News

The new Rules reflect the evolving needs of the global
business community and include a framework for efficient dispute resolution,
digitization of operations and processes and flexibility for all participating
parties. Consistent with the UAE Federal Arbitration Law, which in turn is
modelled after the UNCITRAL Model Law, the Rules form the backbone of a
state-of-the-art international arbitration regime, reflective of the ambition, energy
and drive of the UAE.

The development of the new Rules was achieved by the
creation of a taskforce, led by Dr Ahmad Bin Hezeem, Vice
Chairman of DIAC & President of the Court of Arbitration, who conducted an
extensive benchmarking process, taking into consideration international best
practices, as well as the experiences and learnings from major arbitration centres
across the world, while introducing modern and progressive new practices,
designed to benefit and match the pace of the international business community.

The new age of Arbitration Rules

The new Rules aim to improve the efficiency of
arbitration procedures and to ensure that participating parties benefit from a
wide range of innovative new provisions and practices, including:

• Permitting consolidation of multiple arbitrations;
• Joinder of additional parties;
• Alternative process for appointing arbitrators;
• Expedited proceedings; and
• Exceptional proceedings including appointment of emergency arbitrators and conciliation.

The much-anticipated legal fees are now part of the
arbitration costs which could be claimed by the participating parties.

The Rules take effect for any DIAC arbitration filed
after 21 March 2022, regardless of the date upon which the agreement to arbitrate
was entered into, unless the parties agree otherwise.

Dr Ahmad Bin Hezeem, Vice Chairman of DIAC &
President of the Court of Arbitration, which shall act as the supervisory body
overseeing the management of cases pending in DIAC, stated:

“The new Rules truly differentiate DIAC from other
Arbitration Centres, providing a completely new and evolutionary offering to
participating parties. Our goal was to form an Arbitration Centre which can
match the strides taken by the evolving international business community, and
we have achieved this through the inclusion of innovative and progressive
arbitral provisions. The new Rules signify our ambitions to form and deliver a
State-of-the-Art International Arbitration regime in Dubai, which will attract
parties from all over the world, who seek an unbiased, efficient and robust
structure and seat of international arbitration.’

The structure of DIAC is note-worthy. It is the only
Arbitration Centre in the world to operate on both mainland and offshore
jurisdictions simultaneously and therefore governed by two separate legal
systems. Disputes can be filed either through the DIFC Courts, and therefore
would be governed by DIFC or common law, or through the Dubai Courts, and would
therefore be governed by Dubai and UAE laws and regulations. This unique two-fold
system works in harmony, serving the entire business community whilst
streamlining processes and efficiencies.

The 2022 DIAC Arbitration Rules highlight the drive
and ambition of the “new” DIAC, which took over the rights and obligations of the
DIFC-LCIA Arbitration Centre (‘DIFC-LCIA’) and the Emirates Maritime
Arbitration Centre (‘EMAC’) following their merger by Decree No. 34 of 2021. These
developments continue to affirm Dubai’s standing as a leading option for
parties in need of an internationally focused and progressive jurisdiction for
dispute resolution and international arbitration.

Further details on the new Rules can be found at www.diac.ae.