Abu Dhabi Chamber Of Commerce Launches New International Arbitration Centre With Updated Set Of Rules

• Published date: 12 March 2024
• Subject Matter: Litigation, Mediation & Arbitration, Arbitration & Dispute Resolution
• Law Firm: K&L Gates
• Author: Mr Todd Carney and Jennifer Paterson

On 29 January 2024, the Abu Dhabi Chamber of Commerce launched a new arbitral institution called the Abu Dhabi International Arbitration Centre (Centre), branded as "arbitrateAD," to replace the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC). The Centre's new arbitration rules (Rules), which came into force on 1 February 2024, replace the previously applicable 2013 ADCCAC Arbitration Rules (ADCCAC Rules). The Rules introduce a number of welcome developments more in line with other modern arbitration rules.

Application of Rules

The Rules shall apply in circumstances where the parties have agreed to submit their disputes to the Centre or the Abu Dhabi Chamber of Commerce (Article 1(1)) or have agreed to arbitration under the Rules (Article 1(2)). The Rules shall also apply where parties have agreed to submit to arbitration under the ADCCAC Rules; however, Article 35 (Emergency Arbitrator) and Article 36 (Expedited Proceedings) shall not apply unless the parties expressly agree (Article 1(4)). The Rules shall apply to cases registered after 1 February 2024, with ADCCAC cases commenced prior to 1 February 2024 continuing to be administered under the ADCCAC Rules (Article 53).

New Court of Arbitration

Article 3 creates an independent court of arbitration (Court) to act as an independent administrative body of the Centre. The Court's role includes appointing and replacing arbitrators, resolving challenges against arbitrators or arbitration agreements, considering requests for joinder or consolidation, and reviewing awards (Article 3(3)). Generally, the reasoning of the Court will not be shared with the parties, except in cases where the appointment of an arbitrator is challenged, and then the Court will (save in exceptional circumstances) provide a summary of its reasoning (Article 3(4)).

A tribunal shall submit a draft of its award for scrutiny by the Court before it is issued (Article 40(1)). The Court may suggest changes to the draft award to the tribunal, such as required changes to the form of the award, clerical errors, inconsistencies or omissions, or items on the Centre's "Award Checklist" (Article 40(2)).

Costs of the Arbitration

Unlike the ADCCAC Rules, the Rules now expressly provide that, unless otherwise agreed by the parties, the tribunal shall, at the request of a party, apportion the costs of the arbitration and the parties' legal costs and expenses between the parties (Article 50(6)). This is an important change given the...