Is it permissible for an Arab-Islamic company to sign an agreement with a Western company for the marketing of Western electrical products, if the agreement stipulates that Western laws are the legal reference in the event of a dispute?

There is no harm in that, provided two conditions are met: that the products do not contain anything forbidden by Islamic law, and that the laws do not contradict Islamic Sharia. If any of these conditions are not met, then it is not permissible to proceed.