Dubai, UAE, 6^th February – Following a comprehensive revision of the ICC Rules of Arbitration which came into effect earlier last month, International Chamber of Commerce United Arab Emirates (ICC UAE) will this week host a workshop on how these new revised rules will enhance the efficiency of ICC Arbitrations. The workshop will be attended by a large number of Arbitrators, legal practitioners, in-house counsel and engineers from around the UAE which will take place at the Monarch Hotel at 8:30am, Sheikh Zayed Road, Dubai. The workshop will be immediately followed by a meeting of the steering committee of ICC – UAE Commission on Arbitration and the ICC UAE Commission on Arbitration AGM. The events are sponsored by Emirates International Law Firm, Habib Al Mulla & Co and Sharjah International Commercial Arbitration Centre.

The workshop will be conducted by Mr. Michael Buhler, the LL.M. Partner, Jones Day; Co- Chair, Task Force on the Revision of the ICC Rules of Arbitration, Mr. Jose Feris the Deputy Secretary General of the ICC International Court of Arbitration in Paris, France and will be moderated by Mr. Sami Houerbi, the Director of the ICC Eastern Mediterranean, Middle-East and Africa ICC Dispute Resolution Services. Mr. Essam Al Tamimi, chairman of the ICC – UAE Commission on Arbitration and senior partner at Al Tamimi & Co will give welcome speech, and H. E. Humaid Mohammed Ali Salem the Director General of UAQ Chamber of Commerce and BOD of ICC UAE will also attend.

Chairman of the ICC UAE, Commission on Arbitration Mr Essam Al Tamimi said “The new ICC Rules of Arbitration will bring significant changes to the day-to-day practice of arbitral proceedings in the region, whilst also retaining the key features of ICC arbitration.  The overall objective of the revised rules is to increase efficiency as it pertains to cost control and lead times in Arbitration cases. “

The ICC UAE globally represents the commercial, industrial and business enterprises in the country. Founded in 2004, the Chapter endeavors to modernize the UAE industry, business and trade to world-class standards. While encouraging more domestic and foreign investment in the UAE, ICC UAE deals with national and international legal, financial and administrative matters of its members. The Chapter, along with the Paris-based International Secretariat of ICC, promotes the scope and reach of the UAE business community around the world.

For more information on what ICC do please visit www.iccuae.com
 

New research by the International Chamber of Commerce (ICC) and the International Monetary Fund (IMF) has revealed a largely pessimistic outlook for the demand for trade finance products in 2012.
Based upon inputs received from 337 financial institutions responding to a joint ICC-IMF survey, the findings also show a two-speed financial system: For emerging Asia the outlook is the strongest, while the Euro area is the weakest.
“Around 60% of the respondents indicated that the demand for trade in Asia will show improvement in 2012, while close to 50% of respondents predicted a further deterioration for the Euro area,” said Thierry Senechal, ICC Senior Policy Manager for Banking.
“Recent developments in European financial markets and their impact on global trade finance called for a market snapshot survey,” said Ranil Salgado, Division Chief, Trade, Institutions, and Policy Review, IMF. He added: “Joining force with ICC has produced firstrate market research to help both the industry and policymaking communities to monitor emanating risks and provide timely input into on-going regulatory and G20 discussions.”
Factors contributing to the negative outlook for 2012 were primarily financial constraints which were reducing the availability of trade finance. This was particularly acute for large banks and those with business in developing countries. Some 90% of respondents indicated
that “less credit or liquidity available at counterparty banks” would affect their trade finance activities either to a “large extent” or to “some extent.” This share is substantially higher than the just over 50% that noted the same during the 2008-2009 financial crisis.

The financial constraints appeared to reflect the large share of trade finance coming from Euro area banks. The survey showed that recent European bank deleveraging has led to tighter lending guidelines and reduced availability of credit/liquidity. In addition, US dollar funding for non-US financial institutions may exacerbate the situation, since trade remained largely denominated in US dollars.

Many respondents noted that one of the challenges facing the global economy was a more stringent regulatory environment – as represented by the new Basel capital framework – which may impede a trade-led recovery. This was of particular concern, as many countries were attempting to export their way out of their currently dire economic conditions. Recent measures taken by multilateral development banks (MDBs) and central banks to facilitate trade were perceived to be of some help. For instance, on the issue of the reactivation of central bank swap lines, close to 60% of respondents indicated that the swap lines have helped, but about one fifth were not sure.

Preparation for the implementation of Basel III seems to be already adding pressure on the cost of funds and the availability of liquidity. Close to three-quarters of respondents said they felt impacted either to some or to a large extent. Specifically, by not treating trade finance as a low-risk asset class from a regulatory perspective, the new Basel capital framework could make trade finance less accessible and less affordable to exporters and importers, especially
small- and medium-sized enterprises.

