Lex Mundi Global Arbitration Institutions Guide |
|
United Arab Emirates |
|
|
(Middle East)
Firm
Afridi & Angell
Contributors
Haider Afridi |
|
| Name of Arbitral Institution; with abbreviation, if any. | Dubai International Arbitration Center ("DIAC"), the DIFC-LCIA Arbitration Centre (both in Dubai), the Abu Dhabi Commercial Conciliation and Arbitration Center in Abu Dhabi("ADCCAC") and the Sharjah International Commercial Arbitration Centre ("SICAC") |
| Where is the seat of the Arbitral Institution? | Absent any agreement to the contrary, the default seat under each of the rules are as follows: DIAC seat is in Dubai, DIFC-LCIA seat is the Dubai International Financial Center (a free zone within the Emirate of Dubai), ADCCAC seat is Abu Dhabi and SICAC seat is Sharjah. |
| Is there an umbrella organization for the Arbitral Institution? | There are multiple arbitral institutions in the UAE, and there is no single umbrella organization. |
| How is the Arbitral Institution structured? | Generally established by statute and run by a board of trustees and executive committees. |
| Is there a compulsory list of arbitrators that parties are required to choose from? | No. However, under the UAE's new Arbitration Law (which came into effect in June 2018), provision is made for the Minister of Justice to compile a list of arbitrators. It is unclear whether this list of arbitrators will apply only where arbitration is conducted under the aegis of the UAE courts (as opposed to under the various arbitral institutions) |
| Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | The parties may agree on the place of arbitration. Absent such agreement, the various institutional rules provide for a default place of arbitration. |
| What is the amount of the registration fee? | DIAC - AED 5,000 DIFC-LCIA - AED 10,000 ADCCAC - AED 1,000 SICAC - Between AED 1,500 to AED 5,000 The Emirati Dirham is pegged to the US Dollar at AED 3.65 |
| What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | DIAC : AED 146,625.00 DIFC-LCIA : The DIFC-LCIA’s and arbitrator’s fees for a DIFC-LCIA administered arbitration are calculated on an hourly rate system. The claim value is taken in consideration only when specifying the maximum hourly rates applicable to the Tribunal ADCCAC: AED 95,000 + 2.800% of amount over AED 2,500,000 SICAC : Between AED 47,780 and AED 159,330 Please note that these are all approximate figures for the fees of the institution and the arbitrators and are based on the advance on cost calculations |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | DIAC: AED 974,875.00 DIFC-LCIA : See above ADCCAC: AED 747,500 + 1.000% of amount over AED 20,000,000 SICAC : Between AED 92,794 and AED 330,980 Please note that these are all approximate figures for the fees of the institution and the arbitrators and are based on the advance on cost calculations |
| What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | DIAC : AED 1,923,000.00 DIFC-LCIA : See above ADCCAC: AED 1,217,500+ 0.050% of amount over AED 100,000,000 SICAC: Between AED 381,732 and AED 1,523,4646 Please note that these are all approximate figures for the fees of the institution and the arbitrators and are based on the advance on cost calculations |
| Who pays advances on costs? What happens in the event of default? | Ordinarily, the advance on costs is payable in equal shares by the parties. Where a respondent declines to pay its share of the advance on costs, the claimant is required to make payment in full. |
| Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | The DIAC Rules require a preliminary meeting to be held within 30 days of the Tribunal being sent the file by the Executive Committee, during which (or shortly thereafter) a timetable is to be agreed. The DIFC-LCIA Rules encourage the parties and the Tribunal to make contact with each other (in person or electronically) as soon as possible but not more than 21 days later from the formation of the Tribunal. The SICAC Rules require a Tribunal to hold a case management conference within 21 from being sent the file by the Executive Committee. The Tribunal is required to prepare a procedural timetable at the CMC or within 7 days from the CMC. In practice, Terms of Reference are routinely entered into by the parties and the Tribunal. |
| Which languages can be used for communication with the Arbitral Institution? | This depends on the agreement of the parties with respect to the language of the arbitration. Arbitration in the UAE is frequently conducted in English. |
| Who is the main point of contact for the parties within the Arbitral Institution? | Most arbitral institutions will appoint a case manager with respect to each matter, who will be the parties' principal point of contact. |
