UAE Arbitration Law No. 6 of 2018: Process, Enforcement & Dispute Resolution

Executive Summary

Federal Law No. 6 of 2018 represents a comprehensive overhaul of the UAE's arbitration framework, replacing the previous arbitration provisions contained in the Civil Procedure Code. The legislation establishes a modern arbitration regime aligned with international standards, particularly the UNCITRAL Model Law, and provides detailed procedures for arbitration proceedings, award enforcement, and challenge mechanisms. The law applies to both domestic and international arbitrations seated in the UAE, with specific provisions addressing arbitration agreements, tribunal composition, interim measures, and recognition of foreign awards under the New York Convention framework.

Table of Contents

1. Legal Framework in UAE
2. Key Provisions of Federal Law No. 6 of 2018
3. Arbitration Agreement Requirements
4. Arbitral Tribunal Composition and Appointment
5. Arbitral Proceedings and Procedure
6. Interim Measures and Court Assistance
7. Arbitral Awards and Enforcement
8. Challenge and Setting Aside Procedures
9. Recognition of Foreign Arbitral Awards
10. UAE Arbitration Institutions
11. Comparison: Domestic vs International Arbitration

Legal Framework in UAE

The UAE's arbitration landscape operates under a dual system encompassing both onshore federal law and various free zone jurisdictions. Federal Law No. 6 of 2018 Concerning Arbitration serves as the primary legislation governing arbitration proceedings across the UAE's federal courts system, establishing a unified framework that replaced the fragmented approach previously contained in Articles 203-218 of the Civil Procedure Code [1].

The legislation explicitly defines arbitration as "a method regulated by the law through which a dispute between two or more parties is adjudicated under a binding award rendered by the Arbitral Tribunal as agreed by the parties" [2]. This definition encompasses both domestic and international arbitrations seated within the UAE, providing a comprehensive legal foundation for dispute resolution outside traditional court litigation.

The law's territorial scope extends throughout the UAE's federal court system, while recognizing the concurrent jurisdiction of various free zone arbitration centers including the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), which maintain their own arbitration laws and institutions [3].

Key Provisions of Federal Law No. 6 of 2018

Federal Law No. 6 of 2018 introduces several fundamental reforms that modernize the UAE's arbitration framework. The legislation explicitly repeals the previous arbitration provisions contained in the Civil Procedure Code, establishing a standalone regime that operates independently of court litigation procedures [1].

The law's temporal provisions specify that it applies to any pending arbitration at the time of its entry into force, even if based on an earlier arbitration agreement, ensuring seamless transition from the previous legal framework. Proceedings conducted under prior legislation remain valid, providing legal certainty for ongoing disputes [1].

Key structural elements include detailed provisions on arbitration agreements, tribunal composition, procedural conduct, interim measures, award rendering, and enforcement mechanisms. The legislation adopts principles consistent with international best practices, closely aligning with the UNCITRAL Model Law on International Commercial Arbitration (2006 version), though with certain modifications to reflect UAE legal traditions and procedural requirements. This alignment facilitates international arbitration practice while maintaining compatibility with the UAE's civil law framework [4].

Recent Amendments: Federal Decree Law No. 15 of 2023 introduced amendments to Federal Law No. 6 of 2018, refining certain procedural aspects and enforcement mechanisms. Parties and practitioners should consult the current consolidated version of the legislation, as these amendments may affect specific provisions governing arbitration proceedings and award recognition [1].

Arbitration Agreement Requirements

The law establishes specific requirements for valid arbitration agreements, defining them as "the agreement of the parties to submit to Arbitration, whether such Agreement is made before or after the dispute" [2]. Arbitration agreements must be in writing and can be contained in contracts, separate agreements, or evidenced through exchange of communications.

The legislation recognizes various forms of arbitration agreements including:

• Clauses contained within commercial contracts
• Separate submission agreements entered after disputes arise
• References to documents containing arbitration clauses
• Electronic communications evidencing agreement to arbitrate

Arbitration agreements must specify the disputes subject to arbitration with sufficient clarity. The law permits broad language encompassing "any dispute arising from or in connection with" contractual relationships, while maintaining validity requirements for specific dispute categories [3].

Arbitral Tribunal Composition and Appointment

The law provides detailed procedures for tribunal formation, addressing scenarios ranging from sole arbitrator appointments to complex three-member panels. Parties enjoy substantial autonomy in determining tribunal composition, including arbitrator qualifications, appointment procedures, and challenge mechanisms [2].

Default appointment mechanisms operate when parties fail to agree on tribunal composition. For three-member tribunals, each party appoints one arbitrator, with party-appointed arbitrators selecting the presiding arbitrator. If parties cannot agree on the presiding arbitrator within specified timeframes, competent courts assume appointment responsibilities [1].

Arbitrator qualifications require independence, impartiality, and appropriate professional background. The law permits challenges based on circumstances raising justifiable doubts regarding independence or impartiality, establishing time-bound challenge procedures and court review mechanisms for disputed appointments [4].

Arbitral Proceedings and Procedure

Federal Law No. 6 of 2018 establishes comprehensive procedural frameworks governing arbitration conduct. The legislation emphasizes party autonomy while providing default procedures for situations where parties cannot agree on specific procedural aspects [2].

Key procedural elements include:

Confidentiality Requirements: Arbitration proceedings and hearings remain confidential unless parties agree otherwise, protecting sensitive commercial information and maintaining dispute privacy [1].

Hearing Procedures: Tribunals possess discretion to determine whether oral hearings are necessary or whether proceedings should proceed on documentary evidence alone. Parties may request oral hearings at appropriate procedural stages [1].

