At the outset, it is important to understand that the legal framework of the United Arab Emirates (UAE) is diverse: the “mainland” or “onshore” UAE is a civil law jurisdiction, whereas the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) are two “offshore” common law financial free zones.

The mainland UAE, DIFC and ADGM all have distinct and different court systems and civil and commercial laws, including arbitration laws.

1.1 Advantages

In terms of regulatory framework, arbitration laws in the mainland UAE, DIFC and ADGM are progressive and largely based on the UNCITRAL Model Law on International Commercial Arbitration 1985 (“Model Law”).

In addition, the courts in the mainland UAE, DIFC and ADGM are generally “arbitration-friendly”, especially the DIFC/ADGM courts where one would need to put forth a very cogent case to justify setting aside an arbitral award or refusal of its recognition and enforcement.

Finally, the DIFC courts have extensive jurisdiction to issue interim measures in aid of non-DIFC seated arbitrations, which includes cases where the defendant does not have presence of assets in the DIFC.

1.2 Disadvantages and common pitfalls

The jurisdictional “maze” of the mainland UAE requires the parties to carefully draft governing law clauses and expressly select either mainland UAE (and, if appropriate, laws of a particular emirate) or DIFC/ADGM law. The same applies to the choice of seat of arbitration: phrases such as, “the seat shall be Dubai” are best avoided as they may refer to both “mainland” Dubai and the DIFC (which is also in the Emirate of Dubai).

Furthermore, in cases where the mainland UAE courts are the supervising courts and mainland UAE law is the governing law of the arbitration agreement there are instances where, despite their overall “pro-arbitration” stance, the mainland UAE courts occasionally issue rather inconsistent decisions (e.g., finding that under the ICC Arbitration Rules 2021 an arbitral tribunal does not have jurisdiction to award legal costs, and this position has been recently reversed).

1.3 Distinctive features

There is dualism of Arabic civil and English common law courts, as well as a wide selection of arbitration centres (see below, Section 3).

2.1 Legal framework

Each jurisdiction has a separate arbitration law:

• Mainland UAE: Federal Law No. 6 of 2018 on Arbitration ( “UAE Arbitration Law”).
• DIFC: Arbitration Law (DIFC Law No. 1 of 2008) ( “DIFC Arbitration Law”).
• ADGM: Arbitration Regulations of 2015 ( “ADGM Arbitration Regulations”).

Each of these arbitration laws is based on the Model Law, but there are differences between the UAE Arbitration Law on the one hand and the DIFC Arbitration Law and ADGM Arbitration Regulations on the other. For example, pursuant to Article 4(1) of the UAE Arbitration Law, the signatory of the arbitration agreement must be specifically authorised to enter into it. The fact that there is no official translation of the UAE Arbitration Law — even the one published by the UAE government is unofficial — and that Arabic to English translation is not an exact science, adds a notable layer of complexity into the interpretation and application of the UAE Arbitration Law. By contrast, the DIFC Arbitration Law and ADGM Arbitration Regulations stick much closer to the original text of the Model Law.

2.2 What qualifies under domestic law as “international arbitration”? Is there a specific statute?

Pursuant to Article 3 of the UAE Arbitration Law, an arbitration, even if seated in the UAE, is considered “international” if one of the following conditions are met:

• the seat of arbitration is outside the UAE (e.g., a DIFC-seated arbitration is an international arbitration under the UAE Arbitration Law);
• at the time of conclusion of the arbitration agreement, the parties’ places of business were in two or more different jurisdictions;
• even if the parties’ places of business are in the mainland UAE, a substantial part of the contractual obligations or the subject matter of the dispute is most closely connected to a foreign jurisdiction;
• the subject matter of the dispute covered by the arbitration agreement is connected with more than one jurisdiction; or
• the parties have expressly agreed that the subject matter of the arbitration agreement is connected with more than one country.

The DIFC Arbitration Law and the ADGM Arbitration Regulation do not distinguish between domestic and international arbitration, but different provisions of these laws will apply depending on whether or not the seat is in the DIFC/ADGM.