| Are there restrictions on the language that the arbitration may be conducted in? | No. The parties are free to agree on the language of the arbitration. Article 29 of the UAE Federal Arbitration Law provides that, in the absent of agreement, proceedings are to be conducted in Arabic. |
| Who appoints substitute arbitrators? | The UAE Federal Arbitration Law provides that substitute arbitrators are to be appointed in accordance with the rules applied for the appointment of the original arbitrator. In practice, where a substitute is required for a party appointed arbitrator, that party will be given an opportunity to appoint a substitute. If the arbitrator was appointed by an institution, then that institution will appoint the substitute. |
| Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | The DIAC, DIFC-LCIA and SICAC Rules make specific provision with respect to multiparty arbitration and/or joinder, as does the UAE Federal Arbitration Law. |
| Are oral hearings compulsory? | No. Under most rules, an oral hearing must be held if any party to the arbitration requests it. The UAE Federal Arbitration Law recognizes that hearings may be held electronically. |
| What are common evidence-taking practices? | Evidence is commonly led through documents and witness evidence. Though not compulsory, many parties agree on the application of the IBA Rules on the Taking of Evidence. |
| What is the average duration of arbitration proceedings? | This depends on the complexity of the proceedings, and can last from 6 months to a couple of years. |
| What is the timeframe for rendering the award? | The UAE Federal Arbitration Law requires final awards to be rendered within 6 months, as do most institutional rules. However, this can be extended by the agreement of the parties, the arbitral institution and/or the court. |
| Are extensions to time limits permissible? | Yes. |
| Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | The UAE Federal Arbitration Law expressly recognizes the power of tribunals to grant interim relief, which then may be enforced via the UAE courts. Yes, there is a competing competency of the ordinary courts with regard to interim measures. The breadth of interim measures granted by the UAE courts is ordinarily quite narrow. |
| Do the institutional rules provide for an emergency arbitrator? | The DIFC-LCIA Rules provide for an emergency arbitrator. |
| Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | No. |
| Are arbitral awards submitted for scrutiny? If so, to whom? | No. |
| Do costs necessarily follow the event? | Not necessarily. The DIAC, DIFC-LCIA, and SICAC rules specifically provide that tribunals have the power to award the costs of arbitration, which includes the fees of the institutions and the tribunal. However, according to certain judgments of the UAE courts (bearing in mind that there is no system of binding precedent in the UAE), the specific agreement between the parties are required in order to empower the tribunal to award legal costs. |
| Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | Yes. The grounds for anullment are largely based on the UNCITRAL Model Arbitration Law. There is an additional ground for anullment, viz. if the tribunal excludes the application of the parties' choice of substantive law. How this will be interpreted and applied is yet to be seen. |
| Link to institutional rules | http://www.diac.ae/idias/rules/ |
| Link to model clause | http://www.diac.ae/idias/forms/DIAC%20Model%20Arbitration%20Agreement1/ |
Lex Mundi Global Arbitration Institutions Guide
United Arab Emirates
(Middle East) Firm Afridi & AngellContributors Haider Afridi Chatura Randeniya
Updated 29 Oct 2018Dubai International Arbitration Center ("DIAC"), the DIFC-LCIA Arbitration Centre (both in Dubai), the Abu Dhabi Commercial Conciliation and Arbitration Center in Abu Dhabi("ADCCAC") and the Sharjah International Commercial Arbitration Centre ("SICAC")
Absent any agreement to the contrary, the default seat under each of the rules are as follows: DIAC seat is in Dubai, DIFC-LCIA seat is the Dubai International Financial Center (a free zone within the Emirate of Dubai), ADCCAC seat is Abu Dhabi and SICAC seat is Sharjah.
There are multiple arbitral institutions in the UAE, and there is no single umbrella organization.
Generally established by statute and run by a board of trustees and executive committees.
No. However, under the UAE's new Arbitration Law (which came into effect in June 2018), provision is made for the Minister of Justice to compile a list of arbitrators. It is unclear whether this list of arbitrators will apply only where arbitration is conducted under the aegis of the UAE courts (as opposed to under the various arbitral institutions)
The parties may agree on the place of arbitration. Absent such agreement, the various institutional rules provide for a default place of arbitration.
