UAE Law and Practice Contributed by: Raghad Hammad and Huda Al Zein, BLK Partners
recent changes and new agreements (such as the 2025 memorandum of understanding between Dubai and ADGM Courts) have streamlined the process so that judgments can move more easily between the different court systems within the UAE. 9.5 Enforcement of Arbitration Clauses For Onshore (Mainland) Insurance Contracts Onshore courts are very protective of the right to go to court. To bypass the court and use arbitration, the following rules should be applied: • The agreement to arbitrate must be a standalone document or a clearly separate, specially signed section of the policy. • The person signing the arbitration agreement must have the specific legal power to do so. In the UAE, signing a regular contract is not the same as signing away the right to go to court. The signa- tory often needs a specific Power of Attorney that explicitly mentions arbitration. • The clause must be prominently displayed (usually in bold or in a different colour) so that the insured party cannot claim they missed it. For Offshore (DIFC and ADGM) Contracts If the contract is based in the financial free zones (DIFC or ADGM), the process is much simpler and more internationally recognised: • A normal paragraph inside your main contract is usually enough. You do not need a separate signed document. • These courts almost always enforce arbitration clauses and will even stop someone from trying to take the case to a regular court if an arbitration agreement exists. Reinsurance Specifics Reinsurance is treated as a commercial business between two business parties. Courts are generally more willing to uphold arbitra- tion clauses in reinsurance because both sides are assumed to understand the risks. A recent October 2025 Court of Cassation ruling confirmed that if a rein- surance slip says: “All conditions of the main contract
apply,” it can successfully incorporate the arbitration clause from that main contract, provided it is clear. 9.6 Enforcement of Awards To enforce an arbitration award in the UAE, it must first be ratified (recognised) by a court. Once ratified, it has the same legal force as a court judgment and can be executed through the standard court system (eg, to freeze bank accounts or seize property). Domestic Awards (Mainland) Under Federal Law No. 6 of 2018 (Arbitration Law), you file a petition for ratification directly with the Court of Appeal. The court is mandated to issue an enforce- ment order within 60 days of your application, unless there are grounds to nullify the award. Additionally, effective from 4 August 2025, a landmark ruling from the Judicial Principles Unification Authority confirmed that arbitrators only need to sign the final page of an award. This eliminates a common tech- nicality previously used to challenge awards where every page was not signed. Offshore Awards (DIFC/ADGM) Awards issued within these financial free zones are enforced through their own common-law courts. A January 2025 memorandum of understanding between the Dubai and ADGM courts further simpli- fies the reciprocal enforcement of awards and judg- ments across the emirate. Enforcement of Foreign Awards The UAE is a signatory to the New York Convention (acceded to in 2006). This means that awards made in over 170 other countries are recognised and enforced Mediation is no longer just a voluntary option; it is often a legal prerequisite for starting a court case. For almost all “onshore” insurance disputes involving indi- viduals or SMEs (such as motor, health or life insur- ance), you must first go through Sanadak, the official ombudsman. Sanadak acts as a mediator to find an amicable settlement between you and the insurer. If this fails, the case is escalated to a judicial committee (IDSRC) before it can ever reach a judge. in the UAE with minimal interference. 9.7 Alternative Dispute Resolution
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