Dear Sirs

Subject: “Model Arbitration Clauses”
 
It has come to the attention of the Dubai International Arbitration Centre (DIAC) that many of the arbitration clauses relating to commercial disputes in recent arbitration applications, which have been submitted to DIAC, lack the required level of clarity and precision. This in turn, complicates and hinders the arbitration proceedings and further raises the possibility of conflicts in deciding upon the  jurisdiction or the procedures that should be adhered to, when commencing the arbitration procedures. DIAC has recognised that one of the main problems is drafting an ambiguous arbitration clause.     

Largely due to its cost effective and time saving qualities, arbitration is widely regarded as a suitable means for resolving commercial disputes. Hence, it is important to draw your attention to the fact that by carefully drafting a suitable and specific arbitration clause, one can easily avoid wasting time, effort and money. In addition, this will also allow arbitration procedures to commence in a relatively problem-free manner, and thus better serve the interests of the parties to the dispute.

DIAC is pleased to attach model arbitration clauses (English and Arabic), which can be included in your agreements in case of any future dispute. In addition, please also find enclosed model arbitration submission agreements, which can be used, upon the mutual consent of disputing parties, as a basis for drafting arbitration agreements in order to resolve existing commercial disputes.

In the meantime, if you require any further assistance, please do not hesitate to contact the Centre.

Yours faithfully

Dr. Hussam Al Talhuni
Director
Dubai International Arbitration Centre