UAE Arbitration Law: Federal Law No. 6 of 2018 Explained

Scope, arbitration agreements, tribunal powers and award enforcement under the UAE's federal arbitration law

A practical guide to Federal Law No. 6 of 2018 on Arbitration: its scope, arbitration agreement requirements, tribunal powers, interim measures, and the enforcement and challenge of awards.

By Nour Attorneys / 22 August 2026

Reviewed by Mohamed Noureldin, Founder, Managing Partner & Senior Legal Consultant

UAE arbitration law changed significantly with the enactment of Federal Law No. 6 of 2018 on Arbitration (the “Law”), which replaced the previous Arbitration Law No. 11 of 1992. The reform was designed to align the UAE’s arbitration framework with internationally recognized standards and to remove ambiguities that previously hindered efficient dispute resolution.

This article analyzes the Law’s key provisions, its scope of application, the requirements for an arbitration agreement, the powers of the arbitral tribunal, enforcement mechanisms, and practical guidance for parties using arbitration in the UAE.

The Law provides a modern arbitration system for the UAE. It is a crucial foundation for parties engaged in both domestic and international arbitration, particularly given the challenges that often arise in cross-border commercial disputes. Any party planning a dispute resolution strategy in the UAE needs to understand how the Law is structured.

Related Services: Explore our arbitration lawyers in Ajman and Abu Dhabi for practical legal support in this area.

Scope and Application of Federal Law No. 6 of 2018

Federal Law No. 6 of 2018 governs arbitration conducted in the UAE, except where specific provisions of other laws apply, such as those relating to arbitration in free zones with their own arbitration statutes (e.g., the Dubai International Financial Centre (DIFC) Arbitration Law). The Law applies to both domestic and international arbitrations unless the parties agree otherwise.

This dual application gives the UAE a flexible legal environment suited to diverse commercial arrangements and cross-border disputes.

Territorial and Subject-Matter Scope

Article 1 of the Law establishes its territorial scope, applying to arbitrations seated within the UAE. This matters because it clarifies that arbitration seated outside the UAE, even if it involves UAE parties, falls outside the Law’s scope. For arbitrations seated within special economic zones such as the DIFC, the respective local arbitration laws take precedence. This distinction helps avoid confusion about which procedural rules apply.

In terms of subject matter, the Law excludes disputes relating to personal status, wills, and inheritance, which remain under the jurisdiction of UAE courts and Shariah law. This carve-out limits arbitration’s reach, requiring parties to resolve such matters through other routes.

Interaction with Other Arbitration Regimes

The Law is designed to coexist with specialized arbitration frameworks in UAE free zones. For instance, the DIFC Arbitration Law follows a framework inspired by the UNCITRAL Model Law but tailored to its common law jurisdiction. Similarly, the Abu Dhabi Global Market (ADGM) has its own arbitration statute.

Parties must carefully draft their arbitration clauses to specify the seat of arbitration so that the correct legal framework applies. In practice, this requires precise contractual language to prevent jurisdictional disputes over which arbitration regime applies. Without that clarity, parties may end up in litigation over procedural arbitrability and the tribunal’s authority.

For advice on drafting arbitration agreements that align with Federal Law No. 6 of 2018 and other relevant frameworks, consult Nour Attorneys’ contract drafting services.

Arbitration Agreement Requirements Under UAE Arbitration Law

The arbitration agreement is at the heart of UAE arbitration law under Federal Law No. 6 of 2018, and the Law defines and protects it closely. Article 3 of the Law stipulates that an arbitration agreement must be in writing and can take various forms, including contracts, exchanges of letters, emails, or any communication that evidences the parties’ intent to arbitrate.

Defining “In Writing” and Its Legal Impact

The Law adopts a broad and inclusive definition of “in writing” to prevent attempts to dismiss arbitration agreements on technical grounds. Communications by electronic means, including email and other digital correspondence, are expressly recognized as valid. This brings the arbitration regime in line with modern commercial practice, where digital transactions dominate.

Durability of Arbitration Agreements

Importantly, the Law provides that arbitration agreements remain binding even if the underlying contract is void, voidable, or terminated. This provision is designed to stop parties from avoiding arbitration by disputing the validity of the underlying contract.

This durability aligns with international arbitration principles and ensures that arbitration agreements operate as independent, enforceable contractual mechanisms.

