The Dubai International Arbitration Centre (DIAC) has been formally recognised as a Permanent Arbitral Institution (PAI) by the Russian Federation, marking a strategic expansion of its international reach and reinforcing its role as a preferred forum for cross-border dispute resolution.
DIAC’s PAI Recognition in Russia
The Dubai International Arbitration Centre (DIAC) was granted Permanent Arbitral Institution (PAI) status by the Russian Ministry of Justice, with the announcement published via the Russian Arbitration Association (RAA) registry on January 11, 2026. The status became effective immediately upon publication in the official registry, enabling DIAC to administer Russia-seated arbitrations without delay1.
The accreditation evaluates an institution’s global standing, procedural integrity, and governance framework. DIAC’s approval affirms its compliance with stringent international standards and reflects its growing stature in the field of institutional arbitration.
DIAC is one of the world’s leading international arbitration institutions, with more than thirty years of operational history. It consistently ranks among the top global arbitral centres by case volume and administers disputes across sectors like construction, energy, real estate, transport, finance and others2.
For Russian and international companies in cross-border business, DIAC’s PAI status brings:
- Access to DIAC’s procedural tools like expedited proceedings and emergency arbitrator mechanism for corporate/commercial disputes
- Neutral forum in Dubai with reduced sanctions exposure
- More choices beyond traditional Western institutions
In the broader context of developments in the arbitration market, the recognition of DIAC reflects a growing trend towards diversification of arbitral institutions utilised by Russian market participants, particularly amid increasing interest in Asian and Middle Eastern jurisdictions.
Achieving PAI status enables DIAC to administer arbitrations seated in Russia, offering businesses and investors a trusted, neutral procedural framework. This milestone aligns with DIAC’s long-term strategy to broaden its service footprint and facilitate efficient dispute resolution across key global markets.
What is Permanent Arbitral Institution (PAI) Status?
A Permanent Arbitral Institution (PAI) is an arbitral institution officially accredited by a country’s Ministry of Justice to administer international arbitrations seated within that jurisdiction. In Russia, this framework is established under Federal Law No. 382-FZ3 (the main Russian arbitration law, enacted in 2015), which aligns with UNCITRAL Model Law principles and sets clear standards for institutional arbitration.
Key legal and practical implications of PAI status include:
- Enforceability: Awards issued by a PAI are treated as domestic institutional awards in Russia, making them easier to recognize and enforce locally and abroad under the New York Convention4.
- Procedural Certainty: PAI accreditation confirms that the institution meets stringent standards of procedural integrity, governance, and international reputation.
- Court Support: Russian courts are obligated to recognize PAI awards and may provide judicial assistance in areas such as interim measures and evidence-taking.
- Avoidance of “Ad Hoc” Treatment: Without PAI status, arbitrations seated in Russia but administered by a foreign institution risk being classified as ad hoc proceedings, leading to higher scrutiny and potential enforcement challenges.
Achieving PAI status is therefore a critical milestone for any arbitral institution seeking to offer reliable, enforceable dispute resolution services for Russia-related commercial disputes.
Other Entities with PAI Status in Russia
Under Federal Law No. 382-FZ, the Ministry of Justice grants PAI status to both domestic and foreign arbitral bodies. This recognition enables them to administer international commercial arbitrations seated in Russia with greater legal certainty and enforceability.
- Institutions with PAI status include
- International Commercial Arbitration Court of the Chamber of Commerce and Industry of the Russian Federation (ICAC or MKAS)
- Russian Arbitration Center at the Russian Institute of Modern Arbitration (RAC)
- Maritime Arbitration Commission at the Chamber of Commerce and Industry of the Russian Federation (MAC)
- Arbitration Centre at the Russian Union of Industrialists and Entrepreneurs (AC RUIE)
- National Center of Sports Arbitration at the Sports Arbitration Chamber (NCSA)
2. Major foreign institutions that were accredited in prior years, including the Hong Kong International Arbitration Centre (HKIAC), the Vienna International Arbitration Centre (VIAC), the ICC International Court of Arbitration, and the Singapore International Arbitration Centre (SIAC)5.
While foreign Permanent Arbitral Institutions like DIAC can administer most international commercial disputes seated in Russia, Russian law places specific restrictions on their scope. Notably, they cannot hear certain types of corporate and securities-related disputes that are reserved for Russian courts or domestic arbitration bodies.
Contrast DIAC’s position before and after PAI status.
The recognition of DIAC as a PAI by Russia marks a decisive shift in the legal treatment and reliability of DIAC-administered arbitrations seated in Russia.
Before, DIAC-administered proceedings seated in Russia were treated as ad hoc arbitrations under Russian law. This classification introduced significant legal risks, including potential challenges to the validity of arbitration clauses (especially for corporate disputes), stricter judicial scrutiny of awards, limited access to court-ordered interim measures, and greater obstacles to enforcement within Russia.
With PAI accreditation, DIAC proceedings in Russia are now recognized as institutional arbitrations. This ensures the full enforceability of arbitration agreements, grants DIAC awards the same streamlined recognition and enforcement as domestic institutional awards in Russian courts and provides parties with access to judicial support for interim relief and evidence. The change eliminates previous “ad hoc” risks and solidifies DIAC as a secure, neutral forum for resolving Russia-seated international disputes.
What DIAC’s PAI Status Means for Russia-Related Disputes
DIAC’s PAI status in Russia enhances options for enforceable, neutral arbitration in cross-border disputes, particularly Gulf-Russia trade. Parties secure procedural certainty and award reliability by selecting PAIs like DIAC alongside ICC or SIAC. This development strengthens institutional arbitration’s role in M&A and commerce, aligning global standards with local law.
