UAE Arbitration Law: A Complete Guide

Last Reviewed: 5 June 2026 | Author: Azza Ibrahim Hassan Al Mulla, Licensed UAE Employment Law Attorney (Bar No. 9558)

Quick Answer

UAE arbitration law gives businesses and individuals a faster, private alternative to court litigation — and an arbitral award issued in Dubai is enforceable in 170+ countries under the New York Convention. This guide explains how UAE arbitration works, the key institutions, costs, timelines, and how to enforce an arbitration award across Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah.

If your contract has an arbitration clause and a dispute has arisen, you need to understand your rights and your options — because once the other side files, the clock is already running against you.

Key Takeaways

• UAE arbitration is governed by Federal Law No. 6 of 2018 (UAE Arbitration Law), which aligns with UNCITRAL Model Law and the New York Convention
• A valid arbitration agreement in a contract is binding — courts will refer parties to arbitration rather than hear the dispute
• The main arbitration centres in the UAE are DIAC (Dubai), ADCCAC (Abu Dhabi) and ADGM, with the ICC and LCIA used for international disputes — DIAC is preferred over SIAC (Singapore) for UAE- and Gulf-connected cases
• UAE arbitral awards are enforceable as court judgments — and in 170+ countries under the New York Convention
• Arbitration typically costs AED 20,000 to AED 250,000+ depending on claim size, and resolves in 6–18 months

• The current DIAC Arbitration Rules 2022 replaced the 2007 Rules — use the DIAC cost calculator on diac.com to estimate fees before filing

Table of Contents

1. What Is UAE Arbitration Law?

2. Key Arbitration Institutions for Arbitration in Dubai and the UAE

3. When Is Arbitration Available in the UAE?

4. The UAE Arbitration Process Step by Step

5. How to Enforce an Arbitration Award in Dubai and UAE

6. Cost of Arbitration in UAE

7. Arbitration vs. Court Litigation in UAE

8. UAE Arbitration Law and Construction Disputes

9. Online Dispute Resolution and Arbitration in UAE

10. UAE Arbitration Across Emirates

11. DIAC Arbitration Rules: 2007, 2022 and the 2025 Position

12. DIAC Arbitration Clause: Model Wording for Dubai Contracts

13. DIAC Table of Fees and Costs and the DIAC Cost Calculator

14. DIFC Arbitration Rules

15. DIAC Mediation Rules

16. DIAC vs SIAC: Which Arbitration Centre for UAE Disputes?

17. Frequently Asked Questions — UAE Arbitration Law

18. Contact Azza Ibrahim Hassan Al Mulla Law Firm

1. What Is UAE Arbitration Law?

UAE arbitration law is the legal framework governing how private disputes are resolved outside the courts through arbitration. The primary legislation is Federal Law No. 6 of 2018 on Arbitration (the UAE Arbitration Law), which replaced the arbitration provisions of the UAE Civil Procedure Code (Articles 203–218) and brought the UAE into alignment with international best practice.

Federal Law No. 6 of 2018 applies to:

• All arbitrations seated in the UAE (where UAE is the legal seat)
• All arbitrations where the parties have agreed to apply UAE arbitration law
• Domestic commercial disputes
• International commercial disputes unless the parties have agreed otherwise

The law does NOT apply to:

• Disputes involving a government entity where that entity has not agreed to arbitrate
• Personal status disputes (divorce, custody, inheritance) — these are exclusively court matters
• Labor disputes in the UAE — these go through MOHRE mediation and labor courts

UAE arbitration is supervised by the Federal courts. If there are any disputes about the arbitration process itself (jurisdiction challenges, appeals, enforcement), the relevant UAE court has supervisory jurisdiction.

