UAE Arbitration Law – Dubai Guide for Businesses and Investors

legal structure for arbitration

If your contract has an arbitration clause (DIAC, ICC, LCIA, ad hoc), UAE Arbitration Law decides whether the clause is valid, how the tribunal is appointed, when Dubai/UAE courts must step back, and how you enforce or challenge an award.

Table of Contents

In the UAE, the main arbitration statute is Federal Law No. (6) of 2018 Concerning Arbitration. It replaced the former arbitration provisions that were previously set out in the UAE Civil Procedure Code (Articles 203–218 of Federal Law No. 11 of 1992). The 2018 law modernised the arbitration regime, bringing it closer to widely recognised international principles (often linked to the UNCITRAL Model Law) and strengthening the UAE’s position as an arbitration-friendly jurisdiction. In practice, it focuses on written arbitration agreements, party autonomy to shape procedure (including using institutional rules such as DIAC), the tribunal’s authority to rule on its own jurisdiction, and clear rules on appointing and challenging arbitrators—with the 2023 amendments further tightening implementation in day-to-day cases.

If you are under time pressure (court case filed despite an arbitration clause, interim relief needed, award enforcement, or a set-aside deadline), speak with an Arbitration Lawyer early. Timing drives outcomes in UAE arbitration.

What Is UAE Arbitration Law?

UAE Arbitration law

UAE Arbitration Law is primarily governed by Federal Law No. 6 of 2018, a modern framework broadly aligned with the UNCITRAL Model Law. It regulates arbitrations seated in the UAE as an efficient, binding method of dispute resolution, while recognising that free zones such as the DIFC and ADGM operate under their own distinct arbitration laws. The law gives parties procedural flexibility, but requires a valid written arbitration agreement signed by someone with proper authority, and it protects fairness through due process and equal-treatment principles. The 2023 amendments further refined key provisions to support smoother day-to-day application.

UAE Arbitration Law regulates a private dispute process where the parties agree that a tribunal (not a state judge) will decide the dispute, and the decision (the arbitral award) is binding.

Where it applies

The law applies to any arbitration conducted inside the UAE, unless the parties agree to another arbitration law and that choice does not conflict with UAE public order and morals.

It also covers key “international” scenarios when the relationship or seat connects to more than one country.

Practical takeaway (Dubai): your clause must clearly state the seat, the institution (if any), and how arbitrators are appointed. Ambiguity creates avoidable court fights before arbitration even begins.

Download the Complete UAE Arbitration Law Guide: UAE Arbitration law PDF

Which Arbitration Law Applies: Onshore UAE vs DIFC vs ADGM?

In the UAE, the arbitration law that applies depends on the “seat” of arbitration (the legal place of arbitration). If the seat is onshore (mainland UAE), the governing statute is Federal Law No. 6 of 2018 (UAE Arbitration Law). If the seat is in a financial free zone, the applicable regime is different: DIFC Arbitration Law (DIFC Law No. 1 of 2008, as amended) for the DIFC, and ADGM Arbitration Regulations 2015 (as amended) for the ADGM.

All three frameworks are widely described as Model Law–based / internationally aligned, but the court environment differs—DIFC and ADGM operate with common-law style courts and procedures, and ADGM expressly applies English common law directly as a pillar of its system.

Seat-based overview table

Seat of arbitrationApplicable lawCourt system supervising the arbitrationPractical effect
Onshore UAE (Mainland)Federal Law No. 6 of 2018 UAE onshore courtsStrong party autonomy, but public policy arguments can play a bigger role at enforcement/set-aside stages (plan drafting + procedure carefully).
DIFC (Dubai free zone)DIFC Arbitration Law (DIFC Law No. 1 of 2008, as amended) DIFC CourtsCommon-law style environment with DIFC Courts performing supervisory functions where the seat is DIFC.
ADGM (Abu Dhabi free zone)ADGM Arbitration Regulations 2015 (as amended) ADGM CourtsCommon-law style environment; ADGM is built on direct applicability of English common law as a core pillar (as confirmed in ADGM commentary/alerts).

