Dubai: Dubai International Financial Centre (DIFC) is proposing amendments to its DIFC Arbitration Law. Developed in close cooperation with the DIFC Courts and leading practitioners, the proposed amendments seek to introduce substantive changes that significantly modernise the DIFC arbitration framework in line with current common law practice.
According to Emirates News Agency, Jacques Visser, Chief Legal Officer at DIFC Authority, stated that the DIFC is launching a public consultation on the proposed amendments. These changes aim to enhance tribunal powers, introduce summary determination, security for costs, emergency arbitrator enforcement, and establish a new mediation framework, thereby boosting efficiency and reinforcing the DIFC's status as a leading international arbitration hub.
The DIFC Arbitration Law, originally enacted in 2008, has served as a robust foundation for nearly two decades. However, due to significant developments in arbitral practice, these amendments strive to modernise the framework to reflect current best practices. They incorporate a comparative review of leading institutional rules from the LCIA, ICC, and DIAC, as well as arbitration legislation from key jurisdictions such as England and Wales, Singapore, Hong Kong, and Australia, reinforcing the DIFC's position as a progressive, pro-arbitration international financial centre.
The proposed amendments seek to clarify the transitional scope, modernise communication and drafting, introduce more flexible confidentiality exceptions, prohibit discrimination, and address issues related to ex parte applications and court enforcement of interim measures. They also adopt a 'reasonable opportunity' standard, refine the costs regime, and shorten the time limit for challenging awards.
Additionally, the amendments empower the DIFC Court to extend the time for commencing arbitration and clarify the law applicable to arbitration agreements. The amendments grant arbitral tribunals expanded powers and procedural tools such as security for costs, consolidation, joinder, summary determination, provisional awards, peremptory orders, and the appointment of Emergency Arbitrators.
The amendments also establish new regimes for third-party funding and the conduct of parties and their representatives, along with associated sanctions. They clarify the tribunal's remedial powers, confirm the ability to issue partial and separate awards, and introduce specific provisions on the award of interest and the court's power to extend the time for issuing awards.