Update laws on arbitration: ICCB

The existing legal framework for arbitrations in Bangladesh should be updated for the enforcement of arbitral awards to get more foreign or local investment, according to the International Chamber of Commerce (ICC) Bangladesh. 

An arbitration or arbitral award is the decision or judgment rendered by the arbitrators resolving the matter submitted for their consideration.

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"The ease of enforcing foreign arbitral awards has a direct effect on both foreign and local investments," said Mahbubur Rahman, president of ICC Bangladesh.

He made these remarks while addressing a webinar on "Into the Centenary Year: ICC Court visits ICC Bangladesh" yesterday.

Foreign direct investment (FDI) is a powerful tool for economic growth, especially for a developing country like Bangladesh, he added.

"The existing laws on arbitration are outdated and do not provide adequate guidance on the recognition and enforcement of foreign arbitral awards. The act came into force over 21 years back in 2001," said Kutubuddin Ahmed, an executive board member of ICC Bangladesh.

The primary challenge for enforcing foreign arbitral awards is the lack of a comprehensive legal framework, he added.

Mir Nasir Hossain, executive board member of ICC Bangladesh, said limited availability of specialised judges and lawyers with expertise in international arbitration was a challenge for Bangladesh.

This has led to a shortage of competent professionals who can handle the complexities of enforcing foreign arbitral awards in Bangladesh, he said, emphasising on imparting training and upscaling.

ICC Bangladesh Commission on Arbitration Nihad Kabir moderated the webinar. Claudia Salomon, president of ICC Court, and Alexander Fessas, secretary general, also spoke.