Key differences to highlight (reader-friendly)

  • Legal heritage: Onshore = civil-law system; DIFC/ADGM = common-law style courts (with ADGM tied directly to English common law).
  • Supervision: The seat decides which courts supervise challenges, interim relief routes, and enforcement mechanics (onshore courts vs DIFC Courts vs ADGM Courts).
  • Party choice (and drafting risk): Parties can choose the seat and rules (ICC/LCIA/DIAC, etc.), but unclear drafting can create disputes about what the seat actually is—so the clause should name the seat explicitly (e.g., “seat: DIFC” or “seat: Dubai, UAE (onshore)”).

UAE Arbitration Law (Federal Law No. 6 of 2018)

UAE Arbitration law

Federal Law No. 6 of 2018 on Arbitration is the UAE’s standalone arbitration statute. It modernised the country’s arbitration regime and is widely described as aligned with international standards (including the UNCITRAL Model Law). It governs arbitrations seated in the UAE outside the financial free zones (such as the DIFC and ADGM, which have their own arbitration laws). The law covers the full arbitration lifecycle—scope of application, written arbitration agreements, tribunal formation, conduct of proceedings, interim measures, arbitral awards, and the procedures for setting aside and enforcing awards—while promoting party autonomy and a court-supportive approach designed to keep disputes moving. Its implementation has been refined through amendments, including Decree-Law No. 15 of 2023.

1) When the UAE Arbitration Law applies (scope)

  • The Law applies to arbitration conducted in the UAE (any Emirate), unless another legal framework clearly applies in a specific context.
  • Parties can also agree to apply the Law to certain international arbitrations (including cases with cross-border elements), where the agreement and seat/jurisdiction structure supports that outcome.

2) Arbitration agreement: what must be true for it to work

  • The arbitration agreement must be in writing. The Law treats “writing” broadly: it can be in a contract clause, a separate agreement, or through written communications (including modern forms of correspondence).
  • If a court case is filed despite an arbitration agreement, the court will generally dismiss/decline the case if the respondent raises the arbitration plea before submitting any defence on the merits.
  • The Law also addresses situations where a contract references another document containing an arbitration clause (so the clause can still bind, if the reference is valid).

3) The Tribunal: How arbitrators are appointed (and the court’s role)?

  • The tribunal must be composed of an odd number of arbitrators; otherwise the arbitration can be treated as void.
  • Parties can agree on appointment procedures and timeframes. If they fail to agree, the Law sets default routes:
    • If it’s a sole arbitrator and the parties do not agree within 15 days of a written request, the competent authority/body concerned can appoint.
    • If it’s three arbitrators, each party nominates one; the two nominate the chair. If deadlines are missed (including 15-day windows), the body concerned can appoint the missing arbitrator(s).
    • If the delegated mechanism fails, a party can request the court to complete tribunal formation, and that court decision is not subject to ordinary challenge routes.

4) Key procedural rules that affect real disputes

Key procedural rules in UAE arbitration focus on written agreements, the arbitrability of disputes, clear consent, ensuring arbitrators have proper authority, adhering to timelines (6 months + extensions), requiring majority signed awards, and allowing for electronic signatures, all under the overarching Federal Arbitration Law (Law No. 6 of 2018) and specific institutional rules (like DIAC, DIFC, ADGM). Parties can tailor procedures, but the tribunal must ensure fairness and efficiency, balancing speed with thoroughness, with court intervention limited for challenges

A) Notices / service (very practical in Dubai/UAE cases)

  • The Law recognises multiple valid notice methods (including courier, registered mail, email/fax-type written communications, and delivery to the agreed address).
  • A notice received after business hours is treated as received on the next business day (the Law sets a 6:00 pm rule in its service provisions).
  • Time periods start the day after the triggering event, and if the deadline falls on an official holiday, it extends to the next working day.

