ABJ, in cooperation with the Union of Arab Banks, held an introductory meeting at the Mediation and Arbitration Center of the Union of Banks, on Wednesday, May 5, 2021, via the Zoom application, in the presence of directors of the legal departments in the member banks. The meeting aimed to introduce the Center for Mediation and Arbitration of the Union of Arab Banks and to explain its role and the advantages of resorting to arbitration by Jordanian banks to resolve banking disputes that may arise between banks or with any other parties.

The meeting comes within the framework of the cooperation between ABJ and the Mediation and Arbitration Center of the Union of Arab Banks. ABJ signed a memorandum of understanding with the Center last year aiming at enhancing cooperation between both sides including the association’s introduction of the center and its importance and role in arbitration between banks and introducing the banks to the rules and procedures in force in the center. The memorandum also included the cooperation of the two teams to hold meetings, conferences, training courses and joint events while granting the association and its member banks special privileges and facilities to participate in conferences and forums held by the arbitration center.

During his opening speech, the Secretary-General of the Union of Arab Banks, Wissam Fattouh, thanked the family of ABJ for its support and assistance in holding the meeting, and he also thanked the attendees from the directors of legal affairs in banks. Fattouh indicated that the aim of the session is to highlight the importance of mediation and arbitration in addressing banking issues and to clarify the role of legal affairs departments to protect the rights and interests of banks and financial institutions, noting that the culture of arbitration has become an important method for countries seeking to increase economic growth and attract capital since it has become the best way to resolve disputes, if the factors of speed, trust and knowledge are available.

Fattouh added, “The Mediation and Arbitration Center at the Union of Arab Banks opened its doors to be a mediator and arbitrator between banks, saving them a lot of time and money, and providing them with a reliable and specialized arbitration platform to settle all banking disputes. We have every confidence in the Arab arbitrators at the internationally accredited Mediation and Arbitration Center who will secure justice fulfillment of justice.” He indicated that the Mediation and Arbitration Center is in the process of its actual launch and obtains the arbitration files of Arab banks through associations and unions of banks in the Arab countries to be the basis of this center and its partners in the success of the arbitration culture between banks indicating that the union signed partnership contracts with ABJ and the Federation of Banks in Kuwait and the Federation of Egyptian Banks, and that work is underway to sign partnership contracts with the rest of the Arab banking associations.

For his part, Director-General of ABJ, Dr. Maher Al-Mahrouq, thanked the Union of Arab Banks for its distinguished role and continuous cooperation with ABJ and its keenness to advance the Arab banking sector and develop its performance. He also thanked the representatives of member banks participating in the meeting.

Al-Mahrouq said that ABJ objectives revolve around the promotion and advancement of banking work by taking care of the interests of member banks and coordinating among them to achieve their common benefit, developing and modernizing banking services performance methods, consolidating the concepts and norms of banking work and following unified systems and procedures for this purpose. He noted that the Association worked During its long journey, which exceeded forty years, to achieve these goals, either individually or in cooperation with local, regional or international bodies, including the Union of Arab Banks, which comes at the forefront of partner institutions. Al-Mahrouq added that the establishment of an arbitration center between banks is one of the most important tasks and powers defined by the ABJ Regulations.

Al-Mahrouq said that due to the alternative means provided by arbitration for resolving banking disputes at the regional and international levels, ABJ at the end of last year signed a cooperation agreement with the Mediation and Arbitration Center of the Union of Arab Banks aimed at highlighting the importance of this center and its role in arbitration between banks in addition to informing the banks of the rules and procedures in force at the center. Al-Mahrouq added that the introductory meeting comes as a translation of the understanding agreed upon in this agreement and a consolidation of the existing cooperation between ABJ and the Union of Arab Banks represented by the Center for Mediation and Arbitration.

Al-Mahrouq said, “Through this meeting, we seek to familiarize the attendees with the role of this center in mediation and arbitration operations in banking cases, in addition to the privileges it provides to Jordanian banks in this field, hoping that this meeting will have a positive impact on the attendees by learning about the role of this center in settling disputes as well to the arbitration rules and procedures adopted the center”.

It is noteworthy, in this regard, that the final legal formula of the Arbitration and Mediation Center was approved on the sidelines of the Board of Directors meeting of the Union of Arab Banks No. (104), which took place in Beirut on 23/11/2017, and the work of the Center was launched from the headquarters of the League of Arab States in Cairo on 17/9/2019.

The Mediation and Arbitration Center at the Union of Arab Banks is a center specialized in providing alternative means for resolving banking disputes in Arab countries and the world, and it works on settling all local and international disputes within a distinct framework of speed and effectiveness by providing impartiality and justice between litigants.

The center operates in accordance with the internationally approved procedures and rules of UNCITRAL International Arbitration and provides a wide list of internationally accredited senior arbitrators, who currently number 31 international arbitrators, and is fully prepared to receive all arbitration requests from banks.