UAE Law and Practice Contributed by: His Excellency Tarish Almansoori, Feteiha Korra, Khamis Moustafa and Hala Almubarek, Tarish Al Mansoori Advocates and Legal Consultants
12.3 ADR Institutions Key ADR bodies include the Dubai International Arbi- tration Centre (DIAC), the Abu Dhabi International Arbitration Centre (arbitrateAD) and the Sharjah Inter- national Commercial Arbitration Centre (Tahkeem). These institutions also provide conciliation and media- tion services under modernised procedural rules.
13.3 Circumstances to Challenge an Arbitral Award According to Article (53) of Federal Decree-Law No. (6) of 2018 on Arbitration, parties can challenge an arbi- tral award by way of an action for annulment before the competent court or during the consideration of a request for confirmation. The court may annul the award only if one of the following reasons exists: “a. Absence of an Arbitration Agreement, or the Agree- ment is void, or terminated due to expiry of its term in accordance with the law to which the Agreement is subject by the parties or in accordance with this Law if there is no reference to a specific law; b. One of the parties, at the time of conclusion of the Arbitration Agreement, totally or partially lacks legal capacity in accordance with the law which governs his capacity; c. The person who lacks the legal capacity to take any action regarding the right, the subject matter of the dispute, in accordance with the law governing his capacity, which is stipulated in Article (4) of this Law; d. If one of the parties to Arbitration fails to present its defense as a result of not being given proper notice of the appointment of an Arbitrator or of the arbitral proceedings, the Arbitral Tribunal’s violation of the litigation principles or for any other reason beyond its control; e. If the arbitral award fails to apply the law agreed upon by the parties to be applied to the subject mat- ter of the dispute; f. If the composition of the Arbitral Tribunal or the appointment of one of the Arbitrators is in conflict with the provisions of this Law or the agreement of the parties; g. If the arbitral proceedings are invalid to the effect that impairs the award, or if the arbitral award is ren- dered after the due time limit; or h. If the arbitral award deals with matters not includ- ed in the Arbitration Agreement or exceeds the limits of this agreement. Nevertheless, if it is possible to
13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration
The legal framework governing arbitration in the UAE comprises a comprehensive body of federal legisla- tion and domestic institutional regulations. The prin- cipal federal enactments include Federal Decree-Law No. (6) of 2018 on Arbitration, which serves as the primary legal framework governing arbitral proceed- ings within the State; Federal Decree No. (43) of 2006, through which the UAE acceded to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards; and Federal Law No. (42) of 2022 on Civil Procedure, which provides the pro- cedural foundation for the enforcement of arbitral awards. Alongside these, DIFC Arbitration Law No. (1) of 2008, Decree No. (6) of the year 2009, the Dubai International Arbitration Centre (DIAC) Rules (2022), the Sharjah International Commercial Arbitration Cen- tre (Tahkeem) Rules (2010), and the Abu Dhabi Inter- national Arbitration Centre (arbitrateAD) Rules (2024) collectively establish a modern and arbitration-friendly legal regime consistent with international best prac- tices. 13.2 Subject Matters Not Referred to Arbitration According to Paragraph (2) of Article (4) of Federal Decree-Law No. (6) of 2018 on Arbitration, an agree- ment on arbitration may not be concluded with respect to matters where conciliation is not allowed. Conse- quently, disputes involving matters of public policy or rights that cannot be subject to settlement by the par- ties are not arbitrable.
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