In these circumstances, there is an urgent need for durable solutions to be forged at an international level. “The pursuit of essential public finance and regulatory reforms is crucial in 2012 and beyond,” said Kah Chye Tan, Chair of the ICC Banking Commission. He added:
“We caution the use of uncoordinated national initiatives and the layering of regulatory requirements which may pressure trade flows and eventually negatively impact on growth worldwide. This new ICC-IMF research calls on standard setters and policymakers to carefully study the potential unforeseen impact of proposed Basel III changes on trade finance.”

More than ever, increasingly interconnected and interdependent financial markets are fraught with far-reaching uncertainties. The financial crisis of 2008-2009 and the recent downturn have shown that events that used to be localized or isolated now have systemic global, often unintended, consequences for all. Without doubt, the current global economic scene is forcing the business and policymaker communities to reconsider how to interact with each other to address challenges, to remove impediments hindering trade flows, job creation and economic growth and to emerge even stronger in the years to come.

Visit http://www.iccwbo.org/id47129/index.html to download a copy of Market Snapshot – January 2012
 

International Chamber of Commerce (ICC) UAE hosted its first gala conference "ICC UAE Trade Finance Conference 2011" on November 20, 2011 at Fairmont Hotel, Sh. Zayed Road, Dubai. The conference was attended by more than 90 delegates from banks and large corporates.

H.E. Dr. Ahmed Saif Belhasa, Chairman, ICC UAE gave the welcome speech. He said that as set out in the ICC UAE Vision and Mission Statements our primary purpose for this conference is to bring awareness to the banking and business community on trade financing, growth of trade, forthcoming recent regulations and impact of various sanctions, Islamic finance, and internationalization of the Chinese Currency RMB.

Mr. Saeed Obaid Jarwan, Secretary General & Board Member, ICC UAE said that the agenda is so very topical and relevant and being presented by experts in the business, I am sure each participants will be pleased with the proceedings and see the value addition of such conferences which will Endeavour to repeat in the future. He presented his sincere thanks to Noor Islamic Bank, Commercial Bank of Dubai, United Bank Limited and National Bank of Fujairah for their being Gold, Silver, Lunch and Networking sponsors.

Mr. Lakshmanan Sankaran, Board Member, ICC UAE and Chairman of the Conference, advised that the one day conference promises to be unique and premier event of its kind with an agenda that is far reaching, topical and exclusive. The speakers lined up are eminent international experts drawn in from diverse backgrounds.

The UAE Justice Minister Dr Hadef bin Jua'an Al Dhaheri addressed a reception hosted by International Chamber of Commerce – UAE in association with Federation of UAE Chambers of Commerce and Industry for the International Chamber of Commerce (ICC) global membership on Saturday 29th October at The Palace Hotel, Dubai, UAE which was sponsored by law firm Pinsent Masons and business information provider Thomson Reuters. The reception was organized on the occasion of the ICC Commission on Arbitration’s Meeting held for the first time in UAE and Middle East which was attended by the delegates from around the world.

ICC announced its much-anticipated revised version of its Rules of Arbitration and Dr Al Dhaheri welcomed legal experts from around the world, including Mr. John Beechy the chairman of Paris based ICC International Court of Arbitration. He outlined the importance of the new Arbitration Rules in serving the needs of Middle East businesses and governments engaged in international commerce and investment. The Minister underlined the value of both the ICC’s Court of Arbitration and the new ICC Rules in the UAE and its role as a leading centre for global trade and investment.

The new Rules will come into force on 1st January 2012 and take into account current requirements and developments in arbitration practice and procedure, as well as developments in information technology, since they were last revised in 1998. 

Changes to the Rules include provisions to address disputes involving multiple contracts and parties, updated case management procedures, the appointment of an emergency arbitrator to order urgent measures and changes to facilitate the handling of disputes arising under investment treaties and free trade agreements.

Attendees of the reception provided an opportunity to question experts from the drafting group that revised the Rules and to network with some of the most prominent leaders in the arbitration world and business community in the UAE and the Region.

HE Dr. Ahmed Saif Belhasa, Chairman of the UAE National Committee of the Chamber International said to host this meeting reflects the status of the UAE and its effective role in the movement of investment and trade on the regional and international levels, particularly in light of the positive contribution in addressing the challenges and problems facing business owners in the light of the repercussions of the crisis World and then display the experience and the efforts of the State and its successful policy and procedures that enabled the prudential limit of the downsides and the impact of this crisis.