2. Key Arbitration Institutions for Arbitration in Dubai and the UAE

Arbitration in the UAE can be administered by an institution or conducted ad hoc (without an institution). The main institutions are:

Dubai International Arbitration Centre (DIAC)

Website: diac.ae

Seat: Dubai

Governing rules: DIAC Arbitration Rules 2022

Best for: Commercial disputes, real estate, construction, financial disputes in Dubai

Filing fee: AED 5,000 minimum (scales with claim value)

Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC)

Website: adccac.ae

Seat: Abu Dhabi

Best for: Disputes involving Abu Dhabi parties or Abu Dhabi-governed contracts

DIFC-LCIA Arbitration Centre (now DIAC DIFC Rules)

Seat: DIFC (Dubai International Financial Centre)

Applies English common law procedure

Best for: International commercial disputes with DIFC connection; contracts governed by DIFC law

Abu Dhabi Global Market (ADGM) Arbitration Centre

Seat: ADGM (Abu Dhabi Global Market)

Applies ADGM arbitration rules (based on English law)

Best for: Disputes involving ADGM-incorporated entities

ICC International Court of Arbitration

International institution — can seat cases in Dubai, Abu Dhabi, or the DIFC

Best for: Large international commercial disputes where parties prefer ICC rules

Choosing the right institution depends on the governing law, the seat of arbitration, the nationality of the parties, and the subject matter of the dispute. A UAE arbitration lawyer advises on this before the contract is signed.

3. When Is Arbitration Available in the UAE?

Arbitration is available for any civil or commercial dispute where the parties have a valid arbitration agreement. A valid UAE arbitration agreement must:

• Be in writing (can be in the original contract or a separate agreement)
• Clearly express the parties’ intention to submit disputes to arbitration
• Identify the scope of disputes covered

Common contract clauses that trigger UAE arbitration:

• “Any dispute arising from this agreement shall be finally resolved by arbitration in Dubai”
• “All disputes shall be submitted to DIAC arbitration in accordance with the DIAC Rules”
• Standard ICC or DIAC model clauses included in contracts

Can I refuse to go to arbitration in UAE?

No. If a valid arbitration agreement exists in your contract, UAE courts will enforce it. Under Article 8 of Federal Law No. 6 of 2018, a court that receives a claim covered by an arbitration agreement must refer the parties to arbitration — it cannot hear the case on the merits.

The only exceptions:

• The arbitration agreement is void or unenforceable
• The dispute is not covered by the agreement’s scope
• The party raising the court action was not a party to the arbitration agreement

4. The UAE Arbitration Process Step by Step

Step 1 — Arbitration Demand (Request for Arbitration)

The claimant files a Request for Arbitration with the chosen institution (DIAC, ADCCAC, etc.) or serves a notice of arbitration on the respondent (for ad hoc arbitration). The request states the facts, the relief sought, and confirms the arbitration agreement.

Step 2 — Respondent’s Answer

The respondent files an Answer within the time specified by the institutional rules (typically 30–45 days). The respondent can also file a counterclaim at this stage.

Step 3 — Constitution of the Arbitral Tribunal

The parties agree on a sole arbitrator or a three-member tribunal. If they cannot agree, the institution appoints the arbitrator(s). Arbitrators must be independent and impartial.

Step 4 — Procedural Timetable

The tribunal sets a procedural timetable specifying deadlines for: written submissions, document production, witness statements, and hearing dates.

Step 5 — Written Submissions

Both parties submit their case in writing (Statement of Claim, Statement of Defense, Reply, Rejoinder). These submissions include legal arguments, documentary evidence, and witness statements.

Step 6 — Hearing

The tribunal holds an oral hearing where witnesses are examined and cross-examined, and experts present their reports. Complex cases may have multiple hearing days.

Step 7 — Award

After the hearing (or on the papers alone for simpler cases), the tribunal issues a written Award. The Award sets out the tribunal’s findings on the facts, the applicable law, and the relief granted.

Timeline: Most UAE arbitrations under DIAC resolve in 9–18 months from the Request for Arbitration to the Award.

