April 22, 2024


Law, This Is It!

DIAC Arbitration Rules 2022 – New Rules Launched in 2022

4 min read
DIAC Arbitration Rules 2022 - New Rules Launched in 2022

Legislative improvements continue to sweep across the UAE in an effort and hard work to modernise and align recent guidelines with international criteria.  This intent manifested alone with the modern publication of Decree No. 34 of 2021 (the Decree) about the Dubai Global Arbitration Centre (and the discontinuation of the DIFC-LCIA Arbitration Centre) which appreciably altered the landscape for arbitrations in Dubai.

A major intent of the Decree was to build a consolidated arbitration centre in Dubai recognised as the Dubai Intercontinental Arbitration Centre (DIAC). To this conclusion, Write-up 9 of the Decree furnished DIAC with a 6-month grace period to regulate the centre in accordance with the Decree. It was for that reason anticipated that new DIAC Rules would be revealed to update the past 2007 Regulations and replicate the new iteration of DIAC.

The new DIAC Arbitration Regulations 2022 (the New Regulations) had been published by DIAC on 2 March 2022 accompanied by a push release which confirmed that the goal of a single arbitration centre was to produce a “leading centre for settling disputes” and that the “provisions of the new Regulations have been designed to streamline arbitration techniques and aid the time effectiveness of the proceedings.”  The New Guidelines shall be helpful as of 21 March 2022 and will implement to arbitral proceedings lifted right after this day.

An overview of the important provisions of the New Policies is established out down below.

The seat of the Arbitration

Write-up 20 of the New Principles offers the seat of the arbitration and the place of hearings. In the absence of an agreement among the functions on the seat of the arbitration, in instances where the get-togethers have agreed on the place of the arbitration, the agreed spot shall be the seat of the arbitration. In situations the place get-togethers have not agreed to the seat or site, the New Guidelines supply that the DIFC shall be the “initial seat”.  The New Principles confer the electricity to the Tribunal to identify the seat of the arbitration.

Consolidation & Joinder of Third Events

Report 8 of the New Rules widens the scope in that a Claimant may perhaps post a single Request for arbitration “in regard of various claims arising out of or in link with more than 1 arrangement to arbitrate”.  The Arbitration Court docket may possibly, upon application, consolidate the arbitrations into a solitary arbitration exactly where: (a) all promises in the arbitrations are below the identical arrangement to arbitrate or (b) contain the exact same functions.

In addition, the New Principles allow the joinder of third functions which can be one particular or a lot more further events to be joined as Claimant(s) or Respondent(s).

Expedited Proceedings

Post 32 of the New Procedures set out the provisions permitting expedited proceedings. The conditions used underneath the New Policies for expedited proceedings are where: (a) the sums claimed or counterclaimed are in the sum of or underneath AED 1 million (unique of desire and prices) (b) the events concur in composing for the continuing to be expedited or in selected cases of (c) extraordinary urgency as established by the Arbitration Court docket upon software. The New Rules do not elaborate as to what may possibly be deemed as remarkable urgency. Beneath expedited proceedings, the New Principles ensure that a Closing Award shall be issued in 3 months from the date that the Tribunal acquired the circumstance.

Importantly, expedited proceedings shall only use to agreements to arbitrate built just after the productive day, 21 March 2022, until events concur or else.

Interim Measures

Appendix II of the New Rules established out the excellent processes like the interim steps obtainable to the Tribunal to buy on. These interim actions consist of the preservation of evidence, protecting against the dissipation of belongings and giving safety for fees of the arbitration. Report 2 of Appendix II of the New Regulations also set out the criteria for an application for emergency interim relief and the appointment of an emergency arbitrator.

3rd-Bash Funding

The New Rules now expressly provide for 3rd-social gathering funding underneath Posting 22 which is a new concept for DIAC. A celebration who has entered into a Third-get together Funding Arrangement have to disclose this to all other parties and to the centre whilst offering the identity of the funder, irrespective of whether or not the funder has fully commited to an adverse liability on expenditures.

Authorized Expenditures

Article 36 of the New Regulations expressly states for the expenses for the arbitration to incorporate registration costs, administrative fees alongside with legal charges and costs. The New Guidelines provide the Tribunal with the power to challenge an award on the charges of the arbitration, in comprehensive or as apportioned among the parties.


The New Procedures have modernised the outdated 2007 Principles bringing them into line with global most effective procedures even though supplying the Tribunal with powers to assure economical proceedings. Considering the the latest alterations to the arbitration landscape Dubai, the variations mirrored in the New Rules and the clarity that they provide will be welcomed by practitioners and functions alike.

In opposition to this qualifications, parties really should look at their existing arbitration agreements and how the New Procedures might have an effect on these, primarily in light-weight of the exception for expedited proceedings to implement to arbitration agreements manufactured soon after the successful date.

For even further information in relation to the new DIAC Arbitration Procedures, make sure you speak to Joanna Stewart ([email protected]).

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