What this guide covers
The Dubai International Arbitration Centre (DIAC) is a popular venue for arbitration in the UAE, but understanding the associated costs and fees is crucial for parties involved. This article provides a detailed breakdown of DIAC arbitration costs and fees, including a comparison with other major arbitration institutions.
Introduction to DIAC Fees
The DIAC 2022 Rules Appendix on Costs provides a comprehensive outline of the fees and costs associated with arbitration at the DIAC. The registration fee for DIAC arbitration is AED 5,000, which is payable by the claimant at the time of filing the arbitration request.
Administrative fees are calculated based on the amount in dispute and are payable by the parties in accordance with the DIAC fee schedule. The following table outlines the administrative fees for DIAC arbitration:
| Amount in Dispute (AED) | Administrative Fee (AED) |
|---|---|
| Up to 100,000 | 2,000 |
| 100,001 - 500,000 | 5,000 |
| 500,001 - 1,000,000 | 10,000 |
| 1,000,001 - 5,000,000 | 20,000 |
| Above 5,000,000 | 30,000 |
Arbitrator fees can be calculated on an hourly or ad valorem basis, depending on the agreement of the parties. For a sole arbitrator, the hourly fee ranges from AED 1,500 to AED 5,000 per hour, while for a three-member tribunal, the hourly fee ranges from AED 3,000 to AED 10,000 per hour.
Additional Costs
In addition to the registration fee, administrative fees, and arbitrator fees, parties may also incur other costs, such as tribunal secretary costs, hearing room fees, and emergency arbitrator costs. Tribunal secretary costs are typically calculated as a percentage of the administrative fees, while hearing room fees are payable for the use of DIAC's hearing facilities.
Emergency arbitrator costs are payable in accordance with the DIAC fee schedule, which ranges from AED 10,000 to AED 50,000, depending on the complexity of the application. Expedited procedure fees are also payable, which range from AED 5,000 to AED 20,000, depending on the amount in dispute.
The cost allocation principles in DIAC arbitration are based on the principle that 'costs follow the event', meaning that the losing party is typically required to pay the costs of the arbitration. However, the tribunal may also order an equal split of costs in certain circumstances.
Security for costs is also an important consideration in DIAC arbitration, as the tribunal may order a party to provide security for costs if it is satisfied that the other party is unable to pay the costs of the arbitration.
Comparison with Other Institutions
A comparison of DIAC fees with other major arbitration institutions, such as the International Chamber of Commerce (ICC) and the Singapore International Arbitration Centre (SIAC), reveals that DIAC fees are generally lower. The ICC arbitration fees, for example, range from $3,000 to $114,000, depending on the amount in dispute, while SIAC fees range from $2,000 to $50,000.
However, it is worth noting that the costs of arbitration can vary significantly depending on the complexity of the case, the experience of the arbitrators, and the duration of the arbitration. Parties should therefore carefully consider their budget and the potential costs of arbitration before commencing proceedings.
The DIAC 2022 Rules Appendix on Costs provides a detailed outline of the fees and costs associated with arbitration at the DIAC, and parties should carefully review this appendix to understand the potential costs of arbitration. The FDL 6/2018 and the UNCITRAL Model Law also provide guidance on the costs of arbitration, and parties should be aware of these laws and regulations when commencing arbitration proceedings.
Practical checklist
- Determine the amount in dispute to calculate the administrative fees
- Consider the experience and hourly rate of the arbitrators
- Budget for additional costs, such as tribunal secretary costs and hearing room fees
- Understand the cost allocation principles and the potential for security for costs
- Compare DIAC fees with other arbitration institutions, such as ICC and SIAC
- Review the DIAC 2022 Rules Appendix on Costs and the FDL 6/2018
What we'd typically advise
As a UAE law firm, we advise our clients to carefully consider the potential costs of arbitration before commencing proceedings. We recommend that parties budget for all potential costs, including administrative fees, arbitrator fees, and additional costs, such as tribunal secretary costs and hearing room fees.
It is also important for parties to understand the cost allocation principles and the potential for security for costs. We advise our clients to carefully review the DIAC 2022 Rules Appendix on Costs and the FDL 6/2018 to understand the potential costs of arbitration.
In addition, we recommend that parties consider the experience and hourly rate of the arbitrators, as well as the complexity of the case, when determining their budget for arbitration. By carefully considering these factors, parties can ensure that they are prepared for the potential costs of arbitration and can make informed decisions about their dispute resolution strategy.
Frequently asked questions
What is the registration fee for DIAC arbitration?
The registration fee for DIAC arbitration is AED 5,000, which is payable by the claimant at the time of filing the arbitration request. (DIAC 2022 Rules, Article 2)
How are administrative fees calculated in DIAC arbitration?
Administrative fees are calculated based on the amount in dispute and are payable by the parties in accordance with the DIAC fee schedule. (DIAC 2022 Rules Appendix on Costs)
What is the hourly rate for arbitrators in DIAC arbitration?
The hourly rate for arbitrators in DIAC arbitration ranges from AED 1,500 to AED 5,000 per hour for a sole arbitrator, and from AED 3,000 to AED 10,000 per hour for a three-member tribunal. (DIAC 2022 Rules Appendix on Costs)
Can the tribunal order security for costs in DIAC arbitration?
Yes, the tribunal may order a party to provide security for costs if it is satisfied that the other party is unable to pay the costs of the arbitration. (DIAC 2022 Rules, Article 17)
How do DIAC fees compare to other arbitration institutions?
DIAC fees are generally lower than those of other major arbitration institutions, such as the ICC and SIAC. However, the costs of arbitration can vary significantly depending on the complexity of the case and the experience of the arbitrators.
Published 19 May 2026. General information only — not legal advice. Contact us for matter-specific advice.