Ali Zuweid's Political Programme · Proposed legislation · Economy, Finance, Investment and Employment
Commercial Arbitration, Mediation and Investment Dispute Resolution Law
A unified framework modernising Iraqi commercial arbitration, making mediation enforceable and regulating investment disputes involving the State without open-ended consent to international arbitration or compromising public-fund protection.
Executive Summary
Arbitration in Iraq remains governed principally by the arbitration chapter of Civil Procedure Law No. (83) of 1969, predating modern international commercial arbitration by decades. A principal feature is that domestic enforcement requires judicial confirmation of an award, whereas international practice has moved towards tribunal independence, reduced judicial intervention and specified grounds for annulment or refusal of enforcement.
Iraq has already moved in this direction: Law No. (14) of 2021 acceded to the 1958 New York Convention with specified reservations, and the Convention entered into force internationally for Iraq on 9 February 2022. The ICSID Convention has applied to Iraq since 17 December 2015, and Iraq has been party to the Mauritius Convention on Transparency since 20 February 2022. Iraq signed the Singapore Convention on Mediation on 17 April 2024, but ratification remained on a separate legislative track when this document was prepared.
In its sixth term, the Council of Representatives returned the Arbitration Bill to the legislative process, completing its first reading on 24 August 2026. The Legal and Investment and Development Committees continued discussing it in September. POL-44 therefore proposes a comprehensive framework rather than a marginal amendment to an old chapter: domestic and international arbitration based on the UNCITRAL Model Law, enforceable commercial mediation, and special rules where the State is party to an investment dispute.
The proposal protects party autonomy without immunity from law: no arbitration of non-settleable matters, no pre-dispute clause weakening consumer or worker protection, and no implied State consent to international investment arbitration. It removes merits review of awards, narrows annulment grounds, recognises interim measures, permits digital proceedings and regulates third-party funding, transparency and modern investment disputes.
Current Legal Context
The current national framework rests on Articles (251–276) of Civil Procedure Law No. (83) of 1969. It permits agreements to arbitrate existing disputes or disputes under a specified contract but arose when arbitration was viewed more as an exceptional extension of courts than an independent dispute-management system. Published judicial practice shows awards required judicial confirmation before enforcement under Article (272) and related Enforcement Law rules.
Accession to the New York Convention marked a significant change. Accession Law No. (14) of 2021 prescribed three reservations: no application to awards issued before that Law took effect; reciprocity for awards from contracting States; and application only to disputes arising from contractual legal relationships considered commercial under Iraqi law. The Convention entered into force internationally for Iraq on 9 February 2022.
For investment, Article (27) of amended Investment Law No. (13) of 2006 permits commercial arbitration agreements within specified limits, while the ICSID Convention entered into force for Iraq in 2015. ICSID accession does not entitle every investor to sue the State before the Centre; jurisdiction requires separate legal consent. This distinction prevents confusion between membership of an international system and consent to every potential claim.
Iraq advanced mediation by signing the Singapore Convention on 17 April 2024. On 24 August 2026, parliament conducted the ratification bill's first reading, but UNCITRAL's status record still listed Iraq as a signatory without effective ratification at this document's date. The proposal therefore separates modern domestic mediation legislation from international ratification pursued independently.
As of 7 October 2026, the Arbitration Bill whose first reading was renewed on 24 August 2026 does not appear to have become published, effective legislation. POL-44 treats this legislative moment as an opportunity for an integrated framework rather than simply moving old arbitration rules into a standalone law.
Legislative Gap
| Area | Current Position/Gap | Response in POL-44 |
|---|---|---|
| Domestic arbitration | Heavy reliance on an old procedural chapter and broad judicial confirmation before enforcement. | Standalone law; awards binding in themselves; annulment and refusal limited to specified grounds. |
| International arbitration | New York obligations are recent relative to domestic procedural structures. | Alignment with the UNCITRAL Model Law, New York Convention and Iraqi reservations. |
| Interim measures | Clear tribunal and court powers and enforcement rules are needed. | Integrated measures, security and recognition framework. |
| Mediation | No comprehensive commercial framework governing confidentiality and direct settlement enforcement. | Full mediation and settlement-enforcement chapter based on UNCITRAL's 2018 Model Law principles. |
| Investment disputes | ICSID, investment treaties and contracts may operate without a unified national procedural risk-management policy. | Express consent, notice and consultation, transparency, third-party funding, corruption, compensation and State settlement governance. |
| Public funds | Fear of arbitration may produce poor clauses or rejection even where appropriate. | Prior review of State clauses, no implied immunity waiver and documented settlement assessment. |
| Digitalisation | Increasing electronic hearings and files without clear rules in the old framework. | Recognition of digital writing, signatures, awards and hearings with data security. |
Proposed Legislative Design
The proposal clearly separates three tracks. Commercial arbitration is consensual adjudication with procedural independence, supported by courts in appointments, measures, evidence, recognition and enforcement. Mediation is non-adjudicative and imposes no outcome, but produces settlements enforceable without a new merits action. Investment disputes may use either mechanism but need additional rules because a party is the State and effects may reach public funds, regulation and public policy.
The proposal does not make Iraq an “unrestricted arbitration State”. It preserves non-arbitrability, protects consumers and workers against pre-dispute clauses and confines State consent to clear statutes, contracts or treaties. Conversely, it prevents courts reviewing award merits under the guise of confirmation, adopts a narrow public-policy concept and gives courts a supporting role rather than replacing tribunals.
Reform is tied to Iraq's actual obligations, not assumed treaties lacking force. New York, ICSID and Mauritius transparency commitments form part of the existing framework, while domestic mediation law provides internal settlement enforcement and leaves Singapore Convention ratification to its separate constitutional process.
