At the same time, there are a number of court cases in foreign jurisdictions involving contracts based on Afghan law, even though the chosen venues for resolution are outside Afghanistan. Other cases are related to blacklisting due to sanctions.  In some instances, Afghan parties have won awards in foreign courts, but they face difficulties collecting payments due to restrictions on international bank transfers to Afghanistan.

When it comes to enforcing arbitration awards, winning parties often look to jurisdictions where the debtor has assets. In some cases, the winning parties are trying to enforce arbitration awards within Afghanistan’s current legal framework. Under the 1958 New York Convention, which Afghanistan has been a part of since 2004, winning parties can seek recognition and enforcement of awards in any of the 172 member countries, making arbitration an attractive option for resolving international business disputes.

Domestically, the Afghanistan Center for Commercial Dispute Resolution began offering arbitration services in 2019 and continues to do so, though the number of cases remains relatively low.

Kakar Advocates brings considerable experience in international arbitration and cross-border legal matters.