New AIAC i-Arbitration Rules 2021

Malaysia’s Asian International Arbitration Centre (“AIAC”) has proposed significant amendments to the AIAC i-Arbitration Rules 2018 to reflect contemporary standards and practices in international arbitration. The key features of the amendments are highlighted below:
·               Incorporation of a Fast Track Procedure to provide for expedited arbitrations and minimising
                the need for a standalone set of AIAC Fast Track Arbitration Rules (see Rule 8);
·               Revisions to the Arbitral Tribunal’s powers to award Ta’widh and Gharamah as a form of
                compensation and penalty for late payment charges (Rule 13(m));
·               New provision for Shariah guided Third-Party Funding to facilitate financing of a Party’s share
                of the costs in arbitration (Rule 1.4 and 13.5(e));
·               Revisions to the process of reference to Shariah Advisory Council (Rule 29);
·               Including a new provision on appointment of Shariah Expert by the Arbitral Tribunal
                (Rule 30); 
·               Substantive revisions to the provisions on the closure and termination of proceedings, the
                technical review process, and the release, correction and interpretation of awards to enhance
                clarity (Rules 33 – 40);
·               Revisions to the provisions relating to costs and deposits to enhance clarity (Rules 41 and
                42); 
·               Revisions to the confidentiality provision to reflect best practices (Rule 45); and
·               Inclusion of soft laws and guidelines as references (Part III) – Manual for the Court and
                Arbitrators to refer
                to the Shariah Advisory Council pursuant to Sections 51 & 56 of the Central Bank of Malaysia
                Act 2009.

The amendments will set new standards and seek to meet the expectations of the global Islamic finance sector and other prevailing commercial segments. The draft AIAC i-Arbitration Rules 2021 can be found at https://drive.google.com/file/d/1GYDY7PxYy6iZnU3rS-wVqGVReq5e6fm5/view?usp=sharing