Hong Kong is planning to overhaul its arbitration procedures in a bid to improve its position as a leading dispute resolution centre in Asia.

The Hong Kong International Arbitration Centre (HKIAC) is planning to introduce new rules in the first quarter of next year which would usher in a cap on hourly rates on arbitration held in the centre, making the process less expensive for companies and individuals.

In addition the organisation plans to introduce new guidelines for arbitrator expenses.

The current rules, introduced in 2008, prescribe that fees can be calculated either according to a schedule of fees relating to the value of the dispute or on the basis of hourly rates. The proposed change would cap this rate at HK$6,500 (£518) per hour, preventing them reaching current levels, which can go as high as HK$10,000-15,000 (£801-£1,200) per hour at present.

Kathryn Sanger, a Clifford Chance consultant and a council member for the HKIAC, said: "Under the first system, there is a schedule of fees which will relate to the sum in dispute, so what the parties are claiming. Under the second system, fees will be charged as hourly rates, subject to a fee cap. The proposal is a cap of HK$6,500 (£518) per hour, which can be increased if both parties agree."

She added: "Also, each system contains the same standard terms of appointment on matters such as cancellation arrangements, which again can be changed with the parties' agreement. The HKIAC is also proposing to issue a practice note dealing with arbitrator expenses."

Other major changes to the rules include the introduction of emergency arbitrator provisions and the ability of the HKIAC to consolidate arbitrations. Respectively, this will make it easier for companies and individuals to obtain interim relief quickly from an emergency arbitrator before a tribunal is constituted, and will allow the arbitration centre to hear more than one case at the same time. According to Sanger, the new principles are part of a wider plan to bring HKIAC in line with other international institutions and attract more arbitration work to Hong Kong.

"One of the big complaints about arbitration is that it's expensive and that parties don't have any control over what arbitrators charge and what expenses they charge, so we're following the best practice of other institutions," she said. "The real trend now is to have control over fees."

News of the changes was discussed as part of Hong Kong International Arbitration Week, where Hong Kong justice secretary Rimsky Yuen stressed the importance of arbitration in the region, stating that "the promotion and development of arbitration and ADR will continue to be a major and top priority of the department of justice."

The capacity of the HKIAC is also set to be increased following the move to new and bigger offices, which it is hoped will facilitate a rise in arbitration cases in the future. Hong Kong is also in the process of reaching agreements with Taiwan and Macau which would enable Hong Kong arbitral awards to be enforceable across Greater China.

Chiann Bao, the Secretary-General of the HKIAC, said Hong Kong was a naturally attractive place for dispute resolution, but was continuing to review and update its processes in order to stay ahead of the competition.

She said: "The competition is not hostile; in Europe there are five major seats for arbitration, in Asia there are two, arguably three or four coming down the pipeline. Singapore is regarded as another one, as well as Kuala Lumpur and Seoul. We are just doing our best to ensure we are the most attractive seat."