An overview of the Abu Dhabi International Arbitration Centre

Kristin Campbell-Wilson, executive director of the recently launched Abu Dhabi International Arbitration Centre (known as arbitrateAD), talks with Dubai-based partner Antonia Birt and associate Laura Adams about the establishment and mission of arbitrateAD. They delve into how the centre fits into the global arbitration landscape, how it differentiates itself from its competitors, and what the new rules will offer arbitration users.

Transcript: 

Intro: Hello and welcome to Arbitral Insights, a podcast series brought to you by our International Arbitration Practice lawyers here at Reed Smith. I'm Peter Rosher, global head of Reed Smith's International Arbitration Practice. I hope you enjoy the industry commentary, insights and anecdotes. We share with you in the course of this series, wherever in the world you are. If you have any questions about any of the topics discussed, please do contact our speakers and with that, let's get started.

Laura: Welcome back to another episode of Arbitral Insights. I'm Laura Adams, senior associate in the Energy and Natural Resources team. I'm here today with Antonia Bert, a partner in our Global Commercial Disputes team here in Dubai. And we are thrilled to be joined by today's guest speaker, Kristin Campbell-Wilson, executive director of the newly launched Abu Dhabi International Arbitration Center known as ArbitrateAD.

Antonia: Welcome. And congratulations Kristin on the role. Uh and the very exciting launch of ArbitrateAD uh you joined ArbitrateAD in late ‘23 to establish the institute with the ambition to grow it into a leading center in the EMEA region. Uh But of course, you're no stranger to arbitration. You have two decades of international arbitration experience. Uh most recently with the SCC Arbitration Institute where you worked as Deputy Secretary General and then later Secretary General prior to this in private practice. And in your role at the ACC, you led various key projects including projects that really put the ACC at the forefront of technological developments. Uh Specifically, I was thinking of the development of the first digital platform for secure communications and file sharing. So we are very excited to have you here. I know you're also on the board and on committee positions of various organizations including the IBA, uh the IBA 40 editorial boards. So you're bringing a wealth of experience into the region and we are very, very happy to have you on board. So welcome again. Let's start with an overview of the arbitration sphere here in the region and how and where ArbitrateAD fits in. As many of our listeners will know ArbitrateAD replaces the Abu Dhabi Commercial Conciliation Arbitration Center known as ADCCAC and also its rules and the rules - the new rules have come into force on the first of February this year 2024. ADCCAC was originally established in 1993 by the Abu Dhabi Chamber of Commerce. And despite significant updates to the old ADCCAC rules in 2013, criticism has plagued the center with respect to efficiency. Another sort of relevant aspect I wanted to mention is the ADGM, the Abu Dhabi Global Market that was formed some time ago, following which there is an arbitration center that was opened by the ADGM. But that center of course is not an administering institution. It has stated the arbitration facilities but not a center in the way that we know it as part of the arbitration industry. So given all this, it's of course, also no secret that a lot of the arbitration users in Abu Dhabi have previously selected the ICC and the ICC rules for their arbitration clauses. So with this little piece of background, can you give us a brief introduction to ArbitrateADD, the background to its inception and where it fits in within this arbitration landscape?

Kristin: Sure, I'd be happy to um first let me just say thank you for inviting me to be a part of your podcast. Very excited to be here. So thank you very much for the kind invitation. So the Emirates of Abu Dhabi is an economic powerhouse in this region and it should offer domestic and international business, reliable and efficient dispute resolution services, befitting its standing. And while there is the ADGM to promote business and investment in the emirate, they do not, as you pointed out, administer disputes. The Abu Dhabi International Arbitration Center is the ambitious initiative of the Abu Dhabi Chamber of Commerce and Industry to provide that missing piece of the puzzle for a healthy and sustainable business ecosystem within Abu Dhabi, addressing those voices of concern by establishing a new governance structure, new rules and bringing in a new experienced team within both the secretariat of the center but also on the Court of arbitration. And in doing this, uh we will, you know, provide a neutral forum for global business, upholding the principles of integrity and efficiency to ensure excellent dispute resolution services available to businesses doing business here and, and in the region.

