Union of Arab Banks starts
mediation, arbitration center
To provide faster services at lower costs than courts
The Beirut-based Mediation and Arbitration Center (MAC) of the Union of Arab Bank (UAB) has begun operations, and will provide services locally, regionally, and globally.
The center will not confine its services to litigations among banks or between banks and other parties, but will accept all requests for resolving litigation issues, said Ghaleb Ghanem, a member of the MAC’s higher council for arbitration.
The MAC does not differ at the legal level from the Lebanese Arbitration and Mediation Center (LAMC) of the Chamber of Commerce. The differences are at the level of specialization and priorities. The MAC was established by the UAB and it mainly serves the banking sector and deals primarily with litigation among banks and between banks and other parties.
Ghaleb said that the MAC will provide its services in a flexible way and more rapidly than regular courts. Those seeking its services will also have the advantage of selecting the arbitrators that will look into their case, Ghanem said.
Abdel Hamid El Ahdab, another member of the MAC’s higher council for arbitration, said that large investment contracts unavoidably require an arbitration clause. He said that arbitration has become the main channel for dispute resolution all over the world.
The MAC’s arbitration verdicts are enforceable but it is possible to refer a case to conventional courts. An arbitration verdict could be revoked by the MAC itself.
Joseph Torbey, Chairman of the Association of Banks, who also heads the UAB’s executive committee, said that one of the advantages of the MAC is that its services will be provided at a lower cost than legal procedures in conventional courts. Another advantage is that its arbitration sessions will take place behind closed doors, he said.
Thirty-eight Arab and international arbitrators have joined the MAC, Torbey said. He said that it will also be possible to appoint arbitrators from outside the list approved by the MAC.
The MAC will also provide a number of other services, including advisory and training services.
Reported by Shikrallah Nakhoul
Date Posted: Mar 14, 2019