UNITED ARAB EMRITES Law and Practice Contributed by: Ali Dakhlallah, Karen Seif, Matthew Page and William Prasifka, Habib Al Mulla & Partners
where the tribunal makes an error of law or fact. UAE law permits challenges to awards only on narrow pro- cedural grounds, which may leave parties with limited recourse. Drawbacks include: • delays, especially in complex cases with multiple arbitrators or experts; • tactical challenges to jurisdiction or validity of the arbitration agreement; and • parallel proceedings in courts during enforcement or annulment. In some cases, parties also encounter enforce- ment resistance, particularly where local assets are involved. While judicial support has improved signifi- cantly, arbitration is not always faster or simpler than litigation. Arbitration is most effective where carefully drafted clauses and realistic procedural expectations are in place. 3.5 Arbitral Institutions The UAE hosts several well-established arbitral insti- tutions, reflecting its role as a regional arbitration hub. The most prominent institution is DIAC, which admin- isters the majority of UAE seated arbitrations. DIAC is widely used for both domestic and international disputes. Another prominent arbitral institution is arbitrateAD, which recently came into force (in 2024), replacing its predecessor the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC). 3.6 Length of Proceedings The typical length of arbitration proceedings in the UAE varies depending on factors such as complex- ity, the constitution of the tribunal and the procedural strategy. Straightforward arbitrations may conclude within 12–18 months from the appointment of the tri- bunal to the final award. However, large construction or energy disputes often take 18–24 months or longer. Greater time periods commonly arise due to expert evidence, document production and jurisdictional challenges. Multi-member tribunals and concurrent court proceedings can further extend timelines. While
arbitration is often faster than court litigation, it is not necessarily swift in practice. Institutional rules, however, now encourage procedur- al efficiency, including early case management confer- ences. Nevertheless, arbitration timelines also largely depend on party conduct as well as the efficiency of the tribunal. Arbitration in the UAE is primarily governed by Fed- eral Arbitration Law No 6 of 2018, which is based on the UNCITRAL Model Law. This law applies to both domestic and international arbitrations seated onshore in the UAE. Key features include: • party autonomy; • competence-competence; • minimal court interference; and • tribunal powers to grant interim measures. Regulation of Offshore Arbitration Offshore jurisdictions such as the DIFC and ADGM have their own arbitration laws based on common law and UNCITRAL principles – ie, DIFC Arbitration Law No 1 of 2008, amended by DIFC Amendment Law No 1 of 2013, and the ADGM Arbitration Regulations 2015 amended by Amendment No 1 of 2020, respectively. 3.8 Court Powers UAE courts play a supportive role in arbitration. They may assist with the appointment of arbitrators where parties fail to agree. Courts also assist with the service of documents, taking of evidence and enforcement of interim measures. Courts are empowered to: • enforce arbitration agreements; • stay court proceedings in favour of arbitration; and • recognise and enforce arbitral awards. 3.7 Regulation of Arbitration Regulation of Onshore Arbitration This supportive approach reflects the UAE’s pro-arbi- tration stance and commitment to international best practices.
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