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What is arbitration and how does it work in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
A reader has an arbitration clause in their UAE business contract and wants to understand what arbitration actually means before a dispute arises.

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

Editorially reviewed by LEXAI

Jun 26, 2026
Arbitration is a private way of resolving a dispute outside the regular courts: instead of a judge, one or more independent arbitrators hear both sides and issue a binding decision called an award. In the UAE it is governed mainly by Federal Decree-Law No. 6 of 2018 on Arbitration, which applies to arbitrations seated onshore in the country. The process usually begins because the parties agreed to it in a written arbitration clause or a later submission agreement. Typically a claimant files a request, the tribunal is appointed, written submissions and evidence are exchanged, a hearing may be held, and the tribunal issues an award that the parties must follow. Arbitration is often chosen for commercial, construction, and cross-border contracts because it is private, the parties can pick arbitrators with relevant expertise, and awards are enforceable internationally. It is not always cheaper or faster than court, so the choice depends on your contract and dispute. To assess whether arbitration suits your situation, you can compare verified UAE legal professionals on LEXAI who handle dispute resolution.
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