Saeed Obaid Al Jarwan, Board Member / Secretary General of International Chamber of Commerce - United Arab Emirates said that the reception took place at an important time on the occasion of the ICC Commission on Arbitration meeting and followed by IBA Conference and breakfast event where the new ICC Rules of Arbitration launched which will be implemented from January 2012. He said the event provided an opportunity to the participants to exchange views and opinions with experts and legal consultants who attended the event from around the world.

On 17th September, 2011, ICC UAE (an International Chamber of Commerce, National Committee)   hosted a seminar entitled “Incoterms 2010".

At the Sharjah Chamber of Commerce & Industry, Sharjah, UAE.

Incoterms rules are internationally recognized standardized terms reflecting business practice in the allocation of tasks, costs and risks in global sales contracts,   The seminar was aimed at informing on common and practical understanding of the recent changes to the regulations on interpretation of international commercial terms which are applied in both cross-border and in-country distribution and supplies of goods.

The agenda of the Seminar included presentations on the following specific issues:

• Detailed description of the terms applied in the newly adopted Incoterms 2010;

• Comparison of the changes to the Incoterms 2000;

• Peculiarities of specific terms application; 

• Practical aspects.

• The seminar was conducted by Zahoor N Dattu, Principal Consultant, Bastaki Management Consultancy, Dubai and a well respected figure in trade finance circles in the UAE.

On 5th April, 2011, ICC UAE (an International Chamber of Commerce, National Committee)   hosted a seminar entitled “Simplifying the Documentary Credit Process – an insight for practitioners". The objectives of the seminar were: Striving towards Compliant Documents, Interpretation of documentary credit terms and conditions and the correct application of the UCP 600 by banks and their role in the documentary credit process. The Guest speaker, Mr. Gary Collyer, ICC Technical Advisor, highlighted various financing options available to traders under the letter of credit, how to present compliant documents, what should be the correct structure of the bill of lading and its signing. He shared some real life case studies. In addition to covering rules governing international trade, the speaker also stressed upon how to avoid common mistakes in drafting the ideal letter of credit.

The event received a warm response with participation from senior executives of various companies and organizations from Dubai, Sharjah, Abu Dhabi and Saudi Arabia. Participants expressed satisfaction and appreciated the efforts of ICC UAE.

The venue was at Sharjah Chamber of Commerce & Industry, and the facilities provided by them were unmatchable.  The seminar was marketed by Bastaki Management Consultancy, Dubai.

On 16 March 2011, the ICC YAF, CIArb, ICDR Y&I and YIAG co-organized an arbitration afternoon for young people. It was followed by a social gathering.

Where the discussion topics covered the following:

• Does the faith or nationality of an arbitrator matter (the implications of the Jivraj case)?

• Theory and practice: Enforcing foreign arbitration awards in the Middle East / Gulf region. Comparison of seats of arbitration in the Middle East/ Gulf region.

• Pointers and pitfalls for young arbitrators.

• Impact of recent events in the MENA region on arbitration.

As business across the GCC comes to terms with the new regulatory, legislative and commercial environment in the wake of the downturn, Dubai will be playing host to two major Conferences analysing the use of arbitration to resolve major cross border disputes.

ICC-UAE hosted a meeting for its Commission on Arbitration members, to analyse the arbitration rules in the UAE on 18th October followed by a high profile two day Conference on Arbitration Awards on 19th - 20th October 2010.

Mr. Saeed Obaid Al Jarwan, Secretary General, ICC UAE welcomed the participants to and expressed his gratitude for attending the meeting.

The meeting was chaired by Essam Al Tamimi, Chairman of the ICC- UAE Commission on Arbitration, in which he updated the members on the development and progress of the commission as well as provides updates on the activities of task forces. In addition, the meeting included latest developments of arbitration practices in the UAE comprising the revision of the arbitration rules, and also an update on the ICC’s international agenda and an overview of the arbitral procedure.

The ICC - UAE then supported the International Arbitral Awards Conference on 19th - 20th October. The two-day Conference, under the auspices of the International Court of Arbitration, will examine arbitral awards from their historical perspective and theoretical basis and offer technical and practical sessions designed to promote the efficiency of the arbitral process.

Arbitration is by far the most commonly used alternative to litigation in cross-border dispute resolution and arbitral awards now enjoy much greater international recognition than the judgments of national courts, and is now a crucial part of international trade, commerce and finance. The Arbitral Awards Conference provides business leaders with information and insight which will allow them to utilise the arbitral process to their commercial advantage.

ICC-UAE chairman Dr. Ahmed Saif Belhasa addressed and welcomed the attendees. He appreciated the role of ICC and developing the global economy. He also emphasized the importance of ICC UAE and its commissions. The Arbitration Commission has been established this year and is progressing well with many members. Task forces have been actively working including a task force on the UAE Draft Arbitration law, techniques for managing fees and expenses and UAE Arbitration Case Law.

