Modernised arbitration rules introduced by the Qatar International Centre for Conciliation and Arbitration (QICCA) have come into effect.
The updated Arbitration Rules 2024 mark a significant evolution from the earlier 2012 version and include amendments introduced in 2021 and adopted by the QICCA board on 15 September 2024.
One of the notable changes is the introduction of a more detailed model arbitration clause. Unlike the 2012 version, the new clause specifies the number of arbitrators, the language of arbitration, and the seat of arbitration. This provides clearer guidance for drafting arbitration agreements, ensuring essential elements are explicitly addressed from the outset.
While the 2012 rules had five chapters and 38 articles, the 2024 rules have seven chapters and 78 articles, reflecting the increased complexity and scope of arbitration procedures. This expansion accommodates new provisions and detailed guidelines that were previously absent.
Overall, the 2024 QICCA Arbitration Rules represent a comprehensive overhaul, enhancing clarity, efficiency, and transparency in the arbitration process. The language used has been redrafted to ensure precision, making the rules more accessible and reducing ambiguities that could lead to disputes. Below, we look at some of the new provisions in a bit more detail.
Expedited and emergency arbitration procedures
Among the significant additions to the 2024 rules are the introduction of expedited and emergency arbitration procedures, detailed in chapters four and five respectively. These procedures are designed to provide faster resolutions in urgent cases, a feature not available in the 2012 rules.
The expedited procedure is applicable for claims valued at less than QAR 1 million ($270,000), if parties agree to adopt it, with a streamlined timetable to ensure swift resolution. Although the expedited rules require the arbitral tribunal to issue the final award within a period of 90 days from the date of receipt of the case file, extensions are permissible under the rules, both on request of the parties and at the tribunal’s own motion. In all cases, the QICCA retains discretion to disapply the expedited procedure at any point prior to or after the constitution of the tribunal.
The emergency arbitrator provision allows for urgent interim relief aimed at preserving the claimed right and preventing harm that is not reparable by way of damages. The decision of an emergency arbitrator must be issued within 15 days of the application made.
The 2024 rules grant the emergency arbitrator the same powers as the ‘main’ tribunal, including the power to decide on their own jurisdiction. The wording of the rules confirms that the arbitral tribunal, when appointed, can consider the decision to confirm, review, modify or set aside any interim or partial award or order relating to emergency reliefs issued by the emergency arbitrator.
In both the expedited and emergency procedures proceedings are, by default, to be carried out on a documents-only basis unless there are sufficient reasons to call for a hearing.
Confidentiality
Under the 2024 rules, the default position is for anonymised awards to be published, unless parties explicitly object to their awards being published in whole or in part.
Transparency
Disclosing third party funding arrangements
The 2024 rules introduce specific provisions for third-party funding (TPF), which were absent in previous versions. These new rules require the disclosure of the funder's identity and the nature of the TPF arrangements to the QICCA. While disclosure at the notice of arbitration stage is optional, this flexibility likely accommodates situations where funding arrangements are made mid-proceedings.
This update aligns with the trend towards greater transparency in international arbitration, as seen in other institutions like the ICC and SIAC, and reflects the commercial reality of increasing third-party funding in arbitration claims.
Minutes of hearings
The 2024 rules require the tribunal to prepare and record minutes for each hearing. These minutes must include the date, start and end times, and a summary of the outcome or submitted documents.
The presiding arbitrator must sign the minutes, and a copy must be sent to the parties or their representatives within seven days of the hearing.
The original minutes, along with all submitted documents, are to be deposited in the arbitration file maintained by the QICCA. This deposit can also be made through any electronic system approved by the QICCA’s case management system.
Use of technology
The 2024 QICCA rules embrace use of technology at various stages of arbitration proceedings. Parties now have the option to file submissions, including the notice of arbitration, electronically. The tribunal can also electronically sign arbitral awards, subject to necessary approvals from the QICCA and the parties.
This incorporation of technology streamlines the initiation and conduct of arbitration, leveraging tools that enhance efficiency. These updates align with QICCA's new package of electronic services launched in September 2024, which are part of a broader initiative to develop an integrated case management system. This system enables parties, representatives, and arbitrators to manage and follow up on cases electronically.