Text of the bill
Bill
Commercial Arbitration, Mediation and Investment Dispute Resolution Law
In the name of the people
Presidency of the Republic
Pursuant to the Constitution, following approval by the Council of Representatives and ratification by the President of the Republic, the following Law is issued:
Chapter One — General Provisions and Scope
Article (1) — Definitions
For this Law: Arbitration means consensual dispute resolution by a sole arbitrator or tribunal. Mediation means a voluntary process in which a neutral person assists settlement without power to impose a solution. International arbitration means arbitration connected to more than one State under this Law's criteria. Investment means any asset or project covered by applicable investment legislation, treaty or contract. State entity means a ministry, body not attached to a ministry, governorate, public authority, public company or other public-law person.
Article (2) — Objectives
This Law establishes a modern, unified commercial arbitration and mediation system, limits judicial intervention to necessary bounds, guarantees impartiality, equality and defence rights, effectively enforces awards and settlements, and regulates investment disputes involving the State or its entities to protect rights and public funds and strengthen legal certainty.
Article (3) — Scope
This Law applies to arbitration seated in Iraq, recognition and enforcement of foreign awards, commercial mediation and resulting settlements, and national procedural rules for investment disputes involving Iraq or its entities. Effective treaties prevail in conflicts within their scope.
Article (4) — Commercial Nature
“Commercial” is interpreted broadly to include contractual and non-contractual commercial, economic or investment relationships, including goods and services, distribution, agency, companies, construction, engineering, finance, banking, insurance, transport, energy, intellectual property, investment and partnerships, unless legislation provides otherwise.
Article (5) — Internationality
Arbitration is international where parties' business places were in different States when agreeing; the seat, substantial performance location or place most closely connected with the dispute is outside their business State; or they expressly agree that the relationship concerns more than one State. Habitual residence applies where no business place exists.
Article (6) — Arbitrable Matters
Any financial or commercial dispute legally capable of settlement may be arbitrated, including public entities' contractual disputes where the competent authority agreed. Personal status, criminal liability, nationality, sovereign or regulatory decisions requiring appeal before designated courts, and expressly prohibited matters are non-arbitrable. Separable private financial consequences of non-arbitrable matters may nevertheless be arbitrated.
Article (7) — Protection of Weaker Parties
Pre-dispute arbitration clauses do not bind individual consumers or workers where depriving them of mandatory protection or statutory court access unless independently and knowingly reaffirmed in writing after the dispute arises. Commercial arbitration between professionals is unaffected.
Article (8) — Equality and Defence Rights
Parties receive equal treatment and a full, reasonable opportunity to present claims and defences and respond to adverse submissions. Agreements or procedures materially denying awareness of proceedings or presentation of a defence are void.
Article (9) — Limits of Judicial Intervention
Courts intervene only where expressly authorised by this Law, interpreted to support arbitration and mediation effectiveness without merits reconsideration.
Article (10) — Competent Court
For domestic and international arbitration seated in Iraq, the competent court is the Federal Court of Appeal for the seat, exercising original jurisdiction. Where the seat is abroad or undetermined and measures, recognition or enforcement are sought in Iraq, jurisdiction lies with the Federal Court of Appeal for the enforcement location or affected property. The Supreme Judicial Council may designate specialised panels or judges.
Article (11) — Notices and Electronic Communications
Writing includes paper or electronic means capable of retention, retrieval and source verification. Notice takes effect upon receipt at the agreed address, business place, email or approved platform, subject to proof of sending and receipt and judicial-service safeguards.
Article (12) — Time Calculation and Waiver of Objections
Periods start the day after notification, excluding the initial day; an official-holiday deadline extends to the next working day. Anyone aware of breach of a derogable provision or procedural condition who continues without objecting within the agreed period, or fifteen days absent agreement, waives objection unless a legitimate excuse is established.
Chapter Two — Arbitration Agreement
Article (13) — Form of Agreement
Arbitration agreements must be written. Writing includes contracts, separate submissions, correspondence or electronic exchanges, pleadings alleging an agreement without denial, or clear reference incorporating a document's arbitration clause into the contract.
Article (14) — Separability of the Arbitration Clause
An arbitration clause is independent of other contractual terms. Contract invalidity, rescission or termination does not itself invalidate the clause unless the invalidity affects consent to arbitration itself.
Article (15) — Interpretation
Agreements are interpreted to give reasonable effect to consensual arbitration without extending to unconsenting persons or disputes. Conduct, connected contracts and dealing history may determine scope under applicable law.
Article (16) — Plea of Arbitration Agreement
Where a court action concerns a valid arbitration agreement, a plea raised before addressing merits requires referral to arbitration unless the agreement is manifestly void, inoperative or incapable of performance. Court proceedings do not prevent commencement, continuation or an award pending determination of that plea.
Article (17) — Judicial Measures before and during Arbitration
Seeking precautionary attachment, urgent preservation of evidence or other interim judicial relief neither waives nor breaches arbitration agreements. Courts consider necessity, proportionality and respect for tribunal jurisdiction.
Article (18) — Transfer of Arbitration Agreements
Agreements transfer with assignment of rights or debts, contract transfer, merger or legal succession unless otherwise agreed or a personal relationship prevents transfer. This creates no obligation for persons neither succeeding a party nor consenting.
Article (19) — Multiple Contracts and Parties
Arbitration may cover connected contracts or multiple parties where agreements are compatible or chosen rules permit. New parties join only with consent or legal proof that they became parties to the arbitration agreement.
Article (20) — Agreements with Public Entities
State entities may agree to arbitration only for legally settleable contractual or commercial disputes, with legally authorised approval and a written legal opinion on clause scope, law, seat and financial implications. This Law itself provides no general State consent to international investment arbitration.
Chapter Three — Tribunal Constitution and Independence
Article (21) — Number of Arbitrators
Parties may agree an odd number of arbitrators. Absent agreement, international disputes use three and other disputes a sole arbitrator, unless the agreed institution determines otherwise according to value and complexity.
