Giving a Glance on Investment arbitration rules

  • 23 March
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Investment arbitration is a way to settle disagreements between foreign investors and the countries they invest in, host countries, also known as Investor-State Dispute Settlement (ISDS). This process ensures that foreign investors can take legal action against host countries if there's a disagreement. It gives them confidence that independent arbitrators will fairly resolve the dispute and make a decision that both sides must follow. This lets the foreign investor bypassing the jurisdictions of countries where they may feel there's bias or lack of independence. Instead, they can resolve the disagreement based on protections outlined in international treaties. A host state must have approved the procedure for a foreign investor to start an investment arbitration.

  • Investment agreements often require arbitration under specific rules, protecting investors from unfamiliar local courts.
  • Neutral arbitrators selected by both parties ensure fairness and expertise in international investment law, promoting a fair hearing.
  • Arbitration proceedings are confidential unless both parties agree otherwise, safeguarding business secrets and interests.
  • Arbitration awards can be enforced globally through treaties like the New York Convention, covering over 190 countries, including Dubai.

Dubai is widely recognized as a center for commerce and investment. It offers effective investment arbitration rules, which are essential for settling conflicts between international investors and host governments. Offering a fair and effective platform for arbitration procedures, the Dubai International Arbitration Centre (DIAC) is a prominent institution for settling disputes of investments

The new DIAC Arbitration Rules 2022 started on March 21, 2022. They work with the UAE Arbitration Law and can be used for arbitration anywhere the parties agree or the tribunal decides. The rules are in both, English and Arabic languages, translated carefully from the original English draft approved by DIAC's Board of Directors.

Sections and Articles

DIAC arbitration rules 2022 includes 8 sections, each section following with different numbers of articles. All these articles are loaded with particular rules and information relevant to their particular section. The main 8 sections mentioned in this rules are:

  • INTRODUCTORY PROVISIONS
  • COMMENCING THE ARBITRATION
  • MULTIPLE CONTRACTS, CONSOLIDATION AND JOINDER
  • THE TRIBUNAL
  • THE PROCEEDINGS
  • AWARDS
  • CONFIDENTIALITY
  • MISCELLANEOUS

Other than these 8 sections, there are also two different sections-

  • APPENDIX I - COSTS OF THE ARBITRATION
  • APPENDIX II – EXCEPTIONAL PROCEDURES

The last section includes DIAC Table of Fees and Costs.

Investment arbitration, or ISDS, resolves conflicts between foreign investors and host countries. The Dubai International Arbitration Centre (DIAC) is prominent, with effective rules for settling investment disputes. The updates to the DIAC Rules in 2022 show that the institution wants to keep getting better. They've made improvements like making smaller cases go faster, so people can solve their problems quicker and cheaper. In order to improve the arbitration process's impartiality and integrity, the modifications prioritize transparency by mandating the disclosure of third-party financing. The objective of the DIAC Rules is to enhance the effectiveness of dispute resolution, minimize delays, and accelerate the arbitration process by incorporating provisions for accelerated hearings and simplified processes.

Alqada believes in supporting clients on each step during the arbitration process. There are following list of Arbitration's articels you can know more about Arbitration law by visiting these links.

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