In a shake-up of the Middle East’s arbitration machinery, the government of Dubai has abolished the Dubai International Financial Centre-London Court of International Arbitration (DIFC-LCIA), which is to be replaced by Dubai’s existing onshore arbitral institution, and will now also open offices at the DIFC.

The Dubai International Arbitration Centre (DIAC) will act as sole arbitral chamber in the Emirate of Dubai, with the DIFC office serving as default location in the event that the parties do not designate a seat, according to a note by lawyers at King & Spalding’s Dubai office.