Dubai Altered It’s Arbitration Landscape

Dubai Altered It’s Arbitration Landscape

Dubai Altered Its Arbitration Landscape

On September 20, Dubai Decree No. 34 of 2021 on the DIAC went into effect, as a result: The Emirates Maritime Arbitration Centre (EMAC) and the Dubai International Financial Centre's Arbitration Institute (DAI) were decommissioned, and their rights and responsibilities were transferred to the Dubai International Arbitration Centre (DIAC).

The Decree allows DIAC to effectively fill the shoes of the dissolved arbitration organizations while putting out a detailed statute outlining DIAC's future goals, scope, and structure.

DIAC's headquarters will be in Dubai, with a Dubai International Financial Centre (DIFC) branch. The Decree's DIAC legislation outlines the agency's goals. The goals are to establish Dubai as a dependable hub for resolving disputes through alternative dispute resolution; strengthen DIAC's position as one of the best options for parties to resolve disputes efficiently and effectively by applying international best practices; alongside expand the use of alternative dispute resolution in a way that benefits Dubai's financial and business community. All of the EMAC's and DAI's rights and liabilities are transferred to DIAC under the terms of the Decree. This can include the transfer of property ownership, financial appropriations, and, in some cases, workers. Unless the parties agree differently, all agreements executed as of the Decree's entry into force for resorting to arbitration under the EMAC or the DAI remain valid and effective. However, that DIAC will replace the defunct arbitration organizations in hearing and resolving disputes.

The Decree also stipulates that, unless the parties agree differently, tribunals and committees previously established shall continue to hear and decide arbitration cases before them without interruption, provided that DIAC and its administrative body supervise these cases.