The Riffle
The Dubai International Financial Centre Authority (DIFCA) has launched a public consultation on significant amendments to the DIFC Arbitration Law (DIFC Law No. 1 of 2008). The proposed reforms would replace the current framework with a new Arbitration and Mediation Law (DIFC Law No. 1 of 2026), reflecting nearly two decades of developments in international dispute resolution.
A key feature of the proposal is the introduction of a dedicated mediation framework, signalling a broader shift towards integrated dispute resolution mechanisms while reinforcing the DIFC’s position as a leading arbitration hub.
Key Highlights
1. Arbitration law to evolve into an Arbitration and Mediation Law
The most significant structural change is the proposed transformation of the current standalone arbitration legislation into a combined Arbitration and Mediation Law.
A new Part 5 would introduce a formal mediation framework within the DIFC legal system, expanding the dispute resolution options available to businesses and practitioners.
2. Modernisation of an 18-year-old framework
The existing Arbitration Law was introduced in 2008 and was largely based on the UNCITRAL Model Law.
DIFCA considers the update necessary to reflect changes in international arbitration practice, technological developments and evolving procedural standards that have emerged over the last 18 years.
3. Benchmarking against leading arbitration jurisdictions
In developing the proposed amendments, DIFCA reviewed arbitration laws and institutional rules from:
England & Wales
Singapore
Hong Kong
Australia
UAE Federal Arbitration Law
ADGM Arbitration Regulations
The review also considered the latest rules of leading arbitral institutions, including the LCIA, ICC and DIAC.
4. Consultation seeks feedback on mediation framework
Stakeholders are specifically invited to comment on:
The proposed mediation provisions themselves; and
Whether mediation should form part of the Arbitration Law or be introduced through separate standalone legislation.
Why It Matters
The proposed reforms demonstrate DIFC’s continued commitment to maintaining a modern and internationally competitive dispute resolution framework.
For businesses, investors, legal practitioners and arbitrators, the introduction of a mediation regime could provide greater flexibility in resolving disputes while preserving access to arbitration where necessary.
The consultation also reflects a broader trend among leading financial centres towards integrating multiple dispute resolution mechanisms within a single legislative framework.
The Riffle Takeaway
The DIFC is proposing one of the most significant updates to its dispute resolution framework since the Arbitration Law was introduced in 2008. By combining arbitration and mediation within a single legislative regime and aligning its framework with leading international standards, the DIFC is seeking to strengthen its attractiveness as a preferred seat for dispute resolution in the region and beyond.
