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GHANTOOT TRANSPORT & GENERAL CONTRACTING EST. BUILDING DIV

19A

THE UAE CIVIL PROCEDURE CODE, FEDERAL LAW NO. (11) OF 1992

A ARBITRATION

Article (203)

1. The parties to a contract may generally stipulate in the basic contract or by a

supplementary agreement that any dispute arising between them in respect of
the performance of a particular contract shall be referred to one or more
arbitrators and may also agree to refer certain disputes to arbitration under
special conditions.
2. No agreement for arbitration shall be valid unless evidenced in writing.
3. The subject of the dispute shall be specified in the terms of reference or during
the hearing of the suit even if the arbitrators were authorized to act as amiable
compositors; otherwise the arbitration shall be avoid.
4. Arbitration shall not be permissible in matters, which are not capable of being
reconciled. An arbitration agreement may be made only by the parties who are
legally entitled to dispose of the disputed right.
5. If the parties to a dispute agree to refer the dispute to arbitration, no suit may be
filed before the courts. Notwithstanding the foregoing, if one of the parties files a
suit, irrespective of the arbitration provision, and the other party does not object
to such filing at the first hearing, the suit may be considered, and in such case,
the arbitration provision shall be deemed cancelled.

Article (204)

1. If a dispute arises between the parties prior to the execution of an agreement

between them to refer the same to arbitration, or if one or more of the
nominated arbitrators refuses to act as such, withdraws, is dismissed, has his
appointment revoked, or is prevented from acting due to an encumbrance, and
no agreement exists between the parties in this respect, the court which has
jurisdiction to consider the dispute shall appoint the necessary number of
arbitrators at the request of one of the parties filed in the normal procedure for
filing a suit. The number of arbitrators appointed by the court shall be equal, or
complementary, to the number agreed between the parties to the dispute.
2. The court's decision in respect of the foregoing may not be contested in any way
whatsoever.

Article (205)

Unless their names are specifically mentioned in the arbitration agreement or a

subsequent document, arbitrators may not be authorized to act as amiable compositors.

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Article (206)

1. An arbitrator may not be a minor, bankrupt, legally incapacitated or deprived of

his civil rights due to a criminal offence unless he has been rehabilitated.
2. If there are more than one arbitrators, the number shall, at all times be odd.

Article (207)
1. The acceptance of the appointment of an arbitrator shall be in writing or may be
evidenced by recording the same in the minutes of the sessions.
2. If an arbitrator, after having accepted his appointment, withdraws without good
reason, he may be held liable for compensation.
3. No arbitrator may be removed except with the approval of all the parties to the
dispute. However, if it is established that the arbitrator has willfully neglected to
act in accordance with the terms of reference, despite a written notice to him in
this respect, the court which had jurisdiction to consider the dispute may, at the
request of one of the parties, dismiss the arbitrator and order a replacement in
the same manner as he was originally appointed.
4. An arbitrator may not be disqualified except for reasons occurring or appearing
after his appointment. A request for disqualification must be based on the same
grounds on which a judge may be dismissed or deemed unfit for passing
judgment. The request for disqualification shall be filed with the court which has
jurisdiction to consider the dispute within five days from notifying the parties of the
appointment of the arbitrator or from the date on which the reason for
disqualification arose or from the time it became known if subsequent to the
notification of the appointment of the arbitrator. In all events, the request for
disqualification shall not be granted if the court has already passed a judgment
or if the hearing of pleadings has been concluded.

Article (208)

1. Within a maximum period of thirty days from the acceptance of his appointment,
the arbitrator shall, without the need to comply with the rules provided under this
Law in respect of serving of notices, notify the parties to the dispute of the date of
the first hearing scheduled for consideration of the dispute and the venue
thereof. The arbitrator shall fix a date for the parties to the dispute to submit their
documents, memoranda, and pleadings.
2. A decision may be issued on the basis of the documents submitted by only one of
the parties to the dispute if the other party fails to submit his documents within the
time specified.
3. If there shall be more than one arbitrator, they shall jointly conduct the
investigation and each of them shall sign the minutes of sessions.

Article (209)

1. The hearing of a dispute before the arbitrator shall terminate if a reason for such
termination, as stipulated under this Law, exists. Unless the matter has been
reserved for award, such termination shall have the legal effects stipulated under
the law.
2. If, during the course of arbitration, a preliminary issue, which is outside the powers
of the arbitrator, arises or if a challenge has been filed that a document has been
counterfeited, or if criminal proceedings have been taken regarding such
counterfeiting or for any other criminal act, the arbitrator shall suspend the

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 proceedings until a final judgment on the same has been passed. In addition, the
arbitrator shall suspend the proceedings to refer to the President of the
competent court the following:
a. To pass a judgment in accordance with the law to penalize any witness
who fails to appear or refuses to give statement.
b. To order a party to submit any documents in its possession which are
necessary for the issue of the arbitration award.
c. To decide on evidence by commission.

Article (210)

1. If the parties to the dispute did not specify in the arbitration agreement a date for
the issue of the award, the arbitrator shall pass his award within six months from
the date of the first arbitration session; otherwise any of the parties shall be
entitled to refer the dispute to the court or, if a suit has already been filed, to
proceed with the same before the court.
2. The parties to the dispute may, expressly or impliedly, agree to extend the date
fixed by agreement or under the law and may authorize the arbitrator to extend
the same for a specified period. The court may, at the request of the arbitrator or
one of the parties, extend the period specified under the above paragraph for
such a period, as the court may deem sufficient to decide on the dispute.
3. The period specified as aforesaid shall cease to run whenever the arbitration is
discontinued or terminated before the arbitrator and shall recommence from the
date on which the arbitrators are notified of the removal of the reason for which
the dispute was discontinued or terminated. If the remaining period is less than a
month, it shall be extended to one full month.

