By Aroonim Bhuyan, IANS,
Dubai : A new arbitration law of the Dubai International Financial Centre (DIFC) has been enacted to give companies across the world access to fast and efficient dispute resolution services.
Vice President and Prime Minister of the United Arab Emirates (UAE) and Ruler of Dubai Sheikh Mohammed Bin Rashid Al Maktoum has officially enacted the new DIFC arbitration law, according to a DIFC statement.
The law will enable the new international arbitration centre set up by DIFC in partnership with the London Court of International Arbitration (LCIA) “to provide neutral, efficient and reliable dispute resolution services to companies throughout the world”, it said.
“With the introduction of the arbitration law, DIFC now offers a legislative platform for comprehensive dispute resolution,” DIFC governor Omar Bin Sulaiman said in the statement.
“After a positive period of consultation, we are confident that the new arbitration law, in conjunction with the newly formed DIFC-LCIA Arbitration Centre, will ensure that local, regional and global companies have an expeditious, cost effective alternative to expensive, laborious dispute settlements done traditionally through the courts,” he said.
The new law covers all stages of the arbitral process, from the arbitration agreement to the recognition and enforcement of arbitral awards.
Universally applicable and compatible with both civil and common law systems, the new law also offers the international business community, lawyers and arbitrators a comprehensive and modern set of rules and procedures to enable effective settlement of arbitration cases.
“By offering arbitration to companies throughout the world, the DIFC is reaffirming its commitment to creating a legal and regulatory environment of the highest standard that surpasses the requirements of leading financial institutions,” Sulaiman said.
The new law has been enacted after an extensive process in which it was drafted by an industry-focused group, led by the DIFC Authority, consisting of companies operating in DIFC.
This was followed by a period of consultation during which the public was invited to comment on the law.
The DIFC-LCIA Arbitration Centre was set up in February this year and operates under a three-tier structure comprising a board of directors, a secretariat and the LCIA Arbitration Court.
The centre’s operations are overseen by the board of directors, which includes prominent international arbitration practitioners.
The board is principally concerned with the operation and development of the centre’s business. The secretariat is responsible for the day-to-day administration of all disputes referred to the arbitration centre.
The LCIA Court is the final authority for the proper application of the DIFC-LCIA Arbitration Centre’s rules and procedures. Its key functions will include appointing tribunals, determining challenges to arbitrators and controlling costs.
The centre’s facilities are not limited to companies registered with the DIFC but can be availed of by almost all companies across the world.
Now ranked as the world’s fastest growing financial centre, DIFC is a 110-acre free zone offering its facilities to several sectors of financial activity including banking services, capital markets, asset management and fund registration, insurance and re-insurance, Islamic finance and professional service providers.
Around 500 firms are registered with the DIFC.
The history of the LCIA can be traced back to 1883, when the Court of Common Council of the City of London set up a committee to draw up proposals for the establishment of a tribunal for the arbitration of trans-national commercial disputes.
The institution was formally inaugurated in 1892 as the London Chamber of Arbitration and in 1981 it was renamed as the London Court of International Arbitration.