Article (22) — Freedom of Selection
Arbitrators may be Iraqi or foreign and need no particular specialism unless agreed. They must have full legal capacity and civil rights. Serving judges require competent judicial permission and compliance with conflict-of-interest rules.
Article (23) — Appointment Procedure
Parties may agree appointment procedures. Otherwise each appoints an arbitrator within thirty days of receiving a request, and those arbitrators agree a chair within thirty days. Necessary appointments not made are completed by the competent court or agreed institution on a party's application.
Article (24) — Judicial Appointment Criteria
The court considers agreed qualifications, dispute nature, required expertise, independence and impartiality, avoiding a composition raising reasonable concerns in international arbitration. Appointment decisions are not independently appealable.
Article (25) — Continuing Disclosure
Prospective arbitrators immediately disclose circumstances potentially raising justifiable doubts about impartiality or independence throughout proceedings, including professional, financial and family relationships, direct or indirect interests and known connections to third-party funders.
Article (26) — Arbitrator Challenges
Arbitrators may be challenged for circumstances raising justifiable doubts about impartiality or independence or failure to meet agreed qualifications. Parties may challenge their own appointees only on grounds discovered after appointment.
Article (27) — Challenge Procedure
Challenges are submitted within fifteen days of learning of tribunal constitution or the relevant ground. The tribunal decides under agreed rules unless the arbitrator withdraws or the other party accepts. Rejection may be referred to the competent court within thirty days; its decision is final. Proceedings may continue unless the court orders a limited stay for manifest necessity.
Article (28) — Termination of Mandate
An arbitrator's mandate ends upon legal or practical inability, unjustified delay, withdrawal or party agreement. The competent court resolves disputes on an interested person's application.
Article (29) — Substitute Arbitrator
A substitute is appointed by the predecessor's method. After hearing parties, the reconstituted tribunal determines whether hearings or earlier steps need repetition to ensure fairness and efficiency.
Article (30) — Arbitrator Liability
Arbitrators and institutions are liable for acts or omissions in arbitral functions only for fraud, bad faith or gross fault. This does not prevent institutional disciplinary or contractual accountability under law.
Article (31) — Arbitrator Fees
Fees follow party agreement or institutional rules. In ad hoc arbitration without agreement, reasonable fees reflect dispute value, complexity and time spent. Courts may review manifest excess without addressing merits.
Chapter Four — Tribunal Jurisdiction and Interim Measures
Article (32) — Competence-competence
Tribunals determine their own jurisdiction, including challenges to an agreement's existence, validity or scope, through preliminary or final decisions.
Article (33) — Jurisdictional Objection Deadline
Jurisdiction objections are raised no later than the defence. Appointing an arbitrator does not prevent objection. Excess-of-scope objections arise promptly when the issue emerges. Tribunals may accept late objections for legitimate reasons.
Article (34) — Review of Jurisdiction Decisions
A preliminary decision upholding jurisdiction may be referred to the competent court within thirty days. Its decision is final. The tribunal may continue and issue an award unless the court exceptionally orders otherwise.
Article (35) — Power to Grant Interim Measures
On a party's application, tribunals may preserve the status quo, prevent imminent harm, preserve enforcement assets or evidence where the applicant shows likely success and harm not adequately reparable by damages, proportionate to the measure's effects.
Article (36) — Urgent Preliminary Orders
Where agreed rules permit, short-term urgent orders may precede hearing the other party if a real risk exists of frustrating relief. Immediate notification and an urgent opportunity to object follow. Compulsory enforcement requires competent-court review.
Article (37) — Security
Tribunals or courts may require appropriate security for potential harm, considering the right's nature and financial capacity without making security a disproportionate obstacle to interim protection.
Article (38) — Modification and Termination of Measures
Upon changed circumstances, tribunals may modify, suspend or terminate measures on application or their own initiative after notice. Beneficiaries promptly disclose material changes in underlying facts.
Article (39) — Recognition of Interim Measures
Arbitral interim measures are recognised and enforced in Iraq regardless of seat unless an award-enforcement refusal ground applies or the measure conflicts with exclusive court powers or public policy. Courts may adapt form to domestic enforcement methods without altering substance.
Article (40) — Supporting Court Powers
Competent courts may grant interim relief supporting arbitration inside or outside Iraq where sufficiently connected with persons, property or evidence in Iraq. Comparable judicial-action standards apply with regard to arbitration's particular nature.
Chapter Five — Conduct of Arbitral Proceedings
Article (41) — Freedom to Organise Proceedings
Parties may agree procedures, institutional rules, place and language. Otherwise tribunals conduct proceedings as appropriate, determining evidential admissibility, relevance and weight, subject to equality, defence rights and mandatory provisions.
Article (42) — Commencement
Unless otherwise agreed, arbitration begins when the respondent receives a written referral request identifying the agreement, parties, dispute nature and principal relief sought.
Article (43) — Seat
Parties choose the seat; absent agreement, the tribunal decides according to circumstances and convenience. The seat does not prevent hearings, deliberations or witness examination in person or remotely elsewhere.
Article (44) — Language
Parties choose the language or languages; otherwise the tribunal decides. It may request necessary translations. Arabic requirements are observed before Iraqi courts unless a certified translation is accepted.
Article (45) — Statements of Claim and Defence
Claimants submit facts, relief and grounds; respondents submit defences, objections and counterclaims within deadlines. Amendments are permitted unless delay, procedural prejudice or exceeding the arbitration agreement makes them inappropriate.
Article (46) — Case Management
Tribunals promptly hold a management conference setting a timetable proportionate to value and complexity, addressing submission length, disclosure, experts and hearings. They prevent disproportionate delay and cost and may limit rounds and submission length.
Article (47) — Third-party Funding Disclosure
Parties disclose funder identities where funders have direct economic interests in the outcome, without automatic disclosure of funding terms. Tribunals may request additional information necessary for conflicts checks or security-for-costs applications.