5. How to Enforce an Arbitration Award in Dubai and UAE

A UAE domestic arbitral award is enforced as a court judgment under Article 55 of Federal Law No. 6 of 2018. The steps are:

Step 1 — Deposit the Award at Court

The award must be deposited with the competent UAE court within one month of issuance. In Dubai, this is the Dubai Court of First Instance. In Abu Dhabi, the Abu Dhabi Court of First Instance.

Step 2 — Application for Enforcement Order

A party applies to the court for an enforcement order (writ of execution). The court reviews the award to confirm it meets the requirements of Article 57. This is not a full review of the merits — only a procedural check.

Step 3 — Court Issues Enforcement Order

If the award meets requirements, the court issues an enforcement order within 60 days. The order is then executed like any court judgment: bank account freezes, asset attachments, salary garnishment.

Grounds for Refusing Enforcement (Article 53/54):

A UAE court can refuse to enforce an award if:

• There was no valid arbitration agreement
• A party was not properly notified of the proceedings
• The award covers matters beyond the arbitration agreement
• The arbitral procedure violated mandatory UAE law
• The subject matter is not arbitrable under UAE law
• Enforcement would violate UAE public policy

International Arbitral Awards (New York Convention)

The UAE ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 2006. A foreign arbitral award (e.g., an ICC award issued in Paris or a London arbitration award) is enforceable in the UAE under the Convention, through the same court enforcement procedure.

This means a Dubai company can enforce an award from a London arbitration in the UAE — and a UAE company with a Dubai award can enforce it in 170+ countries.

6. Cost of Arbitration in UAE

Costs vary significantly by institution and claim size:

Claim Value (AED)	Estimated Arbitration Cost (AED)
500,000	20,000 – 50,000
2,000,000	50,000 – 120,000
10,000,000	150,000 – 350,000
50,000,000+	400,000 – 1,000,000+

 

Cost components:

• Institution filing fees (paid to DIAC/ADCCAC/ICC)
• Arbitrator fees (sole arbitrator: AED 30,000–200,000; three-member: 3x)
• Legal fees for your lawyer (billed separately)
• Expert witness fees (technical, valuation, accounting)
• Translation costs (if documents are in multiple languages)

Cost allocation: The losing party typically pays the winner’s arbitration costs plus legal fees, as the tribunal determines. However, the tribunal has discretion — partial cost awards are common.

Is arbitration cheaper than court litigation in UAE?

For claims above AED 2 million: generally yes — arbitration is faster and the single award is final (fewer appeals). For claims below AED 500,000: UAE courts are often faster and cheaper.

7. Arbitration vs. Court Litigation in UAE

Factor	Arbitration	UAE Court
Duration	9–18 months	1–4 years
Privacy	Confidential	Public record
Expertise	Can choose expert arbitrators	General judge
Enforceability	170+ countries (NYC)	UAE only (without separate treaty)
Cost	Higher for small claims	Lower for small claims
Appeals	Very limited	Multiple appeal levels
Language	Can be English	Must be Arabic

 

8. UAE Arbitration Law and Construction Disputes

Construction contracts in the UAE almost universally contain DIAC or ICC arbitration clauses. The UAE construction sector — particularly in Dubai and Abu Dhabi — generates a high volume of arbitration disputes involving:

• Contractor payment claims (FIDIC Red/Silver/Yellow Book contracts)
• Variation and delay claims
• Termination disputes
• Defects liability claims

For construction arbitrations, both DIAC and ICC appoint arbitrators with engineering or quantity surveying expertise. Expert determination is also available for technical disputes.

The Dubai Courts and Abu Dhabi Courts enforce construction arbitration awards routinely. Ras Al Khaimah and Sharjah courts also enforce awards but have fewer specialist judges for complex construction matters.