Consolidation of disputes
The 2024 rules prescribe specific standards and grounds for when separate arbitrations may be consolidated into a single arbitral proceeding, and the designation of a decision-maker to apply these standards. Specifically, under the 2024 rules, consolidation options are available for multiple arbitrations relating to the “same dispute or contract”, or between “the same parties or some of them”, to ensure that, where appropriate, multi-contract and multi-party disputes can be heard efficiently before the same tribunal.
The rules are silent on whether all parties must agree to the consolidation ahead of making the application. Rather, the rules state that prior to the constitution of the tribunal, consolidation is permitted at the request of either party, or upon the initiative of the QICCA, after consultation with the Centre’s Conciliation and Arbitration Committee. Where the request to consolidate comes directly from the tribunal appointed in multiple arbitrations between the same parties, party “consultation” is called for.
The rules list certain non-exhaustive grounds for a consolidation application, including similarity between the arbitration cases, the relief sought by the parties, the status of each case and the arbitration agreement subject of the arbitral proceedings.
Joinder
Under the 2024 rules, the parties can ask the QICCA to allow one or more third persons to be joined as a party to the existing arbitration ahead of the constitution of the tribunal. However, there appears to be no available avenue for a non-party seeking to join the arbitration in question to make such an application themselves.
The criteria for joinder is that the party to be joined must be a party to the arbitration agreement, either as an original party, or one to which the arbitration agreement has been “assigned or extended”.
All joinder requests must satisfy disclosure requirements as to the existence and identity of a third-party funder and funding agreement, as well as provisions relating to the nominations of arbitrators. The rules make it clear that the QICCA’s decision to grant the joinder application would not prejudice the tribunal’s power to subsequently decide any question as to its jurisdiction arising from such decision. Moreover, the tribunal may issue a single award or several arbitral awards in respect of all parties “involved” in the arbitration.
Tribunal secretaries
The 2024 rules introduce and describe the role and involvement of administrative or tribunal secretaries. Under the rules, a tribunal secretary can be appointed on the request of the tribunal and is selected from an approved list provided by the QICCA or from elsewhere, provided the parties consent to it.
The rules encourage the appointment of tribunal secretaries in arbitrations where the amount in dispute exceeds QAR 5m ($1.37m) and stipulate that the secretary’s fees be calculated as part of the tribunal’s fees unless otherwise decided by the QICCA on the tribunal’s request. The rules appear to state a clear boundary with non-exhaustive examples of organisational and administrative tasks that may be delegated to a secretary.
Addressing the increasing use of secretaries to assist the tribunal, particularly in high value and convoluted proceedings, goes some way to acknowledging the increased use of secretaries in international arbitration and seeks to establish some of the basic parameters in terms of appointment and scope of duties. The rules are, however, silent on possible guidelines that may limit the scope and duties of a secretary, or on the setting of caps to their fees.
Expert evidence
The 2024 rules include a dedicated section on the use of expert evidence. The rules empower the arbitral tribunal to appoint independent experts to report on specific issues, either at the request of the parties or on its own initiative. Parties are given the opportunity to jointly nominate an expert, failing which the tribunal will appoint one. Experts must provide their qualifications and a statement of impartiality, with parties allowed to raise objections. The tribunal determines the expert's fees and terms of reference, which are shared with the parties for comments.
Parties must provide relevant information to the expert and, upon receiving the expert's report, they can express their opinions and examine relied-upon documents. The tribunal may require the expert to explain the report at a hearing, where parties can also present their own expert witnesses. Time taken by the expert is excluded from the arbitration's time limits.
Costs
The 2024 rules introduce several changes to the cost structure, enhancing flexibility and transparency compared to the 2012 rules.
For example, the registration fee is now on a sliding scale based on the disputed amount, ranging from QAR 2,000 to QAR 20,000 ($548 to $5,486). This change ensures that the fee is proportionate to the size of the dispute.
In addition, the administrative expenses have shifted to a fixed scale approach, starting at QAR 2,000 and going up to QAR 650,000 ($548 to $178,295).
In terms of the tribunal’s fees, while the approach of fixed amounts based on the amount in dispute remains, there is a slight uplift compared to the 2012 rules.
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