2.3 Ratification of the New York Convention

The UAE ratified the New York Convention on 19 November 2006, without declarations or reservations.

2.4 Ratification of the ICSID Convention

The UAE ratified the ICSID Convention on 23 December 1982.

2.5 Other treaties relating to arbitration

The UAE is a party to several other arbitration-related treaties, including the Gulf Co-operation Council (GCC) Convention for the Execution of Judgments, Delegations, and Judicial Notifications (1996) and the Riyadh Arab Agreement for Judicial Co-operation (1983), as well as bilateral treaties with India, China, Morocco, Syria, Egypt, Jordan and France.

2.6 Choice of forum for intra-EU dispute settlement

Not applicable.

2.7 Is the municipal law governing arbitration based on UNCITRAL Model Law?

See above, Section 2.1.

2.8 Recent amendments or reforms in arbitration laws

In September 2023, the UAE Arbitration Law was amended by Federal Decree Law No. (15) of 2023. The amendments were, for the most part, superfluous or confusing, with the most incisive amendment being the extension of the requirement prohibiting an arbitrator to be a member of the board of trustees or administrative apparatus of a local arbitral institution, to also include the “executive management” of such board/institution, subject to a number of exceptions.

3.1 Presence of local arbitration institutions

The UAE has an abundance of arbitration centres, with each of the seven emirates having at least one centre:

• Dubai/DIFC:
  • Dubai International Arbitration Centre (DIAC) in mainland Dubai.
  • International Islamic Centre for Reconciliation and Arbitration in mainland Dubai.
  • Saudi Center for Commercial Arbitration has an office in the DIFC.
  • Russian Arbitration Center has an office in the DIFC.
  • Prior to September 2021, there was the DIFC-LCIA Arbitration Centre, which was a joint venture between the LCIA and DIFC Arbitration Institute (DAI). Decree No. 34 of 2021, dated 14 September 2021, abolished the DAI and transferred all its assets to the DIAC.
• Abu Dhabi/ADGM:
  • In early 2024, the Abu Dhabi Commercial Conciliation and Arbitration Centre, which was based in mainland Abu Dhabi, was reorganised into the Abu Dhabi International Arbitration Centre (“arbitrateAD”).
  • Arbitration Court of the International Chamber of Commerce (ICC) has an office in the ADGM.
  • ADGM Arbitration Centre (ADGMAC) does not administer cases and only provides facilities for hearings.
• Sharjah International Commercial Arbitration Centre.
• Ajman Center for Commercial Conciliation and Arbitration (part of Ajman Chamber of Commerce).
• Ras Al Khaimah Reconciliation and Commercial Arbitration Center (part of the Ras Al Khaimah Chamber of Commerce).
• Umm Al Quwain Commercial Conciliation and Arbitration Center (part of the Umm Al Quwain Chamber of Commerce).
• Fujairah Commercial Conciliation and Arbitration Centre (part of Fujairah Chamber of Commerce).

3.2 Does the London Court of International Arbitration (LCIA) have a local office?

No, see above, Section 3.1.

3.3 Does the Permanent Court of Arbitration (PCA) have a local office?

No, but in September 2021, the PCA and the ADGMAC signed a co-operation agreement, according to which ADGMAC will extend support to the PCA in hearings or meetings conducted in Abu Dhabi through the provision of necessary facilities, services, and related personnel.

3.4 Does the ICC International Court of Arbitration have a local office?

Yes, see above, Section 3.1.

3.5 Does the International Centre for Dispute Resolution (ICDR) have a local office?

No, but in November 2023, the DIAC and the ICDR signed a memorandum of understanding.

3.6 Agreement entered into with local offices of international arbitration institutions

See above, Section 3.1.

4.1 Requirements as to content and form

All three arbitration laws require the arbitration agreement to be in writing. In certain circumstances other formats (e.g., exchange of communications, submissions, or other methods of recording) are also accepted as being in writing.

However, if the arbitration agreement is contained in a different document, Article 5(3) of the UAE Arbitration Law requires that it be expressly incorporated by reference. On 3 March 2021, in Commercial Case No. 1308/2020, the Dubai Court of Cassation found that incorporating FIDIC Red Book General Conditions of Contract by reference did not also incorporate the ICC arbitration clause without an explicit reference to that effect.

