Arbitration Clause Checklist for UAE Contracts

An arbitration clause is typically one or two sentences in a long contract, yet it determines how any future dispute will be decided. Careless drafting is one of the most common causes of jurisdictional fights.

This checklist helps you test a clause before signing or when reviewing an existing contract.

The essentials

• Does the clause clearly state that disputes will be finally resolved by arbitration?
• Is the institution named correctly, with its current rules referenced?
• Is the seat of arbitration stated, for example a specific emirate, DIFC or ADGM?
• Is the language of the proceedings stated?
• Is the number of arbitrators fixed, and how are they appointed?

Governing law versus seat

The law governing the contract and the seat of arbitration are separate choices. Make sure they are intentional and compatible, and check what the chosen seat requires under its arbitration framework.

Scope and carve-outs

Decide whether all disputes are covered or whether some, such as urgent injunctions or payment claims, may go to court. Be clear about any carve-outs, because courts may be asked to decide whether a dispute falls inside or outside the clause.

Practical points

• Multi-tier clauses requiring negotiation or mediation first should set clear time limits
• Confidentiality of proceedings, if desired
• Joinder and consolidation for multi-contract projects
• Costs and the allocation of fees

Common mistakes

Examples include naming an institution that no longer exists, referring to arbitration in one paragraph and courts in another, or giving one party an option to choose the forum without clear wording.

How a consultation can help

A consultation can test your clause against this list and suggest corrections. It does not guarantee that the clause will be upheld in every circumstance.

Frequently asked questions

Is DIAC the only arbitration option in Dubai?

No. Parties may choose other institutions, including international ones, or ad hoc arbitration. See DIAC arbitration.

Can I add an arbitration clause after a dispute starts?

Yes, by a new agreement of all parties to submit the existing dispute to arbitration.

Should I use model clauses?

Institution model clauses are a good starting point but need adapting to your contract.

Related guides and services

• Arbitration Agreement Review in the UAE
• DIAC Arbitration in Dubai: What to Know Before You Start
• Enforcing Arbitral Awards in the UAE: An Overview
• Disputes & Arbitration – all guides
• Formal Arbitration
• Contract Drafting