sboghossian Knowledge Pack — ICC Arbitration
Scope
This pack covers arbitration under the International Chamber of Commerce (ICC) Arbitration Rules (2021 edition, current as of the knowledge cutoff). ICC is the world's leading international commercial arbitration institution by caseload. This pack covers:
- When to use ICC vs alternatives (DIAC, LCIA, ADGM)
- ICC clause drafting
- Procedural milestones: Terms of Reference, scrutiny of awards
- Emergency arbitrator and expedited procedure
- Costs and the ICC scale
- MENA-specific considerations for ICC proceedings
Overview of the ICC
- Founded 1923; headquartered in Paris
- ICC Court of International Arbitration — administers arbitrations; does not decide the merits
- ICC International Secretariat — case management; the Secretariat communicates with parties
- ICC Court — scrutinizes draft awards (unique to ICC), confirms/challenges arbitrators, fixes costs
- Rules: ICC Arbitration Rules 2021 (current); parties may also opt in to 2012 rules for existing contracts
Standard ICC arbitration clause
Basic clause
All disputes arising out of or in connection with the present contract shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the said Rules.
Enhanced clause (recommended for MENA transactions)
All disputes arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce ("ICC Rules") by [one/three] arbitrator[s] appointed in accordance with the ICC Rules. The seat of the arbitration shall be [Paris / DIFC / London / other]. The language of the arbitration shall be [English / French / Arabic]. The governing law of this Agreement shall be [law].
Seat selection for MENA contracts:
- Paris: neutral for MENA-MENA or MENA-European disputes; French courts as supervisory (generally pro-enforcement)
- DIFC: increasingly popular for UAE-centered disputes; DIFC Courts as supervisory; English common-law supervisory framework
- London: favored for English-law contracts; English courts as supervisory
- Geneva or Singapore: neutral seats for politically sensitive disputes
Key ICC procedural features
Terms of Reference (ToR)
ICC's distinctive feature: within 30 days of the file being transmitted to the tribunal, the tribunal must draw up ToR containing:
- Summary of the parties' claims and positions
- Issues to be determined (or at least the procedure for determining issues)
- Procedural rules applicable
ToR are signed by the parties and tribunal. Once signed, new claims are only permissible if the tribunal decides to admit them based on their nature relative to claims already described in the ToR.
Practice note: ToR drafting is a critical moment — parties should ensure all claims and all relief are captured.
Scrutiny of draft awards
Every ICC award is scrutinized by the ICC Court before transmission to the parties. The Court may require modifications as to form and may draw attention to points of substance. This adds 4–8 weeks to the timeline but significantly reduces the risk of formal defects leading to enforcement problems.
This is ICC's most distinctive feature — no other major institution has equivalent scrutiny.
Case Management Conference (CMC)
Held promptly after ToR are signed. Sets the procedural timetable: written submissions, document production, witness statements, expert reports, hearing dates.
Procedural milestones
| Stage | Rule | Typical timing |
|---|---|---|
| Request for Arbitration | Art. 4 | Day 0 |
| Answer to Request | Art. 5 | 30 days |
| Constitution of Tribunal | Arts. 12–13 | 1–3 months |
| Terms of Reference | Art. 23 | 30 days from file transmission |
| CMC / Procedural timetable | Art. 24 | Immediately after ToR |
| Written submissions + document production | Per timetable | 3–6 months from ToR |
| Witness statements + expert reports | Per timetable | 6–12 months from ToR |
| Hearing | Per timetable | 12–24 months from filing |
| Draft award to ICC Court | Art. 34 | After close of proceedings |
| Award | Art. 35 | Final; signed after scrutiny |
ICC proceedings for major disputes typically run 2–4 years from filing to award.
Emergency arbitrator (Art. 29)
Available before and after constitution of the Tribunal. Request to Secretariat; emergency arbitrator appointed within 2 days; order within 15 days of appointment. Emergency arbitrator's decision is binding on parties (not a court order — enforcement depends on national law). Emergency arbitrator cannot act as main tribunal arbitrator.
Expedited procedure (Art. 30)
Applies automatically where amount in dispute ≤ USD 3M (threshold as of current Rules) unless parties opt out. Can be opted into by agreement for larger disputes. Single arbitrator; award within 6 months of ToR; limited document production.
Costs
ICC fees comprise:
- Registration fee (flat; paid with Request)
- Administrative fees (scale with amount in dispute)
- Arbitrator fees (determined by ICC Court at closing, within ICC scale based on amount in dispute and complexity)
ICC is one of the more expensive institutions for small to medium disputes. For disputes above USD 10M, the fee differential between ICC and other institutions becomes less significant relative to other costs (counsel fees, expert fees).
MENA-specific considerations
Arabic language
ICC proceedings can be conducted in Arabic. However, most major MENA international arbitrations proceed in English or bilingual. Consider expressly specifying the language — an Arabic-language ICC proceeding is less common and may limit the pool of qualified arbitrators.
Governing law + Sharia
For KSA contracts with Sharia-compliance requirements, parties sometimes specify that the arbitral tribunal shall apply the substantive law of Saudi Arabia, which incorporates Sharia principles. ICC tribunals can apply any governing law, including Sharia-compliant frameworks, though complex issues arise in determining applicable principles.
Recognition in MENA courts
Most MENA jurisdictions are New York Convention signatories and recognize ICC awards:
- UAE (signed 2006): yes
- KSA (signed 1994): yes, with some conditions
- Lebanon (signed 1998): yes
- Egypt (signed 1959): yes, one of the earliest signatories
The principal enforcement risk in MENA is the "public policy" ground for refusal. Awards involving interest (riba) may face challenges in KSA courts. Structure remedies accordingly for Sharia-sensitive jurisdictions.
ICC vs DIAC vs LCIA — selection guide
| Factor | ICC | DIAC | LCIA |
|---|---|---|---|
| Prestige / recognition | Highest | Strong in MENA | High (London) |
| Administration | Paris ICC Secretariat | Dubai | London LCIA Secretariat |
| Scrutiny of awards | Yes (unique) | No | No |
| Speed | Slower | Medium | Medium |
| Cost (small disputes) | Higher | Lower | Medium |
| Best for | Major international; multi-party | UAE / MENA disputes | English-law contracts |
| MENA enforcement | NY Convention | NY Convention | NY Convention |
How to use this pack
Load this pack when the user:
- Is negotiating a major international contract involving MENA parties and wants to assess ICC vs alternatives
- Needs an ICC arbitration clause drafted
- Is managing an active ICC arbitration and has procedural questions
- Needs to understand ICC scrutiny of awards or ToR implications
Caveats & currency
ICC Arbitration Rules 2021 are current. Verify the current fee schedule and any rule amendments at iccwbo.org. Cost thresholds for expedited procedure may be updated by ICC Court practice note.
Related skills
- [[kb-arbitration-diac]] — DIAC Rules 2022 for UAE-centric disputes
- [[kb-arbitration-lcia]] — LCIA Rules for English-law or London-seated arbitrations
- [[kb-arbitration-difc-lcia]] — legacy DIFC-LCIA proceedings
- [[draft-arbitration-clause]] — drafting the clause for a specific contract