Dubai International Arbitration Law number 5
Dubai abolished DIFC-LCIA Arbitration Centre and Emirates Maritime Arbitration Centre. Article 5 states that on the day the regulation pass into force, the “properties, transportable assets, devices, equipment and funds” relationship to the abolished centres will be transferred to DIAC, as will their pecuniary apportionment from the administration of Dubai, their staff member and their lists of arbitrators, conciliators and members. DIAC will take over all their “rights and obligations”.
Dubai Abolished DIFC-LCIA
On September 14, the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, issued a Decree dated 2021 concerning the Dubai International Arbitration Center, which took many inside and outside the region by surprise, including, as suggested, the LCIA.
The decree of 10 articles came into force today, after appearing in the official Gazette of the Government of Dubai.
Dubai International Arbitration Law number 6
Article 6 states that all arbitration understanding referring challenges to the abolished arbitration centers will be considered valid and effective, and DIAC will interchange these centers in the thoughtfulness and purposefulness of arguments arising under the agreements, unless the parties have united otherwise.
The arbitration courts bacilar within the model of the abolished centers will carry forward to acknowledge all cases unresolved before them without interruption, using the “applicable rules and procedures’ ‘ , unless the parties have united otherwise. On the other hand the DIAC and its administrative body will oversee these cases. The administration of DIAC will carry forward as usual.
One of the difficulties is the rules by which cases will be considered. With the extinguishment of the arbitration center, GAR comprehend that the DIFC-LCIA rules-an appropriateness of the LCIA rules-will officially cease to exist, and there are have misgivings about about the authority of the DIAC to continue to deportment cases in conformation with them due to highbrow property law.
How to solve the problem with the Dubai court of first instance?
Therefore, it is likely that some of these containers may be re-referred to the LCIA for superintendence in conformation with its rules.
In a note to clients, one intercontinental practitioner, John Duffy of Reed Smith in New York, cautions clients fronting agreeing to an arbitration course of action conducted at DIFC, given the current incertitude about the functioning of the updated DIAC.