1 Legal framework
1.1 What is the relevant legislation on arbitration in your jurisdiction? Are there any significant limitations on the scope of the statutory regime – for example, does it govern oral arbitration agreements?
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.
1.2 Does this legislation differentiate between domestic arbitration and international arbitration? If so, how is each defined?
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.
1.3 Is the arbitration legislation in your jurisdiction based on the UNCITRAL Model Law on International Commercial Arbitration?
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.
1.4 Are all provisions of the legislation in your jurisdiction mandatory?
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.
1.5 Are there any current plans to amend the arbitration legislation in your jurisdiction?
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.
1.6 Is your jurisdiction a signatory to the New York Convention? If so, have any reservations been made?
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.
1.7 Is your jurisdiction a signatory to any other treaties relevant to arbitration?
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.
2 Arbitrability and restrictions on arbitration
2.1 How is it determined whether a dispute is arbitrable in your jurisdiction?
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.
2.2 Are there any restrictions on the choice of seat of arbitration for certain disputes?
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.
3 Arbitration agreement
3.1 What are the validity requirements for an arbitration agreement in your jurisdiction?
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.
3.2 Are there any provisions of legislation or any other legal sources in your jurisdiction concerning the separability of arbitration agreements?
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.
3.3 Are there provisions on the seat and/or language of the arbitration if there is no agreement between the parties?
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.
4 Objections to jurisdiction
4.1 When must a party raise an objection to the jurisdiction of the tribunal and how can this objection be raised?
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.
4.2 Can a tribunal rule on its own jurisdiction?
Yes, Iraqi law recognises the competence-competence principle, allowing tribunals to decide on their jurisdiction.
4.3 Can a party apply to the courts of the seat for a ruling on the jurisdiction of the tribunal? In what circumstances?
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.
5 The parties
5.1 Are there any restrictions on who can be a party to an arbitration agreement?
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.
5.2 Are the parties under any duties in relation to the arbitration?
Parties must:
- act in good faith;
- comply with procedural orders; and
- disclose evidence as required.
5.3 Are there any provisions of law which deal with multi-party disputes?
The current Civil Procedure Code lacks explicit provisions for multi-party arbitration, but the draft Arbitration Law would introduce mechanisms for consolidation and joinder.
6 Applicable law issues
6.1 How is the law of the arbitration agreement determined in your jurisdiction?
The law of the seat generally governs the arbitration agreement unless the parties specify otherwise.
6.2 Will the tribunal uphold a party agreement as to the substantive law of the dispute? Where the substantive law is unclear, how will the tribunal determine what it should be?
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.
7 Consolidation and third parties
7.1 Does the law in your jurisdiction permit consolidation of separate arbitrations into a single arbitration proceeding? Are there any conditions which apply to consolidation?
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.
7.2 Does the law in your jurisdiction permit the joinder of additional parties to an arbitration which has already commenced?
Joinder is possible only with the unanimous consent of all parties involved.
7.3 Does an arbitration agreement bind assignees or other third parties?
Yes, assignees and successors bound by the underlying contract are generally bound by the arbitration agreement.
8 The tribunal
8.1 How is the tribunal appointed?
Parties appoint arbitrators by agreement. If they fail, courts appoint arbitrators upon request within 30 days.
8.2 Are there any requirements as to the number or qualification of arbitrators in your jurisdiction?
There are no formal legal requirements in this regard. Typically, one or three arbitrators are appointed. Foreign arbitrators are permitted.
8.3 Can an arbitrator be challenged in your jurisdiction? If so, on what basis? Are there any restrictions on the challenge of an arbitrator?
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.
8.4 If a challenge is successful, how is the arbitrator replaced?
The court or appointing authority will replace the arbitrator using the original appointment method.
8.5 What duties are imposed on arbitrators? Are these all imposed by legislation?
Duties include:
- impartiality;
- independence;
- confidentiality; and
- diligence.
These are partly statutory and partly derived from general principles of fairness.
8.6 What powers does an arbitrator have in relation to: (a) procedure, including evidence; (b) interim relief; (c) parties which do not comply with its orders; (d) issuing partial final awards; (e) the remedies it can grant in a final award and (f) interest?
(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.
8.7 How may a tribunal seated in your jurisdiction proceed if a party does not participate in the arbitration?
The tribunal may continue the proceedings and issue an award based on the available evidence.
8.8 Are arbitrators immune from liability?
There is no explicit immunity under Iraqi law, but customary practice and professional standards provide some protection.
9 The role of the court during an arbitration
9.1 Will the court in your jurisdiction stay proceedings and refer parties to arbitration if there is an arbitration agreement?
Yes, the courts must stay litigation if a valid arbitration agreement exists.
9.2 Does the court in your jurisdiction have any powers in relation to an arbitration seated in your jurisdiction and/or seated outside your jurisdiction? What are these powers? Under what conditions are these powers exercised?
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.
9.3 Can the parties exclude the court's powers by agreement?
No, parties cannot exclude the court's supervisory powers regarding jurisdiction and enforcement.
10 Costs
10.1 How will the tribunal approach the issue of costs?
Costs generally follow the event, but tribunals have discretion to allocate costs equitably.
10.2 Are there any restrictions on what the parties can agree in terms of costs in an arbitration seated in your jurisdiction?
Parties may agree on cost allocation but cannot limit the tribunal's authority to award reasonable costs.
11 Funding
11.1 Is third-party funding permitted for arbitrations seated in your jurisdiction?
No statutory prohibition exists, but disclosure of third-party funding is recommended. Legal ethics rules restrict lawyers from funding client claims.
12 Award
12.1 What procedural and substantive requirements must be met by an award?
An arbitral award must be:
- in writing and signed by the arbitrators;
- reasoned with the factual and legal basis; and
- final and binding.
12.2 Must the award be produced within a certain timeframe?
Yes – generally within 90 days of constitution of the tribunal, which may be extended by agreement of the parties.
13 Enforcement of awards
13.1 Are awards enforced in your jurisdiction? Under what procedure?
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.
14 Grounds for challenging an award
14.1 What are the grounds on which an award can be challenged, appealed or otherwise set aside in your jurisdiction?
- Procedural irregularities (lack of notice, arbitrator bias);
- The tribunal exceeding its powers; or
- Violation of public policy.
14.2 Are there are any time limits and/or other requirements to bring a challenge?
Challenges must be filed within 30 days of notification of the award.
14.3 Are parties permitted to exclude any rights of challenge or appeal?
No, the right to challenge on jurisdictional or public policy grounds cannot be waived.
15 Confidentiality
15.1 Is arbitration seated in your jurisdiction confidential? Is a duty of confidentiality found in the arbitration legislation?
No express statutory confidentiality obligation exists, but institutional rules often impose confidentiality.
15.2 Are there any exceptions to confidentiality?
- Court proceedings related to enforcement or challenge; and
- Criminal investigations or public interest disclosures.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
