The prominent Dubai lawyer Habib Al Mulla has taken over as the chairman of the board of trustees at Dubai International Arbitration Centre (DIAC) amid fewer arbitrations as the emirate's economy continues to recover.
The appointment of Mr Al Mulla follows a decree issued last month by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, reshuffling the centre's board.
Mr Al Mulla, who previously served as the board's vice chairman, is the first Emirati chairman in the centre's history, and will retain his position as the chairman of the law firm Baker & McKenzie Habib Al Mulla.
Mr Al Mulla said that the centre's workload has declined in recent years as Dubai's economy continues to recover after the collapse of the emirate's real estate market in late 2008, which prompted a flood of arbitrations as companies scrambled to recover costs from stalled projects.
"The disputes resulting from [the aftermath of the crash] have already been filed, and there are now far fewer disputes,” he said. "Because the economy's recovering, people are now in the mood for doing business rather than pursuing litigation and arbitration, which explains why the high volume of cases has now settled down.”
The number of arbitrations registered at DIAC nearly trebled to 292 in 2009 after the property market crash the previous year. After a peak of 440 arbitrations registered in 2011, the centre's caseload has been in decline for the past three years, with only 90 cases taken on in the first six months of last year.
"The economy's doing well. When that's the case, it means you have less disputes and more transactions. Even those who have disputes have a greater tendency to settle them and move on,” he said.
While DIAC is the busiest arbitration centre in the Middle East, the centre continues to be held back by a lack of a modern arbitration law, said Mr Al Mulla.
"There have been many statements about a new law and many drafts circulating, but we're still waiting,” he said.
"There have been some quite strong statements that this law will be passed in 2015. I'm generally sceptical about such statements.”