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Essential elements of a valid arbitration agreement in UAE

Essential elements of a valid arbitration agreement in UAE

I can imagine no society which does not embody some method of arbitration- Herbert Read
UAE Arbitration law of 2018 has repealed the 1992 (CPC) law. The new law is based on the “UNICITRAL Model Law” on International commercial arbitration. Under Article 7(1) it is stated that there has to be an arbitration agreement in ‘writing’ otherwise it would not be valid.

Our top lawyers in Dubai have pointed out the essential ingredients of the arbitration agreement, are as follows:

  1. Name of the parties of the agreement.
  2. There should be an explicitly ‘written’ arbitration clause in a contract or a separate arbitration agreement and both parties or their respective authorised representatives must sign the document. A written correspondence like an e-mail or an agreement during court proceedings can also be accepted as an arbitration agreement.
  3. The agreement must be legal and binding in nature meaning, have all the essentials of a valid contract, plus the matter should be arbitrable in nature.
  4. Date and duration of the agreement.
  5. Place and seat of arbitration.
  6. Law applicable to the arbitral proceedings.
  7. Choice of arbitrator/arbitrators.
  8. Language, cost and procedure of the arbitration.
  9. Acceptance of arbitration award.

Most importantly, the intention of the parties to resolve their dispute through arbitration should be clear in the agreement. In case the place, procedure or language has not been decided, the tribunal would decide according to the provisions of the arbitration law and relevant international treaties. If the arbitration agreement is concluded after the matter has been taken by the court, the agreement must contain the ‘matters’ to be dealt with in the arbitration proceedings.

Our best lawyers in UAE have also picked out some of the advantages of arbitration:

  1. Gives autonomy to parties.
  2. Provides fair outcome.
  3. Not adversarial in nature, thus a win-win situation.
  4. Speedy and flexible process.
  5. Confidentiality of the process.
  6. Binding decision, the award has the force of re judicata.
  7. Oral evidence is permitted.
  8. Helpful in technical subject matters.

Arbitration is a well-established way of ending disputes without going to court. The arbitral tribunal can issue both interim and partial awards; the award shall be issued within six months from the date of the first hearing when the term is not decided by the parties.
We, at BSB legal consultants, make sure to get your dispute resolved swiftly. Our best lawyers in Dubai are committed to working for the advantage of the client. Contact us at or call at +97150 8014003 to know more.

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