The ACR provides for the exclusive jurisdiction of the Libyan courts for all disputes based on a government contract. An arbitration clause with a foreign party is only permissible under special circumstances and with special permission from the Council of Ministers (Article 83 [2] of the ACR). We recommend discussing dispute resolution at an early stage of any transaction.
There is no established framework for the recognition and enforcement of foreign arbitral awards in Libya. The Libyan courts, however, have recognized and enforced foreign arbitral awards pursuant to the general rules of the procedural code on the recognition of foreign judgements. In addition, in relation to other Arab League States, the Convention of Riyadh (1983) applies. In view thereof, we recommend determining the seat of arbitration in another Convention of Riyadh state, such as Tunisia or Egypt.
Libya is a party to a number of bilateral investment protection treaties (BITs). Libya, however, has thus far not acceded to the ICSID-Convention. This means that there is no unified procedure for bringing claims under any of the BITs.
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