United Arab Emirates

Part I: what can be enforced?

1. What counts as an arbitral “award” that can be enforced?

• As a preliminary point, it is important to note that the legal landscape of the United Arab Emirates (UAE) is a rather complex mixture of civil and common law traditions. In addition to the “mainland” or “onshore” (the latter term is most common) UAE, which is a civil law jurisdiction, there are two “offshore” common law financial free zones, the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM).
• Crucially, each jurisdiction within the UAE has its own court system, with the DIFC and ADGM courts being common law courts operating in English and the UAE courts operating in Arabic, as well as arbitration law:

• UAE Federal Law No. 6 of 2018 on Arbitration (UAE Arbitration Law)

• DIFC Arbitration Law No. 1 of 2008 (DIFC Arbitration Law)

• ADGM Arbitration Regulations of 2015 (ADGM Arbitration Regulations)

• Each of the above arbitration laws is based on the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration (1985), but there are notable differences especially between the UAE Arbitration Law on one hand and the DIFC Arbitration Law and ADGM Arbitration Regulations on the other (for example, pursuant to UAE Arbitration Law Art 4(1), the signatory of the arbitration agreement must be specifically authorised to enter into it), some of which we will cover below.
• Turning to the question of enforceable awards, in all UAE jurisdictions not only final awards but also partial awards and interim awards are capable of enforcement (see UAE Arbitration Law Art 39).

2. Formal requirements that an award needs to conform with to be enforceable.

These requirements are generally similar across the UAE Arbitration Law (Art 41), DIFC Arbitration Law (Art 38) and ADGM Arbitration Regulations (s55):

• The award must be in writing.
• The award must be signed by the arbitrator or majority of arbitrators provided that the reason for any omitted signature is stated.

Note that onshore UAE courts require that both the reasons and operative parts of the award, whether foreign or domestic, be signed (see, eg, the judgments of the Dubai Court of Cassation in Civil Case No. 109 of 2022 and Commercial Case No. 1083 of 2019). As it is a very common argument when trying to set aside an award or resist its recognition and enforcement, it is advisable to get the award signed on every page. However, recently the onshore UAE courts have increasingly allowed the court proceedings to be stayed and the award to be sent to the tribunal for additional signature rather than setting the award aside for this reason.

• The award must state the reasons upon which it is based unless the parties have agreed that no reasons are to be given.

The DIFC Arbitration Law and ADGM Arbitration Regulations, but not the UAE Arbitration Law, also provide that the award terminating the proceedings in case of settlement and recording the settlement terms need not state the reasons upon which it is based. On the other hand, the UAE Arbitration Law does not require the award to have reasons if this is not also required by the law applicable to the arbitral proceedings (the law of the seat).

• The award shall state its date and the seat of arbitration.

The UAE Arbitration Law further requires the award to include the names and addresses of the parties, the names, nationalities and addresses of the arbitrators, a copy of the arbitration agreement, a summary of the parties’ reliefs, submissions and documents and the dispositive part.

• Under the DIFC Arbitration Law and ADGM Arbitration Regulations, but not the UAE Arbitration Law, the tribunal must fix the costs in the award.

In onshore UAE-seated arbitrations, it is critical to ensure that the tribunal has express authority to award legal costs of the parties, either in the arbitration agreement or in a post-commencement agreement of the parties. In a recent judgment in Commercial Case No. 821 of 2023, the Dubai Court of Cassation curiously found that under Article 38(1) of the International Chamber of Commerce (ICC) Arbitration Rules 2021, the tribunal did not have the authority to award the parties legal costs and partly set aside the award on that basis.

3. Orders on interim measures: enforceability

a. Domestic awards

Each arbitration law explicitly provides for the enforceability of interim measures issued in domestic arbitrations (see UAE Arbitration Law Art 21(4); DIFC Arbitration Law Art 24(2); and ADGM Arbitration Regulations s30).

b. International commercial arbitration awards

• Enforcement of foreign awards in the onshore UAE is governed by Articles 222–225 of Federal Decree–Law No. 42 of 2022 on the Promulgation of the Civil Procedure Law (UAE Civil Procedure Law). It is likely that the onshore UAE courts will enforce interim measures in the form of an interim award if it complies with Article 223 of the UAE Civil Procedure Law, which provides that “the arbitrators’ award shall be issued in a matter in respect of which arbitration is admissible pursuant to the law of the [UAE] and enforceable in the country in which it was issued”. Note that whereas Article 222, which also applies to the enforcement of foreign judgments, requires that “[t]he judgment or order has the force of res judicata in accordance with the law of the court which issued it”, onshore UAE courts consider that an arbitral award becomes res judicata upon issuance (see also UAE Arbitration Law Art 52).
• In two recent decisions in the DIFC, Muhallam v Muhaf and Neal v Nadir, the DIFC courts confirmed that interim measures in the form of an interim award are enforceable under DIFC Arbitration Law Arts 42–44.
• It is likely that the ADGM courts would follow the approach of the DIFC courts and enforce interim measures in the form of an interim award under ADGM Arbitration Regulations ss60–62.