Antonia: Yeah, absolutely. I couldn't agree more. I think Abu Dhabi was very much ready for this. Um So they, they are really looking forward to seeing how this all develops. The UAE has a number of institutions already, not in the ADGM but uh for example, in Dubai, the most well known is probably The Dubai International Arbitration Center which has reported very significant growth in recent years. And you will have seen the recent statistics for uh 2022 they registered 340 cases which is a record number uh with a total amount in dispute of in excess of 11 billion Durham. And the numbers have been growing year on year. A part of this increase has been led by the decree 34 2021 which abolished an arbitration center at the DIFC-LCIA and transfer that caseload to DIAC. However, DIAC of course, is also working very hard on becoming a key player in the region having published new rules recently. And uh also updated its arbitration court with excellent court members that are very established in the region. Plus also various other developments including the mediation rules and metaverse related developments and then DIAC of course, is not the only other competitor. You also have other established institutes such as the Saudi Center for Commercial Arbitration in the kingdom or the Bahrain Chamber of Dispute Resolution. And I and I note that Saudi Center has set its vision to be the preferred ADR choice in the region by 2030. So my question is, it's very clear there is demand for arbitration in the region. But how does ArbitrateAD differentiate itself from the other arbitration centers regionally and and indeed globally? And, and how do you think will it compete in this somewhat crowded market?

Kristin: Well, I'm not sure I would say that the market is crowded necessarily. I do believe competition is good and it will keep everyone on their toes for the benefit of the users. All arbitration centers provide the same fundamental service which is to resolve disputes for businesses. However, we do it in slightly different ways and for a different price. We have brought, you know, some of the top names in domestic and international arbitration to sit on the Center's court of arbitration. We've brought in experienced professionals to the secretariat and we have the most modern and up to date arbitration rules, one could wish for So I think this is a good platform upon which to build reliable, efficient institution in this region.

Laura: Excellent. Thank you, Kristin. And now just moving on both Antonia and myself, saw you speak at GAR Live in 2024 Abu Dhabi. Now you're talking there about the launch of ArbitrateAD and the challenges faced in producing a robust set of rules. So what are the key features of Arbitrate AD's new rules? And how do you feel that these stack up against other international institutions rules?

Kristin: Yes, thank you. Well, in drafting the arbitration rules, we have drawn from what has been developed over the years and we picked those features which we believe serves the users best and in bringing these together, we offer something rather unique, which is that we will ensure the high quality of awards through the scrutiny process. And we will also promote efficiency and expeditiousness in the procedures for instance, by the various different rules such as expedited proceedings, provisions on the appointment of emergency arbitrator. And then, you know, in addition, we have a number of provisions obligating all participants to the arbitration to act in a way which promotes efficiency and expeditiousness. Our digital case management platform DocketAd uh serves this purpose as well internal procedures and policies to ensure the responsiveness on the part of the secretariat et cetera. So I believe it's the full package that will help ArbitrateAD excel into the, the top spot in the region. And that is uh if that is, you know, done soon or a bit further down the line is less important. What I think is the most important is that we are building that very, you know, much needed foundation upon which to build a center that will become and remain the preferred choice in the region. Also in 100 years from now.

Laura: Thanks Kristin. And you've mentioned there the, the challenge of balancing effective scrutiny against the need for expediency and efficiency in the management and administration of cases which I think most practitioners would agree is pretty crucial. You also mentioned article 36 there and the expedited procedure that you have for the smaller disputes. I know we also have article 31.3 which looks at the provisions and the express provisions provided to the tribunal which provide that the tribunal has the broadest of powers in administering proceedings. Do you, do you feel that these rules go far enough to ensure expediency whilst also emphasizing efficiency and scrutiny?