B) Waiver: silence can cost you

  • If a party knows about a procedural breach and does not object within 7 days, that party can be treated as having waived the right to object (unless parties agreed another period).

C) When the arbitration is treated as “started”

  • Proceedings are deemed commenced the day after the tribunal is formed (unless parties agree otherwise).

D) Seat and language

  • Parties can choose the seat/place of arbitration; hearings can also be held using modern technology when appropriate.
  • Default language is Arabic, unless the parties agree another language.

5) Pleadings timetable (default rule)

Unless the parties agree otherwise (or the tribunal orders otherwise):

  • Claimant sends its statement of claim within 14 days from tribunal formation.
  • Respondent sends its statement of defence within 14 days from the day after receiving the statement of claim.

6) Interim measures: urgent protection before the final award

  • The tribunal can order interim/provisional measures. If enforcement is needed through the courts, the requesting party may apply to the court for enforcement, and the court typically decides within 15 days (per the Law’s interim-measures enforcement mechanism).

7) The award: time limit, delivery, and post-award fixes

  • Time limit: the tribunal must render the final award within 6 months from the first hearing session, unless extended under the Law.
  • Service: the award must be served to the parties within 15 days from the date it is rendered.
  • Interpretation / correction / additional award:
    • Interpretation request: within 30 days of receipt; tribunal issues interpretation within 30 days (extendable 15 days).
    • Correction of material errors: request within 30 days; correction done within 30 days (extendable 15 days); served within 15 days.
    • Additional award for omitted claims: request within 30 days; tribunal issues within 60 days (extendable 30 days).

8) Binding effect and enforcement in UAE courts

  • Awards are binding and have res judicata effect, but enforcement requires a court confirmation/enforcement order.
  • Enforcement filing requirements include: the original award (or certified copy), the arbitration agreement, and an Arabic translation if the award is not in Arabic.
  • The chief justice/court issues the enforcement decision within 60 days from submission of the request (under the Law’s enforcement mechanism).
  • Filing an annulment action does not automatically suspend enforcement; the court may grant a stay only on serious grounds, and decides the stay request within 15 days of the first hearing set for that request (security may be ordered).
  • A complaint (appeal path specified by the Law) can be filed against the enforcement decision within 30 days of notification.

9) Challenging (annulling) an award: the 30-day deadline

  • Annulment is not a “re-trial.” It is a limited court action on specific legal grounds.
  • The annulment action must be filed within 30 days from the date the award is notified to the party.

10) What this Law replaced (and why it matters)

  • The arbitration articles formerly in the UAE Civil Procedure framework (Articles 203–218 of Federal Law No. 11 of 1992) were repealed, and the Arbitration Law entered into force one month after publication in the Official Gazette.
StepDefault deadline in the UAE Arbitration Law
Objecting to a known procedural breach7 days (waiver rule)
Claimant statement of claim14 days from tribunal formation
Respondent statement of defence14 days from day after receiving claim
Final award6 months from first hearing session
Serve the award15 days from date of award
Annulment filing30 days from notification of award
Enforcement decision60 days from submitting enforcement request
Complaint against enforcement decision30 days from notification

Valid Arbitration Agreement in the UAE (Client-Safe Checklist)

UAE Arbitration law

Under Federal Law No. 6 of 2018, a UAE arbitration agreement is generally valid only if it is in writing (including electronic form), reflects clear and unequivocal consent to arbitrate, and is concluded by parties with legal capacity—which, for companies, means the signatory must have specific authority to bind the company to arbitration (often evidenced by the Articles of Association, a board/shareholder resolution, or a properly drafted power of attorney that expressly permits agreeing to arbitration).

