The DIFC Arbitration Law (DIFC Law No. 1 of 2008) has provided the legislative framework for DIFC-seated arbitrations for the past 18 years. When introduced in 2008, the Law substantially adopted the UNCITRAL Model Law on International Commercial Arbitration (1985), incorporating the amendments adopted in 2006, and was intended to align the DIFC with internationally recognised arbitration standards.
Arbitral practice has, however, developed considerably since then. Against this background, the Dubai International Financial Centre Authority (“DIFCA”) published Consultation Paper No. 2 of 2026, proposing the most substantial update to the DIFC Arbitration Law since its introduction. The consultation period closed on 10 July 2026, and the Proposed Amendments remain in draft form pending consideration of the feedback received and formal enactment.
In developing the proposals, DIFCA conducted a comparative review of the rules of leading arbitral institutions, including the LCIA, ICC and DIAC, and the arbitration legislation of England & Wales, Australia, Singapore and Hong Kong. The UAE Federal Arbitration Law and the ADGM Arbitration Regulations 2015 were also considered.
The proposed reforms cover substantial ground, including expanded tribunal powers, joinder and consolidation, summary determination, emergency arbitration, interim measures, third-party funding, confidentiality and challenges to awards. A new statutory framework for mediation is also proposed.
Several of the amendments are particularly noteworthy from a practical perspective.
Expanded Tribunal Powers
A central feature of the reforms is the express expansion and clarification of the procedural powers available to arbitral tribunals.
The Proposed Amendments would expressly address powers relating to security for costs, interim measures, peremptory orders and provisional awards.
Placing these powers expressly within the legislation would give DIFC-seated tribunals a clearer statutory basis for managing proceedings and responding to procedural issues that may otherwise increase time and costs.
Joinder and Consolidation
The Proposed Amendments also address the procedural complexities that arise in multi-party and multi-contract disputes.
The new provisions would provide a statutory framework for joinder and consolidation, allowing related parties or proceedings to be dealt with together where the applicable requirements are satisfied.
Summary Determination
One of the significant changes is the introduction of an express power of summary determination.
The proposed framework would allow a tribunal to determine a claim, defence or issue without proceeding through the entire arbitral process where a party has no real prospect of succeeding, subject to the parties having a reasonable opportunity to make representations.
This could provide tribunals with an effective mechanism for disposing of unmeritorious issues at an earlier stage and reducing unnecessary cost and delay.
Emergency Arbitration and Interim Measures
The Proposed Amendments expressly recognise Emergency Arbitrators where the arbitration rules selected by the parties provide for their appointment, giving emergency arbitration a clearer statutory foundation within the DIFC framework.
The reforms also clarify the DIFC Court’s ability to grant interim measures in support of arbitral proceedings, including where the seat of arbitration is outside the DIFC.
This could be particularly useful where urgent court assistance is required to preserve assets, evidence or the status quo pending determination by the tribunal.
Greater Flexibility in Arbitral Awards
The reforms would also clarify the different forms in which tribunals may determine issues during the course of proceedings.
The draft contemplates provisional awards and expressly recognise the ability of tribunals to issue awards on different issues at different stages of an arbitration. The proposed definition of an “Award” would also extend to interim, partial, summary and provisional awards.
These amendments should provide greater certainty regarding a tribunal’s ability to resolve discrete aspects of a dispute without waiting until the conclusion of the entire arbitration.
A 30-Day Period for Challenging Awards
The Proposed Amendments would reduce the existing three-month period to 30 days from receipt of the award.
For successful parties, the shorter period may provide greater finality at an earlier stage. For parties considering a challenge, however, it would require potential grounds for setting aside an award to be assessed very quickly following receipt.
Governing Law of the Arbitration Agreement
The reforms also seek to clarify an issue that has received considerable attention internationally: which law governs the arbitration agreement where the parties have not expressly made that choice.
Under the proposed framework, the governing law of the underlying contract would not, without more, amount to an express choice of law for the arbitration agreement.
Third-Party Funding
The Proposed Amendments would also place third-party funding on a clearer statutory footing and introduce disclosure requirements concerning the existence of funding arrangements.
This reflects the increasing use of third-party funding in international arbitration while providing greater transparency, particularly where the involvement of a funder may raise potential conflicts of interest or become relevant to questions of costs.
Confidentiality
The existing confidentiality framework would also be revised.
The Proposed Amendments introduce greater flexibility regarding circumstances in which information relating to an arbitration may be disclosed, recognising that confidentiality may need to give way where disclosure is required by law, regulation or in connection with related legal proceedings.
A Statutory Framework for Mediation
The reforms extend beyond arbitration. A new Part 5 is proposed to establish a statutory framework for mediation, with the legislation proposed to become the Arbitration and Mediation Law, DIFC Law No. 1 of 2026.
DIFCA has, however, specifically invited views on whether the mediation provisions should remain within the same legislation or instead be enacted through a separate law.
The proposal reflects the increasingly important role of mediation alongside arbitration in the resolution of international commercial disputes.
Looking Ahead
The Proposed Amendments represent a significant modernisation of a framework that has served the DIFC since 2008. While many of the mechanisms will already be familiar from leading institutional arbitration rules, placing them expressly within the DIFC’s statutory framework would provide greater legislative certainty and a broader procedural toolkit for tribunals and parties.
Certain changes are likely to have an immediate practical impact. The introduction of summary determination could allow weak claims and defences to be addressed at an earlier stage; the clarification of court assistance for interim relief could strengthen the framework for urgent measures; and the proposed 30-day period for challenging awards would require parties to act considerably faster once an award is received.
More broadly, the reforms point towards a DIFC arbitration framework characterised by stronger tribunal powers, greater procedural flexibility and increased emphasis on efficient case management.
The Proposed Amendments remain in draft form and should not be relied upon until formally enacted. The final legislation may therefore differ following DIFCA’s consideration of the consultation feedback.
If enacted substantially in their current form, however, the reforms would mark an important evolution of the DIFC arbitration framework and bring its statutory architecture more closely into line with contemporary international arbitral practice.
For practical guidance and deeper insights into the proposed 2026 DIFC Arbitration reforms and their implications for arbitral proceedings,connect with Merline Dsouza at merline@alsuwaidi.ae