Arbitration in Iraq is primarily governed by Articles 251–277 of the Civil Procedure Code (CPC). These provisions regulate:
- arbitration agreements;
- the appointment of arbitrators;
- the arbitration proceedings; and
- the enforcement of awards.
The CPC requires arbitration agreements to be in writing, but oral agreements may be recognised if the parties acknowledge them through conduct or oaths.
The law covers both domestic and international commercial arbitration but does not explicitly differentiate between them.
Limitations include exclusion of criminal, personal status and certain administrative disputes from arbitration.
Currently, Iraqi law does not explicitly distinguish between domestic and international arbitration. However, in practice:
- domestic arbitration involves disputes between Iraqi parties or disputes seated in Iraq; and
- international arbitration generally involves at least one foreign party or cross-border elements.
The proposed draft Arbitration Law of 2023 aims to introduce clearer definitions aligned with the UNCITRAL Model Law, including criteria such as:
- the parties’ places of business; and
- the dispute’s international character.
No, the current CPC provisions are not based on the UNCITRAL Model Law. However, Iraq is in the process of reforming its arbitration laws and the draft Arbitration Law of 2023 proposes adopting the UNCITRAL Model Law framework to modernise and harmonise arbitration practice.
Certain provisions are mandatory, including:
- the arbitrators’ impartiality and independence;
- judicial oversight of the arbitrators’ appointment if the parties fail to agree; and
- public policy limitations on the enforceability of awards.
Other procedural matters may be subject to party autonomy.
Yes, the Ministry of Justice is actively working on a draft Arbitration Law that would replace the current CPC arbitration provisions:
- adopting the UNCITRAL Model Law principles; and
- expanding the scope and enhancing the procedural clarity of arbitration.
Iraq acceded to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 2021, without reservations. This facilitates the enforcement of foreign arbitral awards in Iraq and Iraqi awards abroad under the convention’s framework.
Yes, Iraq is a party to:
- the 1966 Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States;
- the 1987 Amman Arab Convention on Commercial Arbitration; and
- various bilateral investment treaties containing arbitration clauses.
Disputes are arbitrable if they concern commercial or civil rights. Non-arbitrable matters include:
- criminal law issues;
- disputes over personal status (family law, inheritance); and
- certain administrative or public law disputes requiring state consent.
There are no explicit statutory restrictions on the choice of seat. However, the draft Arbitration Law proposes designating specific cities (eg, Baghdad, Erbil) as preferred seats for institutional arbitration. Foreign seats are permitted, but enforcement of awards depends on international treaties such as the New York Convention.
In order to be valid, an arbitration agreement must:
- be in writing or evidenced in writing;
- be signed by the parties, which must have legal capacity;
- clearly specify the intention to arbitrate; and
- exclude non-arbitrable matters.
Electronic agreements are accepted if verifiable.
While not explicitly codified, the Iraqi courts recognise the separability (or severability) doctrine, meaning that the arbitration clause remains valid even if the main contract is invalid.
The default seat is usually:
- the respondent’s place of residence; or
- the place where the arbitration clause was signed.
The default language is Arabic, but tribunals may allow other languages with translation.
Objections must be raised before submitting the statement of defence or at the earliest opportunity. They can be raised by sending written notice to the tribunal.
Yes, Iraqi law recognises the competence-competence principle, allowing tribunals to decide on their jurisdiction.
Yes, parties can petition the courts at the seat if they dispute the tribunal’s jurisdiction, especially if the arbitration agreement is alleged to be invalid or inapplicable.
Any natural or legal person with legal capacity can be a party to an arbitration agreement. Foreign entities must be registered with the Iraqi authorities to participate in domestic arbitration.
Parties must:
- act in good faith;
- comply with procedural orders; and
- disclose evidence as required.
The current Civil Procedure Code lacks explicit provisions for multi-party arbitration, but the draft Arbitration Law would introduce mechanisms for consolidation and joinder.
The law of the seat generally governs the arbitration agreement unless the parties specify otherwise.
Yes, tribunals respect the parties’ choice of substantive law. If unclear, tribunals apply Iraqi conflict of laws principles to identify the law that is most closely connected to the dispute.
Currently, consolidation is not permitted under the Civil Procedure Code. The draft Arbitration Law would allow consolidation:
- with party consent; or
- where claims share common issues.
Joinder is possible only with the unanimous consent of all parties involved.
Yes, assignees and successors bound by the underlying contract are generally bound by the arbitration agreement.
Parties appoint arbitrators by agreement. If they fail, courts appoint arbitrators upon request within 30 days.
There are no formal legal requirements in this regard. Typically, one or three arbitrators are appointed. Foreign arbitrators are permitted.
Yes, challenges are allowed due to:
- lack of impartiality;
- lack of independence; or
- a conflict of interest.
Challenges must be made within 10 days of discovering the grounds for the challenge.
The court or appointing authority will replace the arbitrator using the original appointment method.
Duties include:
- impartiality;
- independence;
- confidentiality; and
- diligence.
These are partly statutory and partly derived from general principles of fairness.
(a) Procedure, including evidence?
Control over:
- hearings;
- the admission of evidence; and
- the procedural timetable.
(b) Interim relief?
Limited; the Iraqi courts usually grant interim measures.
(c) Parties which do not comply with its orders?
The tribunal may:
- proceed ex parte; and
- draw adverse inferences.
(d) Issuing partial final awards?
This is permitted for separable issues.
(e) The remedies it can grant in a final award?
- Damages;
- Specific performance; and
- Declaratory relief.
(f) Interest?
Interest can be awarded at a rate of up to 5% per annum, unless the parties have agreed otherwise.
The tribunal may continue the proceedings and issue an award based on the available evidence.
There is no explicit immunity under Iraqi law, but customary practice and professional standards provide some protection.
Yes, the courts must stay litigation if a valid arbitration agreement exists.
The court may:
- appoint arbitrators if the parties fail to do so;
- set aside awards for procedural violations or public policy breaches; and
- enforce foreign awards under the New York Convention.
These powers are exercised upon party application and judicial review.
No, parties cannot exclude the court’s supervisory powers regarding jurisdiction and enforcement.
Costs generally follow the event, but tribunals have discretion to allocate costs equitably.
Parties may agree on cost allocation but cannot limit the tribunal’s authority to award reasonable costs.
No statutory prohibition exists, but disclosure of third-party funding is recommended. Legal ethics rules restrict lawyers from funding client claims.
An arbitral award must be:
- in writing and signed by the arbitrators;
- reasoned with the factual and legal basis; and
- final and binding.
Yes – generally within 90 days of constitution of the tribunal, which may be extended by agreement of the parties.
Yes. Domestic awards are enforced by the courts through exequatur. Foreign awards are enforced under the New York Convention framework, requiring authenticated copies and translations.
- Procedural irregularities (lack of notice, arbitrator bias);
- The tribunal exceeding its powers; or
- Violation of public policy.
Challenges must be filed within 30 days of notification of the award.
No, the right to challenge on jurisdictional or public policy grounds cannot be waived.
No express statutory confidentiality obligation exists, but institutional rules often impose confidentiality.
- Court proceedings related to enforcement or challenge; and
- Criminal investigations or public interest disclosures.
