The Dubai International Arbitration Centre (DIAC) rules govern how a dispute starts, who hears it, and how quickly it moves forward if the contract refers any disputes to the DIAC.
The DIAC refers to the Dubai centre, as opposed to the Delhi International Arbitration Centre, which has the same initials. This briefing discusses the DIAC Arbitration Rules 2022 and what they entail for businesses.
What DIAC is and which rules apply
DIAC administers the arbitration and collects filing fees. Its Arbitration Court oversees arbitrator appointments. The arbitral tribunal considers the evidence, decides the dispute and issues the award.
DIAC’s Board of Directors approved the 2022 Arbitration Rules on 25 February 2022. The Rules took effect on 21 March 2022.
They apply to all subsequent arbitration requests submitted on and after that date, and the 2007 Rules remained applicable to arbitration requests previously made. The parties are free to differ by agreement, so check the precise language used.
The date of your arbitration agreement determines whether certain procedures apply. For example, if the parties agreed to arbitrate before 21 March 2022, they must agree to use the expedited procedure. For agreements from that date onwards, the usual eligibility criteria apply.
DIAC issued the 2022 Rules after Dubai Decree No. 34 of 2021 changed the framework for arbitration in Dubai. The section on existing DIFC-LCIA clauses explains what this change means for older contracts.
What Changed From the 2007 Rules?
The 2022 Rules are approximately twice the size of the 2007 Rules and align DIAC with international practice. The following are the key modifications:
Area 2007 Rules 2022 Rules:
| Area | 2007 Rules | 2022 Rules |
| Default seat | Dubai (onshore) | DIFC as the initial seat if the parties have not agreed on a seat or venue |
| Filing | Paper-based | Electronic filing and exchange; virtual hearings are permitted. |
| Expedited procedure | None | Available for smaller claims or by agreement. |
| Emergency relief | None | Emergency arbitrator procedure in Appendix II. |
| Multi-party disputes | No joinder provisions | Joinder (Article 9) and consolidation. |
| Funding | Not addressed | Third-party funding disclosure. |
DIAC rules that businesses should understand
Seat and Venue
The seat is the legal home of the arbitration. The seat determines which courts will oversee the arbitral proceedings and the law governing the arbitration. If the parties have not specified a seat, the starting point is the DIFC, and the tribunal will be able to finally determine the seat when it is constituted.
If the arbitration clause simply states a venue rather than a seat, that venue will in practice be treated as the seat unless the parties have agreed on a seat elsewhere.
The practical lesson is to choose the seat carefully because an ambiguous clause may cause an early disagreement.
Expedited proceedings
Faster track proceedings: this is a quicker process with one arbitrator. It is available where the parties have agreed, where the matter is exceptionally urgent, or where the Arbitration Court considers it reasonable, and the amount in dispute is AED 1 million or below (interest and legal expenses not included).
The arbitrator must issue a final award within three months of the file being sent to him or her. This is suitable for suppliers, subcontractors and smaller commercial claims, but the quick timetable will not be suitable for every complex dispute.
Emergency arbitrator
An emergency arbitrator can order interim relief before a tribunal has been constituted. Rules Appendix II discusses the procedure. DIAC hopes to appoint an emergency arbitrator one day after an application, and the arbitrator hopes to issue an order and schedule within two business days of receipt of the file.
This is particularly valuable where one side might otherwise take steps to move assets or perform a contract. Enforcement of the emergency order against a third party or in another country is a separate issue to be taken up with counsel.
Joinder and consolidation
Joinder enables you to bring in a third party, and consolidation enables you to have more than one arbitration heard together. There were no joinder provisions in the 2007 Rules. For any business that has more than one related contract (main contract, subcontracts, etc.), it minimises the risk of contradictory rulings without removing the need to check the arbitration clauses in each contract.
Funding Disclosure
Where a third party is paying for the claim, the Rules demand disclosure. This is to enable the tribunal and the other party to consider whether there is a conflict of interest. If you are funded, or your opponent is, get early advice on what and when to disclose.
Online filing and hearings
Rules cover electronic submissions and document exchanges, as well as online hearings. Award signing can be done electronically. Travel costs and time can be reduced for enterprises with witnesses or legal representatives in different countries, but they need to coordinate document storage, time zones, and internet connections.
What to Check in a DIAC Arbitration Clause
This short DIAC arbitration clause has a lot of meaning in every word. Please note: Before signing, verify:
Institution – ensure DIAC is named correctly and the clause refers to the DIAC Arbitration Rules.
Seat – define the legal seat, such as DIFC or onshore Dubai, rather than simply a hearing location.
Language – state the language to be used during the arbitration.
Number of arbitrators – one or three – and the method of their appointment.
Governing law – the law that applies to the contract.
Governing law and seat are different questions. As to which legal system will govern the substance of the matter, the governing law indicates where the tribunal will look in order to decide the case. As to which court will oversee the arbitration seat and which law to apply to challenges, it is a separate question.
Official DIAC model clause. Consider this a guide to start with, but a uniform clause isn’t necessarily applicable. The clause should be tailored to the industry, transaction, and counterparty.
How does DIAC Arbitration work?
