Applicable Law Arbitration Agreement Template for the United Arab Emirates

An Applicable Law Arbitration Agreement is a specialized legal document that allows you to resolve commercial disputes through arbitration while ensuring your agreement complies with United Arab Emirates law. This document provides a structured alternative to traditional court litigation, offering you greater control over the dispute resolution process, confidentiality, and typically faster resolution times. Under UAE Federal Law No. 6 of 2018, arbitration agreements must meet specific requirements to be legally enforceable, making it crucial that your agreement is properly drafted to comply with local legislation.

When do you need this document?

You need an Applicable Law Arbitration Agreement when entering into commercial relationships where disputes may arise and you want to ensure resolution under UAE law. This is particularly important for international joint ventures operating in the UAE, construction projects governed by UAE regulations, financial services agreements involving UAE institutions, and trading contracts between UAE companies and foreign entities. The agreement is also essential when you're establishing business relationships with government entities or free zone companies that require compliance with UAE arbitration frameworks. If you're planning significant commercial transactions where litigation costs and time delays could substantially impact your business, this agreement provides you with a more efficient dispute resolution pathway.

Key legal considerations

Your arbitration agreement must clearly define the scope of disputes subject to arbitration and specify whether you're choosing institutional or ad-hoc arbitration procedures. You need to carefully consider the appointment process for arbitrators, ensuring it complies with UAE requirements and provides for qualified arbitrators with relevant expertise in UAE law. The agreement should address the language of proceedings, seat of arbitration, and applicable procedural rules, particularly if you're incorporating DIAC or ADCCAC rules. You must also include provisions for interim relief and emergency arbitrator procedures, as these can be crucial for protecting your interests during lengthy arbitration proceedings. Consider including clauses that address the enforceability of awards both within the UAE and internationally under the New York Convention.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 6 of 2018, your arbitration agreement must be in writing and clearly express the parties' intention to submit disputes to arbitration. The agreement must specify whether you're choosing UAE courts or arbitration institutions as the supervisory authority for your proceedings. You need to ensure compliance with the UAE Civil Code regarding contract formation and validity, particularly regarding capacity and consent of the parties. If you're operating in the DIFC, additional considerations under DIFC Law No. 1 of 2008 may apply, especially regarding enforcement procedures. Your agreement should address the requirements for arbitrator qualifications under UAE law and include provisions that facilitate enforcement of awards through UAE courts. The document must also consider specific requirements if government entities or state-owned companies are parties to the agreement.