The Dubai International Financial Centre (DIFC) today issued consultation papers to seek comment on a new Arbitration Law, which replaces the existing arbitration law. This proposed Law, which contains a significant number of enhancements, is designed to accommodate and facilitate the set-up of the DIFC’s Arbitration Centre.
The proposed changes, drafted in consultation with internationally renowned arbitration practitioners, are aimed at making the Arbitration Law practical and comprehensible to all arbitration practitioners. The proposed arbitration framework, in accordance with international arbitration practices, will make the system simpler, more manageable, and therefore more attractive to the international community.
His Excellency Dr Omar Bin Sulaiman, Governor of the DIFC commented: “As the DIFC continues to be a catalyst for regional economic growth, development and diversification, we are committed to improving and expanding the products and services available in the region. The proposed Arbitration Law will ensure that companies in the region will have an expeditious, cost effective alternative to expensive, time-consuming dispute settlements through the courts.”
One of the main changes to the newly drafted DIFC Arbitration Law is the adoption of the UNCITRAL Model Law, with amendments aimed at improving its provisions. Another important change is specifically set to widen the scope of arbitrations which the law governs, to include all types of arbitrations and parties opting to arbitrate at DIFC.
In drafting the new law, all aspects of legislation necessary to accommodate the unique set-up of the DIFC jurisdiction and legal framework were taken into consideration, as well as the importance of overcoming hurdles presented by the region’s unique market conditions and dynamics.
The proposed DIFC Arbitration Law is being posted on the DIFC web-site on February 17 for a period of 30 days for public consultation.
About the DIFC:
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centres of Hong Kong and London and services a region with the largest untapped emerging market for financial services.
In just three years, over 500 firms have registered at the DIFC. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
