DIAC heralds modernisation programme as cases and diversity grow

Annual report records 4.4% increase in cases in 2023 as dust settles on sweeping reform programme

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Dubai International Arbitration Centre (DIAC) has signalled robust growth and an expanding global reach in its 2023 annual report as the dust settles on an extensive reform programme designed to boost the Emirate’s international standing as an arbitration seat.

DIAC registered 355 cases in 2023, marking an increase of 4.4% over the previous year, including 323 administered arbitrations, an increase of 11%. It also reports its first administered mediation under the new DIAC Mediation Rules introduced in October 2023. 

In addition, the centre managed 31 appointing authority cases, underlining its comprehensive dispute resolution services.

The performance comes off the back of a modernisation drive at the centre, which was relaunched in 2021 following the unexpected demise of the highly regarded DIFC-LCIA, which was merged into DIAC along with the Emirates Maritime Arbitration Centre, thereby concentrating institutional arbitration into a single body.

The sweeping reforms were accompanied with the promise that the DIAC would undergo significant reforms, which have since come to pass in successive years.

Diversity remains a core focus for DIAC, with the centre achieving near gender parity in its Tribunal appointments—47% of appointees were women in 2023. 

The report also highlights the fact that arbitrators from 29 countries were appointed, reflecting DIAC's inclusive approach to international dispute resolution.

The types of disputes and the nationalities involved are increasingly diverse. Parties from 49 countries engaged with DIAC in 2023, the centre reports, with many disputes originating from newly concluded contracts since 2021, suggesting a growing demand for DIAC's services in the Middle East, Africa, and South Asia (MEASA) region.

Construction and real estate cases continued to dominate the centre’s caseload in 2023, the report notes, representing almost 60% of all arbitrations. The next most represented sector was banking and finance, which accounted for almost 10% of its caseload.

Recent reforms, meanwhile, include new rules facilitating expedited proceedings, emergency arbitrator appointments, and complex multi-party and multi-contract disputes. These enhancements are accompanied by relatively few challenges in 2023, attesting to the effectiveness of DIAC's procedures.

In April last year, the DIAC launched a new Court of Arbitration led by former Singapore International Arbitration Centre (SIAC) Michael Pryles in the role of president with Erin Miller Rankin, head of Freshfields’ global projects disputes practice, serving as Vice-President.

In June 2023, former LCIA-DIFC registrar Robert Stephen was appointed registrar working closely with highly regarded independent arbitrator Anne Hoffmann, who chairs the Advisory Committee.

Looking ahead, DIAC shows no signs of slowing down. In the first half of 2024, the centre registered 142 cases with claims amounting to AED 2.8bn. Furthermore, the Arbitration Court's gender diversity continued to improve, with women constituting 54% of the appointments made in this period.

DIAC is also celebrating its 30th anniversary and is gearing up for the largest Dubai Arbitration Week, scheduled from November 11-15. This milestone event will attract more than 1,000 delegates and feature over 145 events.

As it does so, DIAC has welcomed new members to its team, including Egyptian lawyer Mohamed Hafez as special counsel to head the Arabic language division, Tala Fahoum as senior counsel, and Laura Roberts as counsel. 

Hafez was previously associate director for legal affairs at the Cairo Regional Centre for International Commercial Arbitration (CRCICA) and a partner and head of arbitration at TMS Law Firm in Cairo. At the same time, Fahoum and Roberts gained experience at Freshfields and White & Case, respectively, among other experiences spanning UK and US firms in London and Dubai. 

Stephen said the appointments were part of DIAC's strategy to enhance its secretariat with skilled professionals capable of addressing the sophisticated needs of international arbitration.
 

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