9. Online Dispute Resolution and Arbitration in UAE

Federal Law No. 6 of 2018 permits arbitration proceedings to be conducted fully online, including:

• Virtual hearings via video conference
• Electronic submission of documents
• Electronic signing of the arbitration agreement and procedural orders

DIAC and ICC both offer fully virtual arbitration procedures. This is particularly relevant for international parties based outside the UAE who wish to resolve disputes under UAE arbitration law without traveling to Dubai.

10. UAE Arbitration Across Emirates

Arbitration in the UAE is primarily conducted through Dubai and Abu Dhabi-based institutions. However, arbitral awards are enforceable nationwide:

Dubai: DIAC is the dominant institution. DIFC seat is available for international or DIFC-law governed disputes.

Abu Dhabi: ADCCAC handles most Abu Dhabi commercial arbitrations. ADGM arbitration is available for ADGM entities.

Sharjah: Parties in Sharjah typically use DIAC for arbitration.

Ras Al Khaimah: RAK courts enforce UAE arbitral awards. For large RAK commercial disputes, DIAC is commonly used.

11. DIAC Arbitration Rules: 2007, 2022 and the 2025 Position

What Are the DIAC Arbitration Rules?

The DIAC Arbitration Rules are the procedural rules that govern every arbitration administered by the Dubai International Arbitration Centre, and the current version is the DIAC Arbitration Rules 2022, in force since 21 March 2022. They set out how a case is started, how the tribunal is appointed, how hearings run, and how the award is issued. Any contract that names DIAC arbitration is treated as adopting these rules unless the parties clearly agree otherwise.

DIAC Rules 2007 vs DIAC Rules 2022 — Comparison of Arbitration Rules

The DIAC Rules 2022 replaced the DIAC Rules 2007 and modernised arbitration in Dubai across several key areas. The biggest practical changes are the default seat, the new expedited procedure, and the ability to consolidate related claims. The table below compares the two sets of rules side by side.

If your contract was signed before 21 March 2022 but the arbitration begins after that date, the DIAC Rules 2022 will normally govern the procedure — so it is worth reviewing older arbitration clauses now.

Are There DIAC Rules 2025?

No separate DIAC Rules 2025 have been issued — the DIAC Arbitration Rules 2022 remain the current rules throughout 2025 and 2026. When people refer to “DIAC Rules 2025,” they almost always mean the 2022 Rules as they apply today. Always confirm you are working from the 2022 version, which is published on the DIAC website.

12. DIAC Arbitration Clause: Model Wording for Dubai Contracts

The DIAC arbitration clause is the contract wording that sends future disputes to arbitration administered by the Dubai International Arbitration Centre instead of the courts. DIAC publishes a recommended model clause, and using it avoids the drafting mistakes that can make a clause unenforceable. The standard DIAC model clause reads:

“Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the Arbitration Rules of the Dubai International Arbitration Centre (DIAC), which Rules are deemed to be incorporated by reference into this clause.”

To make the clause work in practice, add four details: the number of arbitrators (one or three), the seat or legal place of arbitration (for example Dubai or the DIFC), the language of the arbitration (English or Arabic), and the governing law of the contract. A UAE arbitration lawyer should review the clause before signing, because a vague or contradictory clause is one of the most common reasons enforcement later fails.

13. DIAC Table of Fees and Costs and the DIAC Cost Calculator

DIAC Table of Fees and Costs

The DIAC Table of Fees and Costs sets out exactly what an arbitration costs, and it has two main parts: a fixed, non-refundable registration fee of AED 5,000 to file a case, and administrative and tribunal fees that rise with the value of the claim. The fee scale is published as an appendix to the DIAC Arbitration Rules 2022, so both sides can see the likely cost before they start. Larger claims and three-member tribunals cost more than small claims heard by a sole arbitrator.

DIAC Cost Calculator

The DIAC cost calculator is a free online tool on the DIAC website that estimates the administrative and tribunal fees for your case based on the amount in dispute. Enter your claim value and the number of arbitrators, and it returns an indicative figure drawn from the official Table of Fees. It is the quickest way to budget for arbitration in Dubai before filing, though the final cost can still vary with the complexity of the case.

