dubai on the right track, says top arbitration specialist
The London Court of International Arbitration’s (LCIA) decision to open an arbitration centre jointly with the Dubai International Financial Centre (DIFC) is testimony to Dubai’s growing importance in the world of international trade and will enhance its reputation as both a secure investment destination and a respected neutral venue for the resolution of international and regional commercial disputes, says a top international arbitration specialist.
“As the linkages between national economies have continued to multiply, changing economic relations are producing increased levels of trade and investment in many parts of the world, not least in the Gulf” said Philip Punwar, an international arbitration specialist at Al Tamimi & Company, one of the leading law firms in the Gulf region. “Arbitration has become an integral part of the international trading system primarily because it provides parties from different legal, business and cultural backgrounds with a framework for resolving their disputes before specialists of their own choosing and away from the procedural formalities of national courts.”
The DIFC – LCIA Arbitration Centre joint venture, which was announced at a ceremony in the DIFC on Sunday, 17 February, is part of Dubai’s effort to entrench itself as the region’s business hub. The DIFC, which has its own English language laws and courts for civil and commercial matters, is expected to introduce a revised DIFC Arbitration Law in the first half of 2008 which will replace the DIFC Arbitration Law of 2004. An important revision to the law will permit overseas and domestic parties not connected with the DIFC, to have their arbitrations held in the DIFC under the provisions of its Arbitration Law and the supervision of its courts.
“The opening of DIFC-LCIA Arbitration Centre shows that Dubai is on the right track and is earning the trust and respect of the international arbitration community. The City’s prime location between Europe and Asia, its expanding legal community and its highly developed communication and transport links, make it a very appealing arbitration venue” Punwar further suggested.
The new DIFC Arbitration Law will be broadly similar to the new federal Arbitration Law released for consultation by the Ministry of Economy on 03 February, as both laws are intended to reflect international best practice in the field. The federal law, which is expected to be ratified and issued within the next three months, makes comprehensive provision for both domestic and international arbitration in the UAE and clearly implements the country’s international law obligations under the 1958 UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
The LCIA was originally established in 1883 as the London Chamber of Arbitration and became the London Court of International Arbitration in 1981 to reflect the international nature of its work. The LCIA’s governing council is known as the LCIA Court, of which Mr. Essam Al Tamimi, the founding partner of Al Tamimi & Company, is a member. The Court is the body responsible for the appointment of arbitral tribunals, the determination of challenges to arbitrators and the control of costs. The LCIA Court and its administrative secretariat offer efficient, flexible and impartial administration of dispute resolution proceedings for all parties, regardless of their location, and under any system of law.
“An expert and efficiently administered arbitral institution with a modern set of procedural rules can make a huge difference to the overall cost and effectiveness of arbitration. The LCIA is one of a few arbitral institutions internationally that can be relied upon to provide a uniformly professional service to parties, lawyers and arbitrators” commented Mr. Essam Al Tamimi, Founder and Managing Partner of Al Tamimi & Company.
Dubai is already home to one of the most progressive arbitration centres in the region, namely the Dubai International Arbitration Centre (DIAC). Since its establishment in 2003, the number of cases the DIAC receives per annum has doubled year on year. In 2007, 58 new arbitration cases were commenced, of which approximately 70 percent were construction-related. With the opening of LCIA-DIFC Arbitration Centre, and the introduction of both new arbitration laws, the number of cases is expected to rise significantly.
“Although some may remain sceptical of the adoption of internationally inspired legislation and the promotion of arbitration, I sense that this scepticism is fast disappearing in much of the Gulf region. As more and more businesses trade and co-operate internationally, they are beginning to appreciate that the availability of world class arbitration services closer to home both promotes and protects their commercial interests. That the future is bright for arbitration in the Gulf region seems reasonably well founded” Punwar concluded.
