The United Arab Emirates (UAE) provides a legal structure for arbitration, which is principally specified in Federal Law No. 6 of 2018 on Arbitration (“UAE Arbitration Law”). This law replaced the original arbitration rules in Articles 203–218 of the UAE Civil Procedures laws (Federal Law No. 11 of 1992). Here’s an outline of the essential sections of the UAE Arbitration
1. Scope of Application
If the parties do decide to use another law, arbitrations held in the UAE are subject to this law.
The parties can use the UAE Arbitration Law if they opt to use it in international commercial arbitrations conducted outside the UAE.
2. Arbitration Agreement
In arbitration, a written agreement must be provided in writing, either separately or as part of negotiated terms.
The parties should make it clear in the agreement that they will arbitrate any disputes. This is crucial.
The dispute must be able to be resolved through legal means, such as commercial or civil disputes.) Public policy or personal status-related disputes are not arbitrable. Why?
3. Composition of the Arbitral Tribunal
It is the parties’ responsibility to decide on the number of arbitrators. The decision is final. In the absence of a consensus, it is three.
Those involved in arbitration must maintain their impartiality, and independence, and disclose any developments that may affect their neutrality.
Arbitrators are appointed by law when the parties do not agree. Why?
4. Jurisdiction of the Arbitral Tribunal
The competence-competence principle allows the arbitral tribunal to determine its jurisdiction, which includes any objections to whether the arbitration agreement is valid or not.
A dispute should be brought up only after submission of a statement of defense.
5. Conduct of Arbitration Proceedings
The parties can determine the procedures that must be followed during arbitration.
When no agreement has been reached, the tribunal can adjudicate and conduct such arbitration as it deems appropriate, while respecting the parties’ right to present their case.
Appointments to experts, hearings, and evidence requests are all facultative functions of the tribunal.
6. Interim Measures
If a party requests interim or precautionary measures, the arbitral tribunal can make them available.
The measures may involve obtaining an order to injunct, safeguarding evidence, or securing the amount at issue.
7. Applicable Law.
The tribunal will use the law that has been chosen by the parties to deal with the content of the dispute.
If no law is opted, the tribunal shall enforce the law it considers most fitting.
8. Arbitral Award
The arbitrators must provide a written award that includes the parties’ reasons for the decision, as well as their signature and any other relevant information.
Unless otherwise agreed upon by the parties, or within an amount determined by tribunal, this award cannot be issued.
Both parties are obligated to agree on an ultimate settlement.
9. Contest and Convocation of the Prize
Certain grounds may prompt the UAE courts to dispute an arbitral award, such as:
The invalidity of the arbitration agreement.
Notifying a party in advance.
The tribunal exceeds its authority.
Violation of public policy.
It is required to file a challenge within 30 days of being awarded the prize.
10. Recognition and Enforcement of Awards
Once they are conclusive, domestic arbitral orders are also binding.
The UAE has ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), which makes foreign arbitral awards enforceable in the UAE. This is an exception.
Only in exceptional circumstances, such as a breach of public policy or lack of proper notice, can the UAE courts deny enforcement. This is a limited situation.
11. Confidentiality
The process of arbitration is kept secret unless the parties mutually agree otherwise or are legally bound to disclose it. However,
12. Role of the Courts
The UAE courts have a supportive role in arbitration, including:
Facilitating the selection of arbitrators.
Granting interim measures.
Enforcing arbitral awards.