UAE Law

CHAPTER 3 – COMPOSITION OF ARBITRAL TRIBUNAL

16. Number of arbitrators

(1) The parties are free to determine the number of arbitrators provided that it is an odd number.

(2) If there is no such determination, the number of arbitrators shall be one.

17. Appointment of arbitrators

(1) No person shall be precluded by reason of his nationality from acting as an arbitrator, unless otherwise agreed by the parties.

(2) The parties are free to agree on a procedure for appointing the arbitrator or arbitrators, subject to the provisions of paragraphs (4) and (5) of this Article.

(3) If and to the extent that there is no agreement,

(a) in an Arbitration with three arbitrators, each party shall appoint one arbitrator, and the two arbitrators thus appointed shall appoint the third arbitrator; if a party fails to appoint an arbitrator within thirty days of receipt of a request to do so from the other party, or if the two arbitrators fail to agree on the third arbitrator within thirty days of their appointment, the appointment shall be made, upon request of a party, by the DIFC Court of First Instance; or

(b) in an Arbitration with a sole arbitrator, if the parties do not agree on the arbitrator within thirty days of one party requesting the other to do so, he shall be appointed by the DIFC Court of First Instance on the request of either party;

(c) where the Arbitration Agreement entitles each party to nominate an arbitrator, the parties to the dispute number more than two and such parties have not all agreed in writing that the parties in dispute represent two separate sides for the formation of the Arbitral Tribunal as claimant and respondent respectively, the DIFC Court of First Instance shall appoint the Arbitral Tribunal without regard to any party's nomination;

(d) in such circumstances as set out at paragraph (c) of this Article, the Arbitration Agreement shall be treated for all purposes as a written agreement by the parties for the appointment of the Arbitral Tribunal by the DIFC Court of First Instance.

(4) Where, under an appointment procedure agreed upon by the parties,

(a) a party fails to act as required under such procedure; or

(b) the parties, or two arbitrators, fail to reach an agreement expected of them under such procedure; or

(c) a third party, including an arbitral institution, fails to perform any function entrusted to it under such procedure; any party may request the DIFC Court of First Instance to take the necessary measure, unless the agreement on the appointment procedure provides any other means for securing the appointment.

(5) A decision on a matter entrusted by paragraph (3) or (4) of this Article to the DIFC Court of First Instance shall not be subject to appeal. The DIFC Court of First Instance, in appointing an arbitrator, shall have due regard to any qualifications required of the arbitrator by the agreement of the parties and to such considerations as are likely to secure the appointment of an independent and impartial arbitrator and, in the case of a sole or third arbitrator, shall also take into account as well the advisability of appointing an arbitrator of a nationality other than that of any party.

18. Grounds for challenge

(1) When a person is approached in connection with his possible appointment as an arbitrator, he shall disclose any circumstances likely to give rise to justifiable doubts as to his impartiality or independence. An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall without delay disclose any such circumstances to the parties and any arbitral institution administering the Arbitration unless they have already been so informed by him.

(2) An arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts as to his impartiality or independence, or if he does not possess qualifications agreed to by the parties. A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made.

19. Challenge procedure

(1) The parties are free to agree on a procedure for challenging an arbitrator, subject to the provisions of paragraph (3) of this Article.

(2) In the absence of such agreement, a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the Arbitral Tribunal or after becoming aware of any circumstance referred to in Article 18(2), send a written statement of the reasons for the challenge to the Arbitral Tribunal. Unless the challenged arbitrator withdraws from his office or the other party agrees to the challenge, the Arbitral Tribunal shall decide on the challenge.

(3) If a challenge under any procedure agreed upon by the parties or under the procedure of paragraph (2) of this Article is not successful, the challenging party may request, within thirty days after having received notice of the decision rejecting the challenge, the DIFC Court of First Instance to decide on the challenge, which decision shall be subject to no appeal; while such a request is pending, the Arbitral Tribunal, including the challenged arbitrator, may continue the arbitral proceedings and make an award.

20. Failure or impossibility to act

(1) If an arbitrator becomes as a matter of fact or law unable to perform his functions or for other reasons fails to act without undue delay, his mandate shall terminate if he withdraws from his office or if the parties agree on the termination. In the absence of such agreement or if a controversy remains concerning any of these grounds, any party may request the DIFC Court of First Instance to decide on the termination of the mandate, which decision shall be subject to no appeal.

(2) If, under this Article or Article 19(2), an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, this does not imply acceptance of the validity of any ground referred to in this Article or Article 18(2).


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