Kristin: I do, I I also do not think that uh scrutiny and, and uh you know, an emphasis on expeditiousness and efficiency are each other's nemesis. The rules contain provisions and tools which may be relevant in a case. Not in all cases, it is basically to facilitate any procedure and it offers the parties a toolbox with tools to use depending on the circumstances of the case. If a particular provision is considered necessary to use in a particular proceeding. And that lengthens the proceedings that is not necessarily the wrong course, but rather it's important as a center to have multiple tools for the parties to choose from. However, I do believe it is the responsibility of all the participants in an arbitration to be loyal to the proceedings. And the rules do contain provisions to sort of keep uh the participants um sort of in line with the expectations of the process or, or honoring the process itself. So we have put in place the obligation for the parties to be loyal to the proceedings and, and uh if they unnecessarily obstruct the proceedings, we have allowed the tribunal the discretion to allocate the legal fees, uh taking into consideration the the activities of the parties and how they have contributed to the efficiency and expeditiousness of the proceedings. And of course, the secretariat also possessed this or has this obligation to serve the parties and be responsive to the needs of the parties. We feel that we have a few checks and balances built into the, the rules themselves to, to promote efficiency.

Laura: Thanks Kristin. That's really interesting. And we'll wait to see how, how that develops. Moving on one feature we'd really like to discuss is the composition of the arbitration court. Now, of course, we have Maria Chedid who's been appointed as the president of the court and this is a landmark moment here in the UAE as it's the first time a woman will serve as the president of an arbitral court in the Middle East. This significant appointment really is a milestone for us in terms of advancing women in law and promoting gender diversity within the international arbitration community. In addition, uh now the new Court of Arbitration under her leadership is composed of 15 leading international arbitration practitioners, nearly half of whom are women. So again, this is a great indication of the big steps forward in terms of gender diversity here in the region. Again, this is great for us because it remains a key goal for the arbitration community here and globally to continue with the progression of gender diversity. And also, of course, it's a particular victory for firms such as Reed Smith and for other institutions and organizations who have been involved in the equal representation of arbitration pledge to see the development here in terms of having our first female president of a court of arbitration. So my question to you Kristin is, is how will ArbitrateAD continue to work towards furthering gender diversity, for example, in its panel and uh when selecting arbitrators,

Kristin: I think the center can do so in in many different ways. And uh one of course is, you know, the appointment of arbitrators. I do believe that this is something that we will develop together with the court of arbitration. So exactly how we will be doing this in practice, I I can't say to you or explain here and now. But what I can say is I do envision us working in a similar way as in my previous jobs, for instance, in, in 2022 after a number of years of working to promote sort of uh well female arbitrators and get them appointments. The previous center that I was head of appointed 54% women in 2022. And that was my last year as Secretary General of that institution. So it it is a very important aspect and the centers and arbitral institutions can help a lot. However, we can only do so much. And it's very important that when parties appoint their co-arbitrators, that this is something that they think is important. We saw that year on and year out that it didn't necessarily increase among the co-arbitrators or party appointed arbitrators, but the institution clearly can do something to contribute. But most arbitrators are not appointed by the centers themselves but rather by parties. So I think it's a common effort and that is important. And um I'm very happy to be joining this center where this has been a very strong drive on the part of Maria. I think it is very cool to, to use that word that the initiative, you know, sought to seek out a female president as well as an executive director. So I think, you know, we're on a good way to to promote female practitioners in this space. So that is one way. But then you know, there are of course other ways of ensuring that you have female speakers on panels that you invite and highlight female practitioners and arbitrators any way you can. I do also think that it's very important that this is a an equal, that it is indeed a drive to seek equality rather than only promoting uh female arbitrators. There, there are very good male arbitrators. But I think, you know, the the 50/50 mark is, is one to aim for.

