Definitions Article (1)
For the purposes of
this agreement, the following expressions shall have the set-forth
The Agreement of
the Settlement of Investment Disputes in Arab
Countries parties to
the agreement: Countries members
to this Agreement
The Council of Arab
Secretariat: The General
Secretariat of the Council of Arab Economic Unity.
General of the Council of Arab Economic Unity
Chapter II Objectives
of the Agreement and Implementation Authorities Article (2)
This agreement aims
at settling any dispute that may arise directly from any investment between an
Arab country party to the agreement and hosting the investments or one of its
authorities, public institutions, companies or nationals and between any other
Arab country party to the agreement or one of its authorities, public
institutions, companies or nationals towards ensuring an appropriate environment
that may encourage establishing on-growing Arab investments in the Arab
"nationals" shall, in this article, include physical persons and legal persons
holding the nationality of a country party to the
to the plaintiff's right to resort directly to the judiciary system in the
investment-hosting country, settling disputes shall be via conciliation among
parties to the dispute or arbitration in accordance to the rules and proceedings
stipulated in the agreement. The Council and the Secretary General shall be in
charge of setting and implementing the conciliation and arbitration
conciliation nor arbitration may be resorted to if the dispute is brought before
court and if judiciary system of the investment-hosting country has rendered its
final and decisive award.
Administration Article (4)
framework of this agreement, the Council shall, in addition to the power of
authorities assigned thereto by virtue of this agreement, be responsible for
considering any dispute arising among the countries parties to this agreement in
respect of interpreting or implementing the
unit shall be established in the General Secretariat to follow up procedures of
implementing the Agreement provisions. The unit shall be appointed by virtue of
a decision of the Secretary General and shall include a sufficient number of
conciliation committee shall be formed by virtue of a decision by the Secretary
General upon a request addressed, in writing, to him by the parties to the
dispute presenting the issue of dispute and demanding the settlement thereof via
committee shall be formed within 45 days as of the date of registering the
request. The number of conciliators shall be equal to that of the parties to the
dispute so that each party may choose a conciliator as its representative.
Another conciliator, selected by the parties to the dispute, shall head the
committee. A General Secretariat staff member, selected by the Secretary
General, shall take on the secretarial services.
- Unless the
committee is formed within the specified period in paragraph (A), the Secretary
General shall designate the conciliators including the president after
consulting the parties to the dispute.
Committee shall decide upon any objections to or challenges of its jurisdiction
voiced by one of the parties before discussing the issue of dispute.
- Conciliation procedures shall be
implemented in accordance with the provisions of this chapter and in accordance
with the effective regulations thereof once agreed upon by the parties.
committee shall raise the issues of dispute among the parties to the dispute and
do its best to reach an agreement with appealing conditions to all parties. For
this purpose, it may propose at any stage of the procedures conditions for
settlement. The parties to the dispute shall cooperate with the committee so
that the latter can properly perform its mission.
- If the
committee discovers at any stage of procedures that it is not likely to reach an
accord among parties, it shall halt the procedures and report to the Secretary
General explaining the issue of dispute and the failure of the parties to reach
an accord through conciliation.
- If a party
is absent, despite being notified by a registered letter with return receipt
requested mail, or if a party does not participate in the procedures without an
acceptable excuse, the committee shall halt the procedures and file a report
proving the absence from or nonparticipation in the procedures.
- When the
committee reaches a unanimous agreement, it shall make a report outlining the
issues of dispute and recording the conclusion it reached.
Any party to the
dispute may not object or count on any viewpoint, report, confession or offers
of settlement presented by the other party during conciliation procedures –
either before the court, the judiciary system of the investment-hosting country
or any other authority unless parties otherwise agreed in
(First – The
tribunal shall be formed by virtue of a decision by the Secretary General upon a
request addressed, in writing, to him by the parties to the dispute presenting
the issue of dispute and demanding the settlement thereof via arbitration.
arbitration tribunal shall be formed within 45 days as of the date of
registering the request. The number of arbitrators shall be equal to that of the
parties to the dispute so that each party may select an arbitrator as his
representative. The Secretary General shall select another arbitrator head the
tribunal from among those who occupied senior judicial posts in a country
non-party to the dispute.
