ADGM Arbitration Procedures: A Practical Guide for Parties

ADGM arbitration procedures are governed by the ADGM Arbitration Regulations 2015 (as amended) and the ADGM Courts Regulations 2015, which apply to disputes seated in the Abu Dhabi Global Market free zone and are enforceable in the UAE and internationally under the New York Convention.

Related Services: Explore our ADGM Courts and Arbitration services for practical legal support in this area.

HOW DOES A PARTY COMMENCE ARBITRATION UNDER THE ADGM RULES?

A party initiates ADGM arbitration by filing a Request for Arbitration with the ADGM Centre for Dispute Resolution, paying the prescribed filing fee, and serving the request on the respondent in accordance with Article 4 of the ADGM Arbitration Regulations 2015. The request must contain the names and addresses of the parties, a copy of the arbitration agreement, a summary of the claim and the relief sought, and any relevant documents.

Once the Request is filed, the Centre confirms receipt within five business days and forwards it to the respondent, who has thirty days to submit an Answer under Article 5. The Answer must address each point of the claim, set out any counterclaims, and attach supporting evidence. If the parties have not agreed on the number of arbitrators, the default is a sole arbitrator unless the claim exceeds USD 5 million, in which case a three-member tribunal is appointed under Article 6. The Centre then appoints the arbitrator(s) from its panel, or the parties may nominate candidates subject to the Centre's approval. The tribunal's first procedural hearing is scheduled within forty-five days of the arbitrator's acceptance, where procedural timetables, confidentiality measures, and the language of the proceedings are established. Costs at this stage include the filing fee (USD 1 000), the administration fee (percentage of the claim value as set out in Schedule 2 of the Regulations), and the arbitrators' fees, which are calculated on an hourly basis according to the Centre's fee schedule.

WHAT ARE THE KEY PROCEDURAL STEPS AFTER THE TRIBUNAL IS CONSTITUTED?

After constitution, the tribunal issues a Procedural Order outlining the timetable for pleadings, document production, witness statements, expert reports, and the hearing, in line with Article 12 of the ADGM Arbitration Regulations 2015. Parties exchange pleadings (Statement of Claim, Statement of Defence, and any Reply) within the periods fixed by the tribunal, typically thirty days for each pleading. Document production follows the "Redfern Schedule" approach, whereby each party lists requested documents, the other party objects or produces, and the tribunal resolves disputes. Witness statements and expert reports are exchanged before the hearing, and the tribunal may order a pre-hearing conference to narrow issues.

The hearing itself is conducted in accordance with Article 15, which permits oral arguments, witness examination, and expert testimony, while allowing the tribunal to admit or exclude evidence based on relevance and fairness. The tribunal may also decide the case solely on documents if the parties agree or if the matter is suitable for a documents-only proceeding. After the hearing, the tribunal deliberates and issues an award, which must be in writing, signed by the arbitrator(s), and state the reasons upon which it is based, unless the parties have agreed to a reasons-free award under Article 34. The award is then communicated to the parties and the ADGM Centre for Dispute Resolution, which registers it and issues a notice of award.

HOW IS AN ADGM ARBITRAL AWARD ENFORCED IN THE UAE AND ABROAD?

An ADGM arbitral award is enforced in the UAE by filing an application for recognition and enforcement with the competent UAE court, typically the Dubai Courts or Abu Dhabi Judicial Department, under Article 36 of the ADGM Arbitration Regulations 2015 read together with UAE Federal Law No. 6 of 2018 on Arbitration. The applicant must submit the original award or a duly certified copy, the arbitration agreement, and a translation into Arabic if the award is in another language, accompanied by a statement that the award is final and binding. The court examines whether the award falls under the grounds for refusal set out in Article V of the New York Convention, such as incapacity of a party, invalid arbitration agreement, lack of proper notice, or conflict with public policy. If none of these grounds apply, the court issues an enforcement order, which can be executed like a domestic judgment.

