Business

Sunday, December 28, 2025 | Daily Newspaper published by GPPC Doha, Qatar.

Business

Dr AbdelGadir Warsama Ghalib

Arbitration award

The UNICITRAL (The United Nations Commission on International Trade Law) rules, contain necessary provisions regarding the final award to be issued by the arbitral tribunal. The Arbitratorsarbitration tribunals, shall be very careful in applying such provisions. For instance, with particular reference to the award decisions (if there is more than one arbitrator) any award or other decision of the arbitral tribunal shall be made by a majority of the arbitrators. Herein, in case, there is no majority or when the arbitral tribunal so authorises, the presiding arbitrator may decide alone but subject to revision, if any, by the arbitral tribunal.In all cases, all award(s) shall be made in writing; this is, in case of the need for any action in the future. Also, awards shall be final and binding on the parties. The law provides that, the parties shall carry out all awards without delay.When writing the award, the arbitral tribunal shall state the reasons upon which the award is based, unless the parties have agreed that no reasons are to be given (which is very rare to happen). Moreover, regarding the form, the award shall be signed by the arbitrators and it shall contain the date on which the award was made and the place of arbitration. Where there is more than one arbitrator and any of them fails to sign, the award shall state the reason for the absence of the signature and copies of the award signed by the arbitrators shall be communicated to the parties by the arbitral tribunal. (In some cases, by the Arbitration Center).As per the law, the arbitral tribunal shall decide as amiable “compositeur” or “ex aequo et bono” only if the parties have expressly authorised the arbitral tribunal to do so. However, in all cases, the arbitral tribunal shall decide in accordance with the terms of the contract, if any, and shall take into account any usage of trade applicable to the transaction.In all cases, copy of the order for termination of the arbitral proceedings or of the arbitral award on agreed terms, signed by the arbitrators, shall be communicated to the parties.After issuing the award, certain issues could emerge such as the need for interpretation of the award. Herein, within 30 days after the receipt of the award, a party, with notice to the other parties, may request that the arbitral tribunal give an interpretation. Due to its importance, such interpretation shall be given within 45 days after the receipt of the request. The interpretation shall form part of the award.In some instances, correction of the award may be requested. The law provides that, within 30 days after the receipt, a party, with notice to others, may request the arbitral tribunal to correct any error in computation, clerical or typographical error, or error or omission of a similar nature. If the arbitral tribunal considers that the request is justified, it shall make the correction within 45 days of the request.In some instances, an additional award may be required within 30 days after the receipt of the termination order or the award, a party with notice to others, may request the arbitral tribunal to make an award or an additional award as to claims presented in the arbitral proceedings but not decided by the arbitral tribunal.Above points shall be followed very strictly regarding the award.Dr AbdelGadir Warsama Ghalib is a corporate legal counsel.

China fund graph

Precious metals craze prompts China fund to turn away investors

A global frenzy for precious metals has provoked extreme measures in China’s investment landscape, with the country’s only pure-play silver fund turning away new customers after its repeated risk warnings went unheeded.The UBS SDIC Silver Futures Fund LOF will be closed from Monday for subscriptions to Class C shares, preferred for shorter-term trades. The fund’s manager announced the unusual step in a statement Friday after multiple actions – from tighter trading rules to cautionary advice about “unsustainable” gains – failed to quell an eruption of interest fuelled by social media.UBS SDIC Fund Management Co had become increasingly concerned that investors could be exposed to heavy losses should a record-breaking bull market suddenly turn. The fund’s premium ballooned earlier this week to more than 60% over the value of its underlying assets, silver contracts on the Shanghai Futures Exchange.The episode shows how a small corner of the precious metals market is grappling with an extraordinary end-of-year price rally that has seen gold and platinum join silver in a dash to eye-watering records. It also shines a light on the continued heft of China’s retail traders and their limited options in pursuit of investment trends.In China, the world’s biggest consumer of silver, the metal has long been viewed more as an industrial commodity than an investment product. But the rally in precious metals – including silver’s own momentum on the global market, where it has gained around 150% this year – has shifted mindsets, with social media playing a role.Investors were already flocking to the fund as a rare domestic avenue for exposure to the white metal when a series of posts on Xiaohongshu – a platform also known as Rednote – offered tutorials on how to play the arbitrage between the fund’s over-the-counter and on-exchange shares.The surge has seen “significant involvement from retail investors,” said Yang Ruyi, a fund manager at Shanghai Prospect Investment Management Co. “Behaviors such as arbitrage tutorials on social-media platforms have also fuelled the spread of speculative hype,” she said.For three straight days this week, the fund hit its upward limit of 10%. This prompted UBS SDIC on Thursday to restrict Class C subscriptions to 100 yuan ($14.26), down from 500 yuan. The fund then fell by its maximum daily limit.As a result, the premium retreated to 44% – but this was still up from just 7% at the start of December. The latest restrictions announced Friday will likely reduce the premium again, with the fund having dropped by the maximum 10% for a second day. The fund manager also reduced the maximum regular subscriptions for Class A shares to 100 yuan from 500 yuan, starting Monday.The silver fund is not alone in experiencing an investment frenzy in the early part of this week, which saw a wave of limit-up rallies by so-called listed open-ended funds, or LOFs. These resemble mutual funds on a stock exchange, which can be traded between investors on the exchange or via subscriptions and redemptions directly with the fund company.The UBS SDIC fund has gained 187% this year, compared with a roughly 145% increase in Shanghai-traded silver futures. That gap has narrowed significantly since Wednesday.UBS SDIC declined to comment.