- Request for Arbitration – the claimant delivers its request to DIAC in a certain manner and pays a registration fee.
- Answer – The respondent shall, within the period specified by the Rules, file its answer and any counterclaim.
- Tribunal appointment – selection of arbitrators by the parties as per agreement and appointment by DIAC in case of failure.
- Timetable – the tribunal fixes a procedural timetable after consultation with the parties.
- Written case and evidence – the parties serve documents, witness and expert reports.
- Hearing, if required – virtual or in person. Some disputes are decided just on the papers.
- Award – At the end of the hearing, the tribunal delivers a reasoned final award, which is reviewed by DIAC from a formal perspective. That review is not a merits review.
- A recognitional or enforcement order – a winning party may have to submit an application for a recognitional or enforcement order of the award if the unsuccessful party’s assets are situated in another jurisdiction.
DIAC Fees and Other Costs
DIAC fees are based on the amount in dispute. In addition to paying registration fees, administrative fees, and tribunal fees, you will typically need to deposit advance payments into DIAC’s account at the start of the proceedings and as the case progresses.
Budget for legal fees, expert, translator and interpreter’s fees and the hearing costs, which can substantially exceed the fee of the institution.
Use the current arbitration fee schedule and verify its date of effect before preparing your budget. Note that the arbitration fees differ from other services provided by the DIAC.
Existing DIFC-LCIA Clauses
DIFC LCIA clauses refer to the DIFC-LCIA Arbitration Centre, which is no longer in existence. Decree No. 34 of 2021 abolished the DIFC-LCIA and the Emirates Maritime Arbitration Centre and transferred its rights and obligations to DIAC.
According to the Decree, agreements to which the DIFC-LCIA is a party are deemed valid, and DIAC continues to arbitrate disputes arising therefrom in the absence of an agreement to the contrary.
The DIFC courts in Dubai and Abu Dhabi have both previously enforced legacy DIFC LCIA clauses. Elsewhere, the situation is uncertain. A US court refused to enforce a DIFC LCIA clause when the court attempted to substitute the DIAC.
So no business should presume that every jurisdiction will treat DIAC as the substituted institution. In the case of older contracts issued with the DIFC LCIA wording, an agreed variation may help to reduce some of this uncertainty.
DIAC and Other Arbitration Centres
DIAC is one of the alternatives. A global body, the International Chamber of Commerce (ICC), governs cases globally and has updated its rules; the latest ICC Rules 2026 will come into effect on 1 June 2026 and apply to arbitrations initiated from that date. ArbitrateAD, the Abu Dhabi International Arbitration Centre, took over the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC) in 2024 and uses Abu Dhabi Global Market as its default seat.
For comparison in practice, points include default seats, expedited procedures at each institution, emergency relief, fees, your counterparty, and where enforcement of an award might be necessary. No one institution will always be cheaper or faster, and the right choice depends on the contract and the parties.
Challenging and enforcing an award
The seat determines in which court an award can be challenged; like, onshore UAE seats are usually subject to Federal Law No. 6 of 2018 on arbitration, as amended, including Federal Decree-Law No. 15 of 2023. While DIFC-seated arbitrations are subject to the DIFC Arbitration Law, and any challenge would go to the DIFC Courts.
The supervising court and the grounds of annulment are not the same, so check them in advance of the dispute. Enforcement is a different matter. Most jurisdictions around the world, including the UAE, are signatories to the New York Convention, which grants cross-border awards recognition. Recognition does not guarantee enforcement, and local courts may refuse on limited grounds.
The limitation period for challenge/enforcement is subject to the law and the seat when the time begins to run and should be checked with a local lawyer, rather than a general one.
When Arbitration Advice is Needed
Get legal advice on your DIAC arbitration clause, request for arbitration, emergency relief such as an emergency arbitrator, assets located in multiple jurisdictions, or defending or seeking to set aside an award. Early advice on the clause or the answer is key to the whole case.
Consult with the arbitration team at Klay Legal now to conduct a DIAC clause review or reply to a request for arbitration.
Frequently Asked Questions (FAQs)
Q1. When did the DIAC Arbitration Rules 2022 take effect?
They became operative on March 21, 2022. The 2007 Rules govern earlier cases, and they apply to new arbitration requests filed after that date. Check your contract because certain features, like accelerated proceedings, depend on when the arbitration agreement was made.
Q2. What is the default seat under the DIAC rules?
The initial seat of the arbitration will be the DIFC unless the parties have agreed on a seat or venue. After the tribunal has been formed, the panel can determine the seat of the tribunal with the views of the parties taken into account. If your clause specifies a location, then that place may be the seat, so the words matter.
Q3. What happened to DIFC-LCIA?
Decree No. 34 of 2021 abolished the DIFC-LCIA and transferred its function to DIAC. Legacy clauses are considered valid and are governed by DIAC unless the parties contract otherwise. This has been upheld by the UAE courts, but it is uncertain whether this will be extended elsewhere.
Q4. Can urgent relief be requested before the tribunal is formed?
Yes. Appendix II allows for an emergency arbitrator. DIAC intends to make the appointment within one day of receiving the application. The nature of the relief available and its
Enforcement will depend on the facts and the law, so seek legal opinion promptly.
