Using DIFC Seated DIAC Arbitration for Cross-Border Disputes Involving African Parties: Recent Developments

Africa Focus

Using DIFC Seated DIAC Arbitration for Cross-Border Disputes Involving African Parties: Recent Developments

Michael Eybers
Associate,
Corporate Commercial

Emma Rubidge
Paralegal,
Corporate Commercial

Dubai is a leading regional hub for resolving disputes involving African counterparties. This is driven by its modern arbitration infrastructure, common-law free zone courts, and geographical position between Africa, the Middle East, and Asia. The Dubai International Arbitration Centre (“DIAC”) now serves as the principal arbitral institution in the Emirate. Under the DIAC Arbitration Rules 2022 (the “Rules”), where no seat (and no venue) is agreed, the arbitration is initially seated in the Dubai International Financial Centre (“DIFC”), providing an English-language, common-law judicial environment that enhances neutrality and enforceability for cross-border disputes.

Dubai Decree No. 34 of 2021 (Decree No. (34) of 2021 Concerning the Dubai International Arbitration Centre) (the “Decree”) abolished the DIFC-LCIA Arbitration Centre and transferred its cases and operations to DIAC (the Decree, Art (4) – (8)). The Decree confirmed that existing clauses referring to DIFC-LCIA remain valid, with DIAC assuming administration unless the parties expressly agree otherwise (the Decree, Article (6)). Whilst there have been challenges to this assumed administration in foreign jurisdictions (USA and Singapore for example), in practice, in the UAE, legacy clauses naming DIFC-LCIA are treated as references to DIAC arbitration with a DIFC seat.

To meet the demands of international users, the Rules introduced a suite of reforms that align with global best practice. Article 20.1 establishes the DIFC as the default seat where none is agreed, with provisions for virtual hearings and electronic awards. Articles 3-5 enable electronic filing and communications, reducing administrative delays. Articles 8 and 9 provide for joinder and consolidation, essential for multiparty disputes that are common in African infrastructure and energy projects. Article 22 requires disclosure of third-party funding, promoting transparency in costs and potential conflicts. Appendix II introduces emergency arbitrators, a useful mechanism for preserving assets or evidence in cross-border disputes. These features preserve much of the flexibility familiar to parties accustomed to London-seated arbitration, while embedding digitalisation and procedural efficiency.

DIFC-DIAC arbitration functions not only as a neutral seat but as a practical enforcement hub linking African and Gulf commercial activity.

Where proceedings are seated in the DIFC, the governing statute is the DIFC Arbitration Law (DIFC Law No. 1 of 2008, as amended). This law is based on the UNCITRAL Model Law and provides a robust framework: Article 12 governs validity of arbitration agreements; Article 24 enables tribunals to grant interim measures and preliminary orders; Article 41 restricts the grounds for setting aside awards; and Articles 4244 provide for recognition and enforcement. This Model Law framework ensures alignment with international standards, reinforces party autonomy, and limits judicial interference. Awards are supervised by the DIFC Courts, which are independent, English-language, and internationally recognised. Another key feature is the interaction between the DIFC Courts and the Dubai onshore courts under the Judicial Authority Law (Law No. (12) of 2004 Concerning the Judicial Authorities at the Dubia Financial Centre). Article 7 of this law establishes a system of mutual recognition, allowing DIFC awards to be converted for execution in onshore Dubai. In practice, this mechanism enables parties to enforce DIFC awards across the UAE, a significant safeguard where counterparties hold assets outside the DIFC.

For African investors and counterparties, the enforceability of DIFC-seated awards is a decisive advantage. The UAE acceded to the New York Convention 1958 by Federal Decree No. 43 of 2006, committing its courts to recognise and enforce foreign arbitral awards subject to limited defences. Most African jurisdictions are also Convention signatories, meaning awards rendered in Dubai are portable across much of the continent. In sectors such as mining, infrastructure, energy, and commodities - where counterparties and assets are often spread across multiple jurisdictions - this portability is critical. DIFC-DIAC arbitration thus functions not only as a neutral seat but as a practical enforcement hub linking African and Gulf commercial activity. The use of DIFC-seated DIAC arbitration remains one of the most attractive mechanisms for resolving international disputes involving African counterparties. Its strengths lie in a Model Law-based statutory framework, efficient common-law based courts, modernised rules, and robust enforceability under the New York Convention. With clear drafting and careful updates to legacy DIFC-LCIA clauses, African and Gulf parties alike can rely on DIFC-DIAC arbitration as a predictable, internationally recognised forum for resolving cross-border disputes.

For further information,
please contact Paul Taylor.

^{Published in}^{October 2025}