DIAC Arbitration Rules

The DIAC Arbitration Rules 2022 represent a significant development in the UAE's arbitration framework, aligning with Federal Law No. (6) of 2018 and the UNCITRAL Model Law. The rules, applicable from March 21, 2022, introduce critical procedural advancements to improve efficiency, cost-effectiveness, and enforceability.

1. Introductory Provisions and Scope

The introductory provisions (Articles 1-3) establish the applicability of DIAC Rules to all arbitrations submitted post-March 21, 2022. Notably, Article 2.4 provides that DIAC rules override conflicting provisions in arbitration agreements, ensuring institutional control. The emphasis on DIAC’s autonomy reflects an approach seen in Dubai Court of Cassation Case No. 484/2021, where a contractually agreed arbitration procedure was overridden by institutional rules.

2. Commencement and Jurisdiction (Articles 4-6)

The Request for Arbitration (Article 4) and Answer to the Request (Article 5) introduce stringent timelines, ensuring procedural discipline. Article 6 affirms the arbitral tribunal's power to rule on its jurisdiction, reflecting the doctrine of Kompetenz-Kompetenz, upheld in Dubai Court of Cassation Case No. 3/2020. This mirrors international practice and prevents obstructive jurisdictional challenges.

3. Notification and Communications (Article 3)

The DIAC Rules mandate electronic case management, ensuring speed and reliability. Dubai Court of Appeal Case No. 67/2019 reinforced the importance of proper service and notifications in arbitration, emphasizing compliance with procedural rules to avoid award annulments.

4. Appointment and Challenge of Arbitrators (Articles 10-16)

The rules provide flexibility in appointing arbitrators while ensuring impartiality and independence. Article 14 imposes a continuous duty of disclosure, addressing conflicts of interest, as seen in Abu Dhabi Court of Cassation Case No. 18/2020, where an award was set aside due to non-disclosure of potential bias.

5. Multiple Contracts, Consolidation, and Joinder (Articles 8-9)

The consolidation mechanism (Article 8) and joinder provisions (Article 9) align DIAC with ICC and LCIA standards, preventing parallel proceedings. The Dubai Court of Cassation Case No. 124/2018 emphasized the need for contractual clarity when consolidating disputes, reinforcing DIAC’s structured approach.

6. Conduct of Proceedings (Articles 17-31)

DIAC rules advocate for expedited resolution (Article 32) and electronic document management (Article 3), enhancing efficiency. Article 25 places the burden of proof on parties, aligning with Dubai Court of Appeal Case No. 19/2017, which ruled on evidentiary admissibility in arbitration.

7. Third-Party Funding (Article 22)

This provision introduces transparency by requiring disclosure of third-party funding, mitigating potential conflicts of interest. This reflects recent DIFC Court decisions that emphasize financial transparency in arbitration.

8. Awards and Enforcement (Articles 34-37)

The requirement for reasoned awards (Article 34) aligns with UAE Federal Law No. 6 of 2018, ensuring enforceability. The Abu Dhabi Court of Cassation Case No. 75/2021 confirmed that an arbitrator’s failure to provide reasoning could render an award unenforceable.

9. Confidentiality (Article 38)

The confidentiality clause aligns with UAE’s arbitration-friendly stance. However, UAE courts have allowed limited disclosure in public interest cases, as seen in Dubai Court of Appeal Case No. 45/2019.

Conclusion

The DIAC Arbitration Rules 2022 mark a substantial step toward efficiency, enforceability, and international best practices. The inclusion of third-party funding, expedited procedures, and electronic case management enhances DIAC’s competitiveness. The UAE courts have generally upheld DIAC’s principles, reinforcing its credibility in the region. However, practical implementation and judicial interpretation will ultimately shape the effectiveness of these rules.