On 18 November 2009, the Scottish Parliament passed the Arbitration (Scotland) Bill, which will provide the statutory framework for arbitration in Scotland. In June 2008, the Scottish government published a draft Arbitration Bill along with a consultation paper, aimed at reforming and consolidating the existing out-of-date arbitration law (see Legal update, Scottish arbitration bill: consultation announced). The new Bill abolishes the distinction between domestic and international arbitration, creating a unitary system with the aim of providing Scotland with a modern and efficient arbitration regime. It is hoped that the Bill will encourage greater use of arbitration domestically and, in time, attract more international arbitration to Scotland. The Bill contains a number of interesting provisions, in particular:

The Arbitration (Scotland) Act 2009 is due to come into force in early 2010 and, unless the parties agree otherwise, will apply to arbitrations commenced on or after the commencement date.