DIFC-LCIA arbitration center integrated into the DIAC

0

In order to strengthen Dubai’s position as a global center for alternative dispute resolution, on September 14, 2021, the ruler of Dubai issued Decree No. 34 of 2021 to abolish the DIFC-LCIA arbitration center and the center Emirates Maritime Arbitration Center, and to transfer all property, employees and records of such centers to the Dubai International Arbitration Center (“DIAC”).

In order to ensure a smooth transition of disputes from the abolished arbitration centers to the DIAC, the decree provided for the following guidelines:

  • Arbitration agreements that refer disputes to deleted arbitration centers will remain valid and effective and may be reviewed and determined by DIAC, unless otherwise agreed by the parties.
  • The courts and arbitral committees set up within the framework of the abolished arbitration centers will be able to continue to examine and settle the disputes pending before them. However, this will be done under the supervision of DIAC, unless otherwise agreed by the parties.
  • Dubai Courts and DIFC Courts will continue to consider cases, claims and disputes relating to any arbitral award or proceeding rendered by an arbitral tribunal within the Abolished Arbitration Centers or the DIAC.

Under the decree, parties to a DIAC arbitration can choose whether they wish the arbitration to take place “onshore” in the emirate of Dubai, or “offshore” in the free zone of the Dubai International Financial Center (“DIFC”). . If an arbitral seat is not explicitly chosen by the parties, the default seat will be the DIFC. To take this option into account, DIAC was authorized by article 2 of the decree to open a branch in the DIFC free zone in addition to its existing premises in the Dubai mainland.

The decision to restructure and reform DIAC is well aligned with Dubai’s recent recognition as one of the top ten arbitration destinations in the world, and aims to offer a wider range of arbitration specialists with a centralized structure. .

An Arbitration Court will also be established within the DIAC, which will determine the application of the decree and the arbitration rules and procedures, oversee DIAC arbitrations, including the appointment of arbitral tribunals and the fixing of costs and expenses. arbitration, and will propose policies for the management of DIAC, DIAC arbitrations and other training and education to be provided by DIAC in Dubai. The Court of Arbitration is part of a larger restructuring of the DIAC, which also includes a new board, a new governing body and new rules to be published within six months.

DIAC was established in 2004 and is a popular choice for UAE-based parties, especially Dubai parties. DIAC cases are overseen by the courts in Dubai, which are Arabic speaking and operate under UAE law.

In contrast, the DIFC-LCIA Arbitration Center was intended to attract international parties due to the use of the DIFC free zone, which is a common law jurisdiction. This allows cases to be overseen by English-speaking common law courts and by arbitration law based on the UNCITRAL Model Law.

The decision to restructure and reform DIAC is well aligned with the recent recognition of Dubai as one of the top ten arbitration destinations in the world, and aims to offer a wider range of arbitration specialists with a centralized structure. .


Source link

Share.

Leave A Reply