Further, Article 4(1) of the UAE Arbitration Law requires that the signatory of the arbitration agreement must be specifically authorised to enter into it, and arbitral awards are routinely challenged in the mainland UAE courts on this basis.

4.2 Validity of arbitration agreements

See above, Section 4.1.

4.3 Special formalities

See above, Section 4.1.

4.4 Governing law

Under all three arbitration laws, the law governing the arbitration agreement is the law of the seat.

5.1 Applicable restrictions

Pursuant to Article 4(2) of the UAE Arbitration Law, “arbitration is not permitted in matters which do not permit compromise”. For example, family, inheritance, labour, insolvency disputes, or disputes over off-plan real estate are not arbitrable in the mainland UAE.

Article 12(2) of the DIFC Arbitration Law limits (but does not exclude) arbitrability of consumer and labour disputes.

The ADGM Arbitration Regulations do not contain any restrictions on arbitrability, but the ADGM Court accepted in NMC Healthcare LTD and associated companies [2021] ADGMCFI 006 (24 May 2021) that certain categories of disputes related to insolvency may not be arbitrable in the ADGM.

6.1 Stay of proceedings

Article 8(1) of the UAE Arbitration Law provides that the court shall dismiss the case if the defendant argues that the dispute is subject to an arbitration agreement unless the court finds that it is void or unenforceable.

By contrast, the DIFC and ADGM courts would normally stay proceedings upon an application by the defendant, rather than dismiss them.

6.2 Anti-suit injunctions

The mainland UAE courts do not grant anti-suit injunctions.

By contrast, the DIFC and ADGM courts, especially the former, have developed the practice of granting anti-suit injunctions, even in respect of proceedings in the mainland UAE courts.

7.1 Restrictions on the parties’ freedom to choose arbitrators

For the UAE Arbitration Law, see above, Section 2.8. Further, Article 10 requires that the arbitrator shall be a natural person, who is not a minor or under court interdiction, or bankrupt, and shall have no convictions for a breach of trust.

The DIFC and ADGM arbitration laws do not impose any particular restrictions.

7.2 Requirement of arbitrator independence and impartiality

All three arbitration laws require the arbitrators to be independent and impartial.

7.3 Mandatory rules applicable to the appointment process

See above, Sections 7.1 and 7.2.

7.4 Appointment mechanism in the absence of party agreement or applicable institutional rules

Under all three arbitration laws, the court will make an appointment in the absence of the parties’ (or two arbitrators’) agreement. A decision of the court in this case cannot be appealed.

Further, pursuant to Article 11(8) of the Federal Arbitration Law, the court may request a list of six arbitrators from any arbitral institution in the UAE.

7.5 Mandatory rules applicable to the replacement process

Article 17(1) of the UAE Arbitration Law requires that a substitute arbitrator is appointed according to the rules that were applicable to the appointment of the arbitrator who is being replaced. Under Article 21(1)(b) of the DIFC Arbitration Law and section 23(1)(b) of the ADGM Arbitration Regulations, the original procedure is followed unless the parties agree otherwise.

7.6 Mandatory disclosure obligations

All three arbitration laws require the arbitrators to disclose any circumstances that are likely to give rise to justifiable doubts as to their impartiality or independence. This is a continuous obligation.

7.7 Grounds for challenge

All three arbitration laws have the same standard grounds for challenge: justifiable doubts as to the arbitrator’s independence or impartiality and failure to possess qualifications agreed to by the parties.

7.8 Mandatory rules governing the challenge of arbitrators

Under Article 15 of the UAE Arbitration Law and Article 19 of the DIFC Arbitration Law, the party must bring a challenge within 15 days of becoming aware of the constitution of the tribunal or the circumstances giving rise to the challenge. Under section 21 of the ADGM Arbitration Regulations, the time limit is 30 days.

7.9 Removal

Under Article 19 of the DIFC Arbitration Law, if a challenge fails before the arbitral tribunal, the challenging party may request the court to make a decision on the challenge within 30 days. A decision of the court in this case cannot be appealed.

