"Arbitration" means the settlement of disputes between litigants out of court by mutually agreed natural or legal persons and/or appointed ones. (Article 1.a of the Iranian International Commercial Arbitration Act)

"International Arbitration" is when one of the parties is not an Iranian national under Iranian laws at the time of the conclusion of the arbitration agreement. (Article 1.b of the same)

All persons having the legal capacity to litigate may, upon mutual agreement, refer to their international commercial disputes on arbitration under the provisions of this Act, whether or not it is raised before legal authorities, and in case of it being raised at any stage.(Article  2.2 of the same)

Arbitration advantages*:

   Unlike the proceeding of courts, a neutral arbitrator with an impartial nationality could be appointed in arbitration proceedings.

   The parties may appoint experts with certain specialties related to their disputes as arbitrators.

   The arbitration procedure is based on the choice of the parties and accordingly could be very flexible.

   The awards of courts are usually subject to appeal, but arbitration awards are basically regarded as final decisions.

   The general characteristic of arbitration proceedings is to reach to an amicable settlement.

   International Conventions on arbitration make this way of settlement very effective.

* from the book"Legal Aspect of Int’l Commerce"/Author:Dr.M.Farhang/Published by Iranian Committee of ICC


The Arbitration Rules of the United Nations Commission on International Trade Law  are the subject of Resolution 31/98 adopted by the General Assembly of the United Nations on 15 December 1976.

 "Where the parties to a contract have agreed in writing that disputes in relation to that contract shall be referred to arbitration under the UNCITRAL Arbitration Rules, then such disputes shall be settled in accordance with these Rules subject to such modification as the parties may agree in writing."(Article 1.1)


The International Chamber of Commerce (ICC) is a non-governmental organization serving world business. Since the 1975, ICC Arbitration Rules came into force;international commercial arbitration has evolved at what appears to be a continually accelerating pace. Now ICC National Committees or Councils are active in 57countries.

 ICC functions:

   To represent the world business community at national and international levels;

   To promote world trade and investment based on free and fair competition;

   To harmonize trade practices and formulate terminology and guidelines for importers  and exporters;

    To provide practical services to business.

Commission on International Arbitration:

The Commission on International Arbitration is one of the ICC’s numerous Commissions charged with preparing policy on general and technical issues concerning world trade and investment. It especially concentrates on legal and practical issues arising in international commercial arbitration, developing arbitration as a means of settling international business disputes and promoting its use.

 Standard ICC Arbitration Clause:

The ICC recommends that all parties wishing to make reference to ICC arbitration in their contracts use the standard clause.

NOTE:  In order to put the standard clause in your contracts, ask Iran Business Lawyers at Dr.Shamsaei & Associates to provide the English, French, German, Spanish, Arabic or Japanese version for you.


This Act, including (9) parts and (36) Articles, has been enacted on 17 September 1997 by the Iranian Parliament and affirmed by the Guardian Council on October 1997.

 In this regard the Iranian Chamber of Commerce has established Arbitration Centers both for Local and International Dispute Resolution.


   Until any dispute has not arisen, Iranian party may not be bound some how to refer its settlement, in case of arising a dispute, to the arbitration of one or more persons who have the same nationality as his party or parties.(Article 11.1)

   The awards of arbitration issued in accordance with the provisions of this Act are final and come into force after service, except the matters mentioned in articles (33) and (34) and the arrangements of Enforcement of the Court Judgments shall be applied in case of written application from the court mentioned in article (6).(Article 35.1)

   In accordance with the "Iranian Constitutional Law" Conciliation of disputes concerning public and state properties or referring them to arbitration in each case is subject to approval of the Board of Ministers. In case one of the parties is not an Iranian national, the approval of the Parliament is also required.

NOTE: Should you have any enquiries or need further information on the content, implementation or interpretation of the concerning rules and regulations, do not hesitate to contact Iran Business Lawyers at Dr.Shamsaei & Associates.


Iran Business Lawyers at Dr.Shamsaei & Associates can provide a full range of services from the registration of the patent & trademark to the enforcement of existing IP rights and even taking legal action on Copyright against third party infringers.

NOTE: If you are interested in filing a patent or trademark application, contact us to send you the requirements.