Article (48) — Consolidation and Coordination
Under agreed rules and after hearing parties, institutions or tribunals may consolidate or coordinate arbitrations under one agreement or connected contracts with compatible agreements, considering each case's stage and defence rights.
Article (49) — Joinder
Additional persons join only if party to the arbitration agreement or consenting in writing. The decision specifies effects on tribunal composition and completed proceedings.
Article (50) — Hearings and Written Proceedings
Tribunals hold oral hearings on a timely party request unless documents-only arbitration was agreed. Hearings may be in person, by video or hybrid where identity, confidentiality and effective participation are protected.
Article (51) — Failure to Attend or Submit
Unexcused failure by claimants to submit claims may end proceedings. A respondent's failure to defend or any party's non-attendance permits continuation and determination on available evidence, without automatic admission of opposing allegations.
Article (52) — Evidence
Tribunals assess admissibility, relevance and weight, may order specific proportionate document production, and protect trade secrets, personal data and professional privilege. Broad, undefined discovery turning arbitration into coercion is prohibited.
Article (53) — Witnesses and Experts
Witnesses and experts may be heard by suitable identity-verifying means. Tribunals may appoint independent experts after disclosing their mandate, remuneration and information sources. Parties may question them and offer opposing experts.
Article (54) — Court Assistance with Evidence
Tribunals, or parties with approval, may request competent-court assistance in taking evidence or compelling witnesses or bodies as legally permitted. Courts execute requests under their rules without examining merits.
Article (55) — Commercial Arbitration Confidentiality
Commercial arbitration proceedings are private. Arbitrators, institutions and parties keep submissions, evidence and awards confidential except where needed to protect legal rights, enforce awards or meet statutory or regulatory disclosure duties. Confidentiality does not apply to State investment disputes insofar as transparency rules under this Law or effective treaties govern.
Chapter Six — Applicable Law and Arbitral Award
Article (56) — Law Governing the Merits
Tribunals apply parties' chosen rules of law. Without choice, they apply the law selected through conflict rules considered most appropriate, always considering contract terms and relevant trade usages. Decisions in equity require express authorisation.
Article (57) — Mandatory Rules and Public Policy
Foreign-law choice cannot displace Iraqi mandatory rules necessarily applicable to the relationship. Public policy is not interpreted broadly merely because laws or interpretations differ; it means fundamental legal, ethical and economic principles whose serious violation the Iraqi system cannot accept.
Article (58) — Deliberation and Decision-making
Multi-member tribunals decide by majority unless otherwise agreed. Chairs may decide procedural issues if authorised by members or parties. Deliberations are confidential.
Article (59) — Award Form and Content
Awards are written and signed by the arbitrator or a majority, explaining absent signatures, stating date and seat and giving reasons unless parties agree to an unreasoned consent award and the law permits.
Article (60) — Electronic Awards
Awards may be issued and signed electronically where signatory identity and textual integrity are verifiable. Each party receives a retainable copy; paper originals may also be issued for enforcement in States requiring them.
Article (61) — Settlement during Arbitration
Settlement ends proceedings. On party request, tribunals may record it as an award on agreed terms absent legal obstacles. Such awards have the same effect as other awards.
Article (62) — Counterclaims and Set-off
Counterclaims and set-off defences may be determined if within the agreement's scope, preserving response rights and avoiding unjustified disruption of the timetable.
Article (63) — Early Dismissal of Manifestly Defective Claims
After hearing parties, tribunals may dismiss claims or defences early where manifestly outside jurisdiction, inadmissible or lacking any viable legal basis even assuming alleged facts are true, through reasoned decisions preserving defence rights.
Article (64) — Interest
Tribunals may award interest or delay compensation where applicable law permits, specifying reasonable, proportionate rates and periods consistent with mandatory rules.
Article (65) — Arbitration Costs
Awards determine arbitrator, institution and expert fees and reasonable legal costs. Allocation may reflect outcome, conduct, cooperation and responsibility for delay; outcome alone is not mandatory.
Article (66) — Correction and Interpretation
Within thirty days of receipt, parties may request correction of calculation, clerical or material errors, or interpretation of specified portions where agreed or permitted by rules. Tribunals may correct on their own initiative within thirty days.
Article (67) — Additional Awards
An additional award on a submitted but omitted claim may be requested within thirty days of receipt. If justified, it is issued within sixty days, extendable where necessary.
Chapter Seven — Annulment, Recognition and Enforcement
Article (68) — Binding Effect
Awards are final and binding from notification, challengeable only by annulment proceedings under this Law. Filing does not itself suspend effect unless a court grants a stay with appropriate security.
Article (69) — Annulment Proceedings
Annulment requires proof of party incapacity, invalid agreement, notification defects impairing defence, excess of scope, or tribunal constitution or procedure contrary to agreement or law; alternatively, the court finds non-arbitrability or a manifest, substantial public-policy violation.
Article (70) — Partial Annulment
Where an excess-of-scope or defective part is separable, only that part is annulled. Courts cannot review facts or law merely because they believe the tribunal erred in its assessment.
Article (71) — Annulment Deadline
Annulment is sought within ninety days of award receipt or determination of correction, interpretation or additional-award applications. Later claims are barred except non-arbitrability or public-policy issues emerging upon enforcement.
Article (72) — Opportunity to Cure
Where appropriate on party request, courts may suspend annulment proceedings for a defined period to allow resumed arbitral proceedings or action removing the defect, without requiring a different substantive result.
Article (73) — Recognition of Awards
Awards are recognised as binding and enforced regardless of issuing State on application to the competent court under this Chapter and effective treaties. Applicants provide the original or reliable copy, the agreement where needed and Arabic translation if required.