Drafting Considerations for Arbitration Clauses

Parties must carefully draft their arbitration clauses to specify:

The seat of arbitration (which determines procedural law)
The language of arbitration
The number of arbitrators and the mechanism for appointing them
The applicable arbitration rules or institution (if any)

Failing to specify these points can lead to disputes over procedural matters, including the constitution of the tribunal and the applicable rules. For example, by omitting a clear seat designation, parties may inadvertently trigger jurisdictional challenges or procedural delays, which affect the tribunal’s powers and the applicable court oversight.

To reduce these risks, parties should use precise and comprehensive arbitration clauses. Nour Attorneys offers specialized contract drafting services to prepare arbitration agreements that comply with Federal Law No. 6 of 2018 and reduce procedural uncertainty.

Case Scenario: Clause Ambiguity Leading to a Jurisdictional Dispute

In a recent dispute, two UAE-based companies entered into a sales contract containing an arbitration clause referring to “arbitration under UAE law” but failing to specify the seat or institution. When a dispute arose, one party argued that the seat was Dubai under Federal Law No. 6 of 2018, while the other contended that the DIFC Arbitration Law applied, claiming the seat was the DIFC.

This ambiguity led to litigation over the applicable arbitration framework, delaying the arbitration and increasing costs. The tribunal ultimately applied the UAE Federal Law after assessing the parties’ conduct and intentions. The example shows why clear arbitration clauses are important to avoid procedural disputes.

Powers and Duties of the Arbitral Tribunal

The Law sets out a comprehensive structure for the powers and duties of the arbitral tribunal, with the aim of an efficient and fair arbitral process. Articles 14 to 24 set out these provisions in detail.

Competence-Competence and Jurisdictional Authority

Article 14 affirms the competence-competence principle, giving the tribunal authority to rule on its own jurisdiction, including any objections to the existence, validity, or scope of the arbitration agreement. The provision is designed to stop parties from derailing proceedings through premature court challenges.

The tribunal’s power to decide jurisdiction must be exercised promptly, and courts are generally limited in their intervention at this stage, which supports efficiency and limits stalling tactics.

Procedural Autonomy and Discretion

Article 15 empowers the tribunal to conduct the arbitration “with due regard to the parties’ agreement” and to ensure procedural equality and fairness. This gives the tribunal discretion to set procedural rules unless overridden by the parties’ agreement.

This flexibility allows the tribunal to deal with unequal or obstructive conduct, such as one party’s refusal to cooperate or disruptive tactics, by tailoring procedural steps that keep the process fair and efficient.

Interim Measures and Protective Orders

One of the Law’s key features is the express power of tribunals to order interim measures (Article 17), including measures to preserve evidence, protect assets, or maintain the status quo pending the final award. This power helps counter obstructive conduct during the arbitration.

Moreover, the Law allows parties to seek interim relief from the courts under certain circumstances, creating a dual route for protective measures. Timely use of interim relief can be decisive in preserving parties’ rights and protecting the integrity of the arbitration.

Tribunal’s Duty to Render Awards

The Law requires that arbitral awards be rendered within the agreed timeframe or, absent such agreement, within six months from the tribunal’s constitution (Article 27). This time limit is intended to make arbitration more efficient and prevent undue delays caused by tactical conduct.

Enforcement and Challenge of Arbitral Awards

The enforcement and challenge of arbitral awards is often the most contested stage of an arbitration. Federal Law No. 6 of 2018 includes provisions aligned with the UNCITRAL Model Law, facilitating smoother enforcement within the UAE and abroad.

Grounds for Annulment and Judicial Review

Article 45 sets out the grounds on which a party may challenge an arbitral award before the competent UAE court. These grounds are narrowly defined and include:

Invalidity of the arbitration agreement
Improper constitution of the arbitral tribunal
Procedural irregularities violating due process
The award addressing matters beyond the scope of the arbitration
The award being contrary to UAE public policy

This limited scope of judicial review is designed to discourage frivolous or dilatory challenges that parties might bring to delay enforcement.

Enforcement Procedures

Articles 44 and 46 streamline the enforcement of arbitral awards through the UAE courts, allowing parties to use court mechanisms to execute awards swiftly. The Law makes it clear that awards rendered in the UAE, or foreign awards recognized under applicable treaties, can be enforced subject to procedural compliance and without substantive re-examination.

This framework is essential for parties seeking certainty and enforceability in cross-border commercial disputes.

Case Example: Successful Enforcement of a Foreign Award

In a recent case, a foreign arbitral award rendered in London was enforced in the Dubai courts under Federal Law No. 6 of 2018. The respondent tried to resist enforcement by alleging improper constitution of the tribunal. The court examined the arbitration agreement and the tribunal appointment process, found no procedural defect, and enforced the award promptly.