14. DIFC Arbitration Rules

The DIFC arbitration rules apply when an arbitration is seated in the Dubai International Financial Centre, a common-law jurisdiction inside Dubai that runs on its own laws and courts. DIFC-seated arbitration is governed by the DIFC Arbitration Law (DIFC Law No. 1 of 2008), and the supervising courts are the English-language DIFC Courts rather than the onshore Dubai Courts. Since Dubai Decree No. 34 of 2021, DIAC administers DIFC-seated cases — replacing the former DIFC-LCIA Centre — usually under the DIAC Arbitration Rules 2022 with the DIFC as the default seat.

Choosing a DIFC seat is popular for international contracts and finance disputes because the procedure follows English common law and awards are enforced through a well-regarded, English-speaking court. For purely local contracts, an onshore Dubai seat under UAE Federal Law No. 6 of 2018 may be more suitable. The right choice depends on the parties, the governing law, and where the assets are located.

15. DIAC Mediation Rules

The DIAC Mediation Rules govern voluntary, confidential mediation administered by the Dubai International Arbitration Centre, where a neutral mediator helps the parties negotiate their own settlement. Unlike an arbitrator, the mediator does not impose a decision — the process is non-binding until the parties sign a settlement agreement, which can then be recorded and made enforceable. Mediation is usually faster and cheaper than a full arbitration and helps preserve the commercial relationship.

Parties can also combine the two procedures: a dispute can start in mediation and move to arbitration if it does not settle, an approach often called med-arb. Many DIAC contracts include a tiered clause that requires the parties to attempt mediation before they file for arbitration.

16. DIAC vs SIAC: Which Arbitration Centre for UAE Disputes?

DIAC is the better arbitration centre than SIAC for any dispute connected to the UAE or the wider Gulf, because a DIAC award enforces directly through the UAE courts and across the GCC, while a SIAC award from Singapore must first be recognised here as a foreign award. SIAC (the Singapore International Arbitration Centre) remains an excellent, neutral venue for purely international contracts with no UAE link — but where the parties, the contract, or the assets are based in the UAE, DIAC is usually faster, cheaper, and easier to enforce.

The table below compares DIAC and SIAC for a UAE-connected dispute.

Both DIAC and SIAC are respected, New York Convention institutions, so the real question is connection: choose DIAC when the dispute, the counterparty, or the assets sit in the UAE or the Gulf, and consider SIAC only when both sides want a fully neutral Asia-Pacific seat. The safest approach is to name the right centre in the arbitration clause before the contract is signed.

17. Frequently Asked Questions — UAE Arbitration Law

Q1: Is arbitration binding in the UAE?

Yes. An arbitration award issued in a UAE-seated arbitration is binding and final. Under Article 52 of Federal Law No. 6 of 2018, the award has the same force as a final court judgment once deposited and ratified by the competent court. There is no appeal on the merits — the only challenge is a nullity application on procedural grounds, which courts grant only in limited circumstances.

Q2: How long does arbitration take in the UAE?

Most UAE arbitration proceedings under DIAC rules take 9 to 18 months from the Request for Arbitration to the final Award. Simple two-party disputes can be resolved in 6 months using an expedited procedure. Complex multi-party or construction arbitrations can take 2 to 3 years. This compares favorably with UAE court litigation, which averages 2 to 4 years through all appeal stages.

Q3: Can I refuse to go to arbitration in UAE?

No. If your contract contains a valid arbitration clause, UAE courts will enforce it and refer the dispute to arbitration. Under Article 8 of Federal Law No. 6 of 2018, a court receiving a claim covered by an arbitration agreement must refer the parties to arbitration without examining the merits of the case. The only exceptions are when the arbitration agreement itself is void or unenforceable.