4. Emergency awards: enforceability

a. Domestic awards

Neither arbitration law specifically provides for the enforcement of emergency awards. However, in practice, it is likely that their enforceability will be determined in the framework of enforcing either orders on interim measures or awards, depending on their form. Please refer to the answers to questions I(1) and (3) above for further information.

b. International commercial arbitration awards

Similarly, please refer to the answer to question I(3) above for further information.

Part II: resisting enforcement

5 a. How are awards set aside?

• In the onshore UAE, pursuant to Article 54 of the UAE Arbitration Law, a party may apply to the Court of Appeal for set aside of an award within 30 days following its notification. A Court of Appeal decision could be appealed to the Court of Cassation within 30 days.
• In the DIFC and ADGM, pursuant to DIFC Arbitration Law Art 41(1) and (2) and ADGM Arbitration Regulations s58(1) and (2), one would need to apply for set aside to the DIFC Court of First Instance or ADGM Court of First Instance within three months of the date of receipt of the award, or such longer period as the parties have agreed in writing, or, if a request for correction or interpretation or an additional award has been made, from the date on which that request has been disposed of by the tribunal. There is no automatic right of appeal against a decision of the court of first instance, and permission to appeal must be sought within 21 days of the decision. If the permission is refused, a further application for permission can be made to the Court of Appeal within 21 days of refusal.

b. Can enforcement be resisted if the respondent has not formally applied to set aside the award?

In each jurisdiction, one can resist the enforcement of a domestic award as part of the recognition and enforcement proceedings.

c. Can non-parties seek annulment?

No, only parties to the arbitration or their successors (including via assignment) can seek annulment of an award.

d. Grounds to seek setting aside

Article 53(1) of the UAE Arbitration Law sets out the following grounds for setting aside an award, which would need to be established by the applicant:

• Article 53(1)(a): “Absence of an Arbitration Agreement, or the Agreement is void, or terminated due to expiry of its term in accordance with the law to which the Agreement is subject by the parties or in accordance with this Law if there is no reference to a specific law.”
• Article 53(1)(b): “One of the parties, at the time of enforcement thereof, lacks capacity or of diminished capacity in accordance with the law which governs its capacity.”
• Article 53(1)(c): “The person lacked the legal capacity to take any action regarding the right, the subject matter of dispute, in accordance with the law governing his capacity, which is stipulated in Article (4) of this Law.”
• Article 53(1)(d): “If one of the parties to the Arbitration is unable to present its case as a result of not being given proper notice of the appointment of an Arbitrator or of the arbitral proceedings, the Arbitral Tribunal’s violation of the litigation principles or for any other reason beyond its control.”
• Article 53(1)(e): “If the arbitral award fails to apply the law agreed upon by the parties to govern the subject matter of the dispute.”
• Article 53(1)(f): “If the composition of the Arbitral Tribunal or the appointment of one of the Arbitrators is in conflict with the provisions of this Law or the agreement of the parties.”
• Article 53(1)(g): “If the arbitral proceedings are invalid to the effect that impairs the award; or if the award is rendered after the due time limit.”
• Article 53(1)(h): “If the arbitral award deals with matters not falling within the scope of the Arbitration Agreement or exceeding the limits of this agreement. Nevertheless, when matters falling within the scope of the Arbitration can be separated from the parts of the award which contains matters not included within the scope of the Arbitration, the nullity affects exclusively the latter parts only.”

Article 53(2) further requires the UAE courts to invalidate the arbitral award on their own initiative if they find that:

• “The subject matter of the dispute is a matter in which Arbitration may not be held” (Article 53(2)(a)); or
• “The arbitral award contradicts the public order and morality in the State” (Article 53(2)(b)).

DIFC Arbitration Law Art 41(2)(a) and ADGM Arbitration Regulations s58(2)(a) contain nearly identical grounds for setting aside an award, one of which would need to be established by an applicant:

• A party to the arbitration agreement was, under the law applicable to it, under some incapacity.
• The arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the DIFC or ADGM.
• The party against whom the award is invoked was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present their