Middle East arbitration – Powered by technology
The region is emerging as a key player in international arbitration by leveraging technology and legislative changes to attract disputes and boost economic growth, writes Nadia Nicolaou of Opus 2.
Competition between regions to become a premier destination for arbitration is heating up, fuelled by the prospect of substantial economic benefits – and the Middle East is poised to excel. A recent report[1] from the UK Ministry of Justice illustrates the potential impact of arbitration, estimating that it contributes £2.5bn to the UK economy. To take advantage of the opportunity, the Middle East’s multi-faceted strategy combines legislative changes, updated institutional rules, and a focus on technology, including high-tech hearing capabilities, to attract new disputes to the region.
The Middle East – a growing force in arbitration
The Middle East is gaining traction in arbitration and the region’s vision and commitment to becoming a key player internationally, is evident. Their holistic approach includes making strategic investments to expand core industries, a growing number of commercial courts, the availability of financial freezones, adopting new legislation, establishing new arbitral institutions, and revamping rules of existing centres. Arbitration practitioners have evidenced the growing emergence of arbitral institutions in the Middle East with the creation of the Qatar International Center for Conciliation and Arbitration (QICCA) in 2006, later followed by the establishment of Saudi Center for Commercial Arbitration (SCCA) in 2014. Not to mention the Dubai International Arbitration Centre (DIAC) undergoing significant transformation following Decree No. 34 and the Abu Dhabi International Arbitration Centre (arbitrateAD) replacing, in 2023, the Abu Dhabi Commercial Conciliation and Arbitration Centre. Today, parties have a range of choices for dispute resolution in the Middle East[2].
These developments clearly demonstrate the commitment within the region to becoming a global hub for arbitration. In addition, the Middle East’s geographical position, sitting at a global crossroads between Europe, Asia and Africa makes it ideally located to be an appealing centre for trade, travel, and accordingly, international arbitration.
Standing out in a competitive global market
The Middle East isn’t alone in their efforts to attract disputes. Arbitral seats around the world are exploring different routes to improve or maintain their appeal to the international community.
Some jurisdictions are introducing updates to legislative and regulatory frameworks, such as the recent UK Arbitration Act 2025 – which saw steps taken to modernise the 1996 Act and maintain the law in keeping with current best practice. And individual arbitral institutions are also routinely updating their rules and services to ensure they keep pace with the needs of the industry.
In addition, many regions, like the Middle East, are pursuing innovation and technology initiatives as a differentiator, exploring ways to leverage technology to ensure efficient processes and streamlined procedures and hearings. This tech-forward approach meets growing demand from both legal practitioners and their clients to improve efficiency and reduce costs. In fact, recent findings from the ICC Commission on Arbitration and ADR[3] found that 95 per cent of respondents in the international arbitration community believe that tribunals should routinely discuss how technology may improve efficiency and enhance arbitral proceedings in the initial case management conference. This sentiment reflects the increasing awareness of technology’s ability to elevate the arbitration experience – and may indicate that institutions that have taken steps to integrate best-in-class solutions to enhance their services and the arbitration journey from the start to the final hearing will have a competitive advantage in the future. And that jurisdictions promoting the adoption of such technologies will potentially climb the seat popularity board.
How the Middle East is using technology to set themselves apart
From updating legislation to taking proactive steps to transform the arbitration experience there are several indicators of the Middle East’s commitment to technology in arbitration.
In the Federal Decree No. 15 of 2023[4] the UAE cemented its forward-looking stance by embedding the use of technology in legislation. The amendments include specific provisions to allow for virtual arbitration hearings and also impose a duty on arbitral institutions to provide the requisite technologies to facilitate proceedings through modern technological means.
The updated rules of various institutions including arbitrateAD, DIAC, the SCCA and QICCA now reference the use of technology, underlying its importance to the conduct of arbitration. And this has been reinforced by a number of regional institutions launching state-of-the-art case management platforms to streamline the arbitration process for the benefit of all stakeholders.
In addition, the ADGM Dispute Resolution Hearing Centre provides a digitised space for virtual, hybrid and in-person hearings to accommodate the needs of the arbitration community in the region.
The opportunities created by technology in arbitration are varied. It can reduce the time and costs of arbitration by streamlining and expediting the process while also creating a seamless experience for parties and the tribunal. It enables the efficient management of proceedings, the preparation of bundles electronically and the sharing of all the documents in an arbitration in a secure environment, it also enables evidence to be presented digitally, transcription services to be provided in real-time, and hybrid or fully remote hearings to connect participants across the world to reduce travel costs and the environmental footprint, alongside countless other possibilities.
What comes next?
While AI adoption in arbitration is currently limited, the rapidly expanding use of AI tools in other legal sectors offers a glimpse into its transformative potential. Given the Middle East’s future-focused approach to promoting and delivering high-tech solutions that enhance hearings and the arbitration as a whole, it’s likely that they’ll take a leadership role as AI adoption in arbitration grows. Providing the right framework for its effective use could create a significant boost for any jurisdiction that acts quickly.
With the Middle East’s proactive approach, embracing technological advancement and evolving their legal frameworks, the region is well positioned to securing its place as a leading, future-focused arbitration hub – and enjoying the economic benefits that are sure to follow.
Text by:
Nadia Nicolaou, head of arbitral institutions, Opus 2
Footnotes:
[1] https://www.gov.uk/government/news/boost-for-uk-economy-as-arbitration-act-receives-royal-assent
[2] https://www.ashurst.com/en/insights/middle-east-disputes-trends-tracker-2025/#headingArticle4
[3] https://iccwbo.org/wp-content/uploads/sites/3/2022/02/icc-arbitration-and-adr-commission-report-on-leveraging-technology-for-fair-effective-and-efficient-international-arbitration-proceedings.pdf
[4] https://arbitrationblog.kluwerarbitration.com/wp-content/uploads/sites/48/2023/10/Translation-of-Federal-Decree-Law-No.-15-of-2023-Amending-Certain-Provisions-of-Federal-Law-No.-6-of-2018-on-Arbitration-2.pdf