Q4: How do I enforce an arbitration award in Dubai?

Enforce a UAE arbitration award in Dubai by depositing the award at the Dubai Court of First Instance within one month of issuance, then applying for an enforcement order. The court reviews the award for procedural compliance (not the merits) and issues an enforcement order within 60 days. The order is then executed as a court judgment — through bank account freezes, asset attachments, or salary garnishment.

Q5: What is the cost of arbitration in the UAE?

The cost of arbitration in the UAE ranges from approximately AED 20,000 for a claim of AED 500,000 to AED 350,000 or more for a claim of AED 10 million. Costs include institution fees, arbitrator fees, legal fees, and expert witness fees. The losing party typically pays the winning party’s arbitration costs as determined by the tribunal.

Q6: What is the standard DIAC arbitration clause?

The standard DIAC arbitration clause refers any dispute to final arbitration under the DIAC Arbitration Rules 2022. DIAC’s recommended wording states that disputes “shall be referred to and finally resolved by arbitration under the Arbitration Rules of the Dubai International Arbitration Centre.” Always add the seat, the language, and the number of arbitrators so the clause is enforceable.

Q7: What is the difference between DIAC and DIFC arbitration rules?

DIAC arbitration rules govern cases administered by the Dubai International Arbitration Centre, while DIFC arbitration is seated in the DIFC under DIFC Law No. 1 of 2008 and supervised by the DIFC Courts. Since 2021, DIAC administers DIFC-seated cases under the DIAC Rules 2022, with the DIFC as the default seat unless the parties agree otherwise.

Q8: How much does DIAC arbitration cost?

DIAC arbitration starts with a non-refundable AED 5,000 registration fee, plus administrative and tribunal fees that scale with the claim value under the DIAC Table of Fees and Costs. You can estimate the total with the free DIAC cost calculator on diac.com before you file. Larger claims and three-member tribunals cost more.

Q9: What is the difference between DIAC Rules 2007 and DIAC Rules 2022?

The DIAC Rules 2022 replaced the 2007 Rules on 21 March 2022 and added expedited proceedings for claims up to AED 1,000,000, consolidation and joinder of related cases, third-party funding disclosure, and the DIFC as the default seat. No DIAC Rules 2025 exist — the 2022 Rules remain current in 2026.

Q10: Is DIAC or SIAC better for arbitration?

DIAC is usually the better choice for any dispute connected to the UAE or the Gulf, because a DIAC award enforces directly through the UAE courts and across the GCC, while a SIAC award from Singapore must first be recognised as a foreign award. SIAC is a strong, neutral option for purely international contracts with no UAE link.

18. Contact Azza Ibrahim Hassan Al Mulla Law Firm

Whether you need to draft an arbitration clause, initiate proceedings, challenge an award, or enforce a foreign arbitral award in the UAE — speak to a UAE arbitration specialist before taking action.

Azza Ibrahim Hassan Al Mulla is a licensed UAE attorney (Bar No. 9558) with experience in commercial arbitration, dispute resolution, and enforcement proceedings across Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah.

Free 15-minute consultation available.

Call or WhatsApp: +971 50 567 9979

ABOUT THE AUTHOR

Azza Ibrahim Hassan Al Mulla

Licensed UAE Family Law Attorney | UAE Bar License No. 9558

Azza Ibrahim Hassan Al Mulla is a licensed UAE attorney specialising in Arbitration & Commercial Law Attorney. She has represented clients across Abu Dhabi, Dubai, Sharjah, and Ras Al Khaimah in UAE Federal Courts and the Dubai International Financial Centre Courts. She is a member of the UAE Lawyers Association and practices in both Arabic and English.

This article is for general information only and does not constitute legal advice. UAE law and court procedures are subject to change. For advice on your specific situation, consult a licensed UAE family law attorney. © 2026 Azza Ibrahim Hassan Al Mulla Law Firm. All rights reserved.