What this guide covers
Selecting the right arbitrator is one of the most consequential decisions in any DIAC arbitration. The 2022 DIAC Rules introduce a streamlined appointment process, clearer challenge grounds, and enhanced disclosure obligations — all aimed at constituting a tribunal that parties can trust.
Overview of the DIAC appointment framework
The DIAC 2022 Rules (Arts 11–17) govern the constitution of the arbitral tribunal. The default is a sole arbitrator unless the parties agree to three or the DIAC Court determines that three is appropriate given the complexity or amount in dispute (Art 12.2). Where parties have not agreed on the number, DIAC will decide — and for claims above AED 1,000,000 three arbitrators is the norm in practice.
All prospective arbitrators must be and remain impartial and independent throughout the proceedings (Art 14). Before appointment or confirmation, every candidate must sign a declaration of impartiality and independence and disclose any circumstances likely to give rise to justifiable doubts. Disclosure obligations are continuing — new facts must be disclosed immediately (Art 14.3).
How parties nominate arbitrators
In a three-member tribunal, each party nominates one arbitrator (Arts 11.2–11.3). The two party-nominated arbitrators then jointly nominate the presiding arbitrator within 15 days of confirmation of the second arbitrator (Art 11.4). If they fail to agree within 15 days, DIAC appoints the presiding arbitrator (Art 11.5).
For a sole arbitrator, both parties must agree on the nominee within 15 days of the respondent receiving the notice of arbitration (Art 11.1). If they cannot agree, DIAC appoints (Art 11.1(b)). DIAC uses its panel list as a starting point but is not restricted to panel members — parties frequently propose candidates not on the DIAC panel.
Nominated arbitrators require confirmation by the DIAC Court. Confirmation is not automatic: DIAC will review the candidate's independence declaration and disclosed circumstances. DIAC may decline to confirm if the disclosed circumstances raise justifiable doubts (Art 14.4). This is a key difference from purely party-controlled institutions.
Challenging an arbitrator
A party wishing to challenge an arbitrator must submit a written statement to the Registrar setting out the grounds for challenge within 15 days of becoming aware of the constitution of the tribunal or the circumstances giving rise to the challenge — whichever is later (Art 16.1). The 15-day limit is strict and failure to challenge promptly can amount to waiver.
Grounds for challenge under Art 16.1 are: justifiable doubts as to impartiality or independence; lack of the qualifications agreed by the parties; or incapacity. These mirror the UNCITRAL Model Law Art 12(2) standard. The challenged arbitrator and other tribunal members may provide comments. DIAC Court decides.
If DIAC Court upholds the challenge, a replacement arbitrator is appointed using the same procedure as the original appointment (Art 17). Where a replacement is necessary, the new tribunal decides whether to repeat any part of the proceedings — a practical issue that can significantly increase costs and delay.
Replacement of arbitrators
An arbitrator must be replaced if challenged successfully, or if they become de jure or de facto unable to perform their functions, or if they fail to act without undue delay (Art 17). A party may also request replacement on these grounds. DIAC Court decides whether the ground for replacement is made out.
Death of an arbitrator triggers automatic replacement under Art 17.4. Resignation during proceedings requires DIAC consent; DIAC may deem the resignation unjustified and issue an award of costs against the resigning arbitrator under the 2022 Rules.
Practical checklist
- Party nomination: submit nominee's name, curriculum vitae, and contact details with the Notice of Arbitration or Answer
- Timeline: agree on three-member tribunal within 15 days; co-arbitrators nominate presiding arbitrator within a further 15 days
- Disclosure review: read the nominee's full disclosure statement before confirming — grounds for challenge can be waived if known and not raised
- Challenge deadline: 15 days from knowledge of grounds — diarise immediately
- Panel search: DIAC maintains an online arbitrator search tool; filter by sector expertise, language, and nationality for neutrality
- Costs: arbitrator fees under DIAC 2022 Schedule are based on amount in dispute — model fees for a USD 5M claim ≈ USD 100,000–180,000 for a three-member tribunal
What we'd typically advise
In contested appointments, parties should analyse the opposing party's nominee's disclosed relationships carefully before the 15-day window closes. Grounds that are known but not raised promptly are waived. We also advise clients to consider arbitrator nationality carefully in UAE-seated disputes — a tribunal where no arbitrator shares nationality with either party is generally seen as most neutral. For specialised disputes (construction, energy, financial services), sector expertise should outweigh geographic neutrality concerns.
Frequently asked questions
Does DIAC have to appoint from its panel list?
No. DIAC may appoint arbitrators who are not on its panel, particularly for specialised disputes requiring rare expertise. The panel list is a starting point, not a mandatory source.
Can a party-nominated arbitrator be challenged by the nominating party?
Yes, but only if the challenge grounds arise after nomination. A party cannot challenge its own nominee simply because the arbitration is going badly — it must identify specific, objective grounds for justifiable doubt.
What happens if a challenged arbitrator refuses to resign?
The DIAC Court decides the challenge. If upheld, the arbitrator is replaced regardless of their refusal. The DIAC Court's decision on challenges is final and not subject to appeal within the institutional framework.
How are arbitrator fees structured under DIAC 2022 Rules?
Arbitrator fees are set by the DIAC Court based on the amount in dispute, using a sliding-scale schedule annexed to the 2022 Rules. For a USD 3M dispute: sole arbitrator approximately USD 40,000–80,000; three-member tribunal approximately USD 120,000–240,000 total. The DIAC Court fixes final fees at the end of proceedings.
Can parties agree on an arbitrator before filing a Notice of Arbitration?
Yes — parties can pre-agree on the arbitrator in the arbitration clause itself (by name or qualification) or in a separate agreement before the dispute arises. Pre-agreed appointments still require DIAC Court confirmation under Art 14.
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Published 20 May 2026. General information only — not legal advice. Contact us for matter-specific advice.