Alsuwaidi & Company

ArbitrateAD and the UAE’s Arbitration Future: Key Rules and Takeaways

The launch of ArbitrateAD represents a turning point for arbitration in Abu Dhabi and, by extension, the wider UAE. Effective from 1 February 2024, the ArbitrateAD Arbitration Rules replace the Abu Dhabi Commercial Conciliation and Arbitration Center (ADCCAC).

This shift positions Abu Dhabi alongside the world’s leading arbitral centers, offering businesses a forum that is both efficient and regionally and globally recognizable with an aim to make Abu Dhabi a key international arbitration hub.

A key provision is Article 53(2), which ensures continuity by treating existing ADCCAC references as ArbitrateAD clauses unless parties decide otherwise.

These reforms are more than cosmetic. They bring faster timelines, stronger confidentiality protections, and an institutional framework aligned with global best practice. For businesses and practitioners, the question is clear: how should these new rules reshape the way contracts are drafted and disputes are planned for in Abu Dhabi?

The Role of the ArbitrateAD Court

A cornerstone of the reforms is the establishment of an independent Court of Arbitration (Article 3) which oversees key procedural aspects of arbitration. Its powers include:

  • Appointment of arbitrators where parties cannot agree.
  • Confirmation and challenge of arbitrator nominations.
  • Scrutiny of awards before they are issued, similar to ICC practice and DIAC, enhancing enforceability.
  • Consolidation of related arbitrations and coordination of multi-party disputes. It is further supported by a dedicated Secretariat — comprising the Executive Director and the Case Management Office.

Efficiency Mechanisms: Predictability in Practice

The Rules set strict timelines designed to promote speed and certainty:

  • Respondents must file an Answer within 21 days of receiving the Request for Arbitration, compared with 30 days under DIAC
  • Mandatory case management conference within 21 days of file transmission
  • Encourages early timetable setting, settlement, and efficiency
  • Emergency arbitration permitted pre-tribunal

Article 21: Applicable Law

Article 21 of the Rules affirms that tribunals must apply the substantive law chosen by the parties. Where no choice is made, tribunals may apply the law they consider most appropriate. This provision mirrors international standards and provides flexibility, while giving assurance that governing law clauses will be respected.

Expedited Proceedings

ArbitrateAD offers an expedited procedure for claims up to AED 9 million (about USD 2.45 million). This is a higher threshold than DIAC’s AED 1 million cap.

Expedited arbitration typically involves: can be handled by sole arbitrator, shorter timelines for submissions, tribunal may decide case on documents alone and a faster award process. 

Businesses should note that expedited procedures do not automatically apply to contracts with legacy ADCCAC clauses unless expressly agreed.

Abu Dhabi’s Position in the Global Arbitration Market

The introduction of ArbitrateAD creates a two-hub arbitration ecosystem in the UAE. With DIAC in Dubai and ArbitrateAD in Abu Dhabi, parties now have a choice of modern, well-resourced institutions. This diversification strengthens the UAE’s overall profile as a global arbitration seat.

ArbitrateAD brings unique advantages: ADGM as default seat, strong government support, and features such as award scrutiny that align it more closely with ICC standards. While it lacks the track record of ICC or DIAC, its institutional framework positions it as a credible option for both regional and international disputes.

Comparative Overview of ArbitrateAD, DIAC, and ICC Arbitration Rules

Feature

ArbitrateAD Rules (2024)

DIAC Rules (2022)

ICC Rules (2021)

Default Seat

ADGM by default; Tribunal may decide otherwise (Art. 22)

DIFC initially; tribunal can change (Art. 20)

ICC Court fixes if not agreed (Art. 18)

Time to File Response

21 days (Art. 7)

30 days (Art. 5)

30 days (Art. 5)

Case Management Conf.

Within 21 days of file (Art. 24)

Within 15 days of file to approach parties to set meeting (Art. 23)

At ToR stage or ASAP (Art. 24)

Expedited Threshold

≤ AED 9M; award in 4 months (Art. 36)

≤ AED 1M; award in 3 months (Art. 32)

≤ USD 3M; expedited procedure (App. VI)

Award Scrutiny

Court scrutiny before signature (Art. 40)

Registrar review for form (Art. 34.5)

Court scrutiny; can flag substance (Art. 34)

Terms of Reference

Optional; tribunal discretion (Art. 24)

Not provided in Rules

Mandatory; signed within 30 days of file (Art. 23)

Amendments to Claims

Tribunal approval needed; ToR adds restrictions (Art. 30)

Not expressly detailed; tribunal manages

Tribunal approval needed after ToR (Art. 23.4)

Applicable Law

Tribunal selects; trade usages; no ex aequo et bono unless agreed (Art. 21)

Tribunal selects; trade usages; similar (Art. 30)

Tribunal selects; trade usages; ex aequo et bono only if agreed (Art. 21)

Early Dismissal

Allowed; decision in 30 days (+15) (Art. 45)

Not expressly provided

Not expressly provided

Corrections / Interpretations

14 days to request; tribunal acts in 14 days (Art. 42)

30-day period to request

30 days to request; tribunal acts promptly (Art. 36)

Waiver of Appeal

Express waiver where valid (Art. 41.12)

Binding awards

Deemed waiver where valid (Art. 35.6)

Language

Not preset; CMO sets initially; tribunal decides (Art. 23)

Language of arbitration agreement unless agreed (Art. 21)

Tribunal decides if not agreed (Art. 20)

The new ArbitrateAD Rules introduce modernized features that align Abu Dhabi with global arbitral standards. They provide language flexibility with no automatic default to Arabic (parties choose, or the Tribunal/Case Management Office decides), and embrace digital hearings through videoconference and modern technologies, in line with ICC, LCIA, and DIAC practice. They expressly recognise third party funding, mirroring institutions such as SCCA, DIAC, SIAC, ICC, and HKIAC, thereby expanding access to arbitration for under-resourced claimants, ensuring transparency, and supporting the financial viability of claims. In addition, parties are encouraged to use ArbitrateAD’s digital filing system for submissions, reinforcing efficiency and secure case management. Collectively, these reforms establish a forward-looking, cost-effective, and credible arbitral framework for Abu Dhabi.

Should you have any queries or require further insights on this article, please feel free to contact the legal contributors and firm’s experts Mohammed Alsuwaidi at alsuwaidi@alsuwaidi.ae and Merline Dsouza at merline@alsuwaidi.ae.