rule set out in Article 10 of Arbitration Law No 4/2008 is that the court shall not admit actions that are subject to an arbitration agreement. When an action is brought before a court in relation to a matter that is subject to arbitration, the court shall not admit the action if the defendant raises pleas on jurisdiction at the outset and before raising any other defence. In such case, the court is obliged to reject the case unless it finds the arbitration agreement null and void, cancelled, inoperative or incapable of being performed. Nonetheless, arbitral proceedings may still be commenced or continued, and an award may be rendered, while the issue is pending before the court.

According to Syrian law, an agreement can only bind its signatories and cannot be extended to third parties without the consent of the signatories and the third party. The arbitration agreement is no exception. Specifically, under Syrian Law, an arbitration agreement is ratione personae, and only binds the parties to the agreement without any effect on or extension to third parties. This rule is confirmed by many legal scholars and court jurisprudence.

Under Syrian law, the only possible way for an arbitration agreement to be extended to a person not party to the original agreement is if this party is joining the arbitration proceeding upon the mutual consent of the parties in the dispute and the competent tribunal.

Syrian arbitration law does not permit the arbitral tribunal to award preliminary or interim relief as this is vested in the courts. Law No 4/2008 gives the arbitral tribunal the power to issue interim or partial awards, prior to making the final award, but does not provide for the power of the tribunal to take any interim protective measures. A party seeking an interim protective measure can resort to the judge of summary matters.

Article 38 of Law No 4/2008 gives right to the parties in arbitration to request the judge of summary matters, before or during arbitral proceedings, to take an interim measure of protection in accordance with the provisions set out in the Civil Procedures Code. Article 79 of the Civil Procedures Code provides that the court of first instance is the competent court to look into summary matters without looking into the subject matter of the dispute. The judge of summary matters may undertake an inspection or seek technical expertise. Hearings of summary proceedings should be within 24 hours and this period may, in extreme cases, be shortened to one hour, provided that the opponent is personally summoned. Interim relief can be granted in aid of foreign-seated arbitration.

Law No 4 does not provide for emergency arbitration proceedings.

The Syrian Arbitration Law No 4/2008 is silent on the matter of security for costs. It is, however, a very common practice in arbitration for tribunals to call for security or advance on arbitration fees and expense. In its decision, the tribunal shall specify the amount, its allocation between the parties and where such amounts shall be held.

The parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings, including their right to subject such proceeding to effective rules of any organisation, or a permanent arbitration centre whether in Syria or abroad. Failing such agreement, the arbitral tribunal may, subject to the provisions of Law No 4 of 2008, conduct the arbitration in such manner as it considers appropriate.

According to Article 22 of Law No 4, the parties to arbitration are free to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings, including their right to subject such proceedings to effective rules of any arbitration institution, or a permanent arbitration centre whether in Syria or abroad, without prejudice to the provisions of Law No 4/2008. If such agreement does not exist, the arbitral tribunal may conduct the arbitration in such manner as it considers appropriate, while observing the provisions of Law No 4/2008. In this regard, it is worth noting that Article 2 of Law No 4/2008 requires that the provisions of Law No 4/2008 be applied to any arbitration with a seat in Syria and to any international commercial arbitration conducted abroad if the two parties agree to subject it to the provisions of Law No 4/2008.

According to Law No 4/2008, the procedures can be summarised as follows.

