Inaugurated by His Highness Sheikh Maktoum Bin Mohammed Bin Rashid AI Maktoum, Deputy Ruler of Dubai, the Dubai International Financial Centre (DIFC) announced a joint venture with the London Court of International Arbitration (LCIA) to offer dispute resolution services to business and commercial sectors, providing a costeffective and timely alternative to the Courts.
His Highness Sheikh Maktoum Bin Mohammed Bin Rashid AI Maktoum, Deputy Ruler of Dubai welcomed this initiative: "The establishment of the DIFC LCIA Arbitration Centre is part of a strategy to position Dubai as an international arbitration jurisdiction. This is a landmark step for Dubai, reaffirming its status as one of the world's leading business hubs and creating an efficient working environment for local and international companies to prosper."
The joint venture establishes a new centre for the administration of international arbitration and mediation to complement the independent legal and regulatory framework of DIFC. The DIFC LCIA association will benefit from the reputation of the LCIA as one of the longest-established intemational institutions for commercial dispute resolution in the world, which will complement DIFC's reputation as the world's fastest growing international financial centre.
The DIFC-LCIA Arbitration Centre will be located in the DIFC and will promote the effective resolution of international business disputes through arbitration and mediation world-wide.
The DIFC LCIA Arbitration Centre's Arbitration and Mediation rules are a close adaptation of the LCIA Rules, with minor changes to align them with the DIFC LCIA Arbitration Centre's needs.
The rules are universally applicable and compatible with both civil and common law systems, offering the international business community, international lawyers and arbitrators a comprehensive and modern set of rules and procedures.
The Centre has access to the LCIA's unique database of arbitrators with the widest range of professional qualifications and expertise (legal and non-legal), enabling it to appoint tribunals of the highest caliber.
With the introduction of the DIFC Arbitration Law 2008, the DIFC will offer a legislative platform for comprehensive dispute resolution. The Arbitration Law is based on the UNCITRAL Model Law on International Commercial Arbitration, and covers alf stages of the arbitral process, from the arbitration agreement to the recognition and enforcement of arbitral awards.
In just three years, over 500 firms have registered at the DIFC. They operate in an open environment complemented with world-class regulations and standards.
The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange.
In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
About London Court of International Arbitration (LCIA) The LCIA is one of the longest-established arbitration institutions in the world and also one of the most modern and forwardlooking.
Based in London, the LCIA is a thoroughly international institution, providing efficient, flexible and impartial administration of arbitration and other ADR proceedings, regardless of location, and under any system of law.
The LCIA operates under a three-tier structure, comprising the Company, the Arbitration Court and the Secretariat.
The company is not-for-profit and limited by guarantee. The LCIA Board is concerned with the operation and development of the LCIA's business and with its compliance with applicable company law. The Board is made up largely of prominent London based arbitration practitioners.
The Board does not have an active role in the administration of dispute resolution procedures, though it does maintain a proper interest in the conduct of the LCIA's administrative function.
The LCIA Court is made up of up to thirty five members, selected to provide and maintain a balance of leading practitioners in commercial arbitration, from the major trading areas of the world and of whom no more than six may be of UK nationality.
The LCIA Court is the final authority for the proper application of the LCIA Rules.
Its principal functions are appointing tribunals, determining challenges to arbitrators, and controlling costs.
Headed by the Registrar, the LCIA Secretariat is based at the International Dispute Resolution Centre in London and is responsible for the day-to-day administration of all disputes referred to the institution.
LCIA case administration is highly flexible. All cases are allocated dedicated computer and hard copy files and computerised account ledgers. Every case is computer-monitored, but the level of administrative support adapts to the needs and wishes of the parties and the tribunal, and to the circumstances of each case.
Many major international businesses, based in a large number of different jurisdictions, entrust their disputes to the LCIA. Many cases are technically and legally complex and sums in issue can run into US$ billions. Parties come from a very large number of jurisdictions, of both civil law and common law traditions.
The subject matter of contracts in dispute is wide and varied. Contracts out of which cases typically arise include investment and other finance agreements; agreements for the manufacture of oil storage tanks and oil pipelines, insurance policies, agreements for the sale and purchase of carbon fuels, terrestrial and satellite telecommunications contracts, contracts for computer software, catering franchise agreements, numerous shareholders and joint venture agreements, construction projects, charterparties, and power supply agreements.
The adaptation of the Model Law makes the DIFC Arbitration Law practical and comprehensible to all arbitration practitioners. The Law also covers all aspects of legislation necessary to accommodate the unique set~up of the DIFC's jurisdiction and legal framework and to overcome any hurdles presented by the region's unique market conditions and dynamics.
Signing the joint venture Agreement on behalf of DIFC, His Excellency Dr. Omar Bin Sulaiman, Governor of the DIFC, commented: "The current business environment in the Middle East and North Africa region, where economies are experiencing unprecedented growth, merits a new, dedicated centre for the prov!sion of dispute resolution services.
The creation of the DIFC-LCIA Arbitration Centre achieves DIFC's aim to be the key source, and sole body, in providing unique and efficient arbitration services as an alternative way of dispute resolution for the business and commercial community in the DIFC, Dubai, the region and internationally."
Signing on behalf of the LCIA, Adrian Winstanley, LCIA Director General,. said "The LCIA is delighted to be working with DIFC on this important initiative to provide, within OIFC itself, the efficient, neutral, dependable and costeffective ADR services for which the LCIA is widely known, for parties doing business in, through and beyond DIFC.
This cooperative venture underlines the LCIA's recognition of the important and burgeoning economies of Dubai, and the wider Middle East, within which the LCIA hopes to make a greater contribution to the provision of commercial dispute resolution services and associated information and training programmes".
© Al Tamimi & Company 2008