This scenario illustrates how the Law is designed to defeat attempts to undermine enforcement and to support prompt resolution.

For tailored support in enforcement and challenge proceedings, parties can engage Nour Attorneys’ dispute resolution and international arbitration services.

Practical Guidance: Compliance Checklist for UAE Arbitration Law

To use arbitration effectively under Federal Law No. 6 of 2018, parties and counsel should consider the following checklist.

Arbitration Agreement Drafting

Ensure the agreement is in writing, including via electronic communication
Specify the seat of arbitration clearly to determine the applicable procedural law
Define the number of arbitrators and the appointment procedures
Identify the arbitration rules or institution, if any
Clarify the language and procedural timelines

Tribunal Powers and Conduct

Confirm that the tribunal’s competence-competence authority is respected
Consider interim relief provisions and protocols for invoking them
Ensure procedural fairness and equality provisions are upheld

Award Enforcement and Challenge

Prepare for the narrow grounds of challenge and avoid frivolous annulment attempts
Comply with procedural requirements for the recognition and enforcement of awards
Monitor timelines for challenge and enforcement proceedings

Interaction with Other Legal Regimes

Verify whether the arbitration seat falls within the UAE mainland or a free zone
Align arbitration agreement clauses with the relevant free zone laws, if applicable

Operational Considerations

Maintain proper record-keeping and preserve evidence during proceedings
Engage counsel experienced in UAE arbitration law to handle procedural complexities

For comprehensive support in setting up arbitration arrangements that comply with Federal Law No. 6 of 2018, Nour Attorneys offers specialized legal services across corporate law, commercial litigation, and dispute resolution.

Strategic Implications and Practical Considerations

From a strategic perspective, Federal Law No. 6 of 2018 allows parties to structure arbitration agreements and procedures that reduce the disadvantages typically present in unequal commercial relationships. The Law’s safeguards are designed to counter tactics that could undermine the integrity of the arbitration, such as venue shopping, jurisdictional stalling, or enforcement evasion.

An arbitration clause that complies with this Law ensures that parties have clear mechanisms to control dispute resolution, including the authority to select neutral arbitrators and define procedural rules. This procedural certainty is vital in markets like the UAE, where cross-border transactions expose parties to diverse legal risks.

Legal practitioners and corporate counsel must carefully plan their arbitration strategies by considering the Law’s provisions on tribunal powers, interim measures, and enforcement mechanisms. This approach not only protects parties’ interests but also supports the UAE’s reputation as a premier arbitration hub.

Arbitration in Unequal Commercial Relationships

In many cross-border transactions, parties may face unequal bargaining power or information imbalances. Federal Law No. 6 of 2018 provides mechanisms to address these challenges by:

Empowering tribunals to ensure procedural equality
Authorizing interim measures to prevent asset dissipation
Limiting court interference to enhance the finality of arbitration

These mechanisms allow parties to use arbitration as a dispute resolution framework that accommodates power imbalances without compromising fairness.

Additional Case Scenarios

Scenario 1: Interim Measures to Protect Assets

A UAE-based supplier and a foreign buyer entered arbitration under Federal Law No. 6 of 2018. The buyer suspected that the supplier was transferring assets abroad to avoid potential enforcement. The arbitral tribunal ordered interim measures freezing specified assets pending the final award. The UAE courts upheld this order, effectively protecting the buyer against that risk.

Scenario 2: Challenge to Tribunal Constitution

In a construction dispute, one party challenged the appointment of an arbitrator, alleging lack of impartiality. The tribunal, relying on Article 14, ruled on its jurisdiction and rejected the challenge. The UAE courts upheld this decision, emphasizing the tribunal’s competence-competence authority and allowing the dispute to be resolved swiftly.

Conclusion

Federal Law No. 6 of 2018 represents a significant development in UAE arbitration law, designed to provide an effective, fair, and internationally compatible arbitration regime. By clearly defining the scope of application, the requirements for an arbitration agreement, the powers of the arbitral tribunal, and enforcement mechanisms, the Law curbs tactics that previously complicated dispute resolution.

For parties doing business in or through the UAE, understanding and engaging with this Law is indispensable. Whether in domestic disputes or complex international arbitration, the Law provides a rigorous framework for dispute resolution strategies that can withstand difficult challenges.

Speak to experienced legal professionals at Nour Attorneys about arbitration agreements and processes that protect your position while minimizing risk. Our expertise ensures that your arbitration framework is set up to deliver enforceable, timely, and just outcomes.

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for specific guidance on your situation.

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