Voluntary Arbitration Agreement Template for the United Arab Emirates

A Voluntary Arbitration Agreement is a binding legal contract that commits you and other parties to resolve future disputes through arbitration rather than court litigation. Under United Arab Emirates law, this agreement serves as your foundation for alternative dispute resolution, providing a structured framework that governs how conflicts will be handled should they arise in your business relationship.

When do you need this document?

You need a Voluntary Arbitration Agreement when entering into significant business relationships where disputes could potentially arise. This includes joint venture partnerships between UAE companies and international entities, complex commercial contracts involving free zone companies, long-term supply agreements between mainland UAE businesses, and professional service arrangements with multinational corporations. The agreement is particularly valuable when you're dealing with cross-border transactions, high-value contracts, or relationships involving intellectual property, construction projects, or technology transfers. Many UAE businesses also use this agreement when establishing partnerships with entities from different legal systems, as it provides certainty about dispute resolution procedures from the outset.

Key legal considerations

Your arbitration agreement must clearly define the scope of disputes subject to arbitration, ensuring all parties understand which types of conflicts fall under the arbitration clause. You need to specify the number of arbitrators, their selection process, and required qualifications, particularly important in specialized commercial disputes. The agreement should establish the seat of arbitration, governing law, and procedural rules, whether institutional rules like DIAC or LCIA, or ad hoc procedures. Consider including provisions for emergency arbitrator procedures, confidentiality requirements, and language of proceedings. You must also address the enforceability of interim measures and ensure the agreement complies with your industry-specific regulations. Pay careful attention to carve-outs for certain types of disputes that may require court intervention, such as urgent injunctive relief or insolvency proceedings.

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 law requires that parties have legal capacity to enter into arbitration agreements, and corporate entities must ensure proper authorization from their governing bodies. Your agreement must specify an arbitrable subject matter, as certain disputes involving public policy, criminal matters, or family status cannot be arbitrated under UAE law. The agreement should comply with formal requirements under the UAE Civil Code, including proper execution and witnessing where necessary. For international arbitration, ensure compliance with the New York Convention 1958 for enforcement of awards. The UAE courts generally support arbitration agreements and will refer parties to arbitration when a valid agreement exists, but you must ensure your agreement meets all statutory requirements to avoid challenges to its validity or enforceability.