DIAC Arbitration Rules 2022 – New Rules Launched in 2022

Legislative alterations continue on to sweep throughout the UAE in an energy to modernise and align recent guidelines with global requirements.  This intent manifested by itself with the current 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 considerably altered the landscape for arbitrations in Dubai.

A key reason of the Decree was to create a consolidated arbitration centre in Dubai known as the Dubai Global Arbitration Centre (DIAC). To this conclusion, Article 9 of the Decree furnished DIAC with a 6-thirty day period grace interval to control the centre in accordance with the Decree. It was for that reason predicted that new DIAC Guidelines would be released to update the prior 2007 Regulations and reflect the new iteration of DIAC.

The new DIAC Arbitration Regulations 2022 (the New Procedures) have been posted by DIAC on 2 March 2022 accompanied by a push launch which confirmed that the objective of a solitary arbitration centre was to produce a “leading centre for settling disputes” and that the “provisions of the new Principles had been developed to streamline arbitration treatments and aid the time performance of the proceedings.”  The New Procedures shall be helpful as of 21 March 2022 and will use to arbitral proceedings raised immediately after this date.

An overview of the vital provisions of the New Policies is set out down below.

The seat of the Arbitration

Short article 20 of the New Regulations provides the seat of the arbitration and the spot of hearings. In the absence of an agreement involving the get-togethers on the seat of the arbitration, in occasions in which the functions have agreed on the site of the arbitration, the agreed locale shall be the seat of the arbitration. In circumstances wherever 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 establish the seat of the arbitration.

Consolidation & Joinder of Third Get-togethers

Report 8 of the New Principles widens the scope in that a Claimant could submit a one Ask for for arbitration “in regard of many promises arising out of or in connection with additional than 1 agreement to arbitrate”.  The Arbitration Court may, on software, consolidate the arbitrations into a solitary arbitration the place: (a) all promises in the arbitrations are underneath the same settlement to arbitrate or (b) contain the same parties.

In addition, the New Principles allow the joinder of 3rd functions which can be one particular or a lot more additional get-togethers to be joined as Claimant(s) or Respondent(s).

Expedited Proceedings

Post 32 of the New Procedures established out the provisions allowing expedited proceedings. The standards used below the New Guidelines for expedited proceedings are exactly where: (a) the sums claimed or counterclaimed are in the sum of or below AED 1 million (exclusive of fascination and expenditures) (b) the parties agree in producing for the continuing to be expedited or in selected scenarios of (c) exceptional urgency as established by the Arbitration Court docket upon software. The New Rules do not elaborate as to what may perhaps be deemed as excellent urgency. Beneath expedited proceedings, the New Policies affirm that a Final Award shall be issued inside of 3 months from the day that the Tribunal acquired the situation.

Importantly, expedited proceedings shall only utilize to agreements to arbitrate designed following the efficient date, 21 March 2022, except functions concur in any other case.

Interim Steps

Appendix II of the New Rules set out the fantastic processes which include the interim actions offered to the Tribunal to buy on. These interim actions involve the preservation of evidence, stopping the dissipation of property and supplying protection for costs of the arbitration. Report 2 of Appendix II of the New Regulations also set out the standards for an application for unexpected emergency interim reduction and the appointment of an emergency arbitrator.

Third-Party Funding

The New Regulations now expressly present for 3rd-bash funding below Article 22 which is a new principle for DIAC. A bash who has entered into a Third-social gathering Funding Arrangement must disclose this to all other functions and to the centre whilst delivering the id of the funder, no matter whether or not the funder has dedicated to an adverse liability on costs.

Authorized Expenditures

Report 36 of the New Policies expressly states for the expenditures for the arbitration to involve registration fees, administrative fees along with lawful fees and bills. The New Policies offer the Tribunal with the electric power to concern an award on the expenses of the arbitration, in full or as apportioned amongst the events.

Summary

The New Principles have modernised the outdated 2007 Procedures bringing them into line with international greatest procedures although supplying the Tribunal with powers to be certain productive proceedings. Taking into consideration the recent alterations to the arbitration landscape Dubai, the modifications reflected in the New Policies and the clarity that they bring will be welcomed by practitioners and get-togethers alike.

From this background, events should look at their current arbitration agreements and how the New Rules might affect these, in particular in light of the exception for expedited proceedings to apply to arbitration agreements built right after the successful date.

For additional information in relation to the new DIAC Arbitration Procedures, you should get hold of Joanna Stewart ([email protected]).

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