Helen Saulnier 
Legislative improvements carry on to sweep throughout the UAE in an effort to modernise and align current laws with international criteria. This intent manifested by itself with the the latest publication of Decree No. 34 of 2021 (the Decree) about the Dubai Worldwide Arbitration Centre (and the discontinuation of the DIFC-LCIA Arbitration Centre) which appreciably altered the landscape for arbitrations in Dubai.
A key function of the Decree was to generate a consolidated arbitration centre in Dubai acknowledged as the Dubai International Arbitration Centre (DIAC). To this conclusion, Article 9 of the Decree delivered DIAC with a 6-month grace period to control the centre in accordance with the Decree. It was thus envisioned that new DIAC Rules would be printed to update the past 2007 Guidelines and replicate the new iteration of DIAC.
The new DIAC Arbitration Policies 2022 (the New Rules) had been released by DIAC on 2 March 2022 accompanied by a push launch which confirmed that the objective of a solitary arbitration centre was to generate a “leading centre for settling disputes” and that the “provisions of the new Policies have been created to streamline arbitration methods and aid the time effectiveness of the proceedings.” The New Procedures shall be powerful as of 21 March 2022 and will implement to arbitral proceedings raised following this day.
An overview of the critical provisions of the New Policies is set out down below.
The seat of the Arbitration
Posting 20 of the New Principles provides the seat of the arbitration and the area of hearings. In the absence of an settlement concerning the functions on the seat of the arbitration, in circumstances in which the parties have agreed on the locale of the arbitration, the agreed location shall be the seat of the arbitration. In situations exactly where get-togethers have not agreed to the seat or site, the New Procedures offer that the DIFC shall be the “initial seat”. The New Procedures confer the electric power to the Tribunal to determine the seat of the arbitration.
Consolidation & Joinder of Third Parties
Posting 8 of the New Policies widens the scope in that a Claimant may perhaps post a one Request for arbitration “in respect of various promises arising out of or in relationship with much more than one settlement to arbitrate”. The Arbitration Courtroom might, upon application, consolidate the arbitrations into a solitary arbitration the place: (a) all claims in the arbitrations are below the same settlement to arbitrate or (b) include the same get-togethers.
In addition, the New Policies allow the joinder of third get-togethers which can be 1 or a lot more added get-togethers to be joined as Claimant(s) or Respondent(s).
Expedited Proceedings
Write-up 32 of the New Regulations established out the provisions permitting expedited proceedings. The criteria used less than the New Procedures for expedited proceedings are where: (a) the sums claimed or counterclaimed are in the sum of or underneath AED 1 million (exceptional of desire and charges) (b) the events agree in composing for the proceeding to be expedited or in specific scenarios of (c) extraordinary urgency as established by the Arbitration Court docket upon application. The New Rules do not elaborate as to what could be considered as fantastic urgency. Less than expedited proceedings, the New Policies confirm that a Ultimate Award shall be issued within just 3 months from the day that the Tribunal acquired the situation.
Importantly, expedited proceedings shall only implement to agreements to arbitrate made after the productive day, 21 March 2022, unless of course parties agree usually.
Interim Actions
Appendix II of the New Policies set out the extraordinary procedures which include the interim measures available to the Tribunal to buy on. These interim actions contain the preservation of proof, protecting against the dissipation of belongings and supplying protection for prices of the arbitration. Article 2 of Appendix II of the New Guidelines also set out the conditions for an software for unexpected emergency interim reduction and the appointment of an emergency arbitrator.
Third-Get together Funding
The New Procedures now expressly provide for third-occasion funding underneath Posting 22 which is a new strategy for DIAC. A celebration who has entered into a 3rd-social gathering Funding Arrangement have to disclose this to all other parties and to the centre though giving the identification of the funder, whether or not the funder has committed to an adverse liability on expenditures.
Lawful Expenses
Article 36 of the New Regulations expressly states for the prices for the arbitration to incorporate registration charges, administrative service fees together with authorized costs and charges. The New Procedures provide the Tribunal with the electricity to challenge an award on the expenses of the arbitration, in complete or as apportioned amongst the events.
Summary
The New Regulations have modernised the aged 2007 Policies bringing them into line with international best tactics while supplying the Tribunal with powers to guarantee efficient proceedings. Taking into consideration the latest alterations to the arbitration landscape Dubai, the adjustments reflected in the New Rules and the clarity that they provide will be welcomed by practitioners and parties alike.
Towards this history, parties should really look at their latest arbitration agreements and how the New Procedures might have an effect on these, specifically in gentle of the exception for expedited proceedings to use to arbitration agreements made after the powerful day.
For even more facts in relation to the new DIAC Arbitration Procedures, remember to contact Joanna Stewart ([email protected]).
