International Commercial Arbitration and Arbitration Pursuant - Dissertation Example

The discussion proceeds along this line to the philosophy behind salient concepts in the Islamic faith, particularly those elements that are seen to be of greatest disparity with conventional concepts. After examining these differences specifically as they pertain to Saudi Arabian law, the accession of the Kingdom to the various international conventions governing arbitral judgments and awards, their recognition and enforcement, as discussed.  From this vantage point, the likelihood of integration of international legal development and legal development under Sharia law is assessed. 

The paper concludes that conceptual and philosophical consistencies exist between both systems that could viably form the basis for a harmonized law – an international arbitration law embodying provisions that blend with Sharia principles, and the evolution of Sharia law to be consistent with international law.

This dissertation is an attempt to discover the extent to which Sharia law accommodates commercial arbitration in Saudi Arabia, clarifying its issues and areas which create tension between international commercial arbitration and Sharia law.  The scope of study starts with the fundamentals of the origins of arbitration law, which is based on the Quran, Sunnah, Consensus, and Analogy. In addition, this dissertation hopes to dispel the notion prevalent among non-Muslim countries that Sharia is seen as an obscure, defective system, and unsuitable in relation to the present standards and practices of international commercial arbitration.

The recognition and acceptance of Sharia law in the practice of commercial arbitration are particularly important, both internationally and domestically.   Increasingly, there are calls for a return to a higher and more moral standard of conducting business, and the more conventional and prudent approach of Islamic finance has been increasingly viewed as a viable alternative to Western-style commerce.  Proponents of adopting the principles of Sharia suggest that “it is the doubts about the significance of the Sharia that are now academic.” Accommodating Sharia law to commercial arbitration develops significant trust within the Islamic world and supports a feasible alternative legal system in the eyes of many in the West. 

1.1    Background to the study
The doctrine of the sovereignty of states has traditionally been deemed absolute and limitless within the territory over which the sovereign rules.  In recent times, increasing commerce and interaction among countries has necessitated the creation of bilateral and multilateral treaties where states allow limitations on the exercise of their sovereignty, allowing considerations towards other counterparty or signatory states in return for reciprocal considerations from them. 

            International commercial arbitration is of this nature since arbitration proceedings are deemed the most efficacious, most expeditious, and least costly means of settling disputes that would tend to arise in a regime of heightened global commercial collaboration.  International arbitration cases, however, are not within the realm of a single legal jurisdiction, because of the different nationalities of the parties involved, the locations where the contracts have been perfected or consummated, and the different legal regimes that may be applied to sway the outcome one way or another.