The DIAC (Dubai International Arbitration Centre) Arbitration Rules 2022: the new regulation

On 25 February 2022 the Board of Directors of the DIAC issued the new Dubai International Arbitration Centre (DIAC) Arbitration Rules 2022 (Rules). The new Rules entered into force on 21 March 2022 and apply to all new requests for arbitration submitted to the DIAC thereafter. The main changes are summarized below.

Commencing the arbitration

  • Articles 4.3 and 5.3: the request for arbitration and answer to the request for arbitration can now be submitted by email or an electronic case management system implemented by DIAC. 
  • Article 5.7: time extension that can be granted to respondent for submitting its answer to the request for arbitration has been fixed in 10 days.
  • Article 6.5: no preclusion of a party nominating or participating in the appointment of an arbitrator from objecting to the arbitral tribunal’s jurisdiction.
  • Article 7.5: subject to the arbitral tribunal’s approval, a party may change its representatives or add new ones after informing the other parties, arbitral tribunal and the DIAC. 

Multiple contracts.

  • Art. 8: Parties may initiate a single arbitration for multiple claims arising from or in connection with multiple arbitration agreements, provided that: 1)the parties are the same; 2) The arbitration agreements are compatible; and 3) the disputes originate from the same legal relationship; or 4) the underlying contracts consist of a principle contract and its ancillary contracts; 5) or the claims arise from the same transaction or series of related transactions. 
  • Consolidation. Arbitrations can be consolidated upon one party’s application in that regard and after all parties are invited to comment. Consolidation is not possible if the parties have expressly opted out of it in the arbitration agreement.
  • Joinder. According to Article 9, a new party may join as claimant or respondent to the arbitration upon an application by a party in that regard. It is irrelevant whether or not such party is a party to the arbitration. All relevant parties are invited to comment, provided that all parties, including the joining party, consent to the joinder in writing, or the joining party prima facie appears to be party to the arbitration agreement.

The arbitral tribunal

  • Article 10: if the parties are of different nationalities, a sole arbitrator or the chair of the arbitral tribunal will not have the same nationality as any of the parties unless the parties agreed on this in writing or the Arbitration Court decides so. However, the Rules give discretion to the Arbitration Court.
  • According to art. 13, if the parties fail to agree on which arbitrator(s) to nominate and have not stipulated any other mechanism of appointment, they can notify the DIAC that they agree to the alternative appointment process. In such a case, the DIAC will provide the parties at least three suitable arbitrator candidates and invite the parties to contribute to this list of candidates. The candidates that are either agreed on or recommended by both parties will then be invited to accept the appointment.

The proceedings

  • Article 20.1:where the parties have not agreed to a seat of arbitration but agreed on a location/venue for the arbitration, such location/venue shall be deemed as seat of arbitration. However, if the parties agree on neither the seat of arbitration nor location/venue for arbitration, the seat will be the Dubai International Financial Centre, whereas previously, the seat of arbitration was Dubai.
  • Articles 20.2, 23.2, 26 and 27.6 expressly provide that the arbitral tribunal can decide to hold virtual meetings and hearings. 

Award and costs of arbitration

  • Article 34: the arbitral tribunal may sign the awards electronically.
  • Article 38 and Article 34.8: the award may be made public if parties give their consents.
  • Article 36 on costs of arbitration: registration fees, DIAC’s administrative fees, fees and expenses of the arbitral tribunal, tribunal or party appointed experts, and legal representatives, as well as any other party’s costs as assessed and determined by the arbitral tribunal are all included in the costs of arbitration.
  • The time limit for rendering a final award is six-months from the date of the transmission of the file to the sole arbitrator, unless extended by the Arbitration Court.

Expedited proceedings

  • Article 32: the expedited rules will apply if the parties agree in writing, or the Arbitration Court decides on its application due to exceptional urgency or the relevant circumstances, or if the total amount of the claims and counterclaims, if any, is below or equal to AED 1 million (exclusive of interest and legal representation costs), provided that the parties did not agree otherwise in writing. In this context a sole arbitrator will resolve the dispute.
  • The time limit for rendering a final award in expedited proceedings is three months from the date of the transmission of the file to the sole arbitrator, unless extended by the Arbitration Court.

Emergency arbitrator

  • Pursuant to Article 2 of Appendix II (Exceptional Procedures), prior to the constitution of the arbitral tribunal and concurrently with or following the filing of the request for arbitration, if there is a need for emergency interim relief, a party may submit an application for emergency interim relief to the DIAC. The emergency arbitrator will issue its order as soon as reasonably possible. This is a significant amendment to the Rules, which enables the parties to receive interim relief without any application to Dubai Courts. In this context, Dubai Courts will be involved for the recognition and execution of the order issued by emergency arbitrator. 
  • Conclusion

    The Rules bring many new provisions reflecting the recent developments in international arbitration practice.