Author(s): Dr Farouq Saber Al-Shibli
Nowadays, economic issues such as the lack of public finance and budget deficits have meant that some governments are unable to fund projects and deliver services to people. The need for local private sector involvement (administrative contract) has become increasingly important to some financially poor countries, such as Jordan and is also considered to be a critical driver of economic growth as local private sector involvement will encourage foreign private sector involvement and, as a result, will encourage foreign direct investment in the country. Whether or not private sector investors can be encouraged to enter into contracts with the government depends not only on the size of projects, but also on whether the legal system can protect these investments. Arbitration is considered one of the main guarantees in this regard and therefore this paper will examine the legal issues that prevent using arbitration in settling the disputes of administrative contracts.