The Abu Dhabi International Arbitration Centre (arbitrateAD) launched in early 2024, with its new arbitration rules taking effect on 1 February. ArbitrateAD effectively replaced the previous Abu Dhabi Commercial Conciliation and Arbitration Centre.
New rules
Promising an "efficient, confidential and effective" form of out-of-court dispute resolution, arbitrateAD offers both institutional and ad hoc arbitration. When choosing institutional arbitration, arbitrateAD effectively administers the arbitration, sets the rules, appoints arbitrators and scrutinises their awards. In due course, state of the art physical hearing rooms will be available should parties choose to use them. For ad hoc arbitrations, parties will choose their own rules and processes but can ask arbitrateAD to appoint arbitrators.
The rules provide a lot of flexibility in relation to the parties and the disputes being determined. Unusually, it is possible to raise a single arbitration asserting claims arising out of more than one contract or arbitration agreement. This may be objected to by other parties and arbitrateAD's court will determine whether the arbitration can continue as a single process. Parties may also ask that a third party be joined as a party to the arbitration and third parties with an interest can also apply to be added to the arbitration. Parties to multiple arbitrations can also request, in suitable circumstances, that they are all consolidated into a single process.
Speedy determination
What will be of interest to those looking for a quick decision is the expedited proceedings procedure under Article 36. These rules apply to claims not exceeding 9 million AED (circa £1.9 million) and so could capture some reasonably sizeable disputes. This rule applies "unless… expressly agreed otherwise" and so it appears possible to opt out of expedited procedure if the claim falls under the threshold or opt in if the value of the claim is higher. Article 36 makes provision for doing away with certain procedural steps with a view to the final Award being made within four months of the case file being passed to the sole arbitrator.
In addition to expedited proceedings, the rules provide for an "early dismissal" process, similar to summary judgment procedure in the courts. Where a claim, defence or counterclaim is "manifestly without legal merit", the tribunal will have the power to order early dismissal of the claim or defence. This will make it difficult for defaulting parties to use the arbitral process to buy time by putting up weak arguments in response to claims.
Enforcement
The rules provide that, unless explicitly agreed otherwise, the default seat of arbitrations through arbitrateAD is the Abu Dhabi Global Market (ADGM). ADGM has its own civil and commercial laws, based on English common law, which is separate to those of the rest of Abu Dhabi. Such arbitrations are subject to ADGM's Arbitration Regulations and subject to ADGM's courts. ADGM seated awards will be enforceable in over one hundred different counties (including the UK, most of Europe and the USA) through the New York Convention and other international treaties.
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Senior Associate & Solicitor Advocate