• Request for arbitration: the arbitration proceedings commence on the day following the date on which a request for arbitration is received by the respondent, unless otherwise agreed by the parties.
• Statement of claim: the claimant sends to the respondent and the arbitral tribunal a written statement of claim, within the period agreed by the parties or determined by the tribunal.
• Statement of defence: the respondent shall submit a written statement of defence with a copy served on the claimant within the period agreed by the parties or determined by the tribunal and may include his claims in this statement. The respondent is also allowed to raise other claims during the proceedings if permitted by the tribunal, based on justification.
• Hearings: the tribunal shall meet following its formation by invitation of its chairman. It shall hold its hearing at the place agreed by the two parties or the place determined in accordance with the provision of the law, to enable each party to present its case and submit its arguments and evidence. The tribunal may limit itself to the written briefs and document, unless otherwise agreed between the parties. The tribunal may at its own motion, or based on the request of one of the parties, request expert opinions or hear witnesses. Following the closure of hearings, the tribunal may, on its own motion or upon application of one of the parties, reopen the hearings before rendering the award.
• Rendering the award: the arbitral tribunal shall meet following the closure of pleadings to deliberate and issue the final award. Deliberation shall be in camera. Unless the parties have agreed otherwise, the award must be issued within a period of 180 days as of the date of holding the first hearing of the arbitral tribunal. The tribunal can extend this period by an additional 90 days. If the award is not issued within the original and extended period, any of the parties may apply to the court of appeal to extend for another 90 days. The arbitration proceedings are concluded by the issuance of the arbitral award, which puts an end to the entire dispute.

The arbitral tribunal has the duty of treating the parties with equality and giving them full and equal opportunity to present their case and defend their rights. It also has the duty to rule on the matter in dispute within a period of 180 days from the date of the first hearing, which is extendable by the tribunal itself only once for a period of no longer than 90 days.

On the other hand, the arbitration tribunal is generally empowered to decide on all matters relating to the arbitration that are not otherwise agreed by the parties and that are not vested in the court. For example, if the parties have not agreed on the arbitration seat, the tribunal shall have power to decide on the seat after taking into consideration the case and the convenience of the place for the parties.

The tribunal, however, has the power to decide to meet at any place it considers appropriate to take measures in the arbitration proceedings, such as for hearing the parties, witnesses or experts, or for inspection of goods, other property or documents. In this case it shall notify the parties sufficiently in advance to allow them to attend. Furthermore, and absent any other agreement between the parties, the tribunal can also decide on the procedures to be followed, the language of the arbitration, extend the duration of the proceedings once for an additional 90 days, suspend the arbitration if the claimant fails to submit its statement of claim, limit itself to document-only hearings through written briefs and documents, etc.

Notwithstanding the above, the tribunal cannot make interim awards in relation to matters that are explicitly vested in the court of appeal (eg, penalising witnesses who fail to appear before the tribunal, deciding on judicial delegations (commissions rogatoires); ordering third parties to submit documentary evidence, etc).

Article 105(a) of the Syrian Civil Procedures Code establishes the rule that “the litigants, other than lawyers, may not appear before the courts to consider the lawsuit without appointing lawyers that represent them by virtue of a power of attorney”. Article 106 further provides that “the attorney of a party must prove his authorisation to act on behalf of his principal through an official deed or document that is written and certified at the Bar Association”.

According to Article 17 of the Civil Procedures Code, “the court shall, in all circumstances, verify the legal capacity, or the valid representation or authorisation”; this applies equally to domestic matters and international arbitration. The legal representation of a party along with the proof of authority are matters of public order under Syrian law and can represent grounds for annulment of an award in case of a default in legal representation.

The Syrian Arbitration Law does not address the rules of evidence that apply to arbitral proceedings seated in Syria, and if the parties agree on applying Syrian procedures then the Syrian Law of Evidence shall apply.

Articles 32 and 33 of Law No 4/2008, on the other hand, provide the rules on requesting expertise and witnesses by allowing the tribunal to decide on calling expertise or witnesses either on its own motion or at the request of one of the parties.

The rules on expertise are as follows.

• The tribunal can instruct expertise on all or part of the issues in dispute.
• If the parties do not agree on the expert(s) nominated, the tribunal may nominate them.
• The tribunal shall also request experts to take the legal oath prior to commencing, unless the parties agree otherwise.
• The parties should provide the experts with all requested information, data and documentation related to the issues in dispute and enable them to inspect and examine documents, records, goods and assets, provided the parties are informed of the time of inspection/examination.
• The expert(s) shall submit their reports within the timeframe set by the tribunal and the latter will provide copies to the parties and request them to provide their observations on the report within a set time.
• The tribunal may also, by its own motion or based on a request by one of the parties, decide to hold a hearing for examining the witnesses. Examination of the experts is done by the tribunal based on the examination requests submitted by the parties.

