Federal Arbitration Law

Article 10 — Article (10) BIS Conditions to be met by an Arbitrator from Members of Supervisory or Controlling Bodies at the Competent Arbitration Institution

Chapter Three: Arbitral Tribunal

1. With exception to the provisions of clause (B.1) of Article (10) of this Decree by Law, the Parties may appoint an arbitrator from board of directors, boards of trustees, or those of the similar status, of the supervisory or controlling bodies at the arbitration institution competent with administration of the arbitral case, if the following conditions are met: a. The regulations of the arbitration institution competent with the administration of the arbitral case does not prohibit it. b. The arbitration institution competent with the administration of the arbitral case shall have governance regulations special for regulating the work of the mentioned arbitrator in a manner that ensures the segregation of duties and impartiality, prevents conflict of interests or preferential advantage of the said member compared to their counterparts, and which regulates the mechanism of appointment, dismissal, and withdrawal of the arbitration if any of the determined conditions – in this regard – are met. c. The arbitrator shall not be member or the president of the arbitral tribunal. d. The parties to the arbitration case shall declare, in writing, their knowledge of the arbitrator's membership in the board of directors, board of trustees, or the supervisory or controlling bodies at the arbitral institution competent with the administration of the arbitral case in the State, and they don't have any objection or reservation to such appointment. e. The competent arbitration institution shall have a special mechanism for the safe reporting on the violations committed by arbitrators. f. The number of arbitral cases to which the arbitration is a member shall not exceed (5) cases per year. g. The arbitrator shall submit a written letter undertaking the following: 1. To refrain from exploiting his capacity in a manner that creates a conflict of interests or leads to him obtaining or enjoying a preferential advantage or interest compared to his counterparts. 2. Refrain from participating, deliberating, perusing, voting, attending meetings, or influencing in any way the proceedings of arbitration during the period of his appointment as arbitrator while he is a member of the board of directors, board of trustees, or those of a similar status of supervisory or controlling bodies at the arbitration institution competent with the administration of the arbitral case. h. Any other conditions or requirements determined by the competent arbitration institution. 2. The violation of the conditions referred to in this Article shall result in the invalidity of the arbitral award issued in the arbitration case and in the right of the parties to claim any civil damages from the competent arbitration institution and the violating arbitrator in accordance with the applicable legislation in the State.

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