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Arbitration in the UAE 2025: DIAC, ADCCAC, arbitrateAD

How DIAC, ADCCAC (now arbitrateAD) and the international centres handle UAE-seated arbitration, and what changed in 2025.

A practical account of arbitration in the UAE: the federal statute, the two main local centres, free zone seats and the enforcement of awards.

Reviewed by Mohamed Noureldin, Founder, Managing Partner & Senior Legal Consultant

Arbitration in the UAE in 2025: DIAC, arbitrateAD and the International Centres

The United Arab Emirates (UAE) is a settled hub for trade, finance and investment, and the disputes that follow those transactions have grown in both number and complexity. Arbitration has become the usual way to resolve commercial disputes in the region: proceedings stay private, the procedure can be shaped around the case, and awards are enforceable across borders under international conventions. The UAE has kept that environment attractive through steady legal and institutional reform, and 2025 brought a round of clarifications that strengthened the framework further.

Related: See our commercial dispute resolution services for foreign investors in the UAE.

This guide sets out where arbitration in the UAE stands today. It covers the federal statute that governs the process, the two main local institutions — the Dubai International Arbitration Centre (DIAC) and the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC), now arbitrateAD — and the part played by the major international centres.

Related: See our DIFC Courts and DIFC arbitration lawyers for disputes seated in the financial free zone.

The foundation: the UAE Federal Arbitration Law in 2025

Anyone drafting an arbitration clause for a UAE contract is working with three layers of rules at once: the federal statute, the rules of the institution named in the clause, and the law of the chosen seat. Each layer decides something different — the statute sets the limits of court involvement, the institutional rules set the timetable and the cost, and the seat decides which courts supervise and enforce. This section starts with the statute.

Related: See our arbitration lawyers for DIFC-seated disputes and free zone proceedings.

The bedrock of the UAE’s arbitration system is Federal Law No. 6 of 2018 on Arbitration (the Federal Arbitration Law). It largely mirrors the UNCITRAL Model Law and provides a modern, internationally recognised framework for domestic and international arbitrations seated in the UAE. It gives arbitral tribunals wide autonomy and limits the grounds on which a local court may intervene or set an award aside, which supports the finality of the process.

Related: See our court litigation services for disputes that fall outside an arbitration agreement.

The year 2025 brought judicial and procedural clarifications that firm up the UAE’s pro-arbitration position. The most significant is the unification of procedural standards across the Emirates. The Federal and Local Judicial Principles Unification Authority issued Decision No. 1 of 2025, effective August 4, 2025, resolving earlier conflicting rulings on the technical validity of awards. The decision confirms that for an arbitral award to be valid, the arbitrators need only sign the final page. That removes a technical challenge losing parties had commonly used to resist enforcement.

Court decisions have also widened what tribunals can do:

  • Anti-suit injunctions: in a July 2025 decision, the Dubai Court of Cassation confirmed that arbitrators in UAE-seated arbitrations may issue interim anti-suit injunctions. The ruling protects the arbitration by stopping a party from running parallel court proceedings.
  • Enforceability of interim awards: the DIFC Court of Appeal ruled in March 2024 that foreign and domestic interim measures can be enforced as final awards under the DIFC Arbitration Law, bringing the UAE into line with international practice on the swift protection of parties' rights.
  • Recovery of legal costs: in November 2024 the Dubai Court of Cassation reversed an earlier inconsistent position and confirmed that tribunals in ICC arbitrations may award a successful party its legal costs, even where the arbitration agreement says nothing about costs.

Keeping pace with these changes takes specialist knowledge. Businesses drafting enforceable arbitration clauses, or seeking expert legal guidance on arbitration proceedings, are better served by a firm that works with UAE commercial law daily — our strategic guide to arbitration in the UAE sets out the practical questions to settle before a dispute starts.

The local institutions: DIAC and arbitrateAD

Two local institutions anchor arbitration in the UAE: the Dubai International Arbitration Centre (DIAC) and the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC), which has rebranded and modernised as arbitrateAD.

Dubai International Arbitration Centre (DIAC)

DIAC is the main arbitration institution in Dubai and one of the best known in the Middle East. Following Dubai Decree No. 34 of 2021, DIAC absorbed the administrative functions of the former Emirates Maritime Arbitration Centre (EMAC) and the DIFC-LCIA Arbitration Centre, which made it the default institution for Dubai-seated arbitrations.

Key features of the DIAC Rules 2022

The DIAC Rules 2022, in force since March 2022, brought the institution into line with international practice, with the emphasis on efficiency and flexibility. The main features are these.

  • Consolidation and joinder: clear provisions allow several arbitrations to be consolidated and further parties to be joined, which simplifies multi-party disputes arising from related contracts.
  • Expedited procedure: a fast-track route for smaller claims, with a final award within six months. It cuts both time and cost on lower-value disputes.
  • DIFC-LCIA legacy cases: DIAC is mandated to administer every case filed under the former DIFC-LCIA rules, so parties holding legacy clauses keep a working agreement to arbitrate.
  • Technology: DIAC continued its modernisation through 2025, including a partnership with Opus 2 to build a new digital case management platform, making case administration faster and easier to reach.

A record caseload and an active push for diversity in arbitrator appointments both point to an institution that is keeping itself current.

Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC) / arbitrateAD

In Abu Dhabi, ADCCAC was transformed, relaunching as the Abu Dhabi International Arbitration Centre (arbitrateAD) with new rules effective from February 1, 2024. The rebrand is a deliberate move to raise Abu Dhabi’s standing as a global arbitration venue, drawing on the legal environment of the Abu Dhabi Global Market (ADGM).

Highlights of the arbitrateAD Rules 2024

The new rules take up several points of international practice.

  • Default seat: the rules name the ADGM as the default seat of arbitration, which gives parties the certainty of a common law jurisdiction.
  • Third-party funding (TPF): express provisions address TPF, allowing more flexibility in how complex disputes are funded.
  • Digital technology: the rules allow virtual hearings and electronic submissions, in step with the UAE’s wider digital transformation goals.
  • Enforcement: enforcing an arbitrateAD award has been simplified, helped by a Memorandum of Understanding (MoU) signed in January 2025 between the ADGM and Dubai Courts on the reciprocal enforcement of judgments and awards across the two Emirates.

For professional legal guidance, see our Arbitration practice, our arbitration services, our contract drafting and agreements work, and our legal consultation services in Dubai.

Between arbitrateAD and the established DIAC, businesses now have two competitive and modern local options, each with advantages tied to its jurisdiction — Dubai on one side, Abu Dhabi and the ADGM on the other.

The global dimension: international arbitration centres in the UAE

DIAC and arbitrateAD lead locally, but the UAE’s position as a business hub also makes it a preferred seat for arbitrations administered by the major international centres, above all the International Chamber of Commerce (ICC) and the London Court of International Arbitration (LCIA).

The role of the ICC and the LCIA

The rules of the ICC, specifically the ICC Rules of Arbitration 2021, are frequently written into contracts governing UAE transactions. The ICC has a strong presence here, with a case administration office hosted in the Abu Dhabi Global Market (ADGM). Parties can therefore use a globally recognised set of rules while taking the ADGM common law jurisdiction as the seat.

The LCIA mattered historically through its association with the DIFC-LCIA. Although the DIFC-LCIA was abolished in 2021, the LCIA Rules remain a popular choice, and Dubai Decree No. 34 of 2021 means legacy DIFC-LCIA clauses are now administered by DIAC. The transition is smooth and the parties' original intention to arbitrate is preserved.

Choosing an international centre, often together with a seat in one of the UAE's financial free zones — the DIFC (Dubai International Financial Centre) or the ADGM — carries distinct consequences.

  • Governing law: a DIFC or ADGM seat brings common law based on English law principles; an onshore UAE seat brings civil law under the Federal Arbitration Law.
  • Language: in the DIFC and the ADGM, English is the primary language of the courts and the proceedings. Onshore, Arabic is the official language, although proceedings can still be held in English.
  • Enforcement: a free zone seat gives direct access to the DIFC or ADGM courts for supervision and enforcement, with simplified reciprocal enforcement onshore, such as under the 2025 MoU between the ADGM and Dubai Courts. An onshore seat is enforced through the onshore Federal Courts.
  • Confidentiality: a high degree of confidentiality is maintained either way.

Being able to pick a common law seat in the DIFC or the ADGM while trading in the UAE is a strong draw for international investors, because it offers a familiar and predictable legal environment for resolving disputes.

Enforcement of arbitral awards: the New York Convention

The real test of any arbitration system is whether its awards can be enforced. The UAE is a signatory to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention). That matters, because it obliges UAE courts to recognise and enforce foreign arbitral awards, subject only to a short list of grounds for refusal.

The UAE Federal Arbitration Law simplifies enforcement further for both domestic and foreign awards. The pro-arbitration position of the courts, shown again in the 2025 decisions, means challenges built on minor procedural technicalities are increasingly rejected. That judicial support is the single most important factor behind the UAE’s rise as a global arbitration hub.

Conclusion: a mature and competitive framework

Arbitration in the UAE in 2025 is marked by maturity, reform and a clear judicial commitment to the arbitral process. From the Federal Arbitration Law to the institutional strength of DIAC and the newly established arbitrateAD, the country offers a broad and competitive set of options for resolving complex commercial disputes.

Three points matter most for businesses operating in or with the UAE:

  1. Legal certainty: the 2025 updates, in particular the unification of procedural standards and the confirmation of tribunals' powers such as anti-suit injunctions, make outcomes more predictable.
  2. Institutional choice: parties can choose between the Dubai-centred DIAC, with its 2022 Rules, and the Abu Dhabi-based arbitrateAD, with its ADGM-focused and TPF-friendly 2024 Rules.
  3. Global integration: the DIFC and the ADGM are available as common law seats, and the UAE’s adherence to the New York Convention means awards hold up and can be enforced internationally.

For companies working through contract drafting, dispute resolution strategy and the enforcement of awards, specialist counsel is worth having early. A specialised law firm can advise on the right institution, the best seat and the procedural approach most likely to protect your commercial interests.

To keep your contracts sound and your disputes properly handled, secure arbitration services in Dubai from a trusted legal partner and read our strategic guide to arbitration in the UAE.

Related Services: See our international arbitration services and our international arbitration lawyers for practical support in this area.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Readers should seek professional legal advice tailored to their specific circumstances before making any decisions or taking any action based on the content of this article.

Nour Attorneys Team

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