International Arbitration: 2024 in Review

Arbitration keeps evolving to deal with new challenges. This article will highlight the key developments in international arbitration over the past year and considers what we can expect in 2025. 

Arbitration on the Rise

Based on an analysis of the caseload reports released in 2024 by various institutions, the number of disputes being arbitrated has increased:

• ICC: data shows that the ICC remains one of the world’s leading arbitral institutions by volume of cases. Participants in ICC arbitrations spanned 141 countries, with the construction and energy sectors continuing to generate the largest number of cases between 2021 and 2023.
• SIAC: 93% of the new cases filed with SIAC in 2023 were international in nature, compared to 88% in 2022, reflecting SIAC’s growth as one of the world’s top arbitral institutions.
• DIAC: DIAC recorded a 4.4% rise in the total number of cases registered compared to 2023 and an 11% increase in registered cases compared to 2022.
• ICSID: 58 ICSID cases were registered in 2024, the second highest in ICSID history. 

New Rules

Both SIAC and HKIAC issued new rules:

• SIAC’s new rules took effect on 1 January 2025 with the aim of increasing efficiency and lowering arbitration costs. The key changes include transformative amendments concerning streamlined proceedings, coordinated proceedings, emergency arbitration, and third-party funding.
• HKIAC’s new rules took effect on 1 June 2024. The revisions are aimed at preventing delay tactics, reducing the cost and environmental impact of the process, and improving information security and the diversity of arbitrators.

A New Institution

The new Abu Dhabi International Arbitration Centre, branded as ‘arbitrateAD’, is the UAE’s latest arbitral institution. It opened on 1 February 2024 and replaces the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC). The rules of arbitrateAD are modern and contain, for example, express provisions for multiple parties, multiple contracts, joinder, and consolidation in arbitration proceedings. 

Updated IBA Conflicts of Interest

2024 saw welcome updates to the International Bar Association’s Guidelines on Conflicts of Interest in International Arbitration (the 2024 Guidelines). 

The key changes introduced in the 2024 Guidelines include:

• reaffirming the objective ‘reasonable third person test’ for arbitrator disqualification;
• emphasizing a subjective test for an arbitrator’s duty to disclose, with new provisions on secrecy and a failure to disclose;
• the introduction of a 30-day waiver period for parties to object to potential conflicts of interest;
• an expansion of parties’ disclosure obligations to include relationships with entities a party controls, third party funders, and state-related or state-owned entities; and
• new disclosure scenarios on the Orange List.  

CAS at the Olympics

The Ad Hoc Division of the Court of Arbitration for Sport (CAS) hit the headlines in 2024 when it made several crucial decisions at the Paris Summer Olympics, including one that received widespread public attention involving a U.S. gymnast. The controversy led to CAS publishing the award which resulted in Jordan Chiles not receiving a bronze medal. Evidence was eventually provided showing that an on-floor appeal by Chiles was made within time, but, under CAS rules, an arbitral award, once issued, cannot be re-opened - even if conclusive evidence has come to light.

Energy Charter Treaty

Intra-EU arbitration awards issued under the Energy Charter Treaty (ECT) were enforced by the Swiss Federal Supreme Court and the U.S. Court of Appeal for the District of Columbia. This runs counter to the EU approach in Komstroy where the Court of Justice for the European Union held that intra-EU disputes could not be referred to ICSID under the Energy Charter Treaty. Meanwhile, the Energy Charter Conference announced modernization amendments to the ECT following the notification of withdrawal from the ECT by the EU, UK, and others.

Enforceability of DIFC-LCIA Clauses

When Dubai Decree No. 34 of 2021 abolished the DIFC-LCIA in September 2021, the decree directed that any future disputes under DIFC-LCIA clauses would be managed by DIAC. Cases on whether a DIFC-LCIA clause is still valid have now started coming to court, and the decisions have been mixed. 

At the end of 2023 a court in Louisiana held that neither the court nor the Dubai government could alter agreements between parties, meaning the DIFC-LCIA clause was no longer valid (Baker Hughes Saudi Arabia Co. v. Dynamic Industries). In January 2025, however, the U.S. Court of Appeal for the Fifth Circuit overturned this decision, emphasizing the importance of the parties’ agreement to arbitrate. Meanwhile, in March 2024, the Singapore High Court in DFL v DFM made reference to the Louisiana judgment in noting that parties cannot be compelled to arbitrate under DIAC without their consent. 

However, later in 2024, the Abu Dhabi Court of Appeal in Vaned Engineering GMBH v Reem Hospital upheld a DIFC-LCIA clause, on the basis that the parties had clearly agreed to arbitrate their disputes, and DIAC was the ‘legal successor’ to the DIFC-LCIA. A short time later the DIFC Courts in Narciso v Nash issued a similar judgment.

Conclusion and Three Developments to Watch for in 2025

Looking back at 2024 we can see that international arbitration is continuing to evolve, with new institutions, increased caseloads, and updated guidance. But challenges persist, with inconsistent judicial decisions concerning intra-EU ECT arbitration awards and whether DIFC-LCIA clauses are still operable. Whilst 2025 will no doubt give rise to unforeseen developments, here are three that should be on your radar:

Specialised Rules

We are likely to see institutions attempting to differentiate themselves and enhance their appeal to specific industries by issuing specialised rules. For example, SIAC has released its Insolvency Arbitration Protocol for public consultation. The Protocol adapts the SIAC Rules for use in an insolvency context, shortening timeframes and promoting the use of mediation. 

AI Guidelines

In 2024, the Silicon Valley Arbitration and Mediation Centre (SVAMC) published guidelines on the use of artificial intelligence in international arbitration. JAMS also published new rules governing cases involving artificial intelligence, going so far to create specialised rules for AI disputes. In 2025, we may see many of the large international arbitration centres issuing guidance on how AI is to be used under their rules, balancing the efficiency that AI can bring with the need to maintain the integrity of the process.

Updated English Arbitration Act

The Arbitration Bill to amend the English Arbitration Act 1996 was introduced to parliament in November 2023. It aims to update the act so as to maintain the attractiveness of England as a seat for arbitration. However, the passage of the uncontroversial Bill was stopped when the 2024 general election was suddenly called in England. The new Labour Government reintroduced the Bill in July 2024 and it was hoped that it might be passed in 2024, but this did not happen. 

At the time of writing, it has passed the Second Reading stage in the House of Commons and is scheduled to go through an expedited Committee Stage and Third Reading on 11 February 2025. It is expected that the Bill will remain unamended and therefore can move straight to Royal Assent, as it has already completed its passage through the House of Lords. 

Our expertise

With offices in many of the world’s major arbitration centres, including London, Paris, Geneva, Dubai, Hong Kong and Singapore, we are ideally placed to work with you both to prevent and to resolve disputes as they arise, whatever the law, language, rules, industry sector, or subject matter of that dispute may be. Our dedicated multicultural and multilingual specialists conduct arbitrations under both civil and common law systems and regularly act in arbitration-related domestic court proceedings.

Whether you are a state, a state-owned entity, a sovereign wealth fund, a corporate, a sports federation or authority, private business or individual, our strategically focused specialists will work alongside you through every aspect of any arbitration. Please contact Thomas Snider or your usual Charles Russell Speechly LLP contact if you would like to get in touch.