Navigating Arbitration in the United Arab Emirates - the basics

I am often asked: "What are the base formalities of conducting an arbitration in the UAE?"

Here is some background and a brief summary. (As always, please do your own additional research!).

Introduction to UAE Arbitration Law

The United Arab Emirates (UAE) has established a robust framework for arbitration through Federal Law No. (6) of 2018, commonly referred to as the 'Arbitration Law'. This legislation defines arbitration as a legal process where disputing parties agree to submit their conflict to an arbitral tribunal, which then renders a binding decision.

Aligned with international standards, the UAE Arbitration Law draws inspiration from the UNCITRAL model, reflecting global best practices. Opting for arbitration over traditional court proceedings offers several benefits, including language flexibility, confidentiality, and the freedom to select arbitrators and procedural details.

Key Formalities in UAE Arbitration

Foundational Requirements

1. Written Agreement: The cornerstone of any arbitration process is a written agreement. Verbal agreements are not recognized and will be deemed void.
2. Legal Capacity: Only individuals with the legal authority to engage in arbitration can enter into such agreements.
3. Post-Dispute Agreements: Arbitration can be agreed upon even after a dispute arises, including cases already in court. Such agreements must clearly outline the scope of arbitration.
4. Procedural Autonomy: Parties have the liberty to decide on arbitrator appointment procedures, timelines, and methods.
5. Language Selection: While parties can choose any language for proceedings, Arabic serves as the default in the absence of a specific choice.

Arbitrator Selection Process

• Single Arbitrator Cases:
  • Mutual selection by parties
  • If no consensus within 15 days of request, an arbitration center may appoint
• Three-Arbitrator Panels:
  • Each party selects one arbitrator
  • The two chosen arbitrators then select the third
  • Failure to appoint within 15 days allows the arbitration center to step in

Interim Measures and Partial Decisions

Arbitral tribunals have the authority to issue both interim and partial awards before the final decision. These can address urgent matters such as:

• Evidence preservation
• Protection of perishable goods
• Maintaining the status quo

Timeframes

• Default period: 6 months from the first hearing for issuing the final award
• Extension option: Additional 6 months if necessary
• Parties may agree on different timelines

Recent Developments in UAE Arbitration

The new Arbitration Law has introduced several improvements:

1. Streamlined enforcement procedures
2. Stricter timelines for concluding arbitration proceedings
3. Enhanced provisions to ensure arbitrator impartiality

These changes underscore the UAE's commitment to positioning itself as a leading arbitration-friendly jurisdiction, attracting international dispute resolution cases and fostering a conducive environment for business and legal proceedings.