Economic Reasons for the Effectiveness of Arbitration in Iran's Legal System

Arbitration is one of the most important dispute resolution methods that has become increasingly important. In the present paper, an attempt has been made to examine the economic reasons for the effectiveness of arbitration in Iran's legal system and the challenges facing it.

This paper is descriptive and analytical and library method was used to collect data.

Ethical considerations:

 In this paper, the originality of the texts, honesty and trustworthiness are respected.

The findings indicate that reducing litigation costs and the role of arbitration in resolving commercial disputes is the most important reason for the efficiency of arbitration in Iran's legal system. But the effectiveness of arbitration in Iranian law faces challenges. The legal structure of the arbitration institution in Iran faces a lot of ambiguities and gaps due to the dual structure of the laws, and this has caused inadequacies and challenges regarding the arbitration institution, and as a result, it has reduced the public desire to refer a dispute to arbitration. One of the most important legal weaknesses in arbitration is the lack of clear determination of independence and impartiality in the case of a special arbitrator, conflict in jurisdiction and arbitration, as well as legal gaps in the expert opinion issued by the arbitrator and legal ambiguity regarding the issuance of a temporary order and fulfillment of demand.

In the findings, gaps and legal weaknesses were mentioned and as a conclusion It is necessary to resolve the legal challenges and weaknesses, and most importantly, to change the public attitude towards arbitration and to improve the status of arbitration.