Laura: Thanks Kristin and we, we couldn't agree more here at Reed Smith that it is also the obligation on council to be putting forward female arbitrators in front of their, their clients. And it's something that we feel particularly strongly about and we, we hope the community here and globally will continue to do that and that it will enhance the position that we we are in.

Antonia: Yes, I couldn't agree more with both of you. And um yeah, as part of the equal presentation pledge, I'm working, we're focusing specifically on parties, users who arbitrators because absolutely right. That is the next aim. Um But, but we're also very keen to see statistics from the institutions here in the region. So of course, with the ArbitrateAd coming on board, we will be very much looking forward in the next few years to see how the numbers stack up. But yes, really great to have you at the helm of this. And as you say, your previous institution has a fantastic track record. So we are very much hoping for for that in the region. So moving a little bit to um another topic we wanted to talk about the transition of caseload. So the ArbitrateAD rules apply to arbitration proceedings commenced after the first of February 24 where parties previously consented to arbitration via the old ADCAC rules and those disputes will now be administered by ArbitrateAD. There are various provisions relating to, for example, emergency arbitrators expedite proceedings that you know, may not automatically apply. So that's quite clear. And then we understand that all ADCAC or existing ADCAC arbitrations will continue to be administered by the existing team. And then I think you also mentioned, uh which of course mak es absolute sense that parties can also um submit to uh administration by the new ArbitrateAD team, even if they have an existing arbitration that's currently being administered by ADCAC. So with respect to the sort of transition of cases and case law, do you have any measures in place to ensure that there's a smooth transition both with respect to sort of any, you know, existing cases that are coming in now from ADCAC or new cases that are being filed and that are now subject to your rules. Whereas previously they were subject to ADCAC rules or how will all this be administered in practice.

Kristin: Yes. So we have said that parties to existing cases pending with the ADCAC team are welcome to submit their case to the new rules and to be administered by the new team. But of course, it, it requires party agreement that is the sort of the fundamentals of it. But then I think it's important to parties who are thinking about it to, to also acknowledge that the the new arbitration rules also come with a different schedule of fees. So the new schedule of fees would apply to those disputes. And if required, we may need to collect additional advance on costs for instance. And I think in, in, you know, to talk about the practicalities of this, you know, any, any moneys paid already for to cover the cost of the arbitration to ADCAC would be moved to ArbitrateAd’s bank account. And we would administer that deposit for the parties throughout the rest of the proceedings. There's one other practical aspect which is that we will be administrating the cases or such cases on the digital case management platform DocketAd. So if you have a pending case that's been ongoing for a while, there's a lot of material that needs to be uploaded onto the particular site that will be designated for this case on DocketAD and that would be the responsibility of the parties and or the tribunal to populate that site that will not be done by the secretariat, but rather by the parties.

Antonia: Well, that's really useful to know. And I'm sure a lot of our listeners will um will be thinking about these kind of sort of transitional practicalities. So it's really good to hear that um you know, you're prepared uh prepared for these kind of issues because inevitably, of course, as you're going through a transition and these kind of issues will, will pop up. So that's that's all really usefu thank you for sharing. Also somewhat transitional my, my next question is about the type of caseload that you're expecting. On the one hand, of course, this is a new institution. On the other hand, all um agreements subject ADCAC rules will now be referred to ArbitrateAD. So do you have an idea as to the type of case load that is coming your way? Um and also potentially any specific industries that you're expecting to see more of uh than others.

Kristin: So it's difficult for me to give any sort of detailed account on on what to expect because we do not know how many cases we can expect this year. I'm happy to say that we have registered our first case recently. So that's very exciting, of course. But whether or not, you know, the influx of cases will be large or small to start out with, it's more difficult for us to say. But based on the statistics or the information that I have received on the ADCAC caseload. And considering we will be administering ADCAC clauses going forward, I would say that the majority of cases are expected to come from the construction industry likely to be in the English language as most of the cases currently registered with ADCAC are managed or administrated in the English language. But I I do see that where I would hope to see more commercial cases in the caseload of the new center. I think the, the ambition from our end is to be, you know, every industry's preferred choice. And I think we are, you know, very well set to cater for, for both, you know, or any kind of case, but you know, both commercial and not necessarily only construction cases. So we look forward to a diverse portfolio of disputes.

