Overview of ADIAC Arbitration Rules 2024

ADIAC Arbitration Rules 2024

The commencement of the Arbitration Rules for ADIAC ("Arbitration Rules 2024") on 1st February 2024 marks a significant transition in the arbitration landscape of Abu Dhabi. Replacing the 2013 ADCCAC Arbitration Rules ("ADCCAC Rules"), the Arbitration Rules 2024 bring forth notable amendments and additions aimed at enhancing the efficiency and effectiveness of arbitration proceedings administered by ADIAC.

Article 1 delineates the applicability of the Arbitration Rules 2024, extending to disputes where parties opt for arbitration under ADIAC or the Abu Dhabi Chamber of Commerce. Furthermore, apart from pending cases filed prior to 1st February 2024, the rules govern disputes under contracts referencing the ADCCAC Rules.

Role of the Court of Arbitration

A salient feature of ADIAC is the establishment of an autonomous Court of Arbitration, detached from the ADCCI. Endowed with supervisory powers, the Court oversees various facets of arbitrations under the Arbitration Rules 2024, encompassing arbitrator appointment, challenge resolution, and scrutiny of arbitral awards. Noteworthy is Article 8(1), empowering the Court to adjudicate challenges to arbitration agreements preliminarily, before tribunal constitution.

Commencement of Proceedings

Article 7 delineates streamlined timeframes for initiating proceedings, entailing the filing of a Request for Arbitration by the claimant. The respondent, as per the rules, must file an Answer within 21 days from receiving the Request, with provisions for reply to counterclaims within a similar timeframe.

Multiple Parties, Multiple Contracts, Joinder, and Consolidation

Departing from the ADCCAC Rules, the Arbitration Rules 2024 expressly permit multi-party and multi-contract arbitrations, alongside joinder and consolidation. Articles 10, 11, and 12 detail the framework governing these provisions, with the Court vested with discretionary powers guided by efficiency and expeditiousness considerations.

The Arbitral Tribunal

Article 13 underscores party autonomy in arbitrator appointment, elucidating provisions on arbitrator number and appointment modalities. The Court assumes arbitrator appointment authority in case of parties' failure to nominate. Additionally, Article 13(9) mandates arbitrators' diverse nationality from disputing parties unless agreed otherwise.

Secretary of the Arbitral Tribunal

Article 19 formalizes the appointment and duties of arbitral secretaries, rectifying ambiguity prevalent under the ADCCAC Rules. Article 22 designates ADGM as the arbitration seat, with provisions for initial language determination by the Case Management Office, subject to tribunal constitution.

Terms of Reference

Provisions regarding the signing of Terms of Reference afford the Tribunal discretion, with adherence not mandated. Parties signing Terms of Reference are constrained from asserting new claims beyond its scope, barring tribunal authorization.

The Arbitral Proceedings

Articles 20 to 33 outline procedural conduct, aligning with established institutional rules. Articles 34 to 36 empower the Tribunal to order preliminary measures and expedited proceedings, while providing for emergency arbitration under Article 35.

Award and Scrutiny

Article 38 imposes a nine-month time limit for issuing the final award, extendable by the Court. Provisions for award form, signature, and digital submission are enshrined in Articles 40 and 41, with ancillary clauses for correction, interpretation, and additional awards.

Conclusion

The advent of the Arbitration Rules 2024 signifies a progressive stride in Abu Dhabi's arbitration framework. Aligned with UNCITRAL model rules, these regulations bridge gaps inherent in the previous ADCCAC Rules, fostering fairness, efficiency, and enforceability in arbitration proceedings. Time will ascertain the rules' interpretation and application, yet parties engaged in UAE business dealings can derive assurance from the advent of a modern arbitration center bolstered by comprehensive and contemporary rules overseen by a dedicated arbitration court.