Judicial principles and studies
Annulment of an Arbitration Award and Standards for Its Reasoning
Article 41 of the Arbitration Law requires that an award be reasoned. The summary outlines criteria for adequate reasoning and the scope for partial annulment in annulment proceedings.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
A concise overview of how the reasoning of an arbitration award affects annulment proceedings, referencing Article 41 of the Arbitration Law, doctrinal standards for reasons, and the scope of review by the Court of Cassation.
Summary
- Article 41 requires that an award be reasoned; reasoning means stating the legal arguments and factual evidence on which the arbitrator relied and assessing the documents submitted. Vague or ambiguous reasons are insufficient. - Because annulment review by the Court of Cassation is narrowly formal, the exact standards applied to judicial judgments are not automatically imposed on arbitration awards; this takes into account that some arbitrators may lack the drafting skills of judges. - Arbitration doctrine sets specific criteria for adequacy of reasons: the award should give reasons for each claim individually; an award is considered lacking reasons if it is mutilated, vague, ambiguous, or too general (e.g., merely stating that the claimant proved its case). The award should include a concise statement of the facts as drawn from the case files and address the parties' claims and main defenses, and its reasons must not be contradictory. The arbitrator is not required to set out all applicable legal rules or to follow every argument and document submitted. - In annulment proceedings, the Court of Cassation may annul only the void portion of an award without affecting the remainder.
Practical significance
- Clear, claim-specific reasoning strengthens an award's resistance to annulment, while recognizing that drafting expectations differ from those for judicial decisions. - Parties and arbitrators should ensure that the award explains the factual and legal basis for each decision and replies to principal defenses to avoid being deemed devoid of reasons. Note: This is a general educational summary and not a judicial text or legal advice.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.