October 14, 2021
AIAC i-Arbitration Rules 2021 Public Consultation
The AIAC is pleased to announce the commencement of the public consultation process for the upcoming AIAC i-Arbitration Rules 2021. A copy of the draft AIAC i-Arbitration Rules 2021 (“Draft i-Rules 2021”) is available here.
The Draft i-Rules 2021 contain significant amendments to the AIAC i-Arbitration Rules 2018 to reflect contemporary standards and practices in international arbitration as well as to ensure it sets new standards and meets the expectations of the global Islamic finance sector as well as other prevailing commercial segments, the key features of which are highlighted below:
- merging of Part I and Part II of the AIAC i-Arbitration Rules 2018 to ensure a harmonious and coherent set of procedural rules that are modelled on the UNCITRAL Model Law (as revised in 2013);
- incorporation of a Fast Track Procedure to provide for expedited arbitrations and minimising the need for a standalone set of AIAC Fast Track Arbitration Rules (see Rule 8);
- revisions to the process of appointing the Arbitral Tribunal, including a new provision on multi-party appointments (Rule 9);
- revisions to the Arbitral Tribunal’s powers to award Ta’widh and Gharamah as a form of compensation and penalty for late payment charges (Rule 13(m));
- new provision for Shariah guided Third-Party Funding to facilitate financing of a Party’s share of the costs in arbitration (Rule 1.4 and 13.5(e));
- revisions to the Emergency Arbitration provisions to enhance clarity (Rules 17 and 18);
- new provision on Summary Determination for the early dismissal of claims (Rule 19);
- revisions to the joinder and consolidation provisions, including a new provision for the consolidation of multi-contract disputes (Rules 21 and 22);
- revisions to the process of reference to Shariah Advisory Council (Rule 29);
- including a new provision on appointment of Shariah Expert by the Arbitral Tribunal (Rule 30);
- substantive revisions to the provisions on the closure and termination of proceedings, the technical review process, and the release, correction and interpretation of awards to enhance clarity (Rules 33 – 40);
- revisions to the provisions relating to costs and deposits to enhance clarity (Rules 41 and 42);
- revisions to the confidentiality provision to reflect best practices (Rule 45); and
- inclusion of soft laws and guidelines as references (Part III) – Manual for the Court and Arbitrators to refer to the Shariah Advisory Council pursuant to Sections 51 & 56 of the Central Bank of Malaysia Act 2009.
The AIAC now invites its users, stakeholders, and members of the public to participate in the public consultation of the Draft i-Rules 2021 which will conclude on 21st October 2021. Any comments or feedback on the Draft i-Rules 2021 can be provided by completing this online form.
The AIAC would like to take this opportunity to thank the members of its Rules Revision Committee for their continuous support of and constructive feedback on the Draft i-Rules 2021 to date.
We look forward to hearing from you.
TAN SRI DATUK SURIYADI BIN HALIM OMAR
ASIAN INTERNATIONAL ARBITRATION CENTRE