The agreement may cover future or existing disputes, and it can be drafted as an arbitration clause within the main contract or as a standalone agreement; it can also be incorporated by reference to another document containing an arbitration clause, as long as the reference clearly makes that clause part of the contract. In practice, the essentials are: written form, proper capacity/authority, and a clear intention to arbitrate, with the additional need that the underlying dispute is arbitrable under UAE law.

UAE courts look for a valid arbitration agreement before they dismiss a court case or enforce an award.

1) Capacity and Authority to Sign (companies matter most)

Only a person with legal capacity, or a representative of a company who is authorised to conclude an arbitration agreement, can bind the company. If not, the clause can be null and void.

Best practice: keep proof of signatory authority (trade licence documents, board resolution, POA, authorised signatory list) ready from day one.

2) Writing requirement (emails can qualify)

The arbitration agreement must be in writing. Writing is satisfied if it is in a signed instrument or in written communications, including email, under UAE electronic transactions rules.

It can also be satisfied if the parties exchange written submissions in arbitration where one requests arbitration and the other does not object.

3) Separability (the clause can survive the contract)

An arbitration clause is treated as separate from the rest of the contract. Nullity or termination of the contract does not automatically kill the arbitration clause if the clause is valid on its own.

4) Disputes that cannot be arbitrated

The law bars arbitration in matters where conciliation is not allowed.
In practice, public order issues can also surface at set-aside or enforcement.

If the Other Side Files a Dubai Court Case Despite the Arbitration Clause

This happens more often than clients expect.

If a dispute covered by an arbitration agreement is filed in court, the court must dismiss the action if the defendant raises the arbitration objection before submitting any request or plea on the merits—unless the court finds the arbitration agreement void or unenforceable.

What you should do (fast):

  1. Engage counsel immediately to draft the jurisdiction objection correctly.
  2. File the arbitration objection before any merits submissions.
  3. Start arbitration (or at least prepare the Notice of Arbitration) so the court sees a real path forward.

If you want coordinated court + arbitration strategy, speak with a Litigation Lawyer and an Arbitration Lawyer together. UAE arbitration is court-supported, not court-free.

Arbitrators and Tribunal Formation Under UAE Law

Under UAE Arbitration Law (Federal Law No. 6 of 2018), the arbitral tribunal is formed primarily by party agreement, most commonly as a sole arbitrator or a three-member tribunal—and if the parties do not specify the number, the default is three arbitrators. In a three-arbitrator tribunal, each party typically nominates one arbitrator, and the two nominated arbitrators then appoint the chair; if any appointment step fails or deadlines are missed, the administering institution (where applicable) or the competent court/authority can appoint the missing arbitrator(s) to keep the process moving. Throughout, the law places strong emphasis on arbitrator independence, neutrality, and disclosure, with eligibility requirements designed to support impartial decision-making and protect the integrity of the proceedings.

Default number of arbitrators

The parties may agree on one or more arbitrators. If they do not agree, the default is three arbitrators (and the number must be odd).

Eligibility and independence

The law sets baseline eligibility and requires disclosure of circumstances that may raise doubts about impartiality or independence.

2023 changes you should know (the “new UAE arbitration law” updates)

Federal Law No. 15 of 2023 amended parts of the 2018 law, including replacing Articles 10, 23, 28 and 33 and adding Article 10 bis.

Article 10 bis allows, in limited cases, appointment of an arbitrator connected to the supervisory bodies of the administering institution, but only with strict governance conditions and party acknowledgements.

This matters in institutional cases where conflicts and disclosure are often used as set-aside arguments.

How UAE Arbitration Proceedings Run in Practice?

UAE Arbitration law

The parties can agree on procedure (often by adopting institutional rules). Where they do not, the tribunal can control procedure while respecting due process.

Seat vs venue (plain-language)

  • Seat: the legal home of arbitration (decides the supervising court and set-aside law).
  • Venue: where hearings happen (can be different from the seat).

Virtual hearings and technology (post-2023)

The 2023 amendments expressly support virtual proceedings and emphasise the ability to conduct hearings through modern technical means.