Evidence Rules: Tribunals enjoy broad discretion in determining evidence admissibility, evaluation standards, and exchange procedures. The law permits flexible approaches to evidence presentation while maintaining fundamental fairness principles [1].

Procedural Timelines: The legislation establishes default timelines for various procedural steps while permitting party modifications through agreement or tribunal directives. Standard procedures require advance notice for hearings and opportunity for party representation [1].

Interim Measures and Court Assistance

The law empowers arbitral tribunals to grant comprehensive interim measures including asset preservation, evidence protection, and performance maintenance orders. Tribunals may require appropriate security from parties seeking interim relief, balancing protection needs with potential harm to opposing parties [2].

Court assistance mechanisms support tribunal effectiveness through:

• Evidence collection and preservation orders
• Witness testimony compulsion
• Asset freezing and attachment procedures
• Interim measure enforcement support

The legislation maintains clear separation between tribunal interim powers and court assistance functions, ensuring tribunals retain primary jurisdiction over procedural matters while courts provide necessary enforcement support [1].

Arbitral Awards and Enforcement

Arbitral awards rendered under the law carry binding effect and enforceability equivalent to court judgments. The legislation establishes detailed requirements for valid awards including reasoned decisions, signature requirements, and notification procedures [1].

Award enforcement procedures require submission to competent courts within specified timeframes, accompanied by authenticated award copies and arbitration agreements. Courts conduct limited review focusing on procedural compliance rather than substantive merits, promoting finality and efficiency in dispute resolution [4].

The law addresses various award types including:

• Final awards resolving all disputed issues
• Partial awards determining specific claims
• Interim awards on preliminary matters
• Consent awards reflecting party settlement agreements

Challenge and Setting Aside Procedures

Federal Law No. 6 of 2018 establishes limited grounds for challenging arbitral awards, reflecting international standards that prioritize award finality. Challenge proceedings must be initiated within 30 days from award notification, requiring specific procedural or jurisdictional defects rather than substantive disagreement with tribunal decisions [1].

Valid challenge grounds include:

• Invalid arbitration agreements under applicable law
• Party incapacity to conclude arbitration agreements
• Inadequate notice of proceedings or appointment irregularities
• Awards exceeding arbitration agreement scope
• Tribunal composition violations
• Public policy conflicts with UAE law

The legislation maintains strict time limits for challenge proceedings and prohibits courts from reviewing award merits, ensuring arbitration efficiency while preserving fundamental fairness protections [1].

Recognition of Foreign Arbitral Awards

The UAE's ratification of the New York Convention facilitates recognition and enforcement of foreign arbitral awards across the country. Federal Law No. 6 of 2018 incorporates Convention principles while establishing domestic procedures for foreign award recognition [4].

Foreign award recognition requires:

• Authenticated award copies with Arabic translations
• Original arbitration agreements or certified copies
• Evidence of award finality under foreign law
• Compliance with UAE public policy requirements

The law streamlines recognition procedures while maintaining necessary safeguards against enforcement of awards violating UAE public policy or natural justice principles. Recognition applications proceed through specialized commercial courts with expertise in international arbitration matters [4].

UAE Arbitration Institutions

The UAE hosts multiple arbitration institutions offering specialized dispute resolution services across various sectors and jurisdictions. These institutions provide administered arbitration services under their own rules while operating within the Federal Law No. 6 of 2018 framework [3].

Dubai International Arbitration Centre (DIAC): The largest arbitration institution in the UAE, handling domestic and international disputes across commercial, construction, and maritime sectors. DIAC maintains comprehensive arbitration rules and panel of qualified arbitrators [3].

Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC): Specializes in commercial disputes arising within Abu Dhabi and federal jurisdictions, offering mediation and arbitration services under institutional rules aligned with international standards.

DIFC-LCIA Arbitration Centre: Joint venture between Dubai International Financial Centre and London Court of International Arbitration, providing premium arbitration services for complex financial and commercial disputes under DIFC law.

ADGM Arbitration Centre: Operates within Abu Dhabi Global Market free zone, offering arbitration services under English common law principles with specialized expertise in financial services disputes.

Comparison: Domestic vs International Arbitration

The distinction between domestic and international arbitration primarily affects procedural aspects rather than substantive law application, as Federal Law No. 6 of 2018 governs both categories uniformly while accommodating international best practices and treaty obligations [1].

Conclusion

Federal Law No. 6 of 2018 establishes a comprehensive modern arbitration framework that positions the UAE as a leading arbitration-friendly jurisdiction in the Middle East. The legislation's alignment with international standards, particularly the UNCITRAL Model Law, provides parties with predictable procedures while maintaining necessary flexibility for diverse dispute types.

Key strengths include clear procedural frameworks, limited court intervention, efficient enforcement mechanisms, and recognition of foreign awards under international conventions. The law's emphasis on party autonomy combined with robust institutional support through various arbitration centers creates an attractive environment for both domestic and international dispute resolution.

Businesses operating in the UAE benefit from streamlined arbitration procedures, confidential dispute resolution, and enforceable awards recognized globally. The legislation's comprehensive approach addresses practical concerns while maintaining alignment with international best practices, supporting the UAE's position as a regional commercial hub and preferred seat for arbitration proceedings.

Sources

[1] Federal Law No. 6 of 2018 Concerning Arbitration - Official UAE Legislation

[2] Federal Law No. 6 of 2018 on Arbitration - Official Text - Ministry of Justice

[3] UAE Arbitration Law Federal Law No. 6 of 2018 (Tamimi & Company) - Legal Translation

[4] Challenging and Enforcing Arbitration Awards (Global Arbitration Review) - Legal Database