Dispute Resolution in the UAE: Arbitration, Onshore Courts and the DIFC Courts (2026)

A UAE contract can send a dispute to three different places: the onshore federal and emirate courts, the courts of the Dubai International Financial Centre (DIFC), or arbitration. The wording of the dispute clause decides which one applies, how long the case takes and whether a result can be enforced against assets in the country. This guide reads the Arabic text of Federal Law No. 6 of 2018 on Arbitration (as amended by Federal Decree-Law No. 15 of 2023), the Civil Procedure Code issued by Federal Decree-Law No. 42 of 2022 (text updated to 1 October 2025), and Dubai Law No. 2 of 2025 on the DIFC Courts, all from the official UAE Legislation portal and the Dubai Legislation portal. We assist clients with UAE disputes from our office in Kuwait, in cooperation with our partners in the UAE. Related guides are linked at the end.

The three routes and how a contract picks one

Without a dispute clause, a commercial claim goes to the onshore courts. Their language is Arabic, and a party or witness who does not know Arabic is heard through an interpreter under oath (Civil Procedure Code, Article 5(1)). The head of the Federal Judicial Council or of the local judicial authority may decide that certain specialist chambers, or a specific case, run in English, in the cases and under the conditions set by the decision (Article 5(2)). A clause that chooses arbitration moves the dispute out of court. A clause that chooses the DIFC Courts moves it to an English-language common law court, but only if the clause meets the test in Article 14(B) of Dubai Law No. 2 of 2025: the parties must agree in writing to the DIFC Courts' jurisdiction, before or after the dispute arises, and the agreement must be made through specific, clear and express provisions. A vague clause such as "the courts of Dubai" does not do that, and it leaves you arguing about jurisdiction before anyone looks at the merits.

Where the Arbitration Law applies (Articles 2 and 3)

Article 2 applies the law to every arbitration seated in the UAE (unless the parties agree on another arbitration law, as long as it does not conflict with public policy and public morals), to an international commercial arbitration seated abroad if the parties agree to submit it to this law, and to arbitration of a dispute about a legal relationship, contractual or not, governed by UAE law, except where a special provision excludes it.

Article 3 makes an arbitration international, even if it is seated in the UAE, in four cases. The first is when the parties' main places of business are in two or more different states when the arbitration agreement is made. The second is when the seat of arbitration, the place where a substantial part of the obligations is performed, or the place most closely connected to the dispute is outside the state where a party has its main place of business. The third is when the dispute concerns more than one state. The fourth is when the parties expressly agree that the subject matter relates to more than one state.

The arbitration agreement (Articles 4 to 8)

Only a person with capacity to dispose of the right in dispute, or an authorized representative of a legal person, can agree to arbitrate. If not, the agreement is void (Article 4(1)). Matters that cannot be settled cannot be arbitrated (Article 4(2)). Unless the parties agree otherwise, the agreement does not end with the death of a party, and the party's legal successor can enforce it or have it enforced against him (Article 4(4)). In practice, check who signs the clause for a company and whether that person has authority to bind it to arbitration.

The agreement must be in writing or it is void (Article 7(1)). Article 7(2) lists what counts as writing: a document signed by the parties, an exchange of messages or other written means of communication, an electronic message under the UAE electronic transactions rules, a reference in a written contract to a model contract, treaty or other document that contains an arbitration clause when the reference clearly makes the clause part of the contract, an agreement reached while a court is hearing the dispute, and a request to refer the dispute to arbitration in written pleadings that the other side does not object to.

The clause is independent of the contract that contains it (Article 6). If a court case is filed despite an arbitration agreement, the court must hold the claim inadmissible when the defendant objects before making any other request or defense on the merits, unless the agreement is void or impossible to perform. Starting the court case does not stop the arbitration from starting, continuing or ending in an award (Article 8). The practical lesson is to raise the arbitration clause in your first filing and not after you have answered on the merits.

The tribunal (Articles 9 to 20)

If the parties do not agree on the number of arbitrators, there are three, unless the relevant body decides otherwise, and a tribunal with several arbitrators must have an odd number or the arbitration is void (Article 9). Article 10 sets conditions an arbitrator must meet. Article 10 bis, added by the 2023 decree, lets parties appoint an arbitrator who sits on the board, board of trustees or similar supervisory body of the arbitration institution, if the article's conditions are met. Among them: the institution's rules must not forbid it, the arbitrator cannot be a sole arbitrator or the chair, the parties must acknowledge the membership in writing without objection, and the arbitrator cannot sit in more than five arbitrations a year. A breach of these conditions makes the award void and lets the parties claim civil damages from the institution and the arbitrator (Article 10 bis(2)).

