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Arbitration Agreement Review in the UAE

An arbitration agreement is the agreement to refer disputes to arbitration rather than court. If it is defective, a party may find itself arguing about jurisdiction before the real dispute is even considered.

UAE arbitration is governed mainly by the Federal Arbitration Law (Federal Law No. 6 of 2018, as amended), which is based on international model law principles, and by the rules of the chosen institution.

Form and capacity

The agreement must be in writing and signed by someone with authority to commit the party to arbitration. Under UAE law, certain agents need specific authority to agree to arbitration, which is why powers of attorney should be checked. See power of attorney requirements.

Scope

Check whether the clause covers disputes arising out of the contract only, or also related claims such as tort or statutory claims. Unclear scope leads to arguments about what may be arbitrated.

Seat, institution and rules

Seat: the legal place of arbitration, such as onshore UAE, DIFC or ADGM
Institution and rules: for example DIAC or another body
Number and method of appointing arbitrators
Language of the proceedings

Pathological clauses, such as naming an institution that does not exist or contradicting the seat, can cause delay.

Multi-contract and multi-party issues

Where several contracts or parties are involved, check that each agreement leads to the same forum, or you could face parallel proceedings.

Enforcement

Think ahead to where the award will need to be enforced. UAE is a party to the New York Convention, but enforcement depends on procedure and the circumstances. See enforcing arbitral awards.

How a consultation can help

A review can test the clause against these points and suggest improvements. It does not guarantee a tribunal's or court's approach, and arbitration appearances may involve authorised representatives.

Frequently asked questions

Must an arbitration agreement be a separate document?

No. It is often a clause in the main contract, but it should still be clear and specific.

Can a company be bound by an arbitration clause signed by a manager?

Only if the signatory had the required authority. This is a frequent source of challenge.

What if the clause is unclear?

A court or tribunal may interpret it, but this is uncertain and can lead to delay.

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General information only. Please read our Legal Disclaimer.