Article (74) — Refusal of Enforcement
Recognition or enforcement is refused only on exclusive grounds corresponding to annulment, or where an award is not yet binding or was suspended or annulled at the seat, subject to the New York Convention and effective treaties. Grounds are interpreted narrowly.
Article (75) — New York Convention and Iraqi Reservations
The 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards applies under Iraq's Accession Law No. (14) of 2021 and effective non-retroactivity, reciprocity and commercial-nature reservations. More enforcement-favourable domestic provisions may apply where permitted by the Convention and Iraqi law.
Article (76) — Riyadh Convention and Special Agreements
The Riyadh Arab Agreement for Judicial Cooperation and other effective bilateral or regional agreements apply within their scope. Where multiple legal bases exist, the basis enabling recognition and enforcement applies unless mandatory rules or effective reservations prohibit it.
Article (77) — Adjournment of Enforcement
Where an award is challenged before competent authorities at the seat, Iraqi courts may adjourn enforcement for an appropriate period and require security from the party seeking adjournment at the award creditor's request.
Article (78) — Compulsory Enforcement
Following recognition or enforcement orders, awards are treated as enforceable instruments and referred to the competent Enforcement Department under the Enforcement Law, respecting State-property immunity and legally non-attachable assets.
Chapter Eight — Commercial Mediation
Article (79) — Mediation Scope
This Chapter covers domestic and international commercial mediation initiated by separate agreement, contractual clause or during court or arbitral proceedings. Participation remains voluntary unless law requires an introductory session or initial attempt without removing withdrawal rights.
Article (80) — Commencement
Mediation starts when the other party accepts a written invitation or on the agreed date. No acceptance within thirty days or the agreed period may be treated as rejection.
Article (81) — Number and Appointment of Mediators
One mediator is the default unless otherwise agreed. Parties select or delegate appointment to a centre or person, considering independence, impartiality and suitable expertise. Different nationality or profession does not prevent appointment.
Article (82) — Disclosure and Impartiality
Before and throughout appointment, mediators disclose circumstances raising justified doubts about impartiality or independence. Parties may jointly replace mediators at any time; mediators withdraw if unable to conduct the process with integrity.
Article (83) — Conduct of Mediation
Parties may agree procedures; otherwise mediators conduct a fair, flexible process reflecting circumstances and may meet jointly or separately after explaining the nature of separate communications.
Article (84) — Mediator Role
Mediators may help identify interests and options, evaluate risks and formulate non-binding proposals. They cannot impose solutions or determine rights. Any legal or technical assessment must be identified as non-binding.
Article (85) — Confidentiality
Mediation and communications are confidential unless otherwise agreed, disclosure is needed to enforce settlement, or law requires it to protect fundamental rights or prevent serious crime. Mediators, centres and attendees are bound.
Article (86) — Inadmissibility of Mediation Evidence
Invitations, willingness to participate, views, proposals, concessions or admissions made for mediation and mediator proposals cannot be relied upon in court or arbitration unless the evidence is independently discoverable or admissible.
Article (87) — Separate Information
Information received privately from one party is not disclosed to others without permission unless legally required. Mediators may use its substance internally to understand disputes without revealing its source.
Article (88) — Limitation and Time Bars
Limitation and rights-extinguishing periods are suspended from commencement until mediation ends, resuming thirty days later unless legislation provides longer. Urgent protective measures remain available.
Article (89) — Termination
Mediation ends upon settlement signature, a mediator's declaration after consultation that continuation is unproductive, party withdrawal or expiry of the agreed period. The end date is recorded in writing where affecting time limits.
Article (90) — Mediators in Subsequent Proceedings
Mediators may not serve as arbitrators, representatives or advisers for a party in the same or related dispute unless all parties consent in writing after mediation with full disclosure of potential effects.
Article (91) — Court and Tribunal Mediation
Courts or tribunals may suggest mediation at any stage. Refusal alone permits no adverse merits inference. Successful mediation during arbitration may be recorded in a consent award under Article (61).
Chapter Nine — Mediated Settlement Agreements
Article (92) — Enforceability of Settlements
Written commercial settlements signed by parties and resulting from mediation are binding and directly enforceable on application with reasonable mediation evidence, unless judicially approved or recorded in an arbitral award under another enforcement regime.
Article (93) — Evidence of Mediation
Mediation is evidenced by the mediator's signature, an administering institution's document, a reliable mediator statement or other evidence accepted by the court. Reliable electronic signatures may be used.
Article (94) — Exceptions to Special Enforcement
This Chapter's special enforcement excludes personal-status, inheritance, individual-employment and consumer settlements, court-approved settlements constituting judgments, and settlements recorded and enforceable as arbitral awards.
Article (95) — Refusal of Settlement Enforcement
Enforcement is refused only for party incapacity; invalidity, non-finality or non-binding character; performance or modification; unclear or unenforceable obligations; serious mediator misconduct directly affecting consent; non-disclosure of a material conflict affecting consent; non-settleability; or enforcement contrary to public policy.
Article (96) — No Merits Reconsideration
Courts enforcing settlements cannot reconsider underlying merits or assess the fairness of economic bargains except as necessary to establish a refusal ground under the preceding Article.
Article (97) — Reliance on Settlement as a Defence
Parties may rely on settlements to establish final resolution of an issue without seeking compulsory enforcement where validity and scope conditions are satisfied.
Article (98) — International Settlements and the Singapore Convention
International settlements are governed by this Chapter's domestic provisions. If the United Nations Convention on International Settlement Agreements Resulting from Mediation enters into force for Iraq, it applies within its scope, alongside more favourable domestic rules where permitted.
Article (99) — Signature Is Not Ratification
This Law itself neither ratifies nor accedes to the Singapore Convention. Ratification remains subject to constitutional and legislative treaty procedures.
Chapter Ten — Investment Disputes
Article (100) — Scope of the Investment Chapter
This Chapter governs management and settlement of investor–State-entity disputes under investment contracts, statutes permitting arbitration or effective investment treaties. These provisions alone create neither substantive investor rights nor State consent to arbitration.
