Arbitration, whether domestic or international, has always been the preferred choice for ADR amongst the trade community. It is generally argued that the concept of international arbitration as an ADR mechanism originated and developed in Western Europe. But domestic arbitration as a private dispute resolution mechanism outside of the courts existed in different forms in all societies. In the Arab countries, Asia and Africa, traditional arbitration was known in a form that is close to amiable compositeur or conciliation in Western Europe. Since the 1990s, the world has seen a dramatic increase in the quantum and complexity of international business transactions. In contrast to the more traditional forms of international trade such as sale or transportation of merchandise, these transactions, dealing with complex technologies and frequently involving more than two parties, have typically expanded over time. The world is becoming smaller, and national boundaries are becoming more permeable and gradually losing their economic significance. Modern technologies and the continuing shift towards market economies and free trade are creating an increasingly globalised world economy. In addition, regional integration of markets in trading blocks is changing the parameters of business activities. Faced with the growing internationalisation of competition and escalating cost of technologies, individuals and organisations are witnessing a gradual increase in transnational business disputes. From the beginning, arbitration has been governed by national laws that differed from state to state. The need to unify the framework for international arbitration became evident during the 1920s when ideas were being developed for the unification of rules on international trade in general.