Strategic partnership between SCCA and DIFC Courts to advance the institutional arbitration industry in the region
Published Date: 17/02/2020
The Saudi Center for Commercial Arbitration (SCCA) and the Dubai International Financial Centre (DIFC) Courts have signed a memorandum of understanding to create meaningful institutional and operational coordination to jointly develop an increasingly effective alternative dispute resolution (ADR) friendly environment for resolving commercial disputes. Aimed at truly strengthening the institutional arbitration industry in the region, the MOU is an important step toward achieving a Gulf-wide vision in this strategically important sector of managing and resolving contractual disputes.
The agreement was signed on behalf of SCCA by its Chairman, Mr. Yassin Bin Khalid Khayyat, and on behalf of DIFC Courts by Court President Zaki Azmi.
The MOU states that cooperation will include improving the quality of dispute resolution practices and deepening the associated culture among the target segments in Saudi Arabia and the UAE. The parties will also cooperate to enhance awareness and knowledge, promote media dissemination, intensify training programs, and further develop capacities.
The MOU also provides for exchanging expertise and experiences through workshops and periodic meetings, for sharing statistics and information that would help in the preparation of studies, and as catalysts for seminars, conferences, and panel discussions.
Upon signing the cooperation agreement, Mr. Yassin Bin Khalid Khayyat said that SCCA is proud to be establishing a strategic partnership with one of the major commercial courts in the region, and he looks forward to the fruits of this mutual cooperation, which will redound positively on the commercial ADR industry in the Kingdom of Saudi Arabia and the United Arab Emirates, as well as the wider Arab Gulf region.
Mr. Khayyat added that SCCA will now be working to marshal its professional knowledge and practical experience to provide the support necessary to achieve this agreement’s objectives, and to be a leading international partner in advancing the institutional arbitration industry’s growth in the Gulf region.
Judge Zaki Azmi said that as the UAE and the region as a whole continue to evolve into an investing power, the number of foreign entities entering the market will inevitably increase.
“The UAE’s commitment to providing a highly competitive operating environment is crucial to its long-term vision of economic diversification – a vision that the Kingdom of Saudi Arabia also shares,” he said. “The ability of both the United Arab Emirates and the dispute resolution systems in the Kingdom to support and protect the companies doing business there plays a critical role in the states’ long-term goals of attracting and retaining foreign investments.”
Judge Azmi said that instead of competing directly, it’s important that the courts and arbitration centres in the UAE, Saudi Arabia, and the wider Arab world understand their role in supporting the region’s transformation into a growing, globally important center of business.
“Companies operating in the Gulf region may previously have looked abroad to resolve their disputes,” he said, “but through working together, dispute resolution centres in the region can retain and service a larger number of cases and prove that they can be successful – and even more importantly, that awards will be enforced here and abroad.”
Dispute resolution centres in the UAE and Saudi Arabia will better operate by working together in a cooperative and collaborative way through a number of initiatives and MOUs. Judge Azmi said the new cooperation agreement with SCCA will support the advancement of the legal processes in both countries.