DIAC - AED 5,000 DIFC-LCIA - AED 10,000 ADCCAC - AED 1,000 SICAC - Between AED 1,500 to AED 5,000 The Emirati Dirham is pegged to the US Dollar at AED 3.65
DIAC : AED 146,625.00 DIFC-LCIA : The DIFC-LCIA’s and arbitrator’s fees for a DIFC-LCIA administered arbitration are calculated on an hourly rate system. The claim value is taken in consideration only when specifying the maximum hourly rates applicable to the Tribunal ADCCAC: AED 95,000 + 2.800% of amount over AED 2,500,000 SICAC : Between AED 47,780 and AED 159,330 Please note that these are all approximate figures for the fees of the institution and the arbitrators and are based on the advance on cost calculations
DIAC: AED 974,875.00 DIFC-LCIA : See above ADCCAC: AED 747,500 + 1.000% of amount over AED 20,000,000 SICAC : Between AED 92,794 and AED 330,980 Please note that these are all approximate figures for the fees of the institution and the arbitrators and are based on the advance on cost calculations
DIAC : AED 1,923,000.00 DIFC-LCIA : See above ADCCAC: AED 1,217,500+ 0.050% of amount over AED 100,000,000 SICAC: Between AED 381,732 and AED 1,523,4646 Please note that these are all approximate figures for the fees of the institution and the arbitrators and are based on the advance on cost calculations
Ordinarily, the advance on costs is payable in equal shares by the parties. Where a respondent declines to pay its share of the advance on costs, the claimant is required to make payment in full.
The DIAC Rules require a preliminary meeting to be held within 30 days of the Tribunal being sent the file by the Executive Committee, during which (or shortly thereafter) a timetable is to be agreed. The DIFC-LCIA Rules encourage the parties and the Tribunal to make contact with each other (in person or electronically) as soon as possible but not more than 21 days later from the formation of the Tribunal. The SICAC Rules require a Tribunal to hold a case management conference within 21 from being sent the file by the Executive Committee. The Tribunal is required to prepare a procedural timetable at the CMC or within 7 days from the CMC. In practice, Terms of Reference are routinely entered into by the parties and the Tribunal.
This depends on the agreement of the parties with respect to the language of the arbitration. Arbitration in the UAE is frequently conducted in English.
Most arbitral institutions will appoint a case manager with respect to each matter, who will be the parties' principal point of contact.
No. The parties are free to agree on the language of the arbitration. Article 29 of the UAE Federal Arbitration Law provides that, in the absent of agreement, proceedings are to be conducted in Arabic.
The UAE Federal Arbitration Law provides that substitute arbitrators are to be appointed in accordance with the rules applied for the appointment of the original arbitrator. In practice, where a substitute is required for a party appointed arbitrator, that party will be given an opportunity to appoint a substitute. If the arbitrator was appointed by an institution, then that institution will appoint the substitute.
The DIAC, DIFC-LCIA and SICAC Rules make specific provision with respect to multiparty arbitration and/or joinder, as does the UAE Federal Arbitration Law.
No. Under most rules, an oral hearing must be held if any party to the arbitration requests it. The UAE Federal Arbitration Law recognizes that hearings may be held electronically.
Evidence is commonly led through documents and witness evidence. Though not compulsory, many parties agree on the application of the IBA Rules on the Taking of Evidence.
This depends on the complexity of the proceedings, and can last from 6 months to a couple of years.
The UAE Federal Arbitration Law requires final awards to be rendered within 6 months, as do most institutional rules. However, this can be extended by the agreement of the parties, the arbitral institution and/or the court.
Yes.
The UAE Federal Arbitration Law expressly recognizes the power of tribunals to grant interim relief, which then may be enforced via the UAE courts. Yes, there is a competing competency of the ordinary courts with regard to interim measures. The breadth of interim measures granted by the UAE courts is ordinarily quite narrow.
The DIFC-LCIA Rules provide for an emergency arbitrator.
No.
No.
Not necessarily. The DIAC, DIFC-LCIA, and SICAC rules specifically provide that tribunals have the power to award the costs of arbitration, which includes the fees of the institutions and the tribunal. However, according to certain judgments of the UAE courts (bearing in mind that there is no system of binding precedent in the UAE), the specific agreement between the parties are required in order to empower the tribunal to award legal costs.
Yes. The grounds for anullment are largely based on the UNCITRAL Model Arbitration Law. There is an additional ground for anullment, viz. if the tribunal excludes the application of the parties' choice of substantive law. How this will be interpreted and applied is yet to be seen.