Article (101) — Express Consent
International investment tribunals have jurisdiction over the State only through valid express consent in effective treaties, clear legislation or duly authorised contracts. Consent cannot be inferred from investment promotion, commission establishment, licences, incentives or general administrative correspondence.
Article (102) — Notice and Consultation Period
Before investment arbitration against a State entity, investors provide notice stating facts, legal grounds, relief and preliminary amounts. Ninety days are allowed for consultation and mediation unless treaty or contract specifies otherwise or urgency requires preserving rights from expiry.
Article (103) — Government Coordination
Recipients of investment-dispute notices inform the Ministry of Justice, sectoral body and Ministry of Finance where potential financial exposure exists, under a unified Council of Ministers mechanism. Internal coordination does not affect opposing parties' deadlines or procedural rights.
Article (104) — Choosing the Appropriate Method
Public bodies document assessment of negotiation, mediation, technical expertise and arbitration, balancing costs, time, prospects, public-policy protection and project continuity. Beneficial settlements cannot be rejected solely from fear of accountability where lawfully authorised, analysed in writing and approved.
Article (105) — Treaty-based Arbitration Transparency
Treaty-based arbitration follows binding treaty transparency rules and the United Nations Convention on Transparency in Treaty-based Investor–State Arbitration where applicable. Publication of notices, decisions, awards and hearing schedules is the default, protecting trade secrets, personal data, security and legally protected information.
Article (106) — Public Participation
Under applicable rules, treaty tribunals may accept relevant, helpful submissions from third parties or non-disputing treaty States without compromising fairness or imposing disproportionate burdens.
Article (107) — Funding Disclosure in Investment Disputes
Investors and public bodies promptly disclose the existence and identity of third-party funders with economic interests in outcomes and update changes. Tribunals may consider funding for conflicts or security for costs without presuming insolvency merely from funding.
Article (108) — Corruption and Illegality
This Law does not protect investments proven established or operated through bribery, forgery or material corruption. The State may plead illegality or counterclaim where jurisdiction exists, respecting proportionality and party rights and never presuming corruption without evidence.
Article (109) — State Counterclaims
State entities may bring counterclaims arising directly from investment or contracts where the jurisdictional basis permits, including environmental, contractual or financial obligations, without expanding jurisdiction beyond existing consent.
Article (110) — Compensation in Investment Disputes
Compensation follows the applicable substantive right's source, considering causation, reasonable certainty, mitigation and claimant contribution. Pure future profits based on unreliable assumptions are excluded. Punitive damages against the State require express effective authority.
Article (111) — Regulatory Authority
This Law neither freezes legislation nor waives non-discriminatory regulation of health, safety, environment, security, financial stability, competition, labour rights or anti-corruption. International liability for regulation is determined solely under the treaty, contract or substantive law creating the right.
Article (112) — Emergency Measures
Investment disputes do not prevent lawful emergency or precautionary State measures. Authorities observe necessity, proportionality, non-discrimination and documentation, preserving parties' rights to challenge under applicable law.
Article (113) — ICSID Convention
The Convention on the Settlement of Investment Disputes between States and Nationals of Other States, effective for Iraq since 17 December 2015, applies. Iraqi courts do not review ICSID award merits. Pecuniary obligations are enforced under Article (54) and domestic procedures, retaining Convention and statutory execution immunities.
Chapter Eleven — State Disputes and Public Contracts
Article (114) — Arbitration in Government Contracts
Government contracts may include arbitration where justified by contract nature, financing, foreign partners or complexity, under procurement and special laws. Law, seat, rules, language and appointment methods must be specified, avoiding open clauses deferring material matters without authority.
Article (115) — Prior Review of Government Arbitration Clauses
Before approving international arbitration clauses, public bodies prepare legal and financial memoranda on arbitrability, expected costs, seat, institutional rules, enforceability, asset immunity and document preservation. The legally authorised official approves.
Article (116) — No Implied Immunity Waiver
State-entity arbitration agreements do not themselves waive asset attachment or execution immunity. Diplomatic, military, Central Bank, expressly non-commercial public-service and other legally protected assets cannot be executed against except under effective legislation or valid express waiver.
Article (117) — State-party Settlements
Public-body disputes may settle within authority on documented legal and financial assessment and an explainable public interest. Instructions specify approval levels by impact without making lawful settlement practically impossible.
Article (118) — Publication of Public Dispute Information
The Ministry of Justice or designated body publishes an aggregate annual report on State commercial and investment disputes, numbers, stages, costs, outcomes and institutional lessons insofar as not harming legal position, confidentiality, security or settlement terms.
Article (119) — Records and Knowledge Management
State entities electronically preserve contracts, correspondence, negotiation minutes and performance evidence for statutory periods. An access-controlled government knowledge base records precedents and contractual and arbitral risks to prevent disputes.
Article (120) — Counsel and Expert Selection
State entities choose international-dispute representatives, counsel and experts for competence, specialisation, conflicts management and value for money through competition or justified exceptions reflecting nature and urgency, with fee and invoice oversight.
Article (121) — Administrative Judicial Jurisdiction Preserved
Challenges to sovereign administrative or regulatory decisions cannot become arbitrations merely because a contract or investment exists, unless law expressly permits arbitration of separable contractual financial effects. Administrative courts retain constitutional and statutory jurisdiction.
Chapter Twelve — Arbitration and Mediation Centres and Professional Integrity
Article (122) — Institutional Choice
Parties may choose Iraqi or foreign arbitration or mediation institutions or ad hoc arbitration. Enforcement does not require government ownership or State accreditation where arbitration complies with this Law.
Article (123) — Iraqi Centre Transparency
Centres offering public services in Iraq publish rules, appointment and challenge procedures, fees, governance, conflicts policies and administrative complaint channels, and audit accounts under their legal-form legislation. Registering bodies do not interfere in arbitral decisions.
