Arbitration in the UAE

Globalisation has brought rapid change to the corporate world, and with it a growing interest in arbitration. Parties increasingly prefer this contract-based form of dispute resolution to the courts because of its advantages: speed, privacy, economy, efficiency, and the freedom to choose the applicable law, the rules and the arbitrators. That is why an arbitration clause is now included in contracts more often than before. Alternatively, parties may sign a separate arbitration agreement when a dispute about their contract arises.

The final award of an arbitral tribunal is binding. It is an enforceable decision that the parties are obliged to comply with, and under Federal Law No. 6 of 2018 on Arbitration and the New York Convention it can be enforced in the UAE and abroad.

Arbitration institutions in the UAE

The UAE legislator, wishing to position the country as a regional leader in this field, established arbitration institutions in its major cities, Abu Dhabi, Sharjah, Ras Al Khaimah and Dubai, in addition to the International Islamic Centre for Reconciliation and Arbitration.

The most significant is the Dubai International Arbitration Centre (DIAC), established in 2004, which has become the largest alternative dispute resolution institution in the Middle East. Its caseload covers a wide range of sectors: construction, commerce, real estate, commercial and civil transactions, corporate governance, intellectual property, finance and banking, and oil and gas. The DIFC-LCIA Arbitration Centre and the Emirates Maritime Arbitration Centre were abolished by Decree No. 34 of 2021 of the Ruler of Dubai and merged into DIAC, concentrating institutional arbitration in Dubai in one centre. DIAC's rules were updated in 2022 to reflect international practice.

In Abu Dhabi, the Commercial Conciliation and Arbitration Centre (ADCCAC), established in 1993 by the Abu Dhabi Chamber of Commerce and Industry, was the first centre in the GCC to resolve national and international commercial disputes. It has since been reorganised as the Abu Dhabi International Arbitration Centre (arbitrateAD), with new rules from 2024. Its mission is to provide an independent, effective and just structure for conciliation and arbitration in the service of the local and international business community.

Both centres keep their rules under review, taking international standards and best practice into account, and the DIFC and ADGM courts offer English-language supervision for arbitrations seated in the financial free zones.

How can we help?

Khalifa Al Sada Advocates & Legal Consultants has a team of legal consultants, solicitors, paralegals and arbitrators with more than two decades of experience in every type of arbitration: institutional and ad hoc, domestic and international.

Our offices in Dubai and Abu Dhabi represent clients in arbitration and in other alternative dispute resolution methods, such as conciliation and mediation, before DIAC, the ICC, the DIFC and the Abu Dhabi centre. We stay current with developments in the field and aim to obtain the most beneficial and cost-effective outcome for our clients, taking into account the circumstances of their case.

Please contact us at contact@thelawyers.ae or through the consultation form to discuss your matter.