Under Article 15 of the UAE Arbitration Law and section 22 of the ADGM Arbitration Regulations, a challenge will be determined by the arbitral institution or the court where there is no institution.

7.10 Liability and immunity of arbitrators

The Federal Arbitration Law does not provide for immunity from suit for arbitrators.

By contrast, under Article 22 of the DIFC Arbitration Law and section 24 of the ADGM Arbitration Regulations, arbitrators enjoy immunity from suit unless they are shown to have caused damage by conscious and deliberate wrongdoing.

Further, under Article 21(2) of the DIFC Arbitration Law and section 23(2) of the DIFC Arbitration Regulations, an arbitrator whose mandate is terminated may, absent agreement between the parties, apply to the court for an order relieving them of liability together with such order as the court thinks appropriate with respect to their entitlement (if any) to fees and expenses. A decision of the court in this case cannot be appealed.

8.1 Interim measures

8.1.1 Overview of interim measures

In practice, the mainland UAE courts most commonly grant attachments and seizures of various types of assets, as well as travel bans (orders prohibiting the debtor from entering or leaving the UAE). Such orders are typically granted on an ex parte basis. Further, interim measures ordered by the tribunal in the form of an interim award could also be enforced in these courts.

The DIFC and ADGM courts could grant a wide variety of interim measures, including interim injunctions, declarations, freezing orders, or search orders. A party can apply on notice or on an ex parte basis, but in the latter case it must comply with the duty of full and frank disclosure of material adverse facts. Further, interim measures ordered by the tribunal in the form of an interim award are enforceable.

8.1.2 Relevance of availability of emergency arbitrator mechanism

The arbitration rules of the DIAC, arbitrateAD and the ICC allow for appointment of an emergency arbitrator, and measures granted by an emergency arbitrator are generally enforceable.

8.2 Taking of evidence

Under all three arbitration laws, the courts may assist with the taking and preservation of evidence in locally seated arbitration proceedings.

8.3 Appointment or challenge of arbitrators

See above, Sections 7.6–7.9.

8.4 Other available assistance

See above, Sections 8.1–8.3.

9.1 Domestic scope of sovereign immunity from jurisdiction

Statutory provisions on sovereign immunity are few. In the mainland UAE, Article 242(1) and (10) of the UAE Civil Procedure Law prohibits attachment of public funds of the UAE or its emirates, including waqf funds (charitable endowments), as well as funds belonging to foreign embassies and diplomatic bodies, provided there is reciprocity for diplomatic immunity.

The DIFC and ADGM do not explicitly address state immunity, but the DIFC Court upheld a sovereign immunity waiver from suit and execution in Pearl Petroleum Company Ltd v. The Kurdistan Regional Government of Iraq [2017] DIFC ARB 003 (20 August 2017).

9.2 Immunity from execution

See above, Section 9.1.

General procedural requirements in all three laws mostly follow standard Model Law requirements, except that the UAE Arbitration Law provides for Arabic as the default language of the arbitration and gives the tribunal discretion to determine whether a hearing should be held if requested by a party.

The DIAC Rules 2022 also allow the tribunal, after consultation with the parties, to decide to conduct hearings or meetings at any place via virtual means. Similarly, the arbitrateAD Rules allow for hearings via virtual means.

While Article 26(6) of the DIAC Rules 2022 allows the tribunal to dispense with a hearing if neither party requests one, pursuant to Article 33(1) of the arbitrateAD Rules, a hearing is mandatory unless both parties expressly agreed in writing to a documents-only arbitration.

All three arbitration laws provide that arbitration is confidential unless otherwise agreed by the parties. However, section 45(2) of the ADGM Arbitration Regulations further establishes a number of exceptions to this rule, including where disclosure is made to protect or pursue a legal right, enforce or challenge the award in question, or to professional advisers.

12.1 Requirements as to content and form

Most of the requirements are generally similar in all three arbitration laws: the award must be in writing, signed by the sole arbitrator or majority of the tribunal, state the reasons on which it is based unless agreed to the contrary, and state its date and seat.

