Recognition of Domestic and International Arbitral Awards

The UAE has developed a comprehensive legal framework to govern arbitration, primarily encapsulated in the Federal Decree-Law No. 15 of 2023 (the ‘UAE arbitration law’).

This law aligns with international standards, particularly the UNCITRAL Model Law on International Commercial Arbitration, ensuring that the UAE is a favourable jurisdiction for arbitration.

And, the arbitration law applies to both domestic and international arbitral proceedings seated in the UAE. But what is domestic arbitration agreement? And what about th international arbitration?

This is what we are going to cover in this legal article – know your rights better!

Table of Contents

Domestic Arbitration

Domestic arbitration is a from of an alternative dispute resolution that is conducted within the UAE, where both parties are based in the same country, and is governed by the UAE arbitration law.

The UAE arbitration law applies to all arbitrations conducted in the UAE, whether the arbitration is ad hoc (when needed) or institutional.

It also governs arbitrations where parties have agreed that the UAE law will apply to their arbitration proceedings.

Most imporrtantly, is that this law covers all stages of the arbitration process, from the initial arbitration agreement to the recognition and enforcement of the arbitral award.

Key provisions relevant to enforcement of arbitral awards before the UAE Courts:

The UAE arbitration law requires that arbitral awards be in writing, signed by the arbitrators, and include the reasons for the decision, unless the parties agree otherwise.

The law ensures that the arbitral award is final and binding on the parties, with limited grounds for challenging the award in court, such as issues of public policy, lack of proper notice, or incapacity of a party.

For domestic arbitral awards, the enforcement process under Federal Decree-Law No. 15/2023 is governed by Article 55 (that we will mention later on) which stipulates that the party seeking enforcement of a domestic arbitral award must submit an application to the Dubai Courts – which is typically the court of first instance in the jurisdiction where the award was issued.

Along with the application, the party is required to provide the original arbitral award or a certified copy, the original arbitration agreement or a certified copy, and a certified Arabic translation of the award if it was issued in a foreign language.

Specific Application to DIAC Awards

Arbitral awards issued by the Dubai International Arbitration Centre (‘DIAC’) are subject to the same enforcement procedures outlined in the UAE arbitration law.

However, it is important to note that DIAC arbitration is also governed by the DIAC Arbitration Rules of 2022, which complement the UAE arbitration law.

For example, when a party seeks to enforce a DIAC arbitral award, they must follow the procedures set out in the UAE arbitration law, particularly Articles 52-55.

The enforcement application is typically made to the Dubai Courts if the arbitration was seated in Dubai.

Moreover, dubai courts are generally supportive of enforcing DIAC awards, provided that the procedural requirements of the UAE arbitration law are met and that none of the grounds for refusal under Article 53 apply.

Enforcement of Arbitral Awards in DIFC Courts and Mainland Courts (“UAE courts”)

DIFC Courts

The rules applicable to the enforcement of arbitral awards in the DIFC Courts is governed by the DIFC Law No. 1 of 2008 as amended (arbitration law).

According to the rules dictated under Part 43 Arbitration Claims, Rules 43.61 to 43.75 concerning Recognition and Enforcement of Arbitral Awards apply to awards made in arbitration proceedings wherever the seat.

An application under Article 42(1) of the arbitration law to enforce an award or under Article 43 of the Arbitration Law for recognition of an award may be made without notice in an Arbitration Claim Form (Article 43.62).

For instance, in the case of Muhallam v Muhaf (ARB 021/2022), the DIFC Courts considered the Claimant’s request for the recognition and enforcement of a provisional award issued in an arbitration proceeding.

Notably, the DIFC Courts held that interim measures are consistent with the language of a provisional award, and therefore, may be recognised and enforced according to the Article arbitration law.

This decision is significant as it provides further clarity on provisional awards stipulating that these can be enforced within the DIFC jurisdiction.

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Enforcement of foreign arbitral awards within the mainland jurisdiction

Enforcement of foreign arbitral awards in the UAE is governed by Articles 53-57 of the UAE arbitration law, which stipulates the procedure in which arbitral awards with seat outside of the UAE can be recognized and enforced.

Article 55 of the law stipulates that the party desiring to enforce the arbitral award shall submit a request for the confirmation of the award and order to enforce thereof to the court, provided that such request is accompanied by the following documents:

a. The original award or a certified true copy thereof;

b. A copy of the arbitration agreement;

c. A certified arabic translation of the arbitral award from an accredited body in case the award was not made in arabic; and

d. A copy of the transcript of filing the judgment with the Court.

The court’s president or his delegate from judges shall confirm and enforce the arbitral award, within a period of (60) sixty days from the day of submission of confirmation decision and enforcement thereof.

Unless, it finds that one or several reasons for annulment of the arbitral award is based on any of the cases contained in Clause (1) of Article (53) of this Law.

