Insights

Arbitration in 2024: The year in review

The Year in Review The year 2024 has witnessed significant advancements in the field of arbitration across the Middle East and Africa, with Egypt, Qatar, and Abu Dhabi having all made substantial changes to their arbitration frameworks, providing updated rules that are in accordance with international best practices and more precise jurisdictional criteria. These advancements signal a new era in Middle Eastern and North African dispute resolution as the arbitration landscape continues to change.

In May 2024, Qatar made efforts to strengthen its standing as a regional centre for arbitration. The Qatar Financial Centre (QFC) Civil and Commercial Court ruled significantly on setting aside an arbitral award in B v. C, the first case addressing the annulment of an arbitral award under Article 41 of the QFC Arbitration Regulations.The court upheld the arbitral award, emphasizing the limited scope for judicial interference in arbitration proceedings. It reinforced the principle that courts should not act as appellate bodies over arbitral tribunals' findings of fact or law. The ruling had also clarified the Court's jurisdiction over QFC-seated arbitrations, confirming that non-QFC entities can invoke the Court's supervisory jurisdiction under the QFC Regulations.

B v C is undoubtedly a landmark decision, as it is the first setting aside application to be decided by the Court since the enactment of the QFC Arbitration Regulations and the Court's establishment in 2009. This ruling clarified the QFC Court's limited curial intervention approach to dismissing applications and emphasized that the Court does not sit on appeals of rulings, taking a pro-enforcement stance. Businesses and attorneys practising international arbitration will find great solace in the Court's adoption of a pro-arbitration and enforcement procedure. Additionally, the matter was heard promptly, and the Court's reputation for dependability and efficiency was further enhanced by the verdict rendered soon after the hearing.

Furthermore, effective from February 1, 2024, the Abu Dhabi International Arbitration Centre (ArbitrateAD) replaced the Abu Dhabi Commercial Conciliation and Arbitration Center's (ADCCAC) arbitration rules with a new version which includes essential innovations that are in line with global best practices. Requests for joinder or consolidation, challenges, final award reviews, and arbitrator appointment and replacement are now under the jurisdiction of the Court of Arbitration of ArbitrateAD. The Court has the power to oversee and manage arbitration cases, but it functions separately and independently from ArbitrateAD itself. Third party funding is now permitted under Article 48 of the New Rules, which was not included in the previous rules, which led to ambiguity. Additionally, the regulations establish protocols for managing multiple parties, combining arbitrations, and designating emergency arbitrators. Expedited proceedings for claims up to AED 9 million are also now possible, offering quicker resolutions with lower costs. The regulations further defines the power of the party representatives, explains how applicable law is decided, and states that the Abu Dhabi Global Market will serve as the default arbitration venue without an agreed-upon alternative. These procedures are constructive measures that will improve the effectiveness of the process. Overall, arbitrateAD reflects the significant advancement in modernizing arbitration in Abu Dhabi and significantly aiding in the development of Abu Dhabi and the UAE as an arbitration hub in the MENA region.

Regarding the North African region, The Cairo Regional Centre for International Commercial Arbitration (CRCICA) introduced new arbitration rules, updating the 2011 version to align with the evolving arbitration landscape in the MENA region and globally. The revised regulations, which goes into effect on January 15, 2024, include clauses about the appointment of emergency arbitrators, early claim dismissal, and the consolidation of arbitration processes. Additionally, the regulations permitted electronic document submission and quicker arbitration proceedings.

Introducing these updated rules, which integrate technological advancements and provide more precise procedural guidelines, is likely to be appreciated by users for enhancing efficiency, transparency, and user-friendly processes. These revisions strengthen Egypt's standing as a major participant in the MENA arbitration market.  

Amongst the main modifications is that the new rules permit notification by electronic means and virtual hearings in addition to allowing greater scope for the use of new technologies at the discretion of the arbitral tribunal. The signatures of the final award may now made outside the seat of arbitration in line with the Egyptian Court of Cassation’s approach in rejecting the annulment of an award signed outside the seat of arbitration and the growing ‘delocalisation’ movement in international arbitration and business more generally. It also introduces provisions for expedited and emergency arbitration, allows for consolidation of proceedings and extends the authority for early dismissal from CRCICA to the arbitral panel itself. These measures taken together represent a great stride towards greater efficiency and cost effectiveness in CRCICA’s arbitration offering.

Looking Ahead As 2024 draws to a close, Further developments in international arbitration are anticipated in the MENA region. With Egypt's revised legislation, Abu Dhabi's procedural changes, and Qatar's pro-enforcement verdicts, the region is firmly establishing itself as a major power in the world of arbitration. We are optimisitic about further advancements in arbitration law, with hopes for the field's sustained expansion and effectiveness in 2025. let me know if anything needs to be amended. I will come back in tomorrow