Note that mainland UAE courts require that the award be signed on both the reasons and the operative part, and this is a common argument used in setting aside proceedings. The DIFC Arbitration Law and ADGM Arbitration Regulations also require the tribunal to fix the costs in the award.

12.2 Time limit

Article 42 of the UAE Arbitration Law provides that, unless otherwise agreed by the parties, the tribunal shall issue the final award within six months of the date of first hearing. This period can be extended by the tribunal by an additional six months unless the parties agree a longer extension. Absent parties’ agreement, a further extension may be granted by the court.

There are no time limits for issuing the final award in the DIFC Arbitration Law and ADGM Arbitration Regulations.

12.3 Remedies

The UAE Arbitration Law and DIFC Arbitration Law do not contain any provisions on remedies. Sections 51 and 52 of the ADGM Arbitration Regulations expressly provide that, absent the parties’ agreement to the contrary, the issues of remedies and interest are governed by the applicable substantive law.

13.1 Interpretation and correction of awards

All three arbitration laws allow for requests for the correction and interpretation of awards within 30 days of receipt of the award, unless a longer period of time has been agreed upon by the parties.

13.2 Challenge of an award

Under the UAE Arbitration Law, an application to set aside an award must be filed with the Court of Appeal within 30 days of the date it was notified. A decision of the Court of Appeal could then be further appealed to the Court of Cassation within 30 days.

In the DIFC/ADGM, an application must be filed with the Court of First Instance within three months of receipt of the award (or decision on the request for correction/interpretation), unless the parties agree a longer period. Unlike in the mainland courts, there is no automatic right of appeal, and a party must apply for permission to appeal within 21 days of the decision. If the application is denied, a further application can be made to the Court of Appeal within 21 days.

The grounds for challenge under Article 53(1) of the UAE Arbitration Law differ somewhat from those under Article 5 of the New York Convention, for example Article 53(1) also includes such grounds as failure by the tribunal to apply the agreed-upon substantive law or to issue the award within the required time limit.

In the DIFC and ADGM, the grounds for challenge mirror those under Article 5 of the New York Convention, except that Article 41(2)(b) of the DIFC Arbitration Law also provides that the court may set aside the award if it finds that the dispute is expressly referred to a different body or tribunal for resolution under the DIFC Arbitration Law or any mandatory provision of the DIFC law.

13.3 Recognition and enforcement proceedings

Under Article 55 of the UAE Arbitration Law, an application for enforcement of a domestic award is filed with the Court of Appeal, which must issue its decision within 60 days. The grounds for refusing enforcement are identical to those for setting the award aside.

In the DIFC/ADGM, an application for recognition and enforcement of a domestic award is filed with the Court of First Instance. Further, Article 44(3) of the DIFC Arbitration Law and section 62(3) of the ADGM Arbitration Regulations expressly provide that recourse against a domestic award can be sought by way of a set aside application only.

13.4 Cost of enforcement

Costs comprise court fees with no specific restrictions.

13.5 Enforcement of orders of emergency arbitrators

See above, Section 8.1.2.

14.1 Process for enforcing New York Convention awards

In accordance with Articles 222–225 of the UAE Civil Procedure Law, a party seeking enforcement of a foreign award should file an application directly with the execution court, which must be determined on an ex parte basis within five days. A decision of the execution judge can be appealed within 30 days.

In the DIFC/ADGM, a party should file an arbitration claim form with the Court of First Instance, either on notice or on an ex parte basis. The recognition procedure may take up to six months to conclude. A judgment of the Court of First Instance could be, subject to permission, appealed to the Court of Appeal.

14.2 Grounds for resisting enforcement of New York Convention awards

In the mainland UAE, the grounds for resisting enforcement would be those set out in Article 5 of the New York Convention.

Under the DIFC Arbitration Law and ADGM Arbitration Regulations, the grounds for resisting enforcement of foreign awards are identical or virtually identical to the ones in Article 5 of the New York Convention.

14.3 Enforcing non-Convention awards

In the mainland UAE, enforcement of non-Convention awards can be resisted based on the requirements of Articles 222 and 223 of the Civil Procedure Law, which are somewhat different from those in Article 5 of the New York Convention.