The rules on witnesses are as follows.

• The arbitral tribunal may, by its own motion or based on a request by either party, hear witnesses when it deems it useful.
• The hearing of witnesses shall be held following the administration of the legal oath, unless the two parties agree otherwise.
• Examination of the witnesses is done by the tribunal based on the requests submitted by the parties.

The Syrian Arbitration Law does not address the rules of evidence that apply to arbitral proceedings seated in Syria, and if the parties agree on applying Syrian procedures then the Syrian Law of Evidence shall apply.

The arbitral tribunal can decide to proceed with the arbitration proceedings even if a party fails to appear at a hearing or submit a document they were required to submit.

During proceedings, the tribunal can also resort to the court of appeal to:

• sentence witnesses who fail to appear or refuse to give answers without just cause, with the legal penalties and fines;
• decide on judicial delegations (commissions rogatoires); or
• order third parties to submit documentary evidence held by them, which is deemed necessary to rule on the dispute.

According to Article 29 of the Syrian Arbitration Law, arbitration proceedings shall remain confidential unless the parties to the arbitration agree otherwise. Furthermore, the award or any parts thereof may not be published, except with the approval of the two parties.

In terms of form, Law No 4/2008 requires that the arbitral award be issued in writing and be signed by the arbitrators. The tribunal should deliver a signed copy of the award to the parties at no later than 15 days from the date of issuance.

In terms of content, the award shall include the following:

• names of the arbitration tribunal members;
• names and addresses of the parties, their capacities and nationalities;
• a copy of the arbitration agreement;
• a summary of the parties’ claims;
• statements and evidence;
• the dispositive part of the award;
• the date and place of issuance; and
• the fees and expenses of arbitration and the way they are allocated between the two parties.

As for the time limit, the arbitral tribunal should issue its award by no later than 180 days from the date of holding the first hearing, unless the parties to arbitration have agreed a timeframe. This period can be extended twice, each time for a maximum of 90 days. The first extension can be made by the tribunal and the second by the court of appeal upon request of one of the parties.

No information has been provided for this jurisdiction.

The tribunal may decide on the allocation of arbitration fees and costs among the parties to arbitration or award them to the successful claimant. However, it is not customary in Syria for the arbitral tribunal to award legal fees unless this is included in the arbitration agreement, and in such case the tribunal will look into a matter that falls within its mandate.

The tribunal may also award interest on the final award: at the rate agreed among the parties in the case of commercial disputes and the maximum rate of 5% per annum for non-commercial disputes.

Arbitral awards issued according to Law No 4/2008 are deemed final and are not subject to any form of appeal. However, an action for annulment of the award may be filed before the court of appeal no later than 30 days from the date of notifying the arbitral award to the losing party. An action of annulment is admissible even if the party invoking nullity has waived this right. The judgment of the court of appeal annulling an arbitral award may be challenged before the court of cassation within 90 days following the serving of the judgment. The court of cassation shall issue its decision within a period of 90 days from the date of receiving the file.

Notwithstanding the above, arbitration awards issued in administrative disputes according to the arbitration rules of the Council of State are subject to appeal before the High Administrative Court by either of the parties within 60 days following the day of rendering the award. The decision issued by the High Administrative Court is final and binding and is not subject to any form of appeal.

The parties cannot agree to exclude or expand the scope of appeal or challenge to an arbitral award under Law No 4/2008. Grounds for annulling an arbitral award are strictly provided under Article 50 of Law No 4/2008 as follows.

