Abu Dhabi International Arbitration Centre launched in ‘timely’ reform

The former Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC) has been overhauled and is now the Abu Dhabi International Arbitration Centre – known as “arbitrateAD”. According to arbitrateAD’s new website, the change has been made as the institution aims to be “the world’s leading catalyst for efficient international dispute settlement” as well as expressing a vision to create an “ideal environment for businesses to thrive and harmonious cross-border relations to flourish”.

ADCCAC has been administering arbitrations pursuant to procedural rules issued in 2013, under which the default seat is Abu Dhabi and default language of the proceedings is Arabic. Whilst many other arbitral institutions have revised their rules over recent years, ADCCAC has not until now followed suit. However, the move, announced in a recent press release, will allow Abu Dhabi to compete with “other regional institutions following recent changes in the arbitration landscape in the UAE”, international arbitration and construction disputes expert Mark Raymont of Pinsent Masons said “the reform has been long anticipated by the local arbitration community and will undoubtedly be welcomed by practitioners familiar with arbitrateAD’s predecessor regime”, Raymont added.

The development means that any new disputes will be administered by the new centre under new rules from 1 February. Details on the new rules are yet to be announced with limited information currently available on the newly launched website.

“Arbitration users will be waiting with keen interest to learn whether the default seat of proceedings will remain as onshore Abu Dhabi and how many of the modern reforms adopted by other institutions will be incorporated into the new rules,” Raymont said. 

The overhaul was described as “timely” by international arbitration specialist Melissa McLaren of Pinsent Masons, “particularly considering the reforms in other regional institutions including the Dubai International Arbitration Centre and the Saudi Centre for Commercial Arbitration, which revised their rules in 2022 and 2023 respectively and are enjoying growing success”, McLaren added. 

In the short term, arbitration users should be aware that cases currently pending under the existing ADCCAC rules will continue to be administered under those rules and under the auspices of ADCCAC with new disputes after 1 February being dealt with by the new centre under the new rules.  Parties with ongoing ADCCAC cases, or with agreements incorporating the ADCCAC rules where formal proceedings are yet to commence, should monitor developments closely over the next month and consult legal counsel before taking action, McLaren advised.