The Regulation of Arbitration in International Administrative Contracts under Libyan Legislation: An Analytical Study

Abstract

This study examines international administrative contracts and the arbitration mechanisms associated with them, with a focus on the legal framework in Libyan legislation, in light of the growing need to resolve contractual disputes efficiently and swiftly, away from the complexities of national courts.

The researcher focused on studying arbitration in international administrative contracts by analyzing its legal concept and outlining its effects, then reviewing its legal regulation under Libyan law. Arbitration in this type of contract has gained increasing importance as an effective means of resolving disputes between the state or public law entities on the one hand, and foreign contractors on the other, due to its speed, flexibility, and impartiality compared to national courts.

In the first section, the study addressed the concept of international administrative contracts, highlighting their characteristics and legal nature.

In the second section, the research tackled the concept of arbitration in international administrative contracts, emphasizing its exceptional nature due to the unique characteristics of administrative contracts and their connection to the public interest. The study also discussed the doctrinal and judicial debates regarding the legitimacy of the administration resorting to arbitration, particularly in contracts of an international nature. Furthermore, it examined the legal effects of agreeing to arbitration, including the exclusion of national court jurisdiction, the binding nature and enforceability of arbitral awards, as well as the impact of arbitration on the principle of state sovereignty and the safeguards for public funds.

Moreover, the study focused on the legal regulation of arbitration in international administrative contracts under Libyan legislation, analyzing the relevant legal provisions and explaining the Libyan legislator’s stance on the permissibility of arbitration in administrative contract disputes and the restrictions imposed, particularly regarding the requirement to obtain prior approval from competent authorities and the need to respect public order and the public interest. The study also examined the extent to which Libyan legislation is influenced by international conventions and international commercial arbitration rules, highlighting legislative gaps and the need to develop a legal framework that balances attracting foreign investment with preserving state sovereignty.

The study concludes that arbitration in international administrative contracts represents an important legal tool for dispute resolution; however, its effectiveness within the Libyan legal system remains contingent upon updating legislation and clarifying the legal rules governing the administration’s recourse to arbitration, thereby ensuring legal certainty and enhancing confidence in the investment environment.