Article (54) Action for the Annulment of the Arbitral Award

1. The judgment rendered by the court on the action for annulment shall be final and shall not be subject to appeals except by way of cassation.

2. The action for annulment of an arbitral award shall not be heard after thirty (30) days following the notification of the arbitral award by the party requesting annulment.

3. The judgment nullifying the arbitral award entails the cancellation of the award in whole or in part, depending on whether such nullification pertains to all or part of the award.

And, if an interpretation has been issued on the part that is rendered nullified, such interpretation shall likewise be nullified;

4. Unless otherwise agreed by the parties, the arbitration agreement shall remain valid in accordance with the provisions of this law after annulment of the arbitral award – unless such annulment is based on the absence, extinction, nullity or non-enforceability of the agreement itself.

5. Waiver of the right to institute the annulment action prior to the passing of the award shall not prevent the admission of the action.

6. The court from which the annulment of the arbitral award is sought may suspend the annulment proceedings for a period not exceeding (60) sixty days if it finds it appropriate at the request of one of the parties in order to give the arbitral tribunal an opportunity to take any action or rectify the form of the award that may eliminate the causes of annulment without affecting its content.

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Article (55) Enforcement of the Arbitral Award

1. The party desiring to enforce the arbitral award shall submit a request for the confirmation of the award and order to enforce thereof to the court, provided that such request is accompanied by the following documents:

a. The original award or a certified true copy thereof;

b. A copy of the Arbitration Agreement; and

c. A certified arabic translation of the arbitral award from an accredited body in case the award was not made in arabic.

d. A copy of the transcript of filing the judgment with the court.

2. The court’s president or his delegate from judges shall confirm and enforce the arbitral award, within a period of (60) sixty days from the day of submission of confirmation decision and enforcement thereof, unless it finds that one or several reasons for annulment of the arbitral award is based on any of the cases contained in Clause (1) of Article (53) of this Law.

Article (56) Request for the Suspension of the Arbitral Award

1. The filing of an annulment action does not entail the suspension of the arbitral award.

However, the court hearing the annulment action may order such suspension at the request of any of the parties if the request is based on serious grounds.

2. The court shall decide on the request for the suspension of the arbitral award within fifteen (15) days from the date of the first hearing scheduled for considering such request.

3. If the court orders the suspension of the award, it may require the party requesting the suspension to post a security or monetary guarantee.

Further, it shall decide on the annulment action within three (3) months from the date such order is rendered.

Article (57) Challenging the Arbitral Award Enforcement Order

A grievance may filed before the competent court of appeal against the Court decision ordering the enforcement or rejecting the enforcement of the arbitral award within (30) thirty days following the date of being notified thereof.

What is the importance of arbitration in dispute settlement?

International Arbitration

The UAE has established itself as a key jurisdiction for international arbitration, particularly with respect to the recognition and enforcement of arbitral awards.

One of the most significant developments in this regard is the UAE’s adherence to several international conventions, most notably the new york convention on the recognition and enforcement of foreign arbitral awards (1958).

The new york convention is a cornerstone in the field of international arbitration, providing a unified legal framework that facilitates the recognition and enforcement of arbitral awards across its 172 signatory states.

The UAE became a signatory to the new york convention in 2006, a move that significantly bolstered the country’s position as an arbitration-friendly jurisdiction.

Under the convention, arbitral awards made in one member state are generally recognised and enforceable in other member states, provided certain conditions are met.

According to Article 4 of the convention, to obtain the recognition and enforcement mentioned in the preceding article, the party applying for recognition and enforcement shall, at the time of the application, supply:

(a) The duly authenticated original award or a duly certified copy thereof;

(b) The original agreement referred to in article II or a duly certified copy thereof.

Also, if the said award or agreement is not made in an official language of the country in which the award is relied upon, the party applying for recognition and enforcement of the award shall produce a translation of these documents into such language.

The translation shall be certified by an official or sworn translator or by a diplomatic or consular agent.

The UAE courts have generally been supportive of arbitration, and there is a strong trend toward upholding the enforcement of foreign arbitral awards in line with the principles of then new york convention.

This has made the UAE an attractive venue for parties seeking to resolve their disputes through arbitration, particularly in commercial matters involving cross-border transactions.

The country’s strategic location, robust legal framework, and commitment to international arbitration standards further reinforce its status as a leading arbitration hub in the Middle East and beyond.

At Khairallah Advocates & Legal Consultants, we offer specialised legal services for the enforcement of both domestic and international arbitral awards in the UAE.

With our extensive expertise in UAE arbitration law and a deep understanding of international conventions, we are equipped to provide you with comprehensive support throughout the enforcement process, whether your award originates from a domestic arbitration or an international tribunal.

Benefit from our 30-min free consultation, and let us assist you with all your legal matters!