Non Arbitration Agreement Template for the United Arab Emirates
Generate a bespoke document
What is a Non Arbitration Agreement?
This Non-Arbitration Agreement is utilized when parties wish to explicitly exclude arbitration from their dispute resolution options and establish the exclusive jurisdiction of UAE courts. It is particularly relevant in situations where parties prefer the established procedures of the UAE judicial system, require direct court enforcement capabilities, or want to avoid the costs associated with arbitration proceedings. The agreement is structured in accordance with UAE Federal Law No. 11 of 1992 (Civil Procedure Law) and related legislation, providing clear provisions for court jurisdiction, dispute resolution procedures, and enforcement mechanisms. This document is essential for businesses operating in the UAE who want to ensure their disputes are resolved through the local court system rather than through arbitration.
About the Non Arbitration Agreement
A Non Arbitration Agreement is a legal document that explicitly excludes arbitration as a dispute resolution mechanism and establishes the exclusive jurisdiction of UAE courts. This agreement ensures that any disputes arising from your business relationship will be resolved through the UAE judicial system rather than private arbitration proceedings. Under UAE law, parties have the freedom to choose their dispute resolution method, and this document formalizes your preference for court-based resolution.
When do you need this document?
You need a Non Arbitration Agreement when entering into commercial relationships where you prefer the transparency and established procedures of UAE Federal courts. This is particularly important for government entities and semi-government organizations that may be required to use public court systems. Real estate developers often use these agreements for property transactions to ensure disputes can be resolved through specialized real estate courts. Construction companies frequently require non-arbitration clauses to access the UAE's construction dispute resolution framework. Financial institutions may prefer court jurisdiction for regulatory compliance and enforcement capabilities. Joint venture partners sometimes choose this approach when they want the precedential value of court decisions for future business relationships.
Key legal considerations
The waiver of arbitration rights must be explicit and unambiguous under UAE law to be enforceable. Your agreement should clearly specify which UAE court will have jurisdiction, considering factors like the parties' locations and the subject matter of potential disputes. Include provisions for applicable law, ensuring consistency with UAE Federal Law No. 5 of 1985 (Civil Code) for contractual matters. Consider the enforceability of court judgments, particularly if parties operate across different emirates or internationally. Address procedural aspects such as language of proceedings, service of process, and appeal rights. Ensure the agreement doesn't conflict with mandatory arbitration requirements in specific sectors like banking or free zone regulations.
Legal requirements in United Arab Emirates
UAE Federal Law No. 11 of 1992 (Civil Procedure Law) governs court jurisdiction and procedural requirements for non-arbitration agreements. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code) regarding contract formation and validity. Under UAE Federal Law No. 6 of 2018 (Federal Arbitration Law), parties can validly exclude arbitration provided the waiver is express and informed. Commercial entities must ensure compliance with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) for business relationships. Free zone companies should verify that non-arbitration agreements align with specific free zone regulations. The document requires proper execution with authorized signatories and may need notarization depending on the transaction value and parties involved.
GOVERNING LAW
Applicable law
This Non Arbitration Agreement is drafted to comply with United Arab Emirates law. Key legislation includes:
UAE Federal Law No. 5 of 1985 (Civil Code): Governs contractual relationships and obligations between parties. Provides the legal framework for contract formation, validity, and enforcement.
UAE Federal Law No. 6 of 2018 (Federal Arbitration Law): While creating a non-arbitration agreement, understanding this law is crucial to properly exclude arbitration and ensure the exclusion is legally valid and enforceable.
UAE Federal Law No. 18 of 1993 (Commercial Transactions Law): Relevant for commercial relationships and transactions, particularly if the non-arbitration agreement is part of a commercial contract.
Dubai Law No. 16 of 2009: If the agreement involves Dubai parties, this law establishing the Dubai Courts' jurisdiction needs to be considered.
Explore 208,390+ legal templates
Explore 208,390+ legal templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it