This conference was aimed at understanding and analysing the scrutiny process of the International Court of Arbitration (ICA), and will include a mock Court session. ICA chairman John Beechey and secretary general Jason Fry participated in the session along with arbitration experts from the UAE and around the world. The Conference also discussed the enforcement of arbitral awards, particularly when a Sovereign State is involved during a roundtable session with a focus on GCC region.

HE Hisham Al Shirawi, 2nd Vice Chairman, Dubai Chamber of Commerce & Industry, commented that “Dubai Chamber has been very proactive in the realm of arbitration as it has set up the Dubai International Arbitration Centre (DIAC) way back in 1994 for promoting the importance of commercial arbitration and alternative means to resolving commercial disputes in laying the foundations of a healthy and productive work environment in Dubai according to best international standards.

Commenting further on the conference, Essam Al Tamimi, Chairman of the ICC-UAE Commission on Arbitration said: “Economic growth and development has enticed a large number of multinational companies to the UAE, the enforcement of local and foreign arbitration awards has improved tremendously within the GCC region. However, to encourage future investment, enhancement of commercial dispute resolution mechanisms must be firmly at the top of the Government's agenda.”

Sami Houerbi Director of ICC Dispute Resolution Services for    Eastern Mediterranean, Middle-East & Africa added: “Arbitration and ADR are gaining considerable traction in the major financial and legal centres across the Middle East and this Conference comes at an ideal time. The financial crisis has sparked an increase in contractual disputes across multiple business sectors and this has been a catalyst for considerable regulatory and legislative change, as governments across the region, with the UAE at the head, demonstrate interest in embracing arbitration and ADR as ideal methods of resolving commercial and financial contractual disputes.

Mr. Humaid Mohammed Ali Salem Director General of UAQ Chamber of Commerce and Industry and BOD Member of ICC UAE welcomed the participants. He briefly gave introduction of ICC UAE and its recent activities in the country. He said that ICC UAE has always been keeping the Banking Industry updated as for the International laws and practices are concerned through workshops and seminars. He gave the examples of UCP 600 and URDG -758, He said that we launched UCP 600 in 2007 and we did many workshops, the same way we have planned couple of workshops on URDG 758 after Ramazan. He said that we are working to promote ICC in the regions and we are trying to establish as many commission as we can. He said we recently established ICC UAE Commission on Arbitration which was highly successful. We have got more than 60 members in the span of four months and the number is increasing day by day. He said that ICC UAE is looking to work for the banking industry in more efficient and effective way. He asked the members of Banking Commission that we would like to have your suggestions and opinions to plan the future activities of ICC UAE Banking Commission.

Mr. Iqbal Karmally Head of Trade Finance Sharjah Islamic Bank and ICC UAE Banking Commission Coordinator in his speech informed the participants of the meeting of the achievements of ICC UAE Banking Commission in the past and the future planning and activities. He said that we held a workshop with Mr. Gary Collyer, Mr Mukundan and Mr. Vincent Obrien in March 2009 “Advanced Trade Finance Workshop for Practitioners” which was attended by more than 90 participants. We held two workshops with Mr. Vincent Obrien on UCP 600 in 2007 and 2008. He said that we were ranked 10th in giving our suggestions on UCP 600. We worked successfully with ICC Paris on launching UCP 600 in UAE.

He said that we sponsored ICC Banking Commission Meeting on 10-12th March 2009 with Dubai Chamber of Commerce and Industry for the first time in Middle East. This was our big achievement.

Mr. Iqbal Karmally has been appointed as member of the ISBP drafting committee, which is an honour for ICC UAE.

He said that ICC UAE is planning to hold couple of workshops on URDG in the second half of 2010. Mr. Mr. Jack Saboungy from Lebanon, as he bilingual (Arabic & English) and Mr. Vincent O’ Brien is being considered to facilitate the workshop. However, trying to get someone from the URDG Drafting Group.

There are also plans to hold workshop with Gary in line with his Master Class workshop, in October 2010. The targeted audience will be Corporate Organizations and the other for Banks.

He also asked for the suggestion from the participant for Mr. Gary Collyer Workshop.

He said we will try to hold workshop on Incoterms 2010 as the new version of incoterms is going to be implemented from 1st January 2011.

Mr. Laksmanan and Iqbal Karmally announced creation of Working Group of ICC UAE Banking Commission having the members of the group:

1. Mr. Iqbal Karmally (Sharjah Islamic Bank)
2. Mr. Lakshmanan Sankaran (Commercial Bank of Dubai)
3. Mr. Rangan (National Bank of Fujairah)
4. Mr. Aleem Jaffri (Dubai Islamic Bank)