For appointment, Article 11 says the parties may agree on the procedure. For a sole arbitrator, if they do not agree within fifteen days of a written request from one party, the relevant body appoints him. For three arbitrators, each party appoints one, and the two choose the third. If a party does not appoint within fifteen days of the other party's request, or the two arbitrators do not agree on the third within fifteen days of the later appointment, the relevant body appoints. The third arbitrator chairs the tribunal. If the relevant body does not act, a party may ask the court to take the necessary step, and the court's decision cannot be appealed (Article 11(5)). Arbitrators must be independent and impartial. Articles 14 and 15 govern challenges to an arbitrator.

Under Article 19 the tribunal decides objections to its own jurisdiction, including that there is no arbitration agreement or that it is void or does not cover the dispute. It may do so in a preliminary decision or in the final award. If the tribunal decides in a preliminary decision that it has jurisdiction, any party may within fifteen days of notice of that decision ask the court to decide the question. The court must decide within thirty days of the request being registered, and its decision cannot be appealed. The proceedings stop while the court decides, unless the tribunal decides at a party's request to continue. A party that asks to continue bears the arbitration costs if the court then finds that the tribunal had no jurisdiction (Article 19(3)). Article 20 sets the time for raising the objection.

Interim measures (Articles 18 and 21)

Both the court and the tribunal can order interim and protective measures. The president of the competent court may order them at a party's request or the tribunal's request, before or during the arbitration, and ordering them does not stop the arbitration or waive the arbitration agreement (Article 18(2) and (3)). Unless the parties agree otherwise, the tribunal may order any measure the dispute requires, in particular preserving evidence, preserving goods that are the subject of the dispute, preserving assets that could satisfy a later award, keeping or restoring the status quo, and preventing imminent harm or harm to the arbitration (Article 21(1)). The tribunal may require security from the applicant and may make the applicant bear the damage if it later decides the measure should not have been granted (Article 21(2)). A party that gets an order from the tribunal can, with the tribunal's written permission, ask the court to enforce it, and the court has fifteen days from receiving the application to act (Article 21(4)). Arbitration filings also have an effect in court: under Article 27(2), serving the request for arbitration counts as filing a claim for the purpose of a precautionary attachment.

Procedure, language, seat and evidence (Articles 23 to 36)

The parties may agree the procedure, including by adopting the rules of an arbitration institution in or outside the UAE. If they do not, the tribunal decides, within the law's basic litigation principles (Article 23). Arbitration begins the day after the tribunal is fully formed unless the parties agree otherwise (Article 27(1)).

The default language is Arabic, unless the parties agree otherwise, and the chosen language applies to the whole procedure including written pleadings, hearings, and the award (Article 29(1) and (2)). The tribunal may order translations of documents into the language or languages of the arbitration (Article 29(3)). Under Article 28, as amended in 2023, the parties may hold the arbitration and fix its place physically or virtually, using modern technology, and the arbitration centre must provide the technology for remote proceedings. If the parties do not agree on a seat, the tribunal chooses one, taking the circumstances and the parties' convenience into account.

Proceedings and hearings are confidential unless the parties agree otherwise (Article 33(1)). Unless the parties agree otherwise, the tribunal decides whether to hold oral hearings or work on documents, and it may decide to hold hearings at a suitable stage at a party's request (Article 33(2)). The parties may be represented by lawyers and experts at their own expense (Article 33(4)), and unless they agree otherwise the tribunal has discretion to decide the rules of evidence when the applicable law gives no guidance, provided the rules do not conflict with public policy (Article 33(7)). Witnesses, including experts, are heard under the legislation in force in the UAE unless the parties agree otherwise (Article 33(6)).

Governing law and amiable composition (Articles 37 and 38)

The tribunal applies the rules the parties choose. If they choose the law of a state, the tribunal applies its substantive rules and not its conflict-of-laws rules, unless the parties agree otherwise, and provided the result does not conflict with UAE public policy and public morals (Article 37(1)). If they choose a model contract, a treaty or another instrument, those rules apply with their arbitration provisions, as long as this does not conflict with UAE public policy and public morals (Article 37(2)). Without a choice, the tribunal applies the substantive law it finds most closely connected to the dispute, and takes into account the contract terms, trade custom and the parties' dealings (Article 38(1) and (2)). The tribunal cannot decide by fairness and equity outside the law unless the parties expressly agree or authorize it to settle (Article 38(3)). A common drafting mistake is to include a foreign governing law and an "ex aequo et bono" clause without saying so expressly.