Antonia: Fantastic. Well, we'll be uh uh watching keenly as this develops and I'm sure we'll ask you this question again in a year in a year or two. But um I, I wouldn't be surprised exactly as you say that uh the, the, the the cases will be, will be varied and mixed so that all sounds very positive. Um And you've mentioned just now that, you know, of course, the aim is to become the preferred institution. The institution of choice. Abu Dhabi entities are known to support arbitration. Many entities have arbitration agreements in their contracts and many have ADCAC clauses. We have already had queries from Abu Dhabi clients regarding amending those clauses uh uh to ArbitrateAD so very happy to say that um I have shared the model clause already but um in terms of sort of also taking into account the ICC of course, which has established itself as a very strong competitor in Abu Dhabi and is also attracting um a number of users that included clauses in the agreements. What you know, what is it that ArbitrateAD will do to encourage entities to select it in its agreements. And and of course, feel free to consider entities outside of Abu Dhabi as well.

Kristin: So I think historically, parties haven't really had much of a choice now. They do. And so I think that is a healthy development going forward. I do think that we will compete, of course with the ICC on, on price and expedient, we both will offer scrutiny as part of the package. But I think, I think it's good for people to have a choice if you didn't have one before you do now. And like I said earlier during our conversation here today, you know, all all centers or arbitral institutions, we aim to serve the users with, you know, hopefully efficient and reliable dispute resolution services, but we do it in slightly different ways. And it's kind of like you do when you decide what car you want to buy, you know, you might have a preference for one kind of car, you know, before another and you may have that preference in terms of arbitral institutions too. But I think the choice is very, very important. You need to have a choice and then it's up to, to parties to agree. And if you can't have your preferred choice, you need to know what the second, you know, the second best choice would be for you in your dispute or potential dispute. So I think the the market is big enough for, for both, you know, ArbitrateAD and you know, the continued success of ICC in the region.

Laura: Thanks Kristin. I, I'm sure you're correct there. I'm sure you are. Just moving on slightly and we've touched on it possibly related to this, this choice point. Um And now obviously, we know that some of the frustrations that come with um come with choosing an arbitration institution, relate a lot to case administration, uh your predecessor possibly struggled in this regard. And there are some institutions that, that do put a real emphasis on swift case administration. And of course, this has a huge impact on um user experience. So in, in terms of the case management team and and the things that you have in place at ArbitrateAD, what can we expect to see in terms of, of what you have to enhance expediency and user experience?

Kristin: I think a lot of the differences will be partly based on the new features of the new rules as we, you know, talked about earlier, there are a lot of different tools in the rules and a push for efficiency and expeditiousness built into those rules. The responsiveness of the secretariat is of course, very, very important. And that is something that I also bring from my previous experience. The institution where I had leading positions for 10 years is known to be very efficient and the majority of cases were terminated within 9 to 12 months. And, and that is, you know, really good statistics, administering nearly 200 cases a year. So I come from a background where this has been a very strong focus and something that I, you know, aim to bring into ArbitrateAD it is our purpose to serve the users and uh they come first. And so uh I look forward to, to replicate the success of my previous institution in that regard. In building the case management team it's really important to me to have uh people come on board who are already well versed in international arbitration because I need people to help build the new center and they need to be able to hit the ground running pretty much. So that's very important. Then I do look forward to contribute to enhancing, you know, knowledge and capacity building in the region going forward. But the most important thing here now is to create a case management team that is very strong in international arbitration and that can help establish the center and, and give us the best possible circumstances upon which to reach our goal.

