Ajman's New Decree Establishes Arbitration Centre For Enhanced Business Dispute Resolution

H.H. Sheikh Humaid bin Rashid Al Nuaimi, Supreme Council Member and Ruler of Ajman, has enacted Emiri Decree No. (4) of 2024 to create the Ajman Arbitration Centre. This centre aims to offer alternative dispute resolution methods for the financial and business sectors in the emirate.

The "Ajman Centre for Commercial Conciliation and Arbitration" at the Ajman Chamber is restructured under this Decree. It now possesses the legal personality and capacity needed to achieve its goals and exercise its powers. The centre's objectives include providing various dispute resolution methods, promoting arbitration awareness, and enhancing local arbitration expertise.

The Decree specifies that the chamber's Board of Directors will govern the arbitration rules and procedures, adhering to the emirate's laws. Parties choosing this centre for dispute resolution agree to follow these approved rules and procedures.

The centre is responsible for offering services for civil and commercial dispute resolution through arbitration. It sets rules for arbitration, determines arbitrators' fees, and develops management-related regulations, all subject to Council approval. Additionally, it selects arbitrators, forms panels, prepares approved lists, sets registration standards, facilitates settlements, supports arbitration bodies, and manages arbitration effectively.

Moreover, the centre organises educational events on arbitration and other conflict resolution methods. It also represents the Chamber at various global arbitration events.

Board of Trustees Composition

The decree outlines that the centre's board of trustees will include a chairman, vice-chairman, and up to seven members with expertise in Arbitration, Law, or related fields. Appointments are made by the chairman of the board of directors of the Chamber following board approval. Each member serves a renewable four-year term.

The Board of Trustees is tasked with approving the Centre's general policy along with its strategic, development, and operational plans. These plans are then submitted to the Council for approval before overseeing their implementation.

Regulations and Approvals

The Board also approves all regulations related to the Centre's management. This includes service fees, annual budget, final account project, lists of accredited arbitrators and experts, as well as criteria for their registration.

The Board proposes establishing new branches or offices for the Centre. It also approves periodic reports on its work and activities along with an annual report on its achievements.

Neutrality and Independence

The decree emphasises neutrality, independence, and non-interference for the Board of Trustees, Secretary-General, and arbitrators at the centre. It ensures that previously agreed-upon arbitration agreements remain valid unless otherwise agreed by involved parties.

With inputs from WAM