b. Unless the tribunal is formed within the
specified period in the previous paragraph, the Secretary General shall
designate the arbitrator/arbitrators who are not assigned yet after consulting
the parties. The appointees may not, hereby, belong to the one of the parties to
tribunal shall decide upon any objection to or challenge of its jurisdiction
voiced by one of the parties before discussing the issue of dispute or
initiating any stage of the case.
tribunal shall decide upon any accidental or additional requests or challenges
that directly arise from the issue of dispute upon the request of a party
provided that these requests are included within the parties’ agreement on the
arbitration. Besides, they should fall within the tribunal’s area of
jurisdiction without any previous agreement between parties on ruling them out.
tribunal shall decide upon any issue related to the procedures that are not
covered by the provisions of this chapter, the regulations of the arbitration or
the regulations agreed upon by the parties to the dispute.
tribunal may, at any stage of the procedures, ask demand the parties to the
dispute to submit other documents or evidence. It may also visit the site of the
dispute and make the necessary investigations unless the parties otherwise
tribunal may settle the dispute pursuant to the regulations stipulated in this
agreement and the systems adopted by the Council. In addition, it may enforce
the law of the investment-hosting country party to the dispute including its own
dispute laws, whatever enforceable from the international law regulations, as
well as any other regulations appropriate to settle the dispute—if the parties
to the dispute agree thereupon.
tribunal may not refrain from considering the dispute or settling it by virtue
of a final award on the pretext of the silence or vagueness of the law.
- In the
event of the absence of one of the parties to the dispute at any stage of
procedures without an acceptable excuse, despite being notified by a registered
letter with return receipt requested mail, the pleading may be filed in absentia
upon the request of the other party. In such a case, he shall be re-notified and
given no more than 10 days as of the date of notification to attend the
- If a party
does not attend despite notification, the tribunal may proceed with the pleading
in absentia and render an award concerning the raised issues.
The tribunal may
decide to take any temporary procedures to maintain the rights of any of the
parties to the dispute upon the request thereof and render a preliminary award
to that effect.
(Second – The Award)
convening of the tribunal shall be deemed valid by two thirds of the members
- Awards are
rendered by majority. In the event of having equal votes, the President’s
decision shall be deemed valid.
shall be written and signed by the proponents from among the members of the
tribunal. The opponents shall write down their opinion on the margins of the
shall cover all the issues raised before the tribunal and shall be for cause.
General Secretariat may not publish the award except after the approval of the
parties to the dispute.
General Secretariat shall transmit an official copy of the award to each of the
parties to the dispute within 10 days of the rendering thereof by a registered
letter with return receipt requested mail.
the provisions of paragraph (D) of the preceding article, the tribunal may, upon
the request of one of the parties to the dispute and within 30 days as of the
date of rendering the award, decide, after notifying other parties, of any
disregarded questions pertaining to the award and correct any tangible mistake
in the award (written, arithmetic or similar mistakes). The parties shall be
notified in the same way as they were notified of the award itself.
(Third – The
Interpretation of the Award)
- In case of
any disagreement among the parties to the dispute as regards the meaning of the
award, any of them may request an interpretation thereof by submitting a request
to the Secretary General.
Secretary General shall, if possible, refer such request to the tribunal that
rendered the award. If not, a new tribunal shall be formed pursuant to the
provisions of this chapter and may, if deemed necessary, stay the enforcement of
the award pending its decision on the interpretation.
(Fourth: Revision and
Annulment of the Award)
parties to the dispute may address an application to reconsider the award under
the following conditions:
shall be submitted, in writing, to the Secretary General.
shall be based on discovering a new fact the nature thereof may decisively
affect the award and provided that the applicant's ignorance thereof was not due
shall be made within ninety days as of the date of discovering such fact.
shall be made within three years after the date on which the award was rendered.
application shall be referred to the tribunal that rendered the award, or
otherwise a new tribunal shall, in accordance with the provisions of his
chapter, be formed and it may temporarily stay enforcement of the award pending
its decision, upon the appellant's application, until the tribunal decides upon
party may request annulment of the award by an application in writing addressed
to the Secretary-General on one or more of the following grounds:
that the tribunal
was not properly constituted
that the tribunal
has manifestly exceeded its powers
that there was
corruption on the part of a member of the tribunal
that there has been
a serious departure from a fundamental rule of procedure
that the award has
failed to state the reasons on which it is based.
application shall be made within ninety days as of the award date, but if the
annulment application is made on the basis corruption, it shall be made within
ninety days as of discovering the corruption within three years as of the date
of rendering the award.