The time limit for the award (Article 42)

The tribunal must issue the final award within the period the parties agreed. If they agreed none, the award is due within six months of the first hearing, and the tribunal may extend by up to six more months unless the parties agree to a longer period (Article 42(1)). If the time runs out without an award, the tribunal or any party may ask the court to set an extra period or to end the proceedings, and the court's decision is final unless the parties agreed otherwise (Article 42(2)). If the court ends the proceedings, either party may go to the competent court with its claim (Article 42(3)).

The award (Articles 41 and 44 to 52)

The award must be in writing and signed by the arbitrators, and it is valid if a majority sign (Article 41(3)). It must give reasons unless the parties agree otherwise or the law that applies to the procedure does not require reasons, and it must state the parties' names and addresses, the arbitrators' names, nationalities and addresses, the text of the arbitration agreement, a summary of the claims, the operative part, the reasons, and the date and place (Article 41(4) and (5)). It is treated as issued at the seat even if signed elsewhere (Article 41(6)). The tribunal must deliver a signed copy to each party within fifteen days of the award (Article 44). Articles 49 to 51 allow interpretation, correction of clerical errors and an additional award.

An award is binding on the parties, carries the authority of a final judgment and has the same enforceability as a court judgment, but it needs a ratification order from the court before it is enforced (Article 52).

Challenging an award (Articles 53 and 54)

A party can challenge an award only by an annulment action in court or during the ratification application. The party must prove one of the grounds in Article 53(1): no valid arbitration agreement; incapacity of a party; lack of capacity to dispose of the right in dispute; inability to present a defense because of improper notice or a breach of the basic principles of litigation; the award excluded the law the parties chose; the tribunal was formed in breach of the law or the agreement; the proceedings were void in a way that affected the award or the award was issued after the time limit; or the award decided matters outside the agreement (in which case only the offending parts are annulled if they can be separated). The court also annuls on its own motion if the subject matter cannot be arbitrated or the award violates public policy and public morals (Article 53(2)).

The annulment action is not heard after thirty days from the day the award is notified to the party seeking annulment (Article 54(2)). The court's judgment is final and can be challenged only by cassation (Article 54(1)). The court may stay the annulment proceedings for up to sixty days so the tribunal can take a step that removes the ground for annulment (Article 54(6)). After an award is annulled the arbitration agreement stays in force, unless the annulment was based on the absence, expiry or invalidity of the agreement (Article 54(4)).

Enforcing an award in the UAE (Articles 55 to 57)

The party who wants to enforce applies to the president of the court for ratification and an enforcement order, with the original award or a certified copy, a copy of the arbitration agreement, a translation certified by an approved body into Arabic if the award is not in Arabic, and a copy of the record of deposit of the award at the court (Article 55(1)). The president or a judge he assigns must order ratification and enforcement within sixty days of the application, unless a ground for annulment in Article 53(1) is proved (Article 55(2)). An annulment action does not stop enforcement, but the court hearing it may order a stay at a party's request on serious grounds, must decide the stay request within fifteen days of the first hearing, and if it grants it may require security and must decide the annulment action within sixty days of the stay (Article 56). A decision granting or refusing enforcement can be challenged before the competent court of appeal within thirty days of the day after notification (Article 57).

Foreign awards and foreign judgments

The UAE acceded to the 1958 New York Convention on 21 August 2006, with entry into force on 19 November 2006, per the UNCITRAL status table (Federal Decree No. 43 of 2006 approved the accession). Article 223 of the Civil Procedure Code applies the foreign-judgment conditions of Article 222 to arbitral awards issued abroad, and adds two conditions: the award must be on a subject that can be arbitrated under UAE law and must be enforceable in the country where it was issued. Article 225 keeps treaties in force, so the Convention applies where it is available.

Foreign court judgments are a different matter. Under Article 222(1), a judgment issued abroad can be enforced in the UAE on the same conditions that the foreign country's law sets for enforcing UAE judgments there, which is a reciprocity test. The application is a petition to the enforcement judge, who decides within five working days, and his order can be appealed directly. The judge must verify five points (Article 222(2)): UAE courts do not have exclusive jurisdiction and the foreign court had jurisdiction under its own international jurisdiction rules; the judgment was issued by a court under the law of its country and was properly certified; the parties were summoned and properly represented; the judgment has become final under the law of the court that issued it, with a certificate to that effect unless the judgment says so; and it does not conflict with an earlier UAE judgment or with public policy and public morals.

