DIAC Arbitration Rules 2022 – New Rules Launched in 2022

Legislative variations keep on to sweep across the UAE in an work to modernise and align latest rules with intercontinental requirements.  This intent manifested itself with the recent publication of Decree No. 34 of 2021 (the Decree) regarding the Dubai Worldwide Arbitration Centre (and the discontinuation of the DIFC-LCIA Arbitration Centre) which significantly altered the landscape for arbitrations in Dubai.

A major objective of the Decree was to produce a consolidated arbitration centre in Dubai recognized as the Dubai Intercontinental Arbitration Centre (DIAC). To this close, Report 9 of the Decree furnished DIAC with a 6-thirty day period grace period to regulate the centre in accordance with the Decree. It was for that reason predicted that new DIAC Regulations would be released to update the previous 2007 Principles and replicate the new iteration of DIAC.

The new DIAC Arbitration Procedures 2022 (the New Procedures) ended up released by DIAC on 2 March 2022 accompanied by a push launch which confirmed that the goal of a one arbitration centre was to produce a “leading centre for settling disputes” and that the “provisions of the new Procedures have been intended to streamline arbitration techniques and facilitate the time performance of the proceedings.”  The New Guidelines shall be efficient as of 21 March 2022 and will apply to arbitral proceedings elevated just after this date.

An overview of the crucial provisions of the New Rules is set out underneath.

The seat of the Arbitration

Article 20 of the New Procedures presents the seat of the arbitration and the area of hearings. In the absence of an settlement between the parties on the seat of the arbitration, in instances wherever the parties have agreed upon the site of the arbitration, the agreed locale shall be the seat of the arbitration. In situations where by events have not agreed to the seat or spot, the New Rules provide that the DIFC shall be the “initial seat”.  The New Policies confer the energy to the Tribunal to determine the seat of the arbitration.

Consolidation & Joinder of Third Parties

Short article 8 of the New Regulations widens the scope in that a Claimant could submit a solitary Ask for for arbitration “in respect of numerous statements arising out of or in link with much more than one particular arrangement to arbitrate”.  The Arbitration Courtroom may possibly, upon software, consolidate the arbitrations into a solitary arbitration wherever: (a) all statements in the arbitrations are beneath the very same arrangement to arbitrate or (b) require the identical events.

In addition, the New Guidelines permit the joinder of third events which can be one particular or a lot more supplemental get-togethers to be joined as Claimant(s) or Respondent(s).

Expedited Proceedings

Article 32 of the New Policies established out the provisions permitting expedited proceedings. The criteria applied underneath the New Regulations for expedited proceedings are wherever: (a) the sums claimed or counterclaimed are in the sum of or below AED 1 million (special of desire and costs) (b) the get-togethers concur in producing for the proceeding to be expedited or in specific circumstances of (c) exceptional urgency as identified by the Arbitration Court upon software. The New Principles do not elaborate as to what may be considered as excellent urgency. Below expedited proceedings, the New Procedures verify that a Closing Award shall be issued in 3 months from the date that the Tribunal received the case.

Importantly, expedited proceedings shall only implement to agreements to arbitrate created after the efficient date, 21 March 2022, unless of course parties concur normally.

Interim Measures

Appendix II of the New Regulations established out the extraordinary techniques such as the interim actions out there to the Tribunal to buy upon. These interim actions consist of the preservation of proof, preventing the dissipation of property and offering safety for fees of the arbitration. Posting 2 of Appendix II of the New Rules also set out the criteria for an software for unexpected emergency interim reduction and the appointment of an emergency arbitrator.

3rd-Occasion Funding

The New Guidelines now expressly provide for 3rd-party funding less than Short article 22 which is a new thought for DIAC. A celebration who has entered into a 3rd-party Funding Arrangement should disclose this to all other events and to the centre although giving the id of the funder, no matter if or not the funder has committed to an adverse liability on prices.

Authorized Prices

Post 36 of the New Principles expressly states for the costs for the arbitration to consist of registration expenses, administrative expenses along with authorized expenditures and bills. The New Policies offer the Tribunal with the electrical power to situation an award on the costs of the arbitration, in full or as apportioned amongst the parties.

Summary

The New Principles have modernised the old 2007 Rules bringing them into line with intercontinental very best tactics whilst furnishing the Tribunal with powers to be certain productive proceedings. Looking at the recent alterations to the arbitration landscape Dubai, the variations reflected in the New Regulations and the clarity that they provide will be welcomed by practitioners and events alike.

In opposition to this history, events ought to contemplate their existing arbitration agreements and how the New Procedures may affect these, specially in light-weight of the exception for expedited proceedings to implement to arbitration agreements made soon after the efficient date.

For even further data in relation to the new DIAC Arbitration Policies, please make contact with Joanna Stewart ([email protected]).