Scope of Application

The Arbitration Rules 2024 are applicable when parties mutually opt for ADIAC or the Abu Dhabi Chamber of Commerce to resolve their disputes. Apart from ongoing cases initiated before February 1, 2024, these rules also apply to disputes arising from contracts that specifically mention the ADCCAC Rules.

Court of Arbitration

ADIAC established a separate Court of Arbitration that functions independent of the ADCCI. This Court oversees arbitrations conducted under the Arbitration Rules 2024 and undertakes various duties, including appointing arbitrators, addressing challenges to arbitrators, deciding on requests for joinder and consolidation, and scrutinizing arbitral awards.

Filing Requests for Arbitration; Counterclaims

The process of arbitration proceedings begins with the claimant submitting a Request for Arbitration.

According to Article 7, the respondent must then file his Answer to the Request within 21 days of receiving it. If the respondent includes Counterclaims in his Answer, the claimant must respond to these Counterclaims within 21 days of receiving the Answer.

Multiple parties, multiple contracts, joinder and consolidation

The 2024 Arbitration Rules specifically permit multi-party and multi-contract arbitrations, as well as the processes of joinder and consolidation.

Article 10 of the arbitration rules enables parties to file a single arbitration claim arising out of various contracts or arbitration agreements. The Court has the authority to decide whether these claims can be consolidated into a single arbitration proceeding. This decision is based on criteria outlined in Article 10(2), which includes evaluating factors like the efficiency and expeditiousness of the proceedings. By considering these aspects, the Court aims to streamline the arbitration process and promote a swift resolution of the disputes at hand.

Article 11 outlines the specific provisions regarding joinder in this context. According to these provisions, the Court has the authority to determine whether to allow the addition of a new party. However, the Court can only add a new party if all existing parties consent to it or if the Court deems that the new party falls under the jurisdiction of the Centre.

Article 12 establishes a systematic framework for consolidation, primarily focusing on enhancing the efficiency and expeditiousness of the arbitration process. When consolidation is approved, all the separate arbitration cases are merged into the initially commenced arbitration, with adjustments made for costs incurred. This approach aims to streamline the proceedings, avoid duplication of efforts, and promote a more effective resolution process for all parties involved.

The Arbitral Tribunal

Article 13 of the Arbitration Rules 2024 emphasizes party autonomy concerning the selection of arbitrators. If parties do not agree on the number of arbitrators, ADIAC generally appoints a sole arbitrator, with the option to appoint three after hearing the parties.

The Court steps in to appoint arbitrators if parties fail to nominate them within the designated time frame. Additionally, Article 13(9) mandates that arbitrators have a nationality distinct from the parties unless otherwise agreed upon.

Article 15 emphasizes an arbitrator's duty to independence, impartiality, and disclosure, including confirming their availability for the arbitration. Article 16 addresses a party's right to challenge an arbitrator in case of doubts about their impartiality or independence, with the Court responsible for resolving such challenges.

Moreover, Article 19 of the Arbitration Rules 2024 explicitly addresses the appointment of arbitral secretaries and outlines their responsibilities, marking a positive shift. Previously, under the ADCCAC Rules, there was ambiguity regarding the appointing authority for arbitral secretaries, leading to instances where secretaries were appointed either by ADCCAC or the Tribunal.

The arbitral proceedings:

1. The Arbitration Rules 2024 detail the procedures governing the arbitration process, encompassing facets like exchanging pleadings, presenting evidence, submitting legal arguments, and conducting hearings. These provisions align closely with standard practices found in other institutional rules such as DIAC, ICC, and SIAC, ensuring a familiar and consistent framework for arbitration proceedings.
2. Article 22 of the Arbitration Rules 2024 designates the ADGM as the seat of arbitration in cases where an agreement on the seat is lacking. It further specifies that the mention of the place of arbitration correlates with the seat of arbitration, ensuring that the Award is considered as issued in the seat of arbitration regardless of where the physical arbitration proceedings take place.
3. In instances where the parties haven't settled on the language for arbitration proceedings, the Case Management Office will select the initial language. Subsequently, once the Tribunal is established, it has the authority to finalize and decide on the language to be used throughout the arbitration process (Article 23).
4. Also, the Rules 2024 include provisions regarding the signing of Terms of Reference. These indicate that while they are not mandatory, the Tribunal holds the authority to decide whether they should be signed. If the parties do choose to sign a Terms of Reference, they are restricted from introducing new claims beyond its scope unless allowed by the Tribunal, as stipulated in Article 30(2). Article 30 of the relevant provision outlines the rules regarding introducing new claims or counterclaims in legal proceedings. In cases without issued Terms of Reference, parties cannot introduce new claims or counterclaims after submitting their initial statements unless the tribunal deems it necessary. However, when Terms of Reference are established, new claims which fall outside the limits of the Terms of Reference, may not be allowed without tribunal authorization; while the issue of counterclaims under this scenario is not explicitly addressed in Article 30.2.
5. Under Article 34, the Tribunal is empowered to issue preliminary measures through an order or award, with the authority to demand the party seeking such measures to provide suitable security. Parties in urgent need of preliminary relief can opt for emergency arbitration as outlined in Article 35, where the Emergency Arbitrator possesses comparable powers to the Tribunal and issues binding decisions concerning costs, security, and jurisdiction. The 2024 Arbitration Rules specify a ten-day timeframe for the Emergency Arbitrator to decide on emergency arbitration applications, subject to possible extensions in exceptional cases. Upon the Tribunal's constitution, the Emergency Arbitrator's role ends, and the Tribunal can review, adjust, or annul any decision made by the Emergency Arbitrator. Additionally, Article 36 introduces expedited proceedings for claims surpassing AED 9,000,000, a relatively high monetary threshold compared to other arbitration bodies. These procedures allow claims to be resolved through documentation rather than oral evidence, with a four-month deadline for award issuance that may be extended by two additional months with reasoned Tribunal approval.
6.  Article 37 stipulates that failure to promptly object to non-compliance with the 2024 Arbitration Rules forfeits a party's right to object, emphasizing the importance of timely and vigilant adherence to procedural requirements.

Awards

Article 38 establishes a nine-month deadline for issuing the final award, commencing from the initial case management conference date, with the potential for extension granted by the Court or upon reasoned request from the involved parties. The Tribunal is empowered to issue either a single award or separate awards addressing distinct parts of claims or counterclaims, as per Article 41(1).

As per Article 40, the Tribunal must present the draft award to the Court for review, allowing the Court to suggest modifications concerning the award's form, clerical errors, omissions, inconsistencies, and other aspects outlined in the Award Checklist.

Article 41 includes various requirements for the award's form, including the necessity of the Tribunal's signature on each page, and permits electronic signatures for awards, as well as digital submission and delivery.

Lastly, Articles 42 and 43 specify that requests for corrections, interpretations, or additional awards must be submitted within 14 days following the parties' reception of the final award.