For enforcement outside the UAE, the award holder relies on the New York Convention, to which the UAE is a signatory, and the ADGM's status as a recognized arbitral seat. The holder files the award with the competent court in the jurisdiction where enforcement is sought, providing the same documents as required domestically. Most jurisdictions recognize ADGM awards without re-examining the merits, provided the procedural requirements of the ADGM Regulations were met and no Convention grounds for refusal exist. Costs include court filing fees, translation expenses, and legal representation fees, which vary by jurisdiction.

WHAT ARE THE COSTS AND TIMELINES TYPICALLY INVOLVED IN ADGM ARBITRATION?

The total cost of ADGM arbitration depends on the claim value, the number of arbitrators, and the complexity of the dispute. According to Schedule 2 of the ADGM Arbitration Regulations 2015, the administration fee ranges from 0.5 % to 2 % of the claim amount, with a minimum of USD 2 500 and a maximum of USD 150 000. Arbitrators' fees are set at USD 300-USD 600 per hour for sole arbitrators and USD 250-USD 500 per hour for each member of a three-member tribunal, as published in the Centre's fee schedule. Parties also bear their own legal counsel fees, expert fees, and witness expenses.

Timelines are guided by the Procedural Order but generally follow a pattern: the Request and Answer stage takes about two months, pleadings exchange adds another two to three months, document production and witness/expert exchanges consume three to four months, and the hearing is usually scheduled within six to nine months from the arbitrator's appointment. The tribunal aims to render the award within forty-five days of the hearing's close, though complex cases may extend this period. Expedited procedures are available for claims under USD 500 000, which compress the timetable to approximately four months from filing to award under the ADGM Expedited Arbitration Rules 2020.

CAN PARTIES OPT FOR MEDIATION BEFORE OR DURING ADGM ARBITRATION?

Yes, parties may agree to mediate either before commencing arbitration or at any stage during the proceedings, as encouraged by Article 10 of the ADGM Arbitration Regulations 2015 and the ADGM Mediation Regulations 2018. Mediation is conducted by accredited mediators from the ADGM Centre for Dispute Resolution, and any settlement reached is recorded as a consent award, which has the same enforceability as a regular arbitral award. If mediation fails, the arbitration continues from the point at which it was suspended, unless the parties agree to reset the timetable.

WHAT LANGUAGE MAY BE USED IN ADGM ARBITRAL PROCEEDINGS?

The default language of ADGM arbitration is English, unless the parties agree otherwise in writing, as stated in Article 13 of the ADGM Arbitration Regulations 2015. The tribunal may permit the use of Arabic or another language for specific submissions or witness testimony, provided that translation arrangements are made and the opposing party is given a reasonable opportunity to understand the evidence. All procedural orders and the final award are issued in the language agreed upon by the parties, or in English if no agreement exists.

FREQUENTLY ASKED QUESTIONS

What law governs the arbitration agreement itself in ADGM proceedings?
The arbitration agreement is governed by the law chosen by the parties in the agreement; if no choice is made, the ADGM Arbitration Regulations 2015 apply the law of the seat, which is ADGM law, as per Article 16.

Are interim measures available under the ADGM Rules?
Yes, a party may request interim measures from the tribunal under Article 20, or from the ADGM Courts under Article 21 of the ADGM Courts Regulations 2015, including preservation of assets, injunctions, or orders to preserve evidence.

How is confidentiality treated in ADGM arbitration?
Proceedings are confidential by default under Article 22 of the ADGM Arbitration Regulations 2015; the tribunal may lift confidentiality only with the parties' consent or if required by law.

Can a party challenge an ADGM award on the grounds of public policy?
A party may resist enforcement by arguing that the award conflicts with the public policy of the enforcing jurisdiction, as permitted by Article V(2)(b) of the New York Convention, which UAE courts apply when reviewing ADGM awards for enforcement.

What happens if the parties fail to appoint an arbitrator within the time limit?
If the parties do not appoint an arbitrator within the period set by the Centre, the ADGM Centre for Dispute Resolution will make the appointment pursuant to Article 6(4) of the ADGM Arbitration Regulations 2015.

Is there an expedited procedure for smaller claims?
Yes, the ADGM Expedited Arbitration Rules 2020 apply to claims not exceeding USD 500 000, reducing procedural steps and aiming for a final award within four months of filing.

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