Arbitration is a popular method of resolving disputes in the UAE and surrounding regions. Recent trends have shown that parties to arbitration are willing to submit a broader range of general dispute matters. When disputes arise between parties from different industries, a neutral forum is frequently preferred over litigation.

The fact that there are now several institutions in the UAE that administer commercial arbitrations reflects the growth of arbitration in the UAE to some extent.The UAE also passed Federal Law No. 6/2018 on Arbitration (Arbitration Law), the country\’s first stand-alone arbitration law, which included, among other things, a more streamlined process for enforcing domestic arbitration awards, as well as amendments to the UAE Civil Procedure Code to facilitate the recognition and enforcement of foreign arbitral awards.

Dubai, in particular, is regarded as a popular arbitration venue in the region. The presence of arbitration institutions such as the DIAC and the DIFC-LCIA Centre has aided this.

Applying to ongoing as well as new arbitrations, the FAA sets out the procedural law for arbitrations in the UAE. In doing so, it replaces Articles 203–218 of the UAE Civil Procedure Code (“CPC”). By Article 2, it applies to:

• Any arbitration seated in the UAE, unless the Parties have agreed that another law apply, provided there is no conflict with the public order and morality of the State. 
• Any international commercial arbitration seated outside the UAE, provided the Parties have chosen the FAA to apply. 
• Any arbitration arising from a dispute governed by UAE law. 

It therefore does not apply to the DIFC and ADGM, financial free zones in Dubai and Abu Dhabi which have their own rules governing arbitrations which are based in those jurisdictions.

Procedural rules of arbitration

Commencement

To begin arbitral proceedings, the arbitrator must notify the parties of the date and location of the first session set for hearing the dispute within the prescribed time after accepting an arbitration.

Rules Applicable

In the arbitration agreement, the parties can specify the applicable procedural rules. If the arbitration agreement is silent, the parties decide on the applicable procedural rules in the proceedings\’ terms of reference.

Default rules

If the parties cannot agree on the procedural rules, the arbitrator must decide, provided that the anointed rules meet the minimum requirements of the Civil Procedure Code.

Evidence and disclosure

Only with the court\’s permission can an arbitrator order the disclosure or attendance of witnesses.

The arbitrator may make the following requests:

• Document disclosure and evidence gathering
• Experts will be present.
• Hearings and witness testimony

Unless ordered by the court, parties are not supposed to reveal any evidence that is detrimental to the case.

Remedies available

Only if the competent court grants permission for such an award can the arbitral tribunal issue orders or take other interim measures.

The tribunal may make the following decisions:

• Damages
• Injunctions
• Costs\\Interest

Contesting an arbitral award

The parties may seek invalidation on the following grounds:

• Parties\’ failure to enter into an arbitration agreement.
• An arbitrator was not appointed in accordance with the law; the arbitrator was not authorized to make a decision.
• The arbitral proceedings did not meet the legal requirements.
• The justice delivered was not fair or impartial.