Arbitration as a Guarantee of Investor Confidence: Steps for Ukraine

Introduction

Today, Ukraine requires not only financial support from its partners but also the systematic attraction of foreign investment to rebuild its economy. For any investor, the key factor is the existence of an effective mechanism for protecting rights. In this regard, international arbitration plays a decisive role — a tool that ensures impartial, swift, and predictable dispute resolution.

Ukr. version

The state’s task is to create conditions under which arbitration in Ukraine will be perceived by foreign investors as a reliable guarantee. One of the practical pathways is deepening cooperation with leading international arbitration centers, particularly the Dubai International Arbitration Centre (DIAC).

Arbitration in Ukraine: Achievements and Challenges

In recent years, Ukraine has taken significant steps to improve its arbitration framework:

• Legislation has been harmonized with the UNCITRAL Model Law.

• Court practice has become more arbitration-friendly: Ukrainian courts now uphold arbitration agreements and enforce arbitral awards.

• The ICAC at the Ukrainian Chamber of Commerce and Industry operates actively and enjoys international recognition.

At the same time, several challenges remain:

• The evidentiary process is still too slow.

• Arbitration costs can exceed the capacity of mid-sized investors.

• The arbitrability of certain disputes (especially involving state-owned enterprises) remains restricted.

• Issues of confidentiality and protection of arbitrators are not fully regulated.

For investors, practical guarantees matter more than declarations. That is why Ukraine must look to the experience of leading international centers.

Why the Dubai International Arbitration Centre (DIAC)?

1. Reputation and Scale

DIAC is one of the largest arbitration centers in the Middle East. Every year, it administers hundreds of commercial disputes, including major international investment cases.

2. Modern Rules

• Appointment of emergency arbitrators;

• Possibility of consolidating multiple cases;

• Inclusion of additional parties into proceedings;

• Clear timelines and safeguards against abuse.

These mechanisms align with the best practices of the ICC, SIAC, and LCIA.

3. Geopolitical and Business Hub

Dubai is a global center of trade, logistics, and finance, making DIAC a natural choice for companies from Europe, Asia, and Africa.

4. Competitive Costs

DIAC’s administrative fees are lower than those of many Western institutions. For investors, this is a crucial factor, particularly in large multilateral projects.

5. Recognition of Awards

DIAC awards are recognized in more than 160 countries under the New York Convention. In several cases, foreign courts (including in Singapore) have confirmed the enforceability of DIAC awards even under complex contractual circumstances.

Ukraine and DIAC: Prospects for Cooperation

Ukraine has every reason to pursue institutional partnership with DIAC. Possible steps include:

1. Establishing a bilateral cooperation committee — involving Ukraine’s Ministry of Justice, Ministry of Economy, the Chamber of Commerce and Industry, and DIAC. Its tasks would include developing model arbitration clauses for state contracts, sharing best practices, and implementing joint training programs.

2. Including DIAC in intergovernmental agreements — especially in the fields of concessions, energy, and infrastructure. This would create a transparent mechanism for investor protection and reduce the risk of politicization in disputes.

3. Recognizing DIAC as an alternative to Singapore or London. For investors from the Middle East or Asia, Dubai may be a more natural choice: closer time zones, lower costs, and a familiar business culture.

4. Launching pilot cases — Ukraine could designate DIAC as the arbitral institution in contracts with international contractors. This would serve as a trust-building test for the new approach.

Conclusions

Arbitration is a mirror of a country’s investment climate. If Ukraine aspires to become a magnet for capital, it must provide investors with transparent, reliable, and internationally recognized dispute resolution mechanisms.

Cooperation with the Dubai International Arbitration Centre opens new opportunities for Ukraine:

• Strengthening the confidence of international partners;

• Integration into the global institutional arbitration ecosystem;

• Delivering real guarantees to those investing in Ukraine’s economy.

What is needed now is political will to cement this direction — making arbitration one of the key pillars of Ukraine’s reconstruction and economic development.

Olena Shyrokova

• Co-Founder of the Ukrainian-Arab Business Chamber

• President of the Ukrainian Business Council in the UAE

• Licensed attorney with expertise in corporate and contract law, international litigation, and arbitration