International Commercial Arbitration at Brunei
International commercial arbitration in Brunei Darussalam has been gradually developing, aligning itself with international standards to become a more attractive seat for arbitration in the Asia-Pacific region. Here's an overview of the current state and legal framework:
International Commercial Arbitration in Brunei
1. Legal Framework
Arbitration Order, 2009:
Brunei’s key legislation governing arbitration. It is based on the UNCITRAL Model Law on International Commercial Arbitration (1985), with the 2006 amendments.
Key Features:
Distinguishes between domestic and international arbitration.
Incorporates principles of party autonomy, neutrality, and minimal court intervention.
Arbitration agreements must be in writing.
2. International Conventions
New York Convention:
Brunei is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This ensures:
Recognition and enforcement of arbitral awards made in other contracting states.
Brunei’s awards are recognized abroad.
3. Institutions and Practice
Brunei does not yet have a widely recognized international arbitration institution like SIAC (Singapore) or HKIAC (Hong Kong).
Parties may appoint arbitrators of their choice or use foreign institutions to administer proceedings seated in Brunei.
Courts are supportive of arbitration and generally defer to arbitral tribunals on procedural and substantive matters.
4. Role of Courts
Brunei’s courts can:
Grant interim measures.
Refer parties to arbitration where an agreement exists.
Enforce arbitral awards (domestic and foreign).
Set aside awards only on limited grounds (e.g., procedural unfairness, jurisdictional issues, etc.).
5. Advantages of Choosing Brunei
Model Law Jurisdiction: Offers predictability and familiarity for international parties.
Judicial Support: A judiciary supportive of arbitration with a reputation for integrity.
Strategic Location: Positioned in Southeast Asia with cultural and economic ties to the region.
6. Challenges
Limited Practice and Precedents: Arbitration is still relatively underutilized compared to regional hubs.
Lack of Institutional Infrastructure: No major international arbitration center within Brunei yet.
Awareness and Promotion: Needs more active promotion as a seat or venue for international arbitration.
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