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The Hong Kong International Arbitration Centre has announced a significant expansion in the scope of the institution's expedited procedure, along with increases in the HKIAC registration fee and default arbitrator hourly rate cap under the HKIAC Administered Arbitration Rules (HKIAC Rules), with effect from 1 January 2026.
The announcement was made in parallel with the publication of a significant statistical report on arbitrator hourly rates (reported separately here).
Expedited procedure
There has been a significant adjustment to the scope of the expedited procedure under Article 42 of the HKIAC Rules, where a party applies to the HKIAC for this to be applied on the basis that the amount in dispute does not exceed a stipulated upper limit.
The upper limit was previously HK$25 million (approximately US$3.2 million) and has now been doubled to HK$50 million (approximately US$6.4 million). This significantly expands the number of cases in which the expedited procedure could potentially apply based on the amount in dispute. It is important to bear in mind, however, that the ultimate decision as to whether to apply the expedited procedure to a dispute with a value not exceeding the upper limit will lie in the discretion of the HKIAC.
There is no change to the ability of a party to apply for the expedited procedure on the basis of party agreement or exceptional urgency, regardless of the amount in dispute.
In 2024, there were 24 applications for the application of the expedited procedure, of which 13 (54%) were granted, 9 (38%) were rejected and 2 (8%) were still pending as of the end of 2024 (as reported here).
Registration fee
The registration fee payable by a claimant when commencing arbitration at the HKIAC has increased by 25% from HK$8,000 (approximately US$1,030) to HK$10,000 (approximately US$1,280). The HKIAC announcement notes that this is the first increase for 12 years.
Hourly rate cap for arbitrators
The default hourly rate cap for arbitrator fees stipulated pursuant to the HKIAC Rules (paragraph 9.3 of Schedule 2) has increased by around 15% from HK$6,500 (approximately US$840) to HK$7,500 (approximately US$960). The old rate had applied since 1 November 2013 (just over 12 years).
In announcing this increase, the HKIAC noted that: "While arbitrators' hourly rates often do not reach the cap in smaller cases, HKIAC also administers many high-value, complex disputes where higher caps are sometimes appropriate to reflect the nature and demands of such proceedings."
It remains possible for an arbitrator to charge a higher hourly rate if all parties to the relevant arbitration agree or, in exceptional circumstances, the HKIAC so determines (pursuant to paragraph 9.5 of Schedule 2 of the HKIAC Rules).
There is no change to the maximum hourly rate of tribunal secretaries, which remains at HK$2,500 (approximately US$320) per hour.
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