Ad Hoc Arbitration Dubai: Flexible Dispute Resolution Under UAE Law

Ad hoc arbitration in Dubai refers to a dispute-resolution process where parties design their own procedural rules without institutional administration, operating under the UAE Federal Arbitration Law (Federal Law No. 6 of 2018) and subject to the jurisdiction of Dubai's courts for support, supervision, and enforcement of awards.

Ad Hoc Arbitration Dubai: Process, Law and Enforceability

Ad hoc arbitration in Dubai is a flexible, party-driven method of resolving disputes without institutional administration, governed primarily by the UAE Federal Arbitration Law No. 6 of 2018, which applies across the Emirate of Dubai and the wider UAE.

Related Services: Explore our Consumer Protection Disputes and Litigation & Dispute Financing services for practical legal support in this area.

WHAT IS AD HOC ARBITRATION AND HOW DOES IT DIFFER FROM INSTITUTIONAL ARBITRATION IN DUBAI?

Ad hoc arbitration is a dispute-resolution process where the parties themselves design the rules, select the arbitrators and manage the proceedings, without relying on an arbitral institution such as the DIFC-LCIA or ICC. Unlike institutional arbitration, there is no administering body to provide procedural defaults, fee schedules or institutional oversight; the parties must agree on every procedural detail, including the arbitration venue, language and applicable law. This flexibility can reduce costs and tailor the process to the specific dispute, but it also places greater responsibility on the parties to ensure procedural fairness and enforceability. The UAE Federal Arbitration Law No. 6 of 2018 recognises ad hoc arbitration and provides a default procedural framework when the parties have not agreed on specific rules, ensuring that awards are capable of enforcement under UAE law.

HOW ARE ARBITRATORS APPOINTED IN AN AD HOC ARBITRATION IN DUBAI?

The parties may agree on a procedure for appointing arbitrators, such as each party selecting one arbitrator and those two choosing a third presiding arbitrator. If the parties cannot agree or the agreed procedure fails, the UAE Federal Arbitration Law No. 6 of 2018 provides a fallback: either party may request the competent court-typically the Dubai Court of First Instance-to appoint the missing arbitrator(s). The court will consider the parties' nominations, any agreed qualifications and the need for impartiality and independence. The law also allows the parties to designate an appointing authority, such as a professional arbitration centre, to make the appointment if they prefer not to involve the courts. Once appointed, arbitrators must disclose any potential conflicts of interest and accept the appointment in writing before proceedings commence.

WHAT PROCEDURAL STEPS GOVERN AN AD HOC ARBITRATION IN DUBAI?

After arbitrator appointment, the parties typically exchange a statement of claim and a statement of defence, followed by any counterclaims and replies. The arbitral tribunal then decides on the procedural timetable, which may include document production, witness statements, expert reports and hearings. Hearings can be conducted in person or virtually, and the tribunal determines the language of the proceedings-commonly English or Arabic-unless the parties agree otherwise. The tribunal issues procedural orders as needed, and the parties must comply with timelines set by the tribunal or, absent such orders, the reasonable timeframes implied by the UAE Federal Arbitration Law. At the conclusion of the hearings, the tribunal deliberates and renders a final award, which must be in writing, signed by the arbitrators and state the reasons upon which it is based, unless the parties have agreed to a reasoned-award waiver.

WHAT ARE THE COSTS AND COURT FEES ASSOCIATED WITH AD HOC ARBITRATION IN DUBAI?

Costs in ad hoc arbitration comprise arbitrator fees, legal representation expenses, venue and administrative costs, and any expert or witness fees. Arbitrator fees are usually agreed in advance or determined by reference to institutional fee schedules as a benchmark; the UAE Federal Arbitration Law does not prescribe specific rates, leaving it to party agreement. If the parties resort to court assistance-for example, to appoint an arbitrator or to seek interim measures-they must pay the applicable court filing fees, which are set by the Dubai Courts and vary according to the value of the claim. There are no separate arbitration registration fees because no administering institution is involved. Parties should budget for potential costs of enforcing the award, including translation into Arabic if required and the filing of an enforcement application with the Dubai Courts, which incurs a modest court fee.

HOW IS AN AD HOC ARBITRATION AWARD ENFORCED IN DUBAI?

An arbitral award made in Dubai is enforceable as a court judgment under the UAE Federal Arbitration Law No. 6 of 2018, which incorporates the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. To enforce the award, the prevailing party must submit an application to the Dubai Court of First Instance, attaching the original award or a duly certified copy and, if the award is in a foreign language, a certified Arabic translation. The court will refuse enforcement only on limited grounds, such as incapacity of a party, invalid arbitration agreement, lack of proper notice, the award dealing with matters beyond the scope of submission, or conflict with UAE public policy. Once the court issues an enforcement order, the award can be executed through standard execution procedures, including attachment of assets or garnishment of wages.

FREQUENTLY ASKED QUESTIONS

What law governs the substantive rights of the parties in an ad hoc arbitration in Dubai?
The substantive law governing the parties' rights is whichever law the parties have chosen in their arbitration agreement; if no choice is made, the tribunal will apply the law with the closest connection to the contract, guided by the UAE Federal Arbitration Law No. 6 of 2018, which directs tribunals to consider the contract's governing law and relevant UAE statutes.

Can parties seek interim measures from the Dubai Courts during an ad hoc arbitration?
Yes. Under Article 16 of the UAE Federal Arbitration Law No. 6 of 2018, a party may request the Dubai Court of First Instance to grant interim or conservatory measures, such as asset freezes or evidence preservation, to preserve the effectiveness of the eventual arbitral award.

Is confidentiality automatically assured in ad hoc arbitration in Dubai?
Confidentiality is not automatic under UAE law; the parties must expressly agree to keep the arbitration proceedings and any award confidential. If no confidentiality clause exists, the proceedings may be disclosed unless a court orders otherwise for reasons of public interest.

How long does an ad hoc arbitration typically take in Dubai?
There is no fixed timeline; duration depends on the complexity of the dispute, the parties' cooperation and the tribunal's scheduling. Simple matters may conclude within six months, while more intricate cases can extend beyond twelve months, especially if multiple hearings or extensive expert evidence are required.

Are parties required to deposit security for costs in ad hoc arbitration in Dubai?
The UAE Federal Arbitration Law does not mandate a security-for-costs deposit, but the tribunal may order such security if it deems it necessary to protect the opposing party from frivolous claims, particularly when one party's financial situation raises concerns about the ability to pay potential costs.

What happens if an arbitrator resigns or is unable to continue?
If an arbitrator resigns, dies or becomes incapacitated, the parties may agree on a replacement. Absent agreement, either party may request the Dubai Court of First Instance to appoint a substitute arbitrator under the fallback provisions of the UAE Federal Arbitration Law No. 6 of 2018. The new arbitrator steps into the proceedings at the stage where the predecessor left off, ensuring continuity.

Book a consultation to discuss your legal needs with our experienced team.

If your matter involves ad hoc arbitration in the United Arab Emirates, you are welcome to request a consultation with Nour Attorneys. Our team can assess your position under the law currently in force and outline the options available to you. Request a consultation

This article is provided for general informational purposes only and does not constitute legal advice. Reading this article or contacting Nour Attorneys through this website does not create an attorney-client relationship; such a relationship arises only after a conflicts-of-interest check and a signed engagement agreement. Do not send confidential information through this website; information submitted before engagement is not protected by legal privilege. Past results do not guarantee future outcomes. The firm's lawyers practice in the jurisdictions stated in their individual profiles; this article addresses the law of the United Arab Emirates only.