Arbitration as an alternative means of dispute resolution

Arbitration as an alternative means of dispute resolution
Arbitration is considered an alternative means of settling commercial disputes to litigation, and its use has become widespread in international contracts in particular, to the extent that it is rare to find an international contract that does not include an arbitration clause for settling disputes arising from the contract, as it settles the dispute by means of a final arbitration award that cannot be appealed in any way. It is a special contractual legal means of resolving disputes that arise between the contracting parties in civil and commercial matters. The choice of this route is made only by free and sound will, including a prior written agreement on their desire to resort to arbitration and to end their disputes through this type of adjudication and in accordance with its provisions. The agreement to arbitrate may be implied when the parties agree to be bound by the terms of a model contract, and this model contract includes an arbitration clause.
It may be explicit and decisive in agreeing to arbitration from the outset, i.e., from the start of the contract under the condition of an agreement to arbitration to settle all disputes that may arise during the implementation or interpretation of the contract or any dispute related to it, which is called the “arbitration clause.”
This agreement may also be reached when a dispute has already arisen, in which case it is agreed to resolve the dispute (specifically) through arbitration in order to save time, prevent disputes, and save effort, time, and money by reducing expenses, etc., which is then referred to as an “arbitration agreement.”
The importance of arbitration in general, and in commercial transactions in particular, especially international ones, lies in the fact that the nature of these transactions requires speed, trust, ease of procedure, and even confidentiality. This necessitates attempts at mediation and conciliation from the outset in order to reach a quick resolution to such disputes in commercial transactions, as this is important and essential for both parties in order to preserve the privacy of the transaction and the cordiality between the parties, and to attempt to reconcile their points of view through mutual understanding. Because time is a very important factor in terms of material costs and capital turnover, it is necessary to avoid the escalation of disputes and conflicts through reconciliation and to reduce the expected losses or increase the expected profits by quickly resolving the dispute at its outset.