His Highness Sheikh Mohammed bin Rashid Al Maktoum announced on September 18 that the Emirates Maritime Arbitration Centre (EMAC) and the Dubai International Financial Centre Arbitration Institute would be dissolved and their operations and assets merged into the Dubai International Arbitration Centre (DIAC).
DIAC is a non-profit organisation that is separate from the Dubai Chamber and the Dubai Government. It was founded in 1994 and is the Middle East’s largest and oldest arbitration centre.
Decree No. (34) of 2021, referring to the establishment of the DIAC, replaces Decree No. (10) of 2004. (previously the Centre for Commercial Conciliation and Arbitration). As a result, any earlier legislation that conflicts with the new degree’s provisions will be repealed.
The Decree’s main goal is to assist and improve the efficiency of Dubai’s alternative dispute resolution (ADR) sector, as well as to position Dubai as a major worldwide ADR hub, as well as assisting the financial and business community by provided a centralized system.
The following are the key points drawn from Decree No. 34 of 2021:
• Within six months of the Decree’s effective date, DIAC must comply with it;
• New objectives, functions, and an organisational structure have been established;
• The membership base, employees, cash, assets, financial allocations, and ownership of real estate belonging to the two disbanded arbitration centres will all be transferred to DIAC.
• Any current arbitration hearings will not be affected because the Dubai and DIFC Courts will continue to consider claims, applications, and appeals relating to arbitration hearings conducted by tribunals of the two dissolved centres.
The merger will solidify Dubai’s position as a global arbitration hub, according to Dr. Ahmad Saeed Bin Hezeem Al Suwaidi, Vice Chairman of the DIAC Board of Trustees and Senior Partner at BSA Ahmad Bin Hezeem and Associates.
“Merging the EMAC and the DIFC Arbitration Institute with DIAC is a positive and progressive step forward in putting Dubai on the map for local and international arbitrations. Utilizing the history of DIAC, alongside the procedures and diverse nature of all three centers will see processes streamlined, provide a centralized workstream and will certainly see more organisations and individuals choosing Dubai as their seat of arbitration. I am particularly pleased with the decision to include EMAC – given how important maritime is to this region history and future.”
