Dubai International Arbitration Centre ("DIAC")

Below you will find a concise overview of the key procedural features, advantages, disadvantages, and practical considerations involved in arbitrations administered by the Dubai International Arbitration Centre ("DIAC")

Overview

Overview: advantages and disadvantages

ADVANTAGES	DISADVANTAGES
Privacy and confidentiality: The default position is that DIAC arbitration proceedings are private. Parties generally agree that the proceedings shall remain confidential.	Minimal scrutiny: While the Arbitration Court will review awards, the level of scrutiny provided is not significant.
Enforceability of awards: DIAC awards are enforceable under the New York Convention, and are easier to enforce than the judgments of national courts.	Still in Relative Infancy: At this stage, it remains to be seen how the (relatively new) DIAC Rules will be enforced in practice.
Sector Expertise: The DIAC has particular experience in construction, infrastructure.	Uncertainty: The high degree of flexibility available under the DIAC Rules may lead to inconsistent outcomes.
Global Hub: Based in Dubai, DIAC is the go-to institution for claims with a Middle East nexus, but is well-placed to conduct a range of international commercial disputes.
Ability to choose the arbitrator(s): The parties may choose arbitrators who have expertise in the subject matter of the relevant dispute and/or who are from neutral jurisdictions.
Efficiency & speed: DIAC is known for streamlined procedures, efficiency and speed.

Overview: Process

Procedural element	Details
Rules	The DIAC Arbitration Rules came into force in March 2022 following the consolidation of DIFC-LCIA and the Emirates Maritime Arbitration Centre.
Commencing Proceedings	A Request for Arbitration is submitted to DIAC accompanied by the non-refundable registration fee.
Answer to the Request	To be submitted within 30 days of receipt of the Request. Must contain the information specified in Article 5.
Terms of Reference	Not required by the DIAC Rules. Parties and the Tribunal remain free to adopt Terms of Reference voluntarily if considered helpful.
Constitution of the Tribunal	Where the parties have not agreed on the number of arbitrators, the Tribunal will consist of a sole arbitrator. All arbitrators shall be appointed by the Arbitration Court. In case of a three-member Tribunal, each party shall nominate a co-arbitrator for appointment by the Arbitration Court. In the absence of an agreed mechanism, the co-arbitrators will agree on a third arbitrator to act as the chairperson.
Procedural measures	The procedural framework begins once the Tribunal has been constituted and DIAC has transmitted the file to it. Following consultation with the parties at the preliminary meeting, the Tribunal is required to establish a procedural framework for the case. In practice, this is usually done through a Procedural Order No.1.
Witness evidence	The DIAC Rules do not prescribe detailed formal requirements for witness evidence. Instead, the Tribunal determines the form and timing of witness evidence pursuant to its procedural management powers, typically through PO1. Oral witness evidence is permitted but, in practice, witness evidence is usually presented through written witness statements exchanged before the hearing.
Fees & costs	After an Answer to the Request is submitted, the DIAC will fix an advance on costs.

Expedited arbitrations

The Rules provide for an expedited arbitration procedure. The procedure is set out in Appendix II of the DIAC Rules. The dispute is typically resolved by a sole arbitrator and within a significantly shortened timetable.

In order for the expedited procedure to apply, the Court must be satisfied that it is reasonable to proceed on an expedited basis and that at least one of the criteria is established:

1. There is a low value dispute (less than AED$1 million);

2. There is exceptional urgency; or

3. There is agreement between the parties.

Constitution of the tribunal

If the parties have agreed upon a mechanism for nomination of arbitrators, such mechanism shall be followed (to the extent that it is capable of operating at the time of the dispute, and is compatible with the Rules).

Where the parties have agreed that a party shall nominate an arbitrator and such party fails to do so, the Arbitration Court shall appoint an arbitrator on behalf of the defaulting party.

Note: Emergency Arbitrators

The Rules allow for the appointment of an emergency arbitrator where a party requires urgent interim measures that cannot wait until a Tribunal is constituted.

Arbitrator conflicts / disclosure of interest

Prior to appointment, a prospective arbitrator shall sign a declaration containing a statement of acceptance, impartiality and independence, availability and nationality, and provide a CV.

The Arbitration Court may decline to appoint any nominee proposed by a party if it considers the nominee to be lacking in independence, impartiality, availability or to be otherwise unsuitable.

Note:

The 2024 IBA Guidelines on Conflicts of Interest in International Arbitration are also applied in practice. A link to those IBA Guidelines can be accessed here.

Consolidation

The DIAC Rules permit the consolidation of multiple arbitration but only in the specific circumstances set out in Article 8. The fact that multiple arbitrations might have common issues is not, by itself, a sufficient basis for consolidation.

Pleadings or memorials?

The DIAC Rules do not prescribe a pleadings or a memorial model. Instead, they give the Tribunal broad discretion to determine the form and timetable of submissions after consulting the parties.

In practice, as the majority of DIAC arbitrations are construction or real estate disputes, most cases follow a memorial-style approach. In smaller commercial cases, a pleadings approach is more common.

Summary judgment

The DIAC Rules do not contain an express summary judgment procedure.

DIAC tribunals possess broad procedural powers and may, where appropriate, determine jurisdictional objections or other potentially dispositive issues on a preliminary basis, including through bifurcation and partial awards.

Security for costs

The Rules allow for applications for security of costs (treating such applications as applications for interim relief). Appendix II empowers the Tribunal to order a party to provide security for arbitration costs, including legal fees and related expenses, in an amount and manner it considers appropriate.

Disclosure of documents

The DIAC Rules do not contain specific provisions governing the production of electronic documents or e-discovery.

Document production is governed by the Tribunal's broad procedural powers under the Rules (in particular Article 23.3), and the scope of any electronic disclosure is typically addressed in Procedural Order No. 1 or subsequent case-management directions.

In practice, DIAC arbitrations generally follow the restrained approach common in international arbitration, favouring targeted and proportionate production of relevant electronic documents rather than extensive common law-style discovery.

Hearings

The DIAC Rules expressly allow for hearings to be conducted virtually.

In practice, most routine procedural and interlocutory applications are determined "on the papers" through written submissions and supporting evidence. In-person (or virtual) hearings are more likely to take place where the application is urgent, factually complex, jurisdictional in nature, or may result in the dismissal of the case.

Court's role in scrutiny of arbitral awards

The Tribunal must submit a draft of any award to the Arbitration Court before it signs the award. The Court reviews the draft to ensure compliance with the formal requirements of the Rules and fixes the Tribunal's final fees and expenses.

Appeals

The DIAC Rules provide that awards are final and binding on the parties. The Rules contain a waiver provision under which parties waive rights of appeal or review to the extent such waiver can validly be made under the applicable law.

The DIAC Rules do not create a right to appeal an award for an alleged error of law. Whether any court-based appeal on a question of law is available depends on the law of the seat.

Further information

Model clause

Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the Arbitration Rules of the Dubai International Arbitration Centre, which Rules are deemed to be incorporated by reference into this clause.
The number of arbitrators shall be [one/three].
The seat of arbitration shall be [City and/or Country*].
The language to be used in the arbitration shall be [language].
The governing law of the contract shall be the substantive law of [State or Country].

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