The Dubai International Financial Centre Authority (DIFCA) has launched a consultation on proposed amendments to the Arbitration Law (DIFC Law No. 1/2008) The proposed amendments will be enacted through the Arbitration and Mediation Law, DIFC Law No. 1/2026
The proposed amendments will be enacted through the Arbitration and Mediation Law, DIFC Law No. 1.2026.
The deadline for providing comments on the proposals in the Consultation Paper No. 2 is 6 July 2026. Comments should be sent to r e-mailed to: consultation@difc.ae
DIFC Law No. 1/2008 was drafted in 2008 and has not been significantly amended since then.
The proposals have been drawn up after comparing the DIFC law with current arbitration rules from leading arbitral institutions such as the LCIA, the ICC and DIAC; and the arbitration laws of other leading common law jurisdictions, such as England & Wales, Australia, Singapore, and Hong Kong. Consideration has also been given to the Federal Law No. 6/2018 and the ADGM Arbitration Regulations 2015.
Since its enactment in 2008, the DIFC Arbitration Law has provided a robust legal foundation for arbitration. However, rapid developments in global arbitration practices necessitated updates to align with international standards. The proposals draw on comparative studies of leading institutions such as the London Court of International Arbitration, the International Chamber of Commerce, and the Dubai International Arbitration Centre, as well as legislation in England and Wales, Singapore, Hong Kong, and Australia.
Changes include to the rules on written communication (currently under Article 8 of DIFC Law No. 1/2008) to take into account when electronic communication is used. There is also a new provision proposed which would give the DIFC Court the power to extend the time for beginning arbitral proceedings. It is also clarified that an arbitration agreement would not be regarded as invalid, non-existent or ineffective solely because that other agreement it was part of was invalid, or did not come into existence or had become ineffective.
A new subprovision also states an Arbitration Agreement giving any party a unilateral or asymmetrical right to refer a dispute either to an Arbitral Tribunal or a Court does not contravene the law and is not rendered invalid for that reason.
An additional provision clarifying the law applicable to an arbitration agreement has also been put forward as has additional detail on confidentiality and interim measures which can be taken by the court in an arbitration context.
There are also additional provisions on the arbitral tribunal's ability to rule on security of costs,the disclosure of third party funding agreements, as well as on consolidation procedures and joinder of additional parities. Awards on a summary basis and provisional awards are also covered in new provisions, as are peremptory orders and the appointment or emergency arbitrators.
Arbitral tribunals would also be able to make different awards at different times on different aspects of the dispute.
The proposal includes adding a new part to the law dealing specifically with mediation - which provides significant detail on areas including the DIFC's Mediation Centre, the conduct of mediation, admissability of evidence in mediation, the enforceable nature of settlement agreements, as well as what happents when it is then decided to resort to arbitration or litigation.