Onshore litigation: the points that decide cases

The Civil Procedure Code sets the appeal period at thirty days, and ten days for urgent matters (Article 161). An appeal against judgments within the final limit of first-instance courts is allowed only on limited grounds, and the appellant must deposit AED 2,000 as security (Article 160). Cassation is available against appeal judgments where the claim exceeds AED 500,000 or is not valued, on listed grounds such as breach of the law or its wrong application or interpretation, nullity of the judgment or procedure, or breach of jurisdiction rules (Article 175(1)), and the time limit is thirty days (Article 178). Service matters: Article 8(3) requires a claimant to attach a certified English translation to a notice served on a defendant whose nationality's official language is not Arabic, unless the parties agreed on another language earlier, and Article 9 lists the ways of service, including recorded calls, text messages, smart applications and e-mail. Notices to an address in the contract matter, so keep your notice address and e-mail up to date.

The DIFC Courts

Under Article 14(A) of Dubai Law No. 2 of 2025, which supersedes DIFC Law No. 10 of 2004 and Dubai Law No. 12 of 2004 (Article 43(A)), the DIFC Courts have exclusive jurisdiction over civil, commercial and employment claims by or against DIFC bodies or establishments, claims arising from contracts concluded or performed wholly or partly in the DIFC, claims related to arbitration seated in the DIFC (or where the seat was not chosen but hearings take place there, or where the parties agree to the DIFC Courts), and applications to ratify or recognise arbitral awards under the arbitration law in force in the DIFC. Article 14(B) lets parties opt in by an express written agreement, as described above. Article 14(C) lets the DIFC Courts decline jurisdiction if the parties chose another court in writing or if a final judgment already exists that can be enforced in the DIFC. Under Article 15, they can also order interim measures for claims within their jurisdiction and for arbitration proceedings outside the DIFC that need measures in the DIFC. The DIFC Courts consist of a Court of Appeal, Courts of First Instance and a Small Claims Tribunal (Article 16).

The arbitration centres in Dubai

Dubai Decree No. 34 of 2021 created a new statute for the Dubai International Arbitration Centre (DIAC) and, in Article 4, abolished the Emirates Maritime Arbitration Centre and the DIFC Arbitration Institute. A clause written before September 2021 that names the DIFC arbitration institution (including the DIFC-LCIA arrangement) or the Emirates Maritime Arbitration Centre needs a careful review, and if needed an agreed amendment.

Drafting checklist for a UAE dispute clause

1. Choose one route: onshore courts, DIFC Courts (with specific, clear and express wording), or arbitration.
2. For arbitration, name the institution and rules, the seat (a legal seat, which can be virtual) and the language. Arabic is the default unless you agree otherwise.
3. State the number of arbitrators and the appointment method, with a fallback if one side does not appoint.
4. State the governing law of the contract, and say expressly if the tribunal may decide as amiable compositeur.
5. State whether the tribunal may order interim measures, and keep the right to ask the court as well.
6. Set the time for the award if you want something different from six months from the first hearing plus six.
7. Confirm who has authority to sign the clause for each company.
8. Keep a certified Arabic translation ready for the award, and record where the assets are.

Common mistakes

• A clause that says "the courts of Dubai" without saying onshore courts or DIFC Courts.
• Naming an arbitration institution that no longer exists.
• Signing an arbitration clause through someone without authority to bind the company.
• Answering on the merits in court before raising the arbitration clause.
• Missing the thirty-day period to challenge an award, or the fifteen-day period to take a tribunal's jurisdiction ruling to court.
• Assuming that a foreign court judgment is enforced automatically, without checking reciprocity and the five conditions of Article 222.

Read also: UAE Agency and Distribution Contracts Under Law 3 of 2022 | UAE Market Entry: Company Forms, Ownership and Free Zones | Egypt Dispute Resolution: Arbitration, Courts and Grievances

Frequently asked questions

Which law governs arbitration in the UAE?

Federal Law No. 6 of 2018 on Arbitration, as amended by Federal Decree-Law No. 15 of 2023. The DIFC has its own arbitration law for DIFC-seated arbitration.

Is arbitration in Arabic?

Yes by default. The parties can agree another language, and the tribunal can require translation of documents (Article 29).

How long do I have to challenge an award?

Thirty days from the day the award is notified to you (Article 54(2)).

Is a UAE award enforced directly?

No. It must be ratified by the court first, and the court must decide within sixty days unless a ground for annulment is proved (Articles 52 and 55).

Does the UAE enforce foreign awards?

Yes, under the New York Convention (in force for the UAE since 19 November 2006) and Article 223 of the Civil Procedure Code.

Are foreign judgments enforced?

They can be, on a reciprocity basis and after the five checks in Article 222.

Can we run a UAE dispute from outside the country?

Yes. We manage the file from our office in Kuwait, in cooperation with our partners in the UAE, from assessment through enforcement.