1. Introduction to Federal Law No. 6 of 2018 on Arbitration
Federal law no. 6 of 2018 on arbitration is the principal legislation governing arbitration in the United Arab Emirates. It came into force to modernise arbitration law, replacing older and fragmented provisions and bringing the UAE’s arbitration framework in line with internationally recognised standards.
Understanding federal law no. 6 of 2018 on arbitration is essential for businesses, investors, and legal practitioners, as it defines how arbitration agreements are formed, how arbitral tribunals function, and how arbitral awards are enforced within the UAE.
2. Legislative Objective and Policy Direction
The core objective of federal law no. 6 of 2018 on arbitration is to promote arbitration as a reliable, neutral, and efficient method of dispute resolution.
The law seeks to:
- Minimise judicial interference
- Strengthen party autonomy
- Increase confidence in arbitral awards
- Support the UAE’s role as an arbitration-friendly jurisdiction
It reflects a clear pro-arbitration policy.
3. Scope of Application
Federal law no. 6 of 2018 on arbitration applies to:
- Arbitrations seated in the UAE
- International arbitrations governed by UAE arbitration law
- Commercial and civil disputes, unless expressly excluded
The nationality of the parties is irrelevant, making the law suitable for cross-border disputes.
4. Arbitration Agreement Requirements
An arbitration agreement under federal law no. 6 of 2018 on arbitration must be in writing.
Key points include:
- Written form includes electronic communication
- Arbitration clauses are independent of the main contract
- Invalidity of the main contract does not automatically invalidate the arbitration clause
This ensures continuity of arbitration even when contracts are disputed.
5. Principle of Competence-Competence
Federal law no. 6 of 2018 on arbitration recognises the tribunal’s power to rule on its own jurisdiction.
This includes:
- Validity of the arbitration agreement
- Scope of the dispute
- Objections to tribunal authority
This principle reduces premature court involvement.
6. Appointment and Composition of the Tribunal
The law provides flexibility in tribunal constitution.
Under federal law no. 6 of 2018 on arbitration:
- Parties are free to agree on appointment procedures
- Arbitrators must be independent and impartial
- Courts may intervene only if the agreed procedure fails
This balances autonomy with procedural safeguards.
7. Arbitrator Independence and Disclosure
Arbitrator neutrality is a cornerstone of federal law no. 6 of 2018 on arbitration.
Arbitrators are required to:
- Disclose circumstances affecting independence
- Avoid conflicts of interest
- Maintain impartiality throughout proceedings
Non-compliance may lead to challenge or removal.
8. Conduct of Arbitration Proceedings
Federal law no. 6 of 2018 on arbitration grants tribunals broad discretion over procedure.
Tribunals may:
- Determine procedural rules
- Decide whether hearings are oral or written
- Manage evidence and timelines
Proceedings must still respect equality of parties and due process.
9. Interim Measures
The law empowers tribunals to order interim measures when necessary.
These may include:
- Preservation of assets
- Protection of evidence
- Temporary measures to prevent harm
Courts may assist in enforcing interim measures if required.
10. Confidentiality of Arbitration
Federal law no. 6 of 2018 on arbitration recognises confidentiality as a default position unless parties agree otherwise.
Confidentiality protects:
- Commercially sensitive information
- Business relationships
- Strategic data disclosed during proceedings
This enhances arbitration’s appeal.
11. Arbitral Awards
The law sets out formal requirements for arbitral awards.
Awards must:
- Be in writing
- State reasons unless waived
- Be signed by arbitrators
These requirements support enforceability and transparency.
12. Setting Aside Arbitral Awards
Federal law no. 6 of 2018 on arbitration strictly limits grounds for setting aside awards.
Permitted grounds include:
- Invalid arbitration agreement
- Serious procedural irregularity
- Excess of jurisdiction
Courts are not permitted to review the merits of the dispute.
13. Enforcement of Arbitral Awards
One of the most important features of federal law no. 6 of 2018 on arbitration is its strong enforcement regime.
Courts are required to:
- Enforce awards unless specific refusal grounds exist
- Avoid re-examining the substance of the dispute
- Respect finality of arbitration
This ensures legal certainty for parties.
14. Role of UAE Courts
The role of courts under federal law no. 6 of 2018 on arbitration is supportive, not supervisory.
Courts may:
- Assist with tribunal appointments
- Grant interim relief
- Enforce or set aside awards on limited grounds
Judicial restraint is a defining feature.
15. Importance for Commercial Parties
Federal law no. 6 of 2018 on arbitration has significantly improved the UAE’s dispute resolution landscape.
It provides:
- Predictability in outcomes
- Alignment with international arbitration practice
- Greater confidence for foreign investors
This strengthens the UAE’s commercial environment.
Frequently Asked Questions
What is federal law no. 6 of 2018 on arbitration?
It is the main UAE law governing domestic and international arbitration.
Does the law apply to international disputes?
Yes, it applies to international arbitrations seated in the UAE or governed by UAE law.
Can UAE courts interfere with arbitration proceedings?
Only in limited circumstances expressly provided by the law.
Must arbitration agreements be in writing?
Yes, written form is mandatory, including electronic communications.
Can arbitral awards be challenged on merits?
No, awards can only be challenged on limited procedural grounds.
Why is this law important?
It modernises UAE arbitration and aligns it with global standards.
Conclusion
Federal law no. 6 of 2018 on arbitration represents a major advancement in the UAE’s legal framework for dispute resolution. By strengthening party autonomy, limiting court interference, and ensuring enforceability of awards, it establishes arbitration as a trusted and efficient mechanism for resolving disputes. A sound understanding of this law is essential for anyone engaging in arbitration connected to the UAE.