Secretary General shall, separately and upon receiving the application, appoint
an ad hoc committee known as the "Award Revision Committee" of three or more
persons (provided that the number is odd) from the Arbitrators list provided
that the Head of the Committee is at least a Counselor among the current of
former members of the judiciary. The Committee may not include members of the
tribunal that rendered the award, members of the same nationality as any such
members, nationals of the country party to the dispute, the designated in the
Arbitrators' list, and persons previously made conciliation in the same dispute.
Such Committee shall be authorized to annul the award or any part thereof on the
basis of any of the reasons mentioned in paragraph (a).
provisions of articles (11), (12), (13), and (14) shall apply to the procedures
before the Committee.
Committee may, temporarily upon the request of the appellant, stay the
enforcement of the award pending its decision.
- If the
award is annulled, the dispute shall, upon the request of the parties to
dispute, be resubmitted to a new tribunal. Such tribunal shall be constituted
according to the procedures of the request for arbitration stipulated in this
agreement, and the tribunal award shall, in this case, be final and decisive.
(Fifth: Enforcement of
Except for Articles
(18) and (19), the awards of final arbitration tribunals may not be appealed
against. Such awards shall be binding for the parties to dispute, who shall
comply with and apply the award. The term "award" shall, in respect of this
chapter, include any decision to interpret, amend or annul the award in
accordance with the provisions of this agreement.
arbitration award shall be enforced in the country party to the dispute or which
one of whose nationals is a party to this dispute as if it were a final award
rendered by a court of this country. The award shall enjoy all the locally
approved guarantees by virtue of the effectiveness of local awards. Countries of
federal system shall enforce the arbitration award through the federal courts
thereof if they had such powers.
member country shall notify the Secretary General of the designation of a
competent court or official authority for the purpose of enforcing the awards of
arbitration tribunals. The party with an interest in enforcing the award shall
submit a copy of the award signed by the Secretary General to such authority.
procedures of enforcing the award shall be subject to the enforcement laws
applicable in the country where it shall be enforced.
(Third Branch: Common
The request for
conciliation or arbitration shall be subject to the
- The party
to the dispute, wishing to institute conciliation, shall address a request in
writing to the Secretary General who shall send a copy thereof to all the other
request shall include all adequate information about the issues in dispute and
the parties thereto.
Secretary General shall register the request unless he finds, founded on the
information included therein, that the dispute does not fall within the
jurisdiction of the Council in accordance to this agreement.
Secretary General shall notify other parties of the request for conciliation or
arbitration for the purpose of getting the approval thereof regarding the
procedures of conciliation and arbitration as a means of settling the dispute.
The applicant of
the request for conciliation or arbitration shall meet the
- He shall
be a national of a contracting country on the date of registering the approval
of the parties to the dispute to refer the dispute to the Secretary General for
conciliation or arbitration.
- He may not
be a national of the country party to the dispute on the date of registering the
approval thereof, with the exception of the applicant who a legal person if he
has a main branch abroad and he is a national of another member country.
committees and arbitration tribunals may not be amended after the constitution
thereof except in case a member thereof dies, becomes unable to work or resigns
where another member substitutes him in accordance with the provisions of this
The request for
disqualifying a member of the conciliation committee or an arbitrator shall,
mutatis mutandis, be subject to the decision of the other members of the
committee or the tribunal. In case of even votes, the President's vote shall be
deemed valid. In case, the request was for the disqualification of the majority
of members or the President, it shall be subject to the Secretary General's
The charges due to
be paid by the parties to the dispute for the services provided, according to
this agreement, by the General secretary shall be determined by the Secretary
General in accordance with the regulations adopted by the
committee and tribunal shall, after consultation with the President, determine
the fees and expenses of the members thereof according to the regulations set by
the Council from time to time unless the parties otherwise agree in advance with
- In case of
conciliation, fees and expenses of the committee's members shall be borne by the
parties to the dispute and the General Secretariat. Each party shall bear any
other expenses related to the proceedings.
