International Arbitration in Morocco: A Progressive Legal Framework

Over recent decades, the Kingdom of Morocco has demonstrably advanced its position as a jurisdiction highly conducive to arbitration. The promulgation of Law No. 95-17 on Arbitration and Conventional Mediation signifies a pivotal moment, introducing sweeping reforms designed to align the nation's arbitration statutes with global best practices. This contemporary legislation incorporates several modern principles, including:

  • The facilitation of online dispute resolution mechanisms;
  • The imposition of financial penalties for parties found to be abusing annulment proceedings; and
  • The establishment of more rigorous qualification criteria for arbitrators.

These legislative enhancements are strategically designed to solidify Morocco's reputation as a dependable and appealing venue for both domestic and international arbitration. It is important to note that Law No. 95-17 applies to arbitration proceedings initiated subsequent to its effective date. Prior proceedings remain governed by Morocco’s Code of Civil Procedure (CCP), enacted in 1974.

The Arbitration Agreement

As stipulated in Article 2 of Law No. 95-17, an arbitration agreement is defined as a contractual arrangement through which parties mutually consent to resolve present or future disputes via arbitration. For such an agreement to be legally valid under Moroccan law, it must satisfy the following conditions:

  • It must be executed in written form.
  • It must clearly delineate the nature of the dispute(s) intended for arbitration.
  • It must furnish sufficient identifying details for the parties involved (e.g., names, addresses, email addresses, place of origin).
  • It must not designate an arbitrator who subsequently declines or is incapable of serving, unless the parties concurrently agree upon a replacement. (Refer to Articles 3, 5, and 6 for further details).

Composition and Qualifications of Arbitrators

Parties retain the autonomy to determine the number of arbitrators who will adjudicate their case. However, in the absence of a mutual agreement, a tribunal consisting of three members is the established default (Article 20). Arbitrators are required to:

  • Be natural persons possessing full legal capacity.
  • Hold the requisite academic and professional qualifications pertinent to the dispute.
  • Be free from any criminal or disciplinary record, and not be subject to any disqualification from holding public or commercial offices (Article 11).

Jurisdictional Authority of the Tribunal

Law No. 95-17 explicitly affirms two universally recognized principles fundamental to international arbitration:

  • Kompetenz-Kompetenz: The arbitral tribunal is vested with the inherent authority to rule on its own jurisdiction, including any objections concerning the existence or validity of the arbitration agreement (Article 32).
  • Separability: The arbitration clause, as an independent agreement, retains its validity even if the primary contract in which it is embedded is subsequently deemed invalid (Article 8).

Requirements for the Arbitral Award

Arbitral awards issued under the new legislative framework must be meticulously detailed and underpinned by clear reasoning. They are mandated to include:

  • The date and geographical location of the award's issuance.
  • The names, nationalities, professional backgrounds, and contact information of the arbitrators.
  • The names and addresses of the parties and their legal representatives.
  • A comprehensive account of the dispute's background, the claims and defenses presented by the parties, the evidence adduced, and the tribunal's rationale for resolving the issues (Article 51).

Furthermore, the award must:

  • Articulate the tribunal’s reasoning for its decision.
  • Specify the arbitration costs, the arbitrators’ fees, and the methodology for allocating these costs among the parties (Article 52).

Awards may be issued in either electronic or physical document form.

Challenging an Arbitral Award

International arbitration awards rendered in Morocco are subject to challenge or annulment, unless the parties have explicitly agreed otherwise. Grounds for seeking annulment or appeal encompass:

  • The absence of a valid arbitration agreement.
  • Errors in the constitution of the arbitral tribunal.
  • Failure to render the award within the stipulated time limit.
  • The tribunal exceeding its mandate or improperly declining jurisdiction.
  • A violation of due process principles or a failure to apply the agreed-upon rules or laws.
  • Contradiction with fundamental Moroccan or international public policy (Articles 62 and 80).

Decisions regarding annulment can be appealed to the Supreme Court under the provisions of the Code of Civil Procedure (Article 65).

Enforcement of Arbitral Awards in Morocco

Morocco is a signatory to the New York Convention, which facilitates the domestic enforcement of foreign arbitral awards upon the issuance of an exequatur (enforcement decree).

  • The request for exequatur is submitted through expedited proceedings and typically concludes within 3–4 months (Article 67).
  • The exequatur is granted automatically if the deadline for annulment has elapsed and the award does not contravene public policy (Article 79).
  • For foreign awards, all pertinent documents, including the award and the arbitration agreement, must be officially translated into certified Arabic (Article 78).

Arbitration Costs

While Law No. 95-17 addresses the inclusion of arbitration costs within the award itself, Morocco’s Code of Civil Procedure (CCP) does not provide exhaustive guidance on this matter. Nevertheless, Article 124 of the CCP generally adheres to the principle that the losing party bears the costs of litigation. This aligns with standard international arbitration practice, where costs typically “follow the event.”

Arbitration Institutions in Morocco

Morocco hosts several established arbitral institutions, two of which maintain significant international affiliations:

  1. Moroccan International Chamber of Commerce (MICC): This institution serves as the local counterpart to the International Chamber of Commerce (ICC).
  2. Casablanca Finance City’s CIMAC: Known as the International Centre for Mediation and Arbitration, CIMAC is strategically situated within Morocco’s free trade and financial hub.

Both institutions actively support the resolution of both domestic and cross-border disputes.

Investment Arbitration in Morocco

Morocco is a signatory to the ICSID Convention, which grants foreign investors the right to initiate claims against the state. Between 1967 and 2024, Morocco was involved in at least nine ICSID arbitrations, with:

  • Six cases having reached conclusion; and
  • Three cases currently pending.

The country also maintains a network of bilateral investment treaties that incorporate provisions for investor-state arbitration.

Concluding Perspectives

Law No. 95-17 unequivocally signals Morocco’s steadfast commitment to international arbitration. By modernizing its legal framework and harmonizing it with global standards, Morocco aims to bolster investor confidence and firmly establish its reputation as a preferred arbitration venue within Africa. This updated framework significantly enhances legal certainty, improves procedural efficiency, and reinforces enforceability—all foundational pillars for any jurisdiction aspiring to be arbitration-friendly.