Article (124) — Prohibition of Misrepresentation
Centres and professionals may not falsely claim judicial or governmental status, immunity or official accreditation, or use names suggesting their awards are court judgments. Misrepresentation is subject to consumer, competition and, where applicable, criminal law.
Article (125) — Code of Conduct
The Supreme Judicial Council, consulting the Bar Association and professional and academic bodies, issues non-binding guidance respecting party autonomy on independence, disclosure, conflicts and professional conduct for arbitrators and mediators, without professional monopolies or mandatory lists.
Article (126) — Judicial Training
The Supreme Judicial Council strengthens specialisation in arbitration, mediation, recognition and enforcement through judicial training, unified application procedures and publication of principles with protected data redacted, promoting interpretation consistent with effective treaties.
Article (127) — Digital Transactions
Institutions, arbitrators and mediators may use electronic case-management, signature, notification and hearing platforms with information security, access controls, backups, access records and reasonable alternatives for technical incapacity.
Article (128) — Data Protection
Arbitration and mediation data are processed only as needed with suitable security. Personal data and trade secrets are not published in public awards or reports unless legally required and minimised or redacted where possible.
Article (129) — International Cooperation
The Ministry of Justice, Supreme Judicial Council and professional institutions may cooperate with UNCITRAL, ICSID and international arbitration and mediation institutions on training, knowledge exchange and legislative improvement without affecting judicial independence or case confidentiality.
Chapter Thirteen — Transitional and Final Provisions
Article (130) — Relationship with Procedural Law
Arbitration Articles (251) to (276) of Civil Procedure Law No. (83) of 1969 are repealed upon entry into force. General judicial procedures supplement unaddressed matters insofar as compatible with arbitration.
Article (131) — Relationship with Enforcement Law
Awards and settlements receiving enforcement orders under this Law are enforceable instruments for Enforcement Law No. (45) of 1980. Enforcement procedures follow recognition without reconsidering its conditions.
Article (132) — Relationship with Foreign Judgments Enforcement Law
Enforcement of Foreign Court Judgments in Iraq Law No. (30) of 1928 remains applicable to foreign judicial judgments within its scope, not awards governed by this Law or effective treaties.
Article (133) — Relationship with Investment Law
Dispute-resolution provisions of amended Investment Law No. (13) of 2006 are read alongside this Law. References to arbitration are not unconditional general consent to international jurisdiction beyond duly authorised agreements or effective treaties.
Article (134) — Pending Arbitrations
Arbitrations begun before entry into force continue under their initial rules; parties may agree to apply this Law. Judicial-assistance, recognition and enforcement provisions apply to later applications without affecting completed procedural positions.
Article (135) — Earlier Arbitration Agreements
Earlier agreements remain valid if valid under their previously applicable law or this Law, whichever better preserves validity, unless concerning matters now expressly prohibited on public-policy grounds.
Article (136) — Instructions
Instructions facilitating administrative and technical implementation may issue within one hundred and eighty days of publication. They cannot add annulment or enforcement-refusal grounds, require arbitrator or mediator licensing, or restrict party choice beyond the Law.
Article (137) — Repeal and Conflict
Conflicting provisions are repealed only to the extent of conflict, preserving effective international treaties and special laws prohibiting particular arbitration or providing stronger safeguards for weaker parties.
Article (138) — Entry into Force
This Law takes effect ninety days after Official Gazette publication. The interval is used for judicial forms, training, updated Enforcement Department procedures and guidance for lawyers, investors and public bodies.
Statement of reasons
This Law is enacted to modernise Iraqi commercial dispute resolution; align it with effective international obligations, particularly the 1958 New York Convention, ICSID and Mauritius transparency conventions; provide modern domestic arbitration and mediation rules; accelerate award and settlement enforcement while protecting defence rights and public policy; and regulate State-entity arbitration consent, investment-dispute management and public-fund protection.
Explanatory memorandum
1. Why does Iraq need a standalone law now?
The problem is no longer arbitration's absence from Iraqi law; it has existed for decades. The framework predates modern standards making agreements independent, empowering tribunals to determine jurisdiction, recognising interim measures and narrowly limiting court review. Recent accession to international regimes is not fully compatible with broad judicial-confirmation practices.
Parliamentary proceedings in 2026 confirm official recognition of the legislative need. Reform is more valuable if arbitration is addressed together with mediation and investment disputes, since these tools intersect in major contracts, energy, construction, finance and foreign investment.
2. Arbitration Is Not Judicial Privatisation
Arbitration rests on consent. Courts retain decisive roles in non-arbitrable matters, measures requiring State coercion, annulment, recognition and enforcement. They do not rehear merits voluntarily entrusted to arbitrators unless a specified statutory defect appears.
These limits also benefit courts by reducing repeated litigation and giving judges clear standards rather than open-ended factual and legal review. The proposal designates trained panels or judges in Courts of Appeal for consistency without creating an expensive new court.
3. Relationship with the New York Convention
The proposal does not repeal Iraq's accession reservations; it expressly preserves them against being lost in practice. It also adopts the “more favourable law” rule where the Convention permits better domestic enforcement, preventing reservations from undermining an award independently enforceable under Iraqi law.
4. Mediation Is Not a Formality
Mediation succeeds when confidential, voluntary and impartial, without fear that negotiating statements will later be used against parties. The proposal protects communications from evidential use, suspends limitation periods and prevents mediators automatically becoming arbitrators or party representatives. Crucially, commercial settlements become directly enforceable where mediation origin is established.
These rules help even before Singapore Convention ratification. Ratification adds an international enforcement network, hence its separate programme bill.
