Preliminary Provisions

Article (1)

In the implementation of the provisions of these by-laws, the following words and phrases shall have the meanings assigned to each of them unless the context necessitates otherwise:

  • The Centre: The International Islamic Centre for Reconciliation and Commercial Arbitration.

  • The Procedures: The Procedures governing Reconciliation and Commercial Arbitration at the Centre.

  • The Secretary-General: The Secretary-General of the Centre.

  • The Panel: The Arbitration Panel formed According to the Provisions of these procedures

  • Arbitration Agreement: Written Agreement between the parties involved to resort to Arbitration whether before the emergence of a dispute (Arbitration Clause) or after the emergence of dispute (Arbitration Provision).

  • The Directory: The Directory listing the names of the arbitrators employed by the Centre.

  • The Board of Trustees: The Centre’s Board of Trustees.

  • The Committee: The Executive Committee of the Centre.

  • The Statute: The statute of the Centre.

Article (2)

  1. Agreement on Arbitration as per the provisions of these procedures precludes the submission of the dispute to, or appealing the Panel’s ruling on the dispute with any other entity.

  2. In the event of resorting to Arbitration, the following wording shall be included in the Arbitration agreement: “In the case of disagreement between the parties about the interpretation or implementation of this agreement (contract), the dispute shall be submitted to an Arbitration Panel for final and binding judgment according to the rules and procedures of the Centre.”

Article (3)

All agreements and provisions submitted to the Centre for Arbitration shall be assumed to be authentic unless proven otherwise.

Article (4)

Arbitration shall be carried out at the Centre according to these procedures unless the parties agreed and chose other procedures, provided that these additional procedures shall not prejudice the Centre’s authority or the authority of the Arbitration Panel as provided for in the articles of these procedures, nor shall these additional procedures affect the application of Islamic Sharia rules. The Executive Committee reserves the right to reject such additional procedures.

Article (5)

The Arbitration Panel guarantees the right of the parties of dispute to defense, and their treatment with equality. It also guarantees for each party full opportunity to present its case throughout the proceedings.

Article (6)

Arbitration procedures shall be carried out in the United Arab Emirates, unless otherwise agreed by the parties or decided by the Arbitration Panel. The executive Committee reserves the right to reject such agreement or decision.

Article (7)

Arbitration shall be carried out in the Arabic language or any other language as may be agreed upon by the parties, or decided by the Committee. The Panel may also listen to the testimonies of non-Arabic speakers among the disputing parties, witnesses and experts with the assistance of a certified interpreter who shall take the oath in front of the Panel. The Panel may also accept submission of memorandums, reports, and defense statements in a language other than Arabic, provided that a translation into Arabic is attached. In all cases, the ruling will be issued in the Arabic language.

The Arbitration Panel

Article (8)

The Arbitration Panel shall be constituted from a number of arbitrators according to the nature of the dispute and the desire of the parties, without prejudice to the Statute of the Centre.

Applications and Referrals for Arbitration

Article (9)

The party applying for Arbitration shall submit a request in writing to the Secretary-General which includes the following:

  1. Name, surname, function, nationality and address of the person submitting the request.
  2. Name, surname, function, nationality and address of the other party of the dispute.
  3. Report including the facts and evidence of the dispute, specifying the claimant’s demands.

  4. Name of the chosen arbitrator, if applicable.

  5. Copies of the Arbitration agreement and all documents related to the dispute.

The Secretary-General shall ensure that the file presented by the claimant is complete with all the documents required to proceed with the Arbitration procedures. Otherwise, the party concerned shall be required to produce any missing documents.

Article (10)

Upon receiving the request for Arbitration and payment of the fees, the Secretary-General shall send an acknowledgement-of-receipt notice to the applicant. He shall also send a copy of the Arbitration request, by registered mail with confirmation of receipt, to the other party of the dispute within seven days after receipt of the complete documents.

Article (11)

The Arbitration respondent should submit within 20 days of receiving the notification of Arbitration a reply in writing including the Arbitration respondent’s arguments and counter-demands, if any, supported by any documents available and he has to nominate his arbitrator. The Secretary General, upon a request from the respondent, may extend the period for no more than 20 extra days. Parties have to sign the Arbitration agreement before the commencement of the procedures.

Article (12)

  1. If the Arbitration claimant does not name the arbitrator representing him in the application for Arbitration, the Secretary-General, in consultation with the Committee, shall appoint an arbitrator representing the claimant within one week after receipt of the application for Arbitration.

  2. If the Arbitration respondent does not name the arbitrator representing him within the same period as mentioned in the previous Article, the Secretary-General shall appoint an arbitrator representing the dilatory respondent within one week.

  3. The Secretary-General shall request the arbitrators of both parties to select a third arbitrator to serve as head of the Arbitration Panel. Should they fail to reach an agreement on selecting the third arbitrator within 15 days from the date of the Secretary-General’s request, the Secretary General shall appoint the third arbitrator within one week.

