The most important arbitration development in the coming year is expected to be the enactment of the long-awaited new Arbitration Ordinance.

The proposed text of the Ordinance was introduced to the Legislative Council in Hong Kong last year in the form of the Arbitration Bill, and it received its first reading in July 2009 (see Legal update, Arbitration Bill introduced before Legislative Council). Present indications are that the Bill is expected to be enacted in the legislative session this year.

The most significant amendment to be introduced by the proposed Arbitration Bill is that it will create a unitary regime for both international and domestic arbitrations, based on the UNCITRAL Model Law. In addition, the Arbitration Bill largely adopts the revisions introduced to the UNCITRAL Model Law in 2006, and sets out broad powers for the arbitral tribunal to order interim measures.

The proposed Arbitration Ordinance will make the law of arbitration more user-friendly to users of arbitration in Hong Kong, and will continue to build on Hong Kong's existing arbitration regime, which accords with commonly accepted international arbitration principles and practices. The new law is therefore expected to continue to strengthen Hong Kong's position as a leading arbitration centre in the region.