Article (211)

The arbitrators shall cause the witnesses to take oath. Whoever makes a false
statement before the arbitrators shall be deemed to have committed the crime
of perjury.

Article (212)

1. The arbitrator shall issue his award without being bound by any procedures other
than those stipulated in this Chapter and those pertaining to calling of the parties,
hearing of their pleas and enabling them to submit their documents.
Notwithstanding the foregoing, the parties to the dispute may agree on certain
procedures to be followed by the arbitrator.
2. The arbitrator’s award shall be in conformity with the provisions of law unless the
arbitrator was authorized to reconcile the dispute, in which event he shall not be
bound to comply with such rules except in matters which concern public order.
3. The special rules pertaining to immediate enforcement shall apply to arbitration
awards.
4. The arbitrators' award shall be issued within the United Arab Emirates; otherwise,
the rules applicable to arbitration awards passed in foreign countries shall apply
thereto.
5. The arbitrators' award shall be passed by a majority and shall be made in writing
and accompanied by the dissenting vote. In particular, the award shall contain a
copy of the arbitration agreement, a summary of the statements of the parties,

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 their documents, the grounds and context of the award, the date and place of
issue and the signatures of the arbitrators. Should one or more arbitrators refuse to
sign the award, such refusal shall be stated in the award; provided, however, that
the award shall be valid if signed by a majority of the arbitrators.
6. Unless otherwise agreed between the parties to the dispute, the award shall be in
the Arabic language; otherwise, the award shall, at the time of filing, be
accompanied by a legalized translation thereof.
7. The award shall be deemed to have been issued from the date of signing the
same by the arbitrators.

Article (213)

1. When arbitration is conducted through court, the arbitrators shall, within fifteen
days following the issue of their award, file with the competent court the award
together with the original terms of reference, minutes of sessions and documents.
They shall also file with the court a copy of the award to be delivered to each of
the parties within five days from the date of filing of the original copy thereof. The
court clerk shall prepare a report on the said filing to be submitted to the judge or
the head of the department, as the case may be, so as a hearing may be
convened within fifteen days for the purpose of approving the award. The parties
of the dispute shall be notified of the date fixed for the hearing as aforesaid.
2. Where the arbitration is conducted in connection with an appeal suit, the filing
shall be made with the court, which has jurisdiction to consider the appeal.
3. Where arbitration is conducted between the parties to a dispute outside the
court, the arbitrators shall provide each party with a copy of their award within
five days from the date of the issue of the same. The court shall, at the request of
one of the parties filed within the normal course of filing the suit, consider whether
the award shall be approved or nullified.

Article (214)

1. While considering the request for approving the arbitrators' award, the court may
refer the same back to the arbitrators to reconsider any issues which they have
omitted or to clarify the award if it was not specific to the extent that the
enforcement of the same is not possible. Unless otherwise decided by the court,
the arbitrators shall, in both cases, issue their revised award within three months
from the date of their notification of the court's decision.
2. The decision of the court may not be contested except upon the passing of the
final judgment in respect of the approving or nullifying of the award.

Article (215)

1. The arbitrators' award may not be enforced unless the same has been approved
by the court with which the award was filed; provided that the court has
reviewed the award and the terms of reference and ensured that there is no
encumbrance to such enforcement. The said court shall, at the request of one of
the parties concerned, correct the material errors in the arbitrator’s award in
accordance with the legally prescribed manners applicable to correction of
errors.
2. The Execution Judge has the jurisdiction to all the matters related to the
execution of the arbitrators’ awards.

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Article (216)

1. The parties to a dispute may, at the time of consideration of the arbitrators

award, request the nullification of the same in the following events:
a. If the award was issued without, or was based on invalid terms of
reference or an agreement which has expired by time prescription, or if
the arbitrator has exceeded his limits under the terms of reference.
b. If the award was issued by arbitrators who were not appointed in
accordance with the law, or by only a number of the arbitrators who were
not authorized to issue the award in the absence of the others, or if it was
based on terms of reference in which the dispute was not specified, or if it
was issued by a person who is not competent to act as an arbitrator or by
an arbitrator who does not satisfy the legal requirements.
c. If the award of the arbitrators or the arbitration proceedings become void
and such validness affected the award.
2. A request for nullification of the award shall not be rejected on the grounds of a
waiver by a party of its right to the same prior to the issue of the award.

Article (217)

1. The award of the arbitrators may not be contested by any manner of appeal.
2. The judgment approving the arbitrators' award may be contested in any of the
appropriate manners of appeal.
3. Notwithstanding the preceding paragraph, the award shall not be appealable if
the arbitrators were authorized to reconcile the dispute or, if the parties have
expressly waived their rights to file an appeal or if the disputed amount was not in
excess of Dirhams ten thousand.

Article (218)

1. The arbitrators shall estimate their fees and arbitration expenses and may decide
that such amount, in whole or in part, be borne by the party against whom the
award was issued. The court may, at the request of one of the parties, amend the
said estimation taking into account the efforts of the arbitrators and the nature of
the dispute

Local Laws Concerning Arbitration

 Arbitration in disputes arising out of contracts to which Dubai Government or any

of its subsidiary departments is a party.
 Agreements and Conventions relating to Arbitration to which UAE is a party.
 Agreement for Judicial Cooperation and Recognition and Execution of Arbitral
Award in Civil and Commercial Matters between UAE and France, 1991.
 Agreement of Encouragement and Protection of Investment between the
members of the Organization of the Islamic Conference

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