  4. Arbitrators are invited to sign an undertaking to guarantee their neutrality and their commitment in the secrecy and the non-disclosure of any information related to the case and the abstention of meeting any party aside, arbitrators also have to disclose any relation that might connect them with any party.

Article (13)

If one of the parties disputes the validity of appointing of any of the arbitrators, the Secretary-General shall resolve this dispute within three days with a final decision, provided that this dispute is raised prior to the session scheduled for consideration of the case.

Article (14)

If any of the arbitrators passed away or excuses from carrying out or continuing his task or a force majeure prevents him from accomplishing his task, a replacement arbitrator shall be appointed in the same manner as the original arbitrator, within one week from the notification of the concerned party about the excuse or the death of his arbitrator.

Article (15)

The Secretary General shall refer the case file to the Panel within seven days of the date of its formation in accordance with these procedures. The Panel should commence discharging its task within 15 days of receiving the Secretary-General’s notification.

Rejection of Arbitrators

Article (16)

Each of the two parties in the dispute is entitled to challenge one of the arbitrators for reasons that should be specified in a written request submitted to the Secretary-General. This request shall be examined and decided upon in accordance with the procedural rules of the Arbitration process.

Article (17)

  • In the event that one of the disputing challenges one of the arbitrators, the other party may agree to the request and the arbitrator may resign from the case and another arbitrator shall be appointed in the same way the previous arbitrator was appointed.

  • If the other party does not agree on the arbitrator’s challenge request, and the arbitrator in question does not resign from the case the Committee shall examine the request, provided that it produces its decision within a period of no more than one week from the date of receipt of the challenge request.

  • If the Secretary General responds with the challenge request and decides that the arbitrator has to be changed, a new arbitrator shall be appointed in accordance with these Procedures, and the decision shall be communicated immediately to the removed arbitrator and the disputing parties.

Plea of non-jurisdiction

Article (18)

Unless agreed explicitly upon, the Arbitration Agreement shall be considered an independent agreement from the contract which is the subject of the dispute. If the contract is nullified or expired for any reason, the Arbitration Agreement shall continue to be effective.

Article (19)

The Arbitration Panel has the competence for resolving any issue concerning the challenging of its jurisdiction, including plea of challenges based on the absence, invalidity, or expiry of an Arbitration agreement or based on the argument that the agreement does not cover the subject of the dispute. These challenges must be presented in the first session prior to considering the substantive aspects of the case. The signature of the Arbitration agreement is considered as waiver of any right regarding the objection on the formation of the Arbitration Panel or its jurisdiction.

The Sessions

Article (20)

At any stage of the proceedings and upon the request of either party, the Arbitration Panel shall convene sessions for oral submissions, or for listening to testimonies witnesses or experts. If none of the parties makes such a request, the Panel has the choice to convene such sessions or to pursue the proceedings on the basis of the documents available, provided that at least one such session has been held.

Article (21)

  1. In the case of verbal hearings, the Panel shall notify the parties sufficiently in advance of the hearing date, time and venue.

  2. In the case of providing proofs based on testimonies by witnesses, the party that bears the burden of proof shall notify the Panel and the other party, at least seven days prior to the witnesses-hearing session, with the names and addresses of the witnesses, and the topics they intend to cover in their testimonies and the language they shall use. The Panel reserves the right to decide the manner in which the witnesses shall be examined.

  3. The Panel shall undertake any necessary arrangements for the translation of the verbal testimonies presented in the session if these testimonies are in a language other than Arabic. The Panel shall also provide minutes of the meetings.

  4. Hearings for defense and witness testimonies shall be held in secret. The Panel may agree to the attendance of any outside parties.

  5. The Panel shall decide on accepting or rejecting the evidence presented and its importance relevance or irrelevance to the subject of the dispute.

Article (22)

  1. If either of the parties claims that forgery has been committed on the documents presented to the Panel, the Panel shall halt Arbitration procedures temporarily, the needed period to settle this claim will be excluded from the original period.

  2. The Panel refers the forgery allegation to the concerned authority for investigation and decision.

  3. If forgery is proven to have occurred, the Panel shall issue a ruling rejecting the forged documents.

Article (23)

The Panel may at any stage in the Arbitration procedures require that both parties submit additional documents or evidence, and the Panel may examine the assets subject of the dispute and make any necessary investigations, including the engaging of experts.

Article (24)

Both parties of the dispute may authorise the Panel to initiate reconciliation between them. They may also request the Panel to record the provisions of the reconciliation agreement and issue a ruling thereon.

Article (25)

The Panel, either of its own volition or upon a request from either one of the parties may, for substantive reasons, decide at any stage after closing the case for hearings and before issuing the ruling to reopen the case for additional hearings.

Non-attendance

Article (26)

If one of the parties fails to attend the sessions required by the Panel and does not provide acceptable excuse for absence within the timeframe decided by the Panel, then this absence shall not delay the proceedings of the Arbitration, provided that he had submitted his defense.

