Comparing Institutional and Ad hoc arbitration
Overview
This Practice Note deals with the distinction between the institutional arbitration and ad hoc arbitration in context of the UAE arbitration landscape.
The parties have an option of choosing from different types of arbitration for the resolution of their disputes.
Two of the types of arbitration commonly used are the institutional arbitration and ad hoc arbitration.
An institutional arbitration is one where parties have agreed for a specialised institution to administer their disputes.
On the other hand, an ad hoc arbitration is not administered by an institution and the parties determine all aspects and procedures of the arbitration.
Under the UAE Federal Law No. 6/2018 on Arbitration (Arbitration Law) both types of arbitration are recognised as Article 23 of the expressly provides for the parties to decide on the procedures to be followed in arbitration including agreeing to the rules of any arbitration institution.
UAE houses several major local arbitration institutions such as the Dubai International Arbitration Centre (DIAC), Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC), the Arbitration Centre of Dubai International Financial Centre- London Court of International Arbitration (DIFC-LCIA), and also specialised arbitration institutions such as the Emirates Maritime Arbitration Centre (EMAC).