Arbitration is a well-established method of dispute resolution in the UAE, offering a quicker and more flexible alternative to traditional court proceedings. The UAE is a signatory to international arbitration treaties, such as the New York Convention, and its arbitration framework is regulated by Federal Law No. 6 of 2018 (UAE Arbitration Law). A common question is whether a party can challenge an arbitral award. This article explores the legal framework governing such challenges in the UAE. 

Nature of Arbitral Awards

An arbitral award is the final decision issued by the arbitrator(s). Under UAE law, arbitral awards are generally final and binding, offering a quick resolution without prolonged legal battles. However, while awards cannot be appealed on substantive grounds, they can be challenged on procedural or jurisdictional issues. 

Appeal vs. Challenge: Key Differences 

  1. Appeal: Involves reviewing the case’s merits, allowing a higher court to modify or overturn the decision. 
  2. Challenge: Concerns procedural or jurisdictional errors, not the merits of the case. 

Grounds for Challenging an Arbitral Award

Article 53 of the UAE Arbitration Law outlines the specific grounds on which an award can be challenged. A party can file a challenge within 30 days from the date they were notified of the award. Grounds include: 

  1. Invalid arbitration agreement. 
  2. Lack of legal capacity of one party to enter the arbitration agreement. 
  3. Failure to properly notify the challenging party about arbitrator appointments or proceedings. 
  4. Exceeding jurisdiction by deciding matters not covered by the agreement. 
  5. Procedural violations affecting the outcome. 
  6. Non-arbitrable subject matter, such as criminal or family law disputes. 
  7. Public policy violations in the UAE, involving issues like morality or national interests. 

Notable Case: Setting Aside an Arbitral Award

In the case of International Bechtel Co. Ltd. v. Department of Civil Aviation of Dubai, the Dubai Court of Cassation set aside an arbitration award due to the arbitrator’s failure to properly swear in a witness, a violation of procedural law deemed a breach of public policy. 

The Court’s Role in Reviewing a Challenge 

The Court of Appeal reviews whether the challenge meets the grounds outlined in the law. The court does not revisit the merits of the dispute but focuses solely on procedural and jurisdictional matters. 

  1. If valid grounds are found, the court can set aside the award in full or part. 
  1. If dismissed, the award becomes enforceable. 

It’s important to note that the enforcement of an arbitral award is not automatically stayed when a challenge is filed. The party challenging the award must request a stay, which the court may grant under specific conditions. 

Recognition and Enforcement of Arbitral Awards 

Under Article 52 of the Arbitration Law, a winning party can seek the enforcement of an arbitral award through the UAE courts. The courts take a pro-enforcement stance, especially given the UAE’s commitment to international treaties like the New York Convention. However, the courts will conduct a limited review to ensure the tribunal’s jurisdiction and the absence of public policy violations. 

How Can We Help You?

At AWS Legal Group, our team has extensive experience in arbitration matters, including challenging arbitral awards. We understand the complexities of UAE Arbitration Law and provide strategic guidance through every step of the process. 

If you are considering challenging an arbitral award or seeking enforcement, contact AWS Legal Group today for a consultation. Our experts are ready to help you navigate the legal process efficiently and protect your interests. 

Legal Insights

  • 22 October 2024
  • 6 min read



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