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Advantages of Arbitration at DIAC


For an arbitrator goes by the equity of a case, a judge by the law, and arbitration was invented with the express purpose of securing full power for equity.” - Aristotle

Through his quote, Aristotle has clearly defined the paramount role that arbitration plays in seeking justice. As a prevailing authority, arbitration fills the gaps where litigation falters, especially where time and money are concerned.

With the soaring global cost of civil litigation, more and more businesses are opting for a varied range of dispute resolution strategies. As a cost effective and expeditious approach guaranteed by law, arbitration has become a popular dispute resolution alternative for conflicting parties.

Parties have a greater degree of freedom over the proceedings and unlike judges; arbitrators come from a variety of professions and trades. A far cry from the harsh publicity surrounding court hearings, arbitral proceedings allows parties to resolve their disputes privately and in confidence.

Once an arbitration proceeding is complete and an award has been issued, that is the end of the matter. Parties do not have to suffer the repercussions of further appeal proceedings based on the merit of the award.

Listed below are some of the many advantages of arbitration and how one can benefit from arbitrating at DIAC.

Final & binding effect of arbitration award


Arbitration awards are binding. Once the final award is rendered, the procedure is complete and parties are obliged to comply.

Arbitral awards made under DIAC have the same effect as final and conclusive judgments awarded by courts under the law. As a result of the UAE’s active participation in several regional and bilateral treaties, its arbitral awards are enforceable in many neighbouring Arab states, in addition to other countries worldwide.

The UAE is a member to the New York Convention on the Recognition and Enforcement of foreign Arbitral awards of 1958. This move will widen the international standing of awards made under the DCCI’s Rules of Commercial Conciliation and Arbitration.



Arbitration proceedings are neutral. In litigation, parties are confronted by a lack of choice and most of the time, are forced to use the national courts at hand to settle their disputes. Furthermore, due to the absence of a truly international court for the resolution of transnational commercial disputes, cases are usually instituted in the courts of the state where either the claimant or the defendant resides. On the other hand, arbitration offers the possibility of a completely neutral panel of adjudicators. This, in turn, eliminates the possibility of actual or perceived bias on the part of the court.

Neutrality is derived from the flexibility surrounding the conduct of arbitration proceedings. For example, parties have a right to choose, where they would like to conduct their arbitration proceedings, in what language and by arbitrators of which nationality. This flexibility generally ensures a neutral structure for arbitration proceedings, whereby neither party has an undue advantage over the other.

Neutrality at DIAC is further emphasized by the fact that it is an independent non-profit organization committed to providing dispute resolution services. It is separate from any control by governmental or private bodies, thus further guaranteeing complete neutrality to all parties in the arbitral proceedings.



Arbitration is faster than litigation in court. Overburdened and congested national courts unnecessarily elongate the length of time required to resolve a dispute. Once a party has entered the litigation process they will find themselves involved in unavoidable time-consuming stages starting from the first Court of Instance, through to the Court of Cassation in order to come to a final judgment.

Parties in commercial disputes can not afford to wait; they will need to resolve their disputes in the fastest manner they find suitable. In arbitration, parties can control the process. Results can be produced within a time frame that has been set by the parties themselves.

At DIAC, parties are encouraged to adopt an expeditious approach. Within DIAC, an arbitral award is made within 6 months from the date the arbitrator receives the file, unless a longer period is stipulated by the parties or the arbitrators or otherwise granted to them under the Rules.



Arbitration guarantees privacy to the extent parties wish it to be. Parties can avoid public exposure of sensitive business and financial information and negative publicity often associated with litigation. This implies that the parties are able to then continue to have a relationship - even a working business relationship - after the dispute has been resolved.

Hearings at the DIAC are held in confidence unless the parties otherwise agree. Neither DIAC employees nor the arbitrators to the case are permitted to disclose the details of an arbitration case.



Arbitration is inexpensive in comparison to litigation. Even with complex international cases, it is more cost-effective to arbitrate rather than litigate. Through its informal approach to resolving a dispute, arbitration cuts out the need for numerous litigation stages and formalities, which cuts down on unnecessary expenses.

At DIAC, we offer very competitive rates (See price list under Rules & Procedures). Our charges ensure parties will receive a high quality of service at suitable prices.

Specialized competence of arbitrators


Arbitration ensures quality. In judicial procedures, judges may not have any special expertise about the matters in dispute; hence there is a further need to appoint an expert on the matter. Arbitration can avoid this need, by ensuring that the arbitrators chosen are experienced professionals in their line of work.

To meet the ever-changing needs of the regional and international business circles, DIAC regularly updates its lists of highly-skilled national and international arbitrators experienced in different fields of trade and business. Arbitrators and experts are carefully selected before they are appointed to conduct a case. Parties choosing to arbitrate under the DIAC rules may verify the experience and educational background of the proposed arbitrator at the start of a case.

Autonomy of parties to control process


Arbitration gives parties the freedom to conduct the proceedings as they desire. Unlike litigation, where the parties’ movements are restricted in accordance with the wishes of the court and judge, arbitration is as flexible as the parties wish it to be. For instance, parties are entitled to agree on main procedural matters, whereby they can decide as to whether to conduct arbitration by documentation or by holding hearings. Parties may also decide on additional issues such as the applicable law, venue, number of arbitrators and preferred professional background.

DIAC extends its services and facilities to all parties wishing to arbitrate under the DIAC Rules. This assistance includes providing parties with lists of highly skilled arbitrators and experts from different trades and businesses and offering fully equipped hearing rooms to conduct arbitral proceedings at reasonable rates.

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