Practical takeaway: if your case involves cross-border witnesses or busy technical experts, the UAE framework now better supports remote hearing structures—if you set protocols early.

Interim Measures and Court Support

Arbitration often fails in practice when parties wait too long to protect assets or evidence.

Under the law, the court president may order provisional or precautionary measures for existing or expected arbitration, before or during proceedings.

Examples in UAE disputes:

  • asset preservation steps (especially where dissipation is a real risk)
  • orders tied to evidence preservation (CCTV retention risk, contract administration records, project documents)
  • urgent relief tied to bank guarantees, performance issues, or access disputes (construction)

This is where early legal advice changes the trajectory of the case.

The Arbitral Award: Form, Service, and Corrections

An arbitral award is the tribunal’s final written decision in an arbitration—similar in effect to a court judgment—resolving the dispute between the parties. It is typically issued as a signed written document (often by a majority of arbitrators) and records the key details of the decision, such as the reasoning, the date, and the place of issuance. As a rule, an award is binding and final, with only narrow legal grounds available to challenge it, and it generally requires court confirmation/ratification before it can be enforced through the same execution procedures used for court judgments.

Contents of the award

The law sets formal content requirements for awards (names, addresses, arbitration agreement copy, submissions summary, dispositive part, and reasons where required).

Confidentiality

Awards are confidential and cannot be published (in whole or part) without written party consent, though court judgments that include an award are not treated as a confidentiality breach under the law’s wording.

Fixing errors (deadlines)

A party may request interpretation, correction of material errors, or an additional award within 30 days of receiving the award (subject to agreed variations).

Challenging an Arbitral Award in the UAE

A set-aside case is not an “appeal on merits.” It is a limited challenge based on statutory grounds.

Time limit (onshore UAE)

Onshore, the annulment action is not heard after 30 days from notification of the award to the party seeking annulment.

Main grounds (examples)

The law lists grounds such as:

  • no arbitration agreement / invalid agreement
  • incapacity
  • due process failures (proper notice, inability to present defence)
  • tribunal composition contrary to law or party agreement
  • award exceeds scope
  • procedural invalidity affecting the award

Courts can also invalidate an award on their own if the dispute is not arbitrable or the award violates public order and morality.

Practice point: many set-aside cases succeed or fail based on what was documented during the arbitration (objections, notices, procedural orders). Build your “court file” while the arbitration is running, not after the award.

Enforcing an Arbitral Award in Dubai/UAE (Steps + Documents)

Enforcing an arbitral award in Dubai/UAE usually means obtaining a court recognition/execution order (exequatur) from the court that has jurisdiction over the seat (or over enforcement in the relevant forum), then moving into execution procedures to attach assets. For onshore UAE awards, enforcement is sought under Federal Law No. 6 of 2018 by filing the enforcement request with the competent court and submitting the award (original or certified copy), the arbitration agreement, and a certified Arabic translation if the award is not in Arabic; the court’s review is limited to statutory refusal grounds (including validity, due process, and public order), and the law provides that the enforcement decision is issued within 60 days from submitting the request.

Once the order is granted, the award is enforced like a judgment through the Execution Court, allowing attachment of assets such as bank accounts, real estate, shares, and receivables. In the DIFC/ADGM, enforcement applications go through their respective courts (often in English and commonly viewed as more predictable for international parties), but the same core idea remains: recognition first, execution second, with challenges/appeals not automatically stopping execution unless a court orders a stay. For foreign awards, the UAE’s approach is supported by the New York Convention, so refusal grounds remain narrow, but enforcement strategy still depends on where assets are located and which court route is most effective.

Domestic award enforcement (onshore UAE)

To enforce, the party submits a request to the chief justice with key documents:

  • original award or certified copy
  • copy of the arbitration agreement
  • certified Arabic translation if the award is not Arabic
  • transcript of filing with the court

The court should order confirmation and enforcement within 60 days from submission unless set-aside reasons appear.

