Major arbitration law reforms poised to reshape DIFC dispute resolution landscape

The proposed amendments (32-page/431 KB PDF), published last month, are the most significant since the law was enacted in 2008. They include provisions on emergency arbitrators; joinder and consolidation; summary determination; security for costs; confidentiality; court enforcement of interim measures; award challenges; and the law governing arbitration agreements.

Mark Raymont, an arbitration expert with Pinsent Masons in Dubai, said the consultation period had offered an important opportunity to input into the drafting process.

“This consultation represents the first major change to the DIFC Arbitration Law in 18 years,” he said.

“The real significance of these reforms for seasoned practitioners lies in the additional tools they give tribunals and parties to resolve disputes more efficiently. That reflects a growing demand for procedures that are faster, more flexible and more effective”

Under the proposals, which would see the legislation renamed to the DIFC Arbitration and Mediation Law, the powers of arbitral tribunals would be expanded, introducing provisions for provisional awards, emergency arbitrators and security for costs among other new powers.

A new mediation framework would be introduced as part of the renaming, with settlement agreements arising from mediation regarded as binding and the DIFC Court empowered to enforce them.

In a bid to increase efficiency and promote enforceability, the window for looking to set aside a DIFC-seated award would be reduced to 30 days from receipt, significantly less than the previous three-month period, unless both parties have agreed in writing to a longer period.

Unless the parties otherwise agree, upon application, a tribunal would have the power to issue an award on a summary basis in relation to claims, or issues arising from a claim, if the tribunal determines that a party has no real prospect of succeeding on the claim or issue, or no real prospect of succeeding in the defence of the claim or issue,

The proposals also confirm an arbitral tribunal’s ability to issue partial and separate awards and provisions for dealing with communications via email, along with introducing rules for emergency arbitrators and enforcement of their orders.

The DIFC said it has drawn on a review of leading institutional rules, including those of the LCIA, ICC and DIAC, and arbitration legislation in key jurisdictions such as England & Wales, Singapore, Hong Kong and Australia to help shape its institutional approach.

Melissa McLaren, a dispute resolution specialist with Pinsent Masons, said: “The proposed reforms reflect the evolution of international arbitral practice over the past two decades and should help ensure that the DIFC remains an attractive and competitive seat for international arbitration in the years to come.”