KHALEEJ TIMES, Sunday, Sep 19, 2021 | Safar 12, 1443
Dubai International Arbitration Centre set up to settle disputes
Emirates:
Dubai on Saturday announced a plan to set up the Dubai International Arbitration
Centre (DIAC) by merging the operations and assets of the Emirates Maritime
Arbitration Centre and the Dubai International Financial Centre Arbitration
Institute.
In his capacity as the Ruler of Dubai, Vice-President and Prime Minister of the
UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Decree No.
(34) of 2021 on the DIAC.
The decree dissolves the Emirates Maritime Arbitration Centre and the Dubai
International Financial Centre Arbitration Institute and merges their operations
and assets into the DIAC, an autonomous non-profit institution that provides
regional and international business communities with world-class arbitration
services.
The new decree supports Dubai’s efforts to enhance the efficiency of its
alternative dispute resolution sector and reinforce its growing status as a
global arbitration hub. Pursuant to the decree, the ownership of real estate,
assets, funds, staff, financial allocations and membership base of the two
dissolved arbitration centres will be transferred to the DIAC.
Nimish Makvana, senior partner and board member at Crowe MAK, said the new
entity — DIAC — is going to be game changer from global business houses and
multinational companies’ perspective which eventually attracts more and more
global organisations to have base in Dubai.
“This will attract the regional and international business communities to take
benefit of world-class arbitration services,” he said.
In recent times, he said the initiatives taken by leaders such as 100 per cent
ownership in mainland, offering citizenship to expatriates, golden visas,
support to start-ups and extraordinary talents highlight the vision of rulers to
attract and retain the best talent of the world to UAE.
“With setup of the DIAC, Dubai will emerge as a leading global centre for
alternative dispute resolution,” said Makwana, who is also honorary director at
UAE Chapter of The Institute of Directors (IOD), India.
Atik Munshi, managing partner at Enterprise House, said arbitration is one of
the important methods of dispute resolution which is opted by corporates and
individuals across the globe.
“A strong and robust arbitration centre provides an alternative way for
resolutions of disputes between parties rather than going through litigation.
With the revamp of the current arbitration jurisdiction, Dubai has provided
confidence to investors and individuals by setting up an independent DAIC which
is expected to be in line with reputed arbitration centres like London,” Munshi
told Khaleej Times.
“Arbitration route is chosen for many contracts and agreements by parties for
commercial and other matters as the decision and resolutions are faster; if
Dubai is successful in offering a cost effective arbitration with enforcement
than it is very likely that it can become a seat of arbitration for local as
well as international dispute resolution,” he said.
Court hearings
Dubai Courts and DIFC Courts will continue to hear claims, applications and
appeals related to any arbitration proceedings conducted in tribunals of the
dissolved arbitration centres.
Decree No. (34) of 2021 replaces Decree No. (10) of 2004 relating to the
establishment of the Dubai International Arbitration Centre and annuls any
legislation that contradicts the provisions of the new Decree. The centre has
been directed to comply with the new decree within six months of its effective
date.
The newly issued decree also outlines the DIAC’s objectives, functions and
organisational structure at three levels: the board of directors, an arbitration
court to be formed in accordance with the new merged structure, and the
administrative unit of the centre.
According to the decree, the DIAC’s major objectives include establishing Dubai
as a leading global centre for alternative dispute resolution, promoting
alternative dispute resolution mechanisms and serving the emirate’s financial
and business community.
Establishment of an
arbitration court
Further to the decree, the DIAC will establish a new arbitration court
consisting of 13 members, including its president and vice-president. The new
court’s members, who will have locally and internationally accredited
arbitration expertise, will be appointed by decisions of the centre’s board of
directors for a non-renewable term of four years.
Makwana said Dubai has become one of the most preferred business hubs with
exceptional infrastructure and lifestyle with social security and the world
class facilities in the city.
“The leadership of the UAE and in particular to Dubai has managed an
unprecedented time of Covid-19 and offering the best healthcare facility to not
only Emiratis but residents of the country as well as visitors and has become a
preferred place to do business and live in Dubai, UAE,” Makvana told Khaleej
Times.