Confidentiality as a Justification for Resorting to Arbitration in Investment Contracts Disputes

Abstract

The study aimed to identify the extent of the arbitration parties' commitment to confidentiality in arbitration and to identify the extent to which the principle of confidentiality is assumed in arbitration. The study adopted the comparative analytical and descriptive method. The study reached results, the most important of which are: Confidentiality is the most important characteristic of arbitration, which makes arbitration distinct from the state’s judiciary, and that confidentiality is one of the justifications for resorting to arbitration, to preserve the commercial, industrial and technical secrets of the parties to the dispute. Confidentiality is an assumed principle in arbitration in investment contract disputes without stipulating it in the arbitration agreement. The study recommended: The arbitral institutions should confirm the extent to which the principle of confidentiality is applied in investment contract disputes in their arbitral procedures. Arbitral institutions should organize their position when justifications for transparency are achieved in the arbitral process. The contracting parties shall clarify in the arbitration agreement what is related to applying the principle of confidentiality and what is related to the application of transparency.

Keywords: confidentiality, arbitration of disputes, investment contracts

DOI: 10.7176/JLPG/110-13

Publication date: June 30th 2021