Laura: Thank you. I'm sure our listeners will be, will be keen to, to hear that and, and take that forward. And of course, you mentioned earlier that ArbitrateAD will be using DocketAd, which is a new platform on which it will be hosting communications and file sharing between arbitrators, parties, council, et cetera. I understand that you'll also be moving towards being a paperless institution. Can you tell us a little bit more about the use of technologies by ArbitrateAD and and how this might enhance the user experience?

Kristin: So the the the DocketAd is the case management system through which the center will be communicating with parties and tribunals and upon which the parties in the tribunal themselves will communicate and and share their their case file. I think this is, you know, a very, very important thing. Uh something that we also saw at my previous institution to be very beneficial to the efficiency of the proceedings. It provides also the secretariat with a tool that facilitates the work of the secretariat as well, freeing up more time to do other things in addition to administering the cases. So I think it is the way of the center, the new center to come up with new additional tools also build on and develop the the case management system itself. But to come up with other ways of also facilitating and promoting sustainable practices.

Laura: And you've mentioned their additional tools. Are you able to tell us more about what those additional tools might be?

Kristin: For instance, there, there are possibilities of, of plugging uh or, or adding other software systems that are used by law firms. For instance, in uh when it comes to exhibits and evidence, there was one very uh one single product in Europe that we found was very much used or predominantly used among our users that we partnered up with and made it possible for law firms to basically upload their own folder structure onto the platform the way it was. That was a very efficient way of handling the evidence. And I can see that that is a possible development that we can also look into here. Need to first learn more about what products law firms use over here if they're any different than the one that I'm used to. So there are, there are ways I do know that the provider of the platform itself or the software uh is continuously developing it. So there will be features coming and there will there are features already built into the platform that we may sort of turn on as we go along. But I think it's important at this very early stage to have the buy in from the users. Uh It should be easy to navigate and to understand. So you don't want to clutter it too much, too much stuff in the beginning. But as we make people more comfortable with using the platform, we may sort of add on additional features.

Laura: That's really interesting and I'm sure the the efforts to streamline um processes using, using those additional tools will be a welcome edition here. And and finally, thank you for those thoughts. But finally, moving on, are you able to tell us about any exciting upcoming plans or any insights into how ArbitrateAD will be going forward in the next 12 months?

Kristin: Well, what would be the fun in doing that? So, you know, you need to leave me some, some room to surprise you? I think there's a long list of things that uh I envision us doing in the next 12 months. But you know, I'm new to the region I have noticed in my five months here that things take slightly longer than expected perhaps. So it would be very unfortunate if I sit here and promise you certain things in in the next 12 months. But I assure you that I will not make you disappointed, but you know, I will keep those exciting developments as surprises and as small gifts throughout the year.

Laura: Excellent. Well, thank you. We, we do wait to see uh wait to see how that develops. Well, thank you very much Kristin, for those incredibly helpful insights into ArbitrateAD, we are very excited and look forward very much to seeing what, what the next 12 months in the near future has for the Abu Dhabi Arbitration Center. Uh So thank you for joining us and thank you to our listeners for tuning in.

Antonia: Thank you very much. Also from me, uh Fantastic thoughts, uh some really good questions answered here, which I'm sure everyone will be keen to hear the answers to. So, thank you for joining us today and um thank you also to all the listeners.

Kristin: Thank you very much for having me. It was great to talk to you.

Outro: Arbitral Insights is a Reed Smith production. Our producer is Ali McCardell. For more information about Reed Smith's Global International arbitration practice, email ArbitralInsights@reedsmith.com. To learn about the Reed Smith Arbitration Pricing Calculator, a first of its kind mobile app that forecasts the cost of arbitration around the world, search Arbitration Pricing Calculator on reedsmith.com or download for free through the Apple and Google Play app stores. You can find our podcast on Spotify, Apple, Google play, Stitcher, reedsmith.com and our social media accounts at Reed Smith LLP on LinkedIn, Facebook and Twitter.

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