GCCCAC provides a ‘faster’ method to resolving disputes

Inserting GCCCAC Arbitration clause in commercial agreements will allow investors and traders “a faster method for resolving disputes” if such a situation arises, said GCCCAC’s Bahraini board member.

  Sami Zainal, the GCC Commercial Arbitration Centre’s (GCCCAC) Bahraini board member, said there is a constant increase in the number of arbitration requests received by the agency which also shows the trust of the business owners and official agencies in GCCCAC.

  This is “regardless of the fact that the members of GCC have been establishing national arbitration centres in their respective countries,” he said. 

From 1 January to 31 December 2019, the GCC Commercial Arbitration Centre (GCCCAC) have received 16 requests cumulatively worth 62.5 million US dollars. 

Individuals or companies that included in the requests where from Bahrain, Saudi Arabia, India, Oman, and United Arab Emirates.

Zainal said the organisation continues to recommend investors and trade people, to insert the GCCCAC Arbitration clause in their agreements, which will offer them a faster method for resolving such disputes. 

On the nature of disputes, Zainal said the disputes were related to subscription contracts, real estate development contracts, engineering contracts, contracts of sale (purchasing a flat), contracts for the supply of goods and project implementation contacts. 

He, however, said that the construction, contracting and the real estate development sectors are at the forefront of these disputes.

  “This could be the result of increased activity that the GCC countries have witnessed in the last few years especially in these fields,” he pointed out. 

He added: “The financial crises also resulted in disputes as it impacted many projects, whether constructed or under construction.” 

The real estate sector and the infrastructure are other areas that been impacted, both commercially and financially.

  “Many disputes and arbitration requests that had an arbitration clause in them found their way to arbitration whether it was “ad hoc” arbitration or institutional arbitration.”