Temporary Arrangements

Article (27)

The Panel, upon the request from either party, may refer to the concerned authorities regarding temporary and custodial arrangements, including arrangements for the custody of the disputed goods according to the procedural regulations in the country where the temporary arrangement was taken.

The Applicable Law

Article (28)

The arbitrators must abide by the laws chosen by the parties in the dispute. In the event that no law is specified for application in the Arbitration clause or the Arbitration agreement, the Panel shall identify the law to be applied; taking into consideration that this law should be of utmost relevance to the disputed issue. The Panel should also take into consideration the venue where the contract was concluded, the venue where it should be implemented and the citizenship and residence of the contractual parties and the law that should be applied.

In all cases, the Panel shall exclude any provisions that contradict in the law that should be applied if such provisions are not in conformity with the rules of Islamic Sharia. The Arbitration Panel may invoke for the disputed issue whatever it deems appropriate from among the viewpoints of various schools of Islamic thought, rulings of Islamic Fiqh academies, and opinions of Sharia supervisory boards at Islamic financial institutions.

The Panel may choose to be guided by local or international commercial rules or conventions that are not at variance with the provisions of Islamic Sharia. In all cases, the Panel shall abide by the requirements of justice and neutrality in its administering the proceedings and shall be careful in hearing the submissions of each party in full.

Deliberation and Ruling

Article (29)

The Arbitration Panel shall announce the date of concluding of the sessions if it feels that sufficient opportunity was given to all parties make their case. It is not permitted after this date to submit any written memorandums, claims, or evidence, unless requested or allowed by the Panel.

Upon closing the door for submissions, the Panel shall meet to deliberate on the case and issue its ruling. The Panel deliberations must be confidential.

Article (30)

The Panel adopts and hence issues its ruling by majority. In all events, the ruling must be issued within a period of no more than six months, unless otherwise agreed by the parties, from the day and date of submission of the case to the Panel. The parties shall undertake to implement the Panel ruling immediately.

Article (31)

The Committee, upon request from the Panel, may agree to extend the period of Arbitration by no more than six months, provided that extension request is supported with reasonable justifications and is submitted before the expiry of the original Arbitration period.

Article (32)

The ruling must be supported with justifications. It should include the Arbitration agreement, the names and signatures of the arbitrators, the names of the disputing parties, the date and place of issuance of the ruling, the proceedings of the case, demands of the disputing parties, a summary of their allegations and arguments and the replies thereto, and the party shall bear the fees and costs, whether wholly or partially.

Article (33)

  • The Panel shall deliver the original award to the Secretary-General for the registration, and for taking the necessary action as may be required pursuant to the law of the Headquarter’s country. In case the award has been rendered outside the UAE the same above procedures are applied and the winner has to approbate the decision from the competent court if required.

  • The Tribunal’s Secretariat shall send a copy of the ruling to each of the two parties via registered mail and with a returned confirmation of receipt within one week of the ruling.

Article (34)

The ruling issued by the Arbitration Panel in accordance with these procedures shall be binding and final.

Article (35)

The Panel, either of its own volition or upon a written request from either party, channeled through the Secretary-General, or after notifying the other party of the request, may correct any material or other errors that may have occurred in the ruling; provided that the correction request is submitted within 15 days from the date of receiving the ruling. The correction shall be made in writing and shall be considered an integral part of the ruling, and shall be notified to both parties.

Article (36)

Either one of the disputing parties may request clarification of any ambiguity in the ruling from the Panel within seven days of receiving the ruling, provided that the other party is notified of this request. The Panel shall provide a clarification in writing within 20 days of receiving the request. The clarification is to be considered a supplementary part of the ruling in all aspects. The panel can render the clarification decision without need for a hearing.

Article (37)

The Arbitration Panel may refer the draft ruling before it is signed to the Sharia board of the Centre. The Sharia’a Board may introduce amendments in form on the ruling. It may also draw the attention of the Arbitration Panel to substantive issues related to Islamic Sharia, without any prejudice to the liberty of the Arbitration Panel in drafting the ruling.

Fees and Costs

Article (38)

The Centre shall collect for each file a non-refundable fee of US $ 1000 (one thousand US dollar), for registration fees.

Article (39)

The Centre charges administrative fees in return for the services it supplies to the parties in the Arbitration, provided that such fees do not at all exceed 2% of the total value of the subject of dispute except the dispute value under 100,000 $ one hundred thousand US dollar, where the fees are a lump sum.

Article (40)

  • The Secretary-General shall prepare a temporary list of the estimated arbitrators’ fees and other related costs; such as transportation fees for arbitrators and witnesses, remuneration for experts and translators, and service fees for the Centre. The parties of the dispute shall be required to deposit an amount as advance payment for covering these fees. In addition, the disputing parties may be required to make additional payments at any time during the Arbitration proceedings.
  • If the advance deposits are not completed within 30 days of the date of receiving the payment request, the Secretary-General shall notify the disputing parties so that one of the parties may complete these payments. If both the parties fail to deposit the required amounts, the Panel may stop or terminate the Arbitration process.