DIAC Arbitration Rules 2022

Legislative improvements continue to sweep throughout the UAE in an energy to modernise and align present-day rules with worldwide specifications.  This intent manifested by itself with the current publication of Decree No. 34 of 2021 (the Decree) relating to the Dubai International Arbitration Centre (and the discontinuation of the DIFC-LCIA Arbitration Centre) which noticeably altered the landscape for arbitrations in Dubai.

A key intent of the Decree was to create a consolidated arbitration centre in Dubai recognised as the Dubai Worldwide Arbitration Centre (DIAC). To this conclusion, Posting 9 of the Decree provided DIAC with a 6-thirty day period grace period to regulate the centre in accordance with the Decree. It was for that reason expected that new DIAC Rules would be revealed to update the previous 2007 Policies and reflect the new iteration of DIAC.

The new DIAC Arbitration Procedures 2022 (the New Rules) had been released by DIAC on 2 March 2022 accompanied by a push release which verified that the reason of a one arbitration centre was to build a “leading centre for settling disputes” and that the “provisions of the new Regulations were built to streamline arbitration techniques and aid the time performance of the proceedings.”  The New Policies shall be successful as of 21 March 2022 and will use to arbitral proceedings elevated following this date.

An overview of the important provisions of the New Rules is established out below.

Seat of the Arbitration

Report 20 of the New Regulations provides the seat of the arbitration and the place of hearings. In the absence of an agreement among the functions on the seat of the arbitration, in instances where by the get-togethers have agreed on the place of the arbitration, the agreed spot shall be the seat of the arbitration. In circumstances where functions have not agreed to the seat or locale, the New Rules give that the DIFC shall be the “initial seat”.  The New Policies confer the electricity to the Tribunal to identify the seat of the arbitration.

Consolidation & Joinder of 3rd Functions

Short article 8 of the New Principles widen the scope in that a Claimant may post a one Ask for for arbitration “in regard of several claims arising out of or in link with far more than one agreement to arbitrate”.  The Arbitration Court docket may possibly, upon software, consolidate the arbitrations into a solitary arbitration where: (a) all statements in the arbitrations are underneath the exact agreement to arbitrate or (b) require the similar parties.

In addition, the New Regulations allow the joinder of 3rd events which can be one or extra more events to be joined as Claimant(s) or Respondent(s).

Expedited Proceedings

Post 32 of the New Guidelines established out the provisions permitting expedited proceedings. The requirements used below the New Procedures for expedited proceedings are wherever: (a) the sums claimed or counterclaimed are in the sum of or beneath AED 1 million (distinctive of interest and prices) (b) the events concur in creating for the continuing to be expedited or in sure cases of (c) exceptional urgency as determined by the Arbitration Courtroom on application. The New Regulations do not elaborate as to what may well be deemed as excellent urgency. Below expedited proceedings, the New Procedures verify that a Remaining Award shall be issued within just 3 months from the day that the Tribunal been given the circumstance.

Importantly, expedited proceedings shall only utilize to agreements to arbitrate produced immediately after the efficient day, 21 March 2022, unless functions concur in any other case.

Interim Actions

Appendix II of the New Regulations set out the exceptional methods which includes the interim actions readily available to the Tribunal to get on. These interim measures consist of the preservation of proof, avoiding the dissipation of assets and delivering protection for fees of the arbitration. Posting 2 of Appendix II of the New Guidelines also set out the conditions for an software for emergency interim aid and the appointment of an unexpected emergency arbitrator.

Third-Occasion Funding

The New Principles now expressly deliver for 3rd-social gathering funding below Write-up 22 which is a new strategy for DIAC. A bash who has entered into a Third-party Funding Arrangement will have to disclose this to all other events and to the centre while delivering the identity of the funder, no matter if or not the funder has fully commited to an adverse liability on expenses.

Lawful Expenses

Post 36 of the New Guidelines expressly states for the charges for the arbitration to consist of registration service fees, administrative costs along with authorized prices and fees. The New Guidelines deliver the Tribunal with the energy to issue an award on the prices of the arbitration, in total or as apportioned in between the parties.

Summary

The New Policies have modernised the outdated 2007 Regulations bringing them into line with intercontinental ideal exercise though providing the Tribunal with powers to be certain productive proceedings. Thinking of the the latest alterations to the arbitration landscape Dubai, the alterations mirrored in the New Policies and the clarity that they deliver will be welcomed by practitioners and get-togethers alike.

From this track record, functions ought to think about their current arbitration agreements and how the New Rules could have an impact on these, especially in gentle of the exception for expedited proceedings to implement to arbitration agreements designed soon after the successful date.

For further more facts in relation to the new DIAC Arbitration Regulations, please call Joanna Stewart ([email protected]).

March 2022