• If no arbitral agreement exists, or if the arbitral agreement is deemed void or has expired.
• If at the time of entering into the arbitral agreement one of the parties was minor or lacked capacity pursuant to the law governing their capacity.
• If one of the parties to the arbitration was unable to present their defence because they were not properly notified of the appointment of an arbitrator or of the arbitral proceedings, or for any other reason beyond their control.
• If the arbitral award discarded the application of the law agreed to by the parties on the subject matter of the dispute.
• If the composition of the arbitral tribunal or the appointment of the arbitrators has occurred in a manner contrary to the law or the agreement of the two parties.
• If the award contains decisions on matters not included in the arbitration agreement or beyond the scope of such agreement. Nevertheless, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that latter part of the award shall be subject to nullity.
• If nullity occurs in the arbitral award, or in the arbitral proceedings in a manner that affects the validity of the award.

The court of appeal looking into an action of annulment may not look into the subject matter of the dispute or intervene in the opinions of the tribunal. The court of appeal may by its own initiative annul the arbitral award only if it violates a public order of the Syrian Arab Republic.

Syria is a signatory to the 1958 New York Convention on Arbitration.

Procedures for enforcement of foreign arbitral awards are set out in the Syrian Civil Procedures Code where the enforcement procedure depends on the rules followed for rendering the arbitral award. Article 311(a) of the Civil Procedures Code allows for ruling on enforcement of a foreign arbitral award provided that the award has the authority of res judicata and is binding and enforceable in the country where it was issued.

Enforcement is made according to the following rules and procedures.

• A party seeking to enforce a foreign award must bring an enforcement action before the Court of First Instance in whose circuit the enforcement is sought.
• Before ruling on enforcement, the court should first verify:
1. that the award is rendered by a competent body or that it has authority of res judicata according to the rules of the country where it was issued;
2. that the parties to arbitration were properly summoned and represented;
3. that no previous conflicting judgment of a Syrian court has been issued in the same matter; and
4. that the award does not contain violation of Syrian public order or public morals.

The court may rule on enforcing the foreign arbitral award according to the same enforcement rules that the country where the award was rendered applies to enforcement of Syrian arbitral awards in the said country.

Arbitral awards rendered according to international, regional or bilateral treaties and conventions shall be enforced according to the rules set out in the relevant treaty or convention.

Syrian law does not provide for class action arbitration or group arbitration.

The ethical and professional standards of the Bar Association apply to counsels in the arbitration. As for arbitrators, they are bound by the standards set out in Law No 4/2008. It is worth noting that the licensing requirements of arbitration centres do not include any obligation on an arbitration centre to put in place or publish a code of ethics. It is understood that none of the currently licensed centres in Syria have published a code of ethics.

There are no rules applicable to third-party funders and this is not commonly seen in Syrian arbitration.

Consolidation is possible if the parties in dispute and the subject matter are relevant and the parties agree to consolidate and have all disputes examined by the same tribunal. In this case, the arbitration agreement would need to be amended to include any new parties and new matters/mandate of the tribunal.

As a general rule under Syrian law, an agreement can only bind its signatories and cannot be extended to third parties without the consent of the signatories and the third party. Specifically, under Syrian Law, an arbitration agreement is ratione personae, and only binds the parties to the agreement without any effect on or extension to third parties.

Furthermore, Syrian law does not recognise the “group of companies” doctrine or the extension of the arbitration clause to companies of the same group.

As an exception to the above, an arbitration agreement may bind heirs of a deceased person, where the general rule is that the arbitration agreement obliges the general successors unless the parties have agreed otherwise.

Article 146 of the Syrian Civil Code provides that “without breaching the rules of inheritance, the effect of a contract is reflected on the contracting parties and the general heirs, unless it is evident from the nature of the contract, nature of the transaction, or by law, that such effect does not reflect on the general heirs”.

Therefore, contracts that are not based on personal considerations pass to the heirs including the arbitration agreement which is binding on the heirs. However, contracts based on personal considerations do not extend to the heirs, albeit the contract terminates but the arbitration clause remains valid until terminating all effects of the contract to determine the rights of the parties and rule on their claims based on the principle of “independence of the arbitration agreement”.