DIAC Arbitration Rules 2022 – New Rules Launched in 2022

Legislative alterations proceed to sweep across the UAE in an effort to modernise and align existing legislation with international requirements.  This intent manifested by itself with the modern publication of Decree No. 34 of 2021 (the Decree) about the Dubai International Arbitration Centre (and the discontinuation of the DIFC-LCIA Arbitration Centre) which considerably altered the landscape for arbitrations in Dubai.

A most important intent of the Decree was to develop a consolidated arbitration centre in Dubai recognised as the Dubai Global Arbitration Centre (DIAC). To this finish, Article 9 of the Decree offered DIAC with a 6-month grace time period to control the centre in accordance with the Decree. It was thus envisioned that new DIAC Policies would be revealed to update the preceding 2007 Principles and mirror the new iteration of DIAC.

The new DIAC Arbitration Policies 2022 (the New Principles) were released by DIAC on 2 March 2022 accompanied by a push launch which verified that the purpose of a single arbitration centre was to make a “leading centre for settling disputes” and that the “provisions of the new Principles have been built to streamline arbitration processes and facilitate the time performance of the proceedings.”  The New Procedures shall be powerful as of 21 March 2022 and will utilize to arbitral proceedings elevated immediately after this date.

An overview of the crucial provisions of the New Regulations is established out beneath.

The seat of the Arbitration

Post 20 of the New Rules offers the seat of the arbitration and the position of hearings. In the absence of an arrangement in between the get-togethers on the seat of the arbitration, in instances wherever the functions have agreed on the area of the arbitration, the agreed spot shall be the seat of the arbitration. In instances where get-togethers have not agreed to the seat or location, the New Procedures supply that the DIFC shall be the “initial seat”.  The New Guidelines confer the electric power to the Tribunal to determine the seat of the arbitration.

Consolidation & Joinder of Third Get-togethers

Write-up 8 of the New Principles widens the scope in that a Claimant may submit a one Request for arbitration “in respect of several statements arising out of or in connection with much more than one settlement to arbitrate”.  The Arbitration Courtroom might, on software, consolidate the arbitrations into a solitary arbitration the place: (a) all statements in the arbitrations are less than the very same settlement to arbitrate or (b) include the exact same events.

In addition, the New Guidelines allow the joinder of 3rd get-togethers which can be 1 or far more added parties to be joined as Claimant(s) or Respondent(s).

Expedited Proceedings

Article 32 of the New Rules established out the provisions allowing expedited proceedings. The criteria utilized underneath the New Procedures for expedited proceedings are where: (a) the sums claimed or counterclaimed are in the sum of or down below AED 1 million (distinctive of curiosity and fees) (b) the events agree in crafting for the proceeding to be expedited or in selected scenarios of (c) outstanding urgency as decided by the Arbitration Courtroom on software. The New Procedures do not elaborate as to what may possibly be deemed as remarkable urgency. Below expedited proceedings, the New Policies confirm that a Final Award shall be issued inside 3 months from the date that the Tribunal gained the situation.

Importantly, expedited proceedings shall only use to agreements to arbitrate manufactured right after the productive day, 21 March 2022, except get-togethers agree otherwise.

Interim Actions

Appendix II of the New Regulations established out the fantastic strategies together with the interim steps available to the Tribunal to order upon. These interim measures involve the preservation of evidence, stopping the dissipation of property and delivering security for expenditures of the arbitration. Post 2 of Appendix II of the New Rules also set out the requirements for an software for emergency interim relief and the appointment of an crisis arbitrator.

Third-Bash Funding

The New Procedures now expressly provide for third-occasion funding underneath Report 22 which is a new idea for DIAC. A social gathering who has entered into a Third-social gathering Funding Arrangement ought to disclose this to all other parties and to the centre although supplying the identification of the funder, no matter whether or not the funder has committed to an adverse liability on charges.

Authorized Expenses

Write-up 36 of the New Procedures expressly states for the charges for the arbitration to contain registration expenses, administrative fees along with authorized costs and costs. The New Procedures deliver the Tribunal with the electric power to issue an award on the fees of the arbitration, in complete or as apportioned among the events.

Summary

The New Guidelines have modernised the outdated 2007 Principles bringing them into line with global very best tactics even though giving the Tribunal with powers to assure successful proceedings. Contemplating the recent alterations to the arbitration landscape Dubai, the improvements mirrored in the New Guidelines and the clarity that they carry will be welcomed by practitioners and parties alike.

In opposition to this track record, functions ought to take into account their recent arbitration agreements and how the New Regulations may perhaps have an effect on these, specifically in light of the exception for expedited proceedings to implement to arbitration agreements created right after the successful date.

For even more data in relation to the new DIAC Arbitration Rules, remember to get hold of Joanna Stewart (jstewart@davidsoncolaw.com).