- In case of
conciliation, the tribunal shall, unless the parties to the dispute otherwise
agree, determine the expenses paid by the parties in relation to the proceedings
and the fees of the services of the General Secretary, and shall decide how and
by whom such fees and expenses shall be paid. Other expenses and the fees of the
tribunal members shall be paid, from time to time, according to regulations set
by the Council.
The proceedings of
conciliation and arbitration shall be held at the General Secretariat
headquarters, unless the parties agree, after consultation with the Secretary
General, to another place approved by the Committee or the Tribunal.
Chapter V Conciliators
General shall prepare three guiding lists; one with the names of the names of
the conciliators, another with the names of the arbitrators (ordinary members)
and a third with the names of the arbitrators (members of the judiciary systems
who head the arbitration tribunals). The persons mentioned in the lists shall be
of qualified persons of high moral character and recognized competence in the
fields of law, commerce, industry finance, agriculture, services or any other
field of competence required by the issues of dispute that may arise within the
scope of Arab investments, who may be relied upon to exercise independent
judgment. Competence in the field of law as current or former members of the
judiciary shall be of particular importance in the case of the arbitrators who
shall head the arbitration tribunals.
Chapter VI General
country party to the dispute may not institute an international request in
respect of the dispute already before the tribunal unless the other country
refuses the tribunal award regarding the dispute or does not enforce it.
points of view by diplomatic means for the sole purpose of facilitating the
settlement of the dispute shall not be rendered an international request in
terms of the aforementioned paragraph.
The members of the
conciliation committee and arbitration tribunal shall enjoy the immunities
stipulated in the agreement on the CAEU's Privileges and Immunities within the
limits that allow them properly perform their mission. The archives and
documents of the committee or the tribunal shall be deemed as the archives and
documents of the Council.
contracting country may suggest the amendment of this agreement by addressing a
request to the Secretary General at least ninety days before the regular meeting
of the Council.
Secretary General shall notify the countries of the text of the proposed
amendment and the opinion of the General Secretariat in respect thereof within
two weeks as of submitting the request.
Council shall, in its first meeting, consider the amendment and shall decide
thereupon by a majority of two thirds. The decision shall be binding for all
amendment shall not affect any rights or obligations arising from this agreement
with regard to any member country, or any of the authorities, institutions, or
citizens thereof before the date of enforcing this agreement.
ratification, acceptance or approval of this agreement by member countries shall
be in accordance with their respective constitutional procedures.
agreement shall come into force thirty days after three member countries deposit
the instruments of ratification, acceptance and approval. The provisions of the
agreement shall apply to other countries as of the date of depositing their
instruments of ratification, acceptance or approval.
Any other Arab
country member of the League of Arab States (LAS) may, after this agreement
comes into force, accede to the agereement by sending a notice to the Secretary
General of the Council of Arab Economic Unity (CAEU), who shall notify other
contracting countries of the accession thereof. Such country shall abide by the
agreement as of the date of depositing the notice with the General
The instruments of
the ratification, acceptance and approval of this agreement shall be deposited
with the CAEU's General Secretariat, which shall notify other countries of the
Any member country
may withdraw from the agreement after five years of coming into force by sending
a notification in writing to the CAEU, and the withdrawal shall be after a year
of receiving such notification.
sent by a member country by virtue of the preceding paragraph shall not affect
the rights and obligations stipulated under this agreement with regard to such
country or the public authorities, institutions or citizens thereof arising
before the date of receiving such notification.
Done at Cairo on 10th Ramadan, 1421
A.H./6th December, 2000 A.D., in the Arabic language, in a single copy which
shall remain deposited with the CAEU's General Secretariat, and a duplicate
shall be transmitted to each of the countries agreeing to this
- Hashemite Kingdom of Jordan.
Republic of the Sudan.
Arab Republic of Syria.
Democratic Republic of Somalia.
- The State
- The Great
Socialist People's Libyan Arab Jamahiriya.
Arab Republic of Egypt.