5. Investment Disputes: Attractiveness Is Not Open-ended Consent
Investors need certainty that contracts and awards will be enforced, while the State equally needs certainty that licences or promotional letters do not automatically create international jurisdiction. Investment jurisdiction therefore expressly requires consent in an effective treaty, statute or duly authorised contract.
The proposal adds early notice, consultation and mediation, third-party funding disclosure, corruption and counterclaim rules, and compensation safeguards against speculative estimates. It protects lawful regulation from itself implying compensation duties; liability derives from the treaty, contract or substantive law.
6. The State as Commercial Party
The choice need not be between banning public-entity arbitration and accepting any contractor-proposed clause. Governance offers an alternative: legal and financial review, specified seat, law and institution, clear signing authority, and separation of arbitration consent from execution-immunity waiver. Arbitration becomes a managed international-project tool rather than an unmeasured risk.
7. Transparency and Confidentiality
Confidentiality often suits disputes between companies, but different considerations apply when treaty claims may impose substantial costs on the Treasury. The proposal therefore combines commercial confidentiality with broader treaty-based investment transparency consistent with Iraq's Mauritius commitments, protecting trade secrets, data and security.
Alignment with Existing Legislation
| Legislation / instrument | Proposed relationship |
|---|---|
| Civil Procedure Law No. 83 of 1969 | Repeal Articles 251–276 and transfer arbitration into standalone legislation. |
| Enforcement Law No. 45 of 1980 | Enforcement after recognition/enforcement orders without renewed merits review. |
| Enforcement of Foreign Court Judgments Law No. 30 of 1928 | Remains for foreign court judgments; arbitral awards follow the new law and treaties. |
| Amended Investment Law No. 13 of 2006 | Article 27 remains a substantive basis within its scope; procedures follow the new law without becoming general consent to international arbitration. |
| New York Convention Accession Law No. 14 of 2021 | Remains effective with its three reservations alongside the recognition and enforcement Chapter. |
| ICSID Convention | Pecuniary obligations are enforced under Article 54 and domestic execution and immunity rules. |
| Mauritius Convention on Transparency | Applies within its dispute scope and reinforces domestic transparency provisions. |
| Singapore Convention | The Law prepares the domestic framework; ratification still requires separate legislation and constitutional procedures. |
Financial and Implementation Implications
Establishment costs: Relatively limited because no new public authority is created. Costs centre on judicial and enforcement-staff training, updated forms and platforms, and government investment-dispute management guidance.
Annual costs: Depend on training, State-dispute database management and digital services. Much can be absorbed within Supreme Judicial Council, Ministry of Justice and contracting-body budgets, with separate appropriations only for new technical systems.
Potential savings: Shorter confirmation-related litigation, fewer disputes from poor government clauses and greater early-settlement opportunities. No financial estimate is asserted because no published national database supports reliable assessment of current government-arbitration costs.
Comparative Reference Framework
The principal reference is the UNCITRAL Model Law on International Commercial Arbitration, amended in 2006, covering agreements, tribunals, jurisdiction, interim measures, proceedings, annulment, recognition and enforcement. The proposal uses its structure rather than literal text, adapting it to Iraqi law, reservations and public entities.
Mediation design draws on UNCITRAL's 2018 Model Law concerning confidentiality, mediator roles, evidential inadmissibility and settlements. Investment provisions draw on Iraq's ICSID and Mauritius obligations and modern funding disclosure, cost management and early-dismissal approaches.
Sources and references
- Iraqi Council of Representatives — Constitution of the Republic of IraqConstitutional basis for judicial independence, economic rights, treaties and public funds.
- Civil Procedure Law No. (83) of 1969 — Arbitration ChapterHistorically applicable domestic framework, particularly Articles 251–276.
- Ministry of Justice — Iraqi Official Gazette, Law No. (14) of 2021 Acceding to the New York ConventionOfficial text and Iraqi non-retroactivity, reciprocity and commercial-nature reservations.
- Council of Representatives — Arbitration Bill First Reading, 24 August 2026Establishes the new Arbitration Bill's return to the legislative process in the sixth term.
- Council of Representatives — Investment and Legal Committees' Arbitration Bill Meeting, 6 September 2026Latest announced review process before this document's date.
- Amended Investment Law No. (13) of 2006 — Article 27Permits arbitration agreements in specified commercial and investment settings under its conditions.
- Supreme Judicial Council — Foreign Award Enforcement in Iraq after the New York ConventionJudicial account of previous confirmation and enforcement rules and their relationship to Enforcement Law and the Riyadh Agreement.
- Iraqi Legislation Database — Enforcement of Foreign Court Judgments Law No. (30) of 1928Older foreign-judgment enforcement framework, with the proposed separation from arbitral awards.
- UNCITRAL — Model Law on International Commercial Arbitration 1985, with Amendments in 2006Central comparative reference for agreements, jurisdiction, interim measures, annulment and enforcement.
- UNCITRAL — New York Convention 1958 and Iraq's StatusIraq acceded on 11 November 2021; the Convention entered into force for it on 9 February 2022.
- UNCITRAL — Model Law on International Commercial Mediation 2018Reference for mediation procedures and settlement enforcement.
- UNCITRAL — Status of the Singapore Convention on MediationIraq signed on 17 April 2024; ratification remained incomplete when this document was prepared.
- Council of Representatives — Singapore Convention Ratification Bill First Reading, 24 August 2026Establishes that Convention ratification proceeds through a separate bill.
- ICSID — Iraq's Signature and Ratification of the ICSID ConventionThe Convention entered into force for Iraq on 17 December 2015.
- UNCITRAL — Mauritius Convention on Transparency and Iraq's StatusIraq is a party; the Convention entered into force for it on 20 February 2022.
- UNCITRAL — Notes on Organizing Arbitral Proceedings 2016 with 2023 AdditionModern reference for case management, early dismissal and procedural organisation.
Ali Zuweid's Political Programme · POL-44 · Version 1.0 · 7 October 2026