DIAC and DIFC-LCIA arbitration: what matters in 2026
Many contracts with Dubai companies still refer disputes to the DIFC-LCIA. But that centre no longer exists in its old form. Dubai Decree No. 34 of 2021 abolished the DIFC Arbitration Institute, which administered the DIFC-LCIA, and transferred its functions to the Dubai International Arbitration Centre (DIAC) from 20 September 2021.
In practice, arbitrations under DIFC-LCIA clauses started after that date are, as a rule, administered by DIAC under its own rules unless the parties agree otherwise. DIAC's current Arbitration Rules date from 2022. If your contract has an old clause, we will assess how it will operate and, where sensible, suggest updating it with your counterparty.
Arbitration centres in the UAE
- DIAC (Dubai International Arbitration Centre) — Dubai's main institution. The seat can be onshore Dubai or the DIFC.
- arbitrateAD (Abu Dhabi International Arbitration Centre) — replaced ADCCAC at the Abu Dhabi Chamber of Commerce and Industry from 1 February 2024. New cases are registered under the arbitrateAD Rules; existing ADCCAC cases finish under the old rules.
- ADGM Arbitration Centre — the venue within Abu Dhabi's financial centre.
- Ad hoc arbitration or international institutions such as the ICC, where the contract provides for them.
Arbitrations seated onshore in the UAE are governed by the federal Arbitration Law (Federal Law No. 6 of 2018); the DIFC and ADGM have their own arbitration regimes.
What we do in an arbitration
- Review the contract and arbitration clause: validity, institution, seat and language.
- Assess merits, timing and budget, including the centre's registration and administrative fees and arbitrators' fees.
- Prepare the request for arbitration, nominate an arbitrator and handle correspondence with the centre.
- Gather evidence and prepare written submissions, witness statements and expert evidence.
- Represent you at hearings, including remote hearings.
- Obtain recognition and enforcement of the award.
If a dispute is not covered by an arbitration clause, it goes to the state courts — see litigation in the UAE.
Enforcing arbitral awards
The UAE is party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. An award made in the UAE can therefore be enforced in other Convention states, and a foreign award can be enforced in the UAE. Recognition goes through the courts, after which the debtor's accounts and assets can be attached.
For enforcing Russian and other foreign judgments and awards, see enforcing Russian and CIS judgments in the UAE. If a debtor simply isn't paying an undisputed debt, court-based debt recovery can sometimes be faster.
Drafting the arbitration clause
The best time to think about arbitration is before signing. The clause should name the institution and rules, the seat, the language, the number of arbitrators and the governing law. An unclear clause creates a separate jurisdiction fight before the real dispute even starts. We draft clauses as part of our contracts & cross-border deals service.
Fees
Arbitration work is priced as fixed fees per stage, as a success fee (10–25% of the amount recovered plus a fixed component), or a combination. Centre fees and arbitrators' fees depend on the amount in dispute and are paid separately — we include an estimate of them upfront. An initial review is available at a consultation from AED 750 for 60 minutes.
FAQ
Generally yes: since the DIFC-LCIA was abolished in 2021, such disputes are administered by DIAC. Wording varies, though, so the clause should be checked before filing.
Arbitration is confidential, lets you choose the language (e.g. English) and the arbitrators, and awards are enforceable across New York Convention states. The downside is the centre's and arbitrators' fees, which can be significant for smaller claims.
It depends on the complexity of the dispute, the number of arbitrators and the parties' conduct. We give a realistic estimate after reviewing the documents.
Yes. We act under a power of attorney, and hearings involving you or your witnesses are often held by video.