The DIFC Arbitration Law and ADGM Arbitration Regulations do not distinguish between Convention and non-Convention awards.

15.1 Applicable to counsel

Lawyers practicing arbitration in the UAE must adhere to the following:

• Federal Decree-Law No. (34) of 2022, which regulates the legal profession in the mainland UAE, setting out obligations related to confidentiality, integrity, and professional conduct.
• The Dubai Legal Affairs Department (DLAD) code of conduct applicable to lawyers registered in Dubai.
• Institutional rules, such as the DIAC Code of Ethics, emphasise fair representation, conflicts of interest, and the duty to act in good faith.
• The UAE Federal Penal Code, which includes provisions regarding confidentiality and misconduct in legal representation.

In addition, section 44 of the ADGM Arbitration Regulation sets out specific requirements concerning the conduct of the parties and parties’ legal representatives in the arbitration.

15.2 Applicable to arbitrators

Article 10(3) of the UAE Arbitration Law imposes a duty on arbitrators to disclose any circumstances that may raise doubts regarding their independence or impartiality.

Depending on the circumstances, arbitrators may also need to adhere to institutional codes of ethics, such as:

• the 2022 DIAC Rules, which require arbitrators to act fairly, impartially, and with due diligence; or
• the International Bar Association Guidelines on Conflicts of Interest in International Arbitration, which provide best practices to aid arbitrators avoid conflicts and ensure transparency.

16.1 Applicable regulatory requirements

The UAE Arbitration Law and DIFC Arbitration Law do not regulate disclosure of third-party funding arrangements. Section 37 of the ADGM Arbitration Regulations expressly requires disclosure of any third-party funding agreement and the identity of the funder.

16.2 Overview of the third-party funding market

Third-party funding is on the rise in the UAE. Both the DIAC Rules 2022 and the arbitrateAD Rules 2024 necessitate disclosure of third-party funding arrangements.

The DIAC Rules mandate that parties must disclose such arrangements, including the funder’s identity and a disclosure on whether the funder has committed to the liability for adverse costs, before the tribunal is constituted. Following the constitution of the tribunal, funding agreements that could lead to conflict of interests are not permitted. Additionally, the DIAC Rules 2022 allow the tribunals to consider the existence of any adverse costs liability funding when allocating costs.

The arbitrateAD Rules require parties to inform the arbitrateAD’s Case Management Office as soon as reasonably practicable of the existence and identity of the funding arrangements.

17.1 Types of specialist arbitration

Most arbitrations in the UAE are administered through non-specialised arbitration centres, such as the DIAC and arbitrateAD. However, the UAE does have a specialised arbitral institute for Islamic finance-related disputes: the International Islamic Centre for Reconciliation and Arbitration.

17.2 Key legal principles

The key legal provisions on the Qur’an and Sunnah of Prophet Muhammad (PBUH) apply to dispute arising out of Islamic finance. If agreed by the parties, provisions from Islamic schools of thought or Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards may apply. The tribunal will select provisions that align with justice and the Qur’an and Sunnah, explaining its reasoning in the award.

17.3 Types of claim and defences typically brought in that area

Not applicable.

17.4 Issues and strategic considerations to take note of

The resolution of the dispute is purely based on the Sharia principles of law and Islamic law. Additionally, parties must be cautious that in the event of conflict in interpretation between Arabic and English languages, the Arabic language will take priority.

In 2024 and early 2025, DIFC courts and Abu Dhabi courts found that DIFC-LCIA arbitration clauses are valid, and the parties are deemed to have submitted to arbitration under the DIAC arbitration rules.

In 2024, the Dubai Court of Cassation found that asymmetrical arbitration clauses are unenforceable in the mainland UAE.

In 2024, the Dubai Court of Cassation initially found that a tribunal under the ICC Arbitration Rules did not have the authority to award the parties’ costs but later in the year that position was reversed.

In late 2024, the DIFC Court of Appeal reversed its 2023 decision and found that the DIFC courts have jurisdiction to issue interim measures, including worldwide freezing orders, in support of foreign proceedings.