Does a set-aside filing stop enforcement?

Filing an annulment action does not automatically stay execution; the court may order a stay on request if based on serious grounds, and must decide the stay request within 15 days of the first scheduled hearing for that request.

Foreign awards and the New York Convention

The UAE is a New York Convention state (ratified in 2006), which supports enforcement of foreign awards subject to recognised refusal grounds.

If you are enforcing against assets in Dubai (bank accounts, receivables, shares, real estate), enforcement planning should start before you file—asset location and debtor behaviour shape the right path.

Cost Recovery in UAE Arbitration: What to Put in Writing

The law deals with arbitration costs and permits the tribunal to allocate costs in certain ways, and courts can review arbitrator fee valuation on request in the context described in the statute.

Cost recovery in Dubai/UAE arbitration—especially legal fees—has shifted in a more claimant-friendly direction. Because the UAE Arbitration Law does not expressly address recovery of party legal fees, court decisions were inconsistent, and earlier rulings often demanded a clear agreement. More recent Dubai Court of Cassation decisions have accepted that certain institutional rules (notably the ICC Rules) can provide a sufficient basis for tribunals to award legal fees, aligning practice more closely with international norms. Even so, it remains best practice to state legal fee recovery explicitly in the arbitration clause or terms of reference to reduce enforcement risk.

What we do when drafting or reviewing clauses: we push for clear language on:

  • tribunal power to award legal costs
  • interest (pre-award and post-award)
  • cost allocation standard (“costs follow the event” or tribunal discretion)
  • payment terms and consequences of non-payment of advances

This reduces post-award disputes where the winner “wins the case” but fights again over costs.

When to Speak to an Arbitration Lawyer in Dubai

You should get advice early if any of these happen:

  • you receive a notice from DIAC or another institution
  • the other side files a Dubai Court claim despite an arbitration clause
  • there is risk of asset dissipation or evidence loss
  • you need to enforce an award, or the other side signals a set-aside move
  • the clause is unclear on seat, institution, or signatory authority

For counsel with onshore UAE court and arbitration experience, speak with our licensed advocates at Al Ramsy. Start with law firm in Duba. For case intake: Arbitration Lawyer.

Federal-Arbitration-Law-in-UAE

UAE Arbitration Law – Frequently Asked Questions

1) What is UAE Arbitration Law?

It is the federal framework governing arbitration in the UAE, mainly Federal Law No. (6) of 2018, which sets the rules for arbitration agreements, tribunals, awards, and enforcement in UAE courts.

2) Is an arbitration clause valid in the UAE if it is in emails?

It can be. The writing requirement is satisfied if the agreement is made through written communications, including email, under UAE electronic transactions rules

3) Can Dubai Courts hear a case if there is an arbitration clause?

If the dispute is covered by an arbitration agreement, the court should dismiss the case when the defendant raises the objection before making any merits requests, unless the court finds the clause void or unenforceable. 

4) How long do I have to challenge (set aside) an arbitral award in onshore UAE?

The annulment action is not heard after 30 days from notification of the award to the party seeking annulment.

5) What are common grounds to set aside an award in the UAE?

Common grounds include lack of a valid arbitration agreement, incapacity, due process failures, tribunal composition issues, procedural invalidity affecting the award, and awards exceeding the scope of the arbitration agreement.

6) What documents are needed to enforce a domestic arbitral award in onshore UAE?

You generally need the original award (or certified copy), the arbitration agreement, certified Arabic translation if needed, and the transcript of filing with the court

7) What changed under the 2023 amendments to UAE Arbitration Law?

Federal Law No. 15 of 2023 amended key provisions, including updates connected to arbitrator rules, procedure provisions, and expressly supporting virtual proceedings, and it introduced Article 10 bis with governance conditions for certain institutional appointments.

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