UAE Law and Practice Contributed by: Gerard Moore, Patricia Ugalde Revilla, Antonin Sobek and Alanood Sinjab, Mayer Brown
3.4 Validity The UAE (both onshore and offshore) applies the rule of separability to arbitration clauses, such that a valid arbitration clause will be considered so even if the contract in which it is contained is found to be invalid. However, where the contract is found to be invalid for public policy reasons or the signatory’s lack of capac - ity or authority, the arbitration agreement will also be invalid.
the DIAC 2022 Rules; Article 13 of the ArbitrateAD 2024 Rules). 4.2 Default Procedures Each framework provides a default mechanism, with the relevant institution or court intervening where the parties’ method fails. • Onshore: under Article 11 of the UAE Arbitration Law, for a sole arbitrator the “Relevant Authority” (the administering institution or, failing that, the court) appoints if the parties do not agree within 15 days of a written request. For a three-member tribunal, each party appoints one arbitrator and the two appointees select the chair; the Relevant Authority appoints if a party fails to appoint within 15 days or the co-arbitrators fail to agree the chair within 15 days. Article 13 allows the court to step in where the agreed procedure otherwise breaks down. • Offshore: Article 17 of the DIFC Arbitration Law and Section 19 of the ADGM Arbitration Regulations contain materially similar rules, with 30-day periods and the DIFC Court of First Instance, the ADGM court or the administering institution (as the case may be) appointing as a last resort. In multiparty cases, the multiple claimants and the multiple respondents must each jointly nominate an arbitrator – failing agreement, the institution or court appoints on their behalf and may constitute the entire tribunal (see Article 11 of the UAE Arbitration Law; Article 17 of the DIFC Arbitration Law; Section 19 of the ADGM Arbitration Regulations; Article 12 of the DIAC 2022 Rules; Article 13 of the ArbitrateAD 2024 Rules). 4.3 Court Intervention The courts can intervene to constitute the tribunal where the parties, the co-arbitrators or the appoint - ing authority (typically, the arbitration institution) fail to agree or act. Onshore Under Articles 11 and 13 of the UAE Arbitration Law, the relevant local or federal Court of Appeal completes the appointment on a party’s request, having regard to the agreed and statutory qualifications and to secur -
4. The Arbitral Tribunal 4.1 Limits on Selection
Both the onshore and offshore regimes recognise party autonomy in selecting arbitrators. Under the UAE Arbitration Law, the DIFC Arbitration Law and the ADGM Arbitration Regulations 2015, the parties may agree on the number of arbitrators and the appoint - ment procedure. This autonomy is nevertheless sub - ject to the following limits. • The tribunal must comprise an odd number, failing which the arbitration is null (Article 9 of the UAE Arbitration Law; Article 16 of the DIFC Arbitration Law; Section 18 of the ADGM Arbitration Regula - tions). • Onshore, Article 10 (as amended by Federal Decree-Law No 15 of 2023) also requires an arbitrator to be a natural person of full legal capac - ity, without a disqualifying conviction, and not a member of the governing body of the administering institution. Article 10 bis (added by Federal Decree Law No 15 of 2023) creates a limited exception: parties may appoint an arbitrator from among the governing bodies of the administering institution, provided strict conditions are met (including a dedicated governance framework, written consent of both parties, a cap of five cases per year, and the arbitrator not serving as chair). • Every arbitrator must also be, and remain, inde - pendent and impartial (see 4.5 Arbitrator Require- ments ). • While there is no nationality or gender requirement in the onshore and offshore legislation, institutional rules commonly provide that a sole arbitrator or chair should not share a party’s nationality in the absence of an agreement (eg, see Article 11 of
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