Arbitration in civil and commercial matters is an alternative method of dispute resolution that may be agreed upon by the parties -Article 203 of the Civil Procedure Law.

Certain laws exist which contain special provisions requiring certain disputes to be settled through arbitration. This is known as mandatory arbitration.

One example is Article 118 of Federal Law No. 28 of 2005 (Personal Status Law) which deals with the role of arbitration in cases of marital discord.

Another example is Article 160 of Federal Law No. 8 of 1980 (Labour Law) which deals with collective labour disputes.

In addition to those listed above, a number of comparative laws contain provisions relating to agricultural, water, property and other disputes exist.

In all cases where the legislator requires disputes to be referred to arbitration, this may only take place pursuant to a legislative provision enacted by the competent authority.

The rule is that courts have jurisdiction over disputes with the exception being that parties may agree to submit their dispute to arbitration. When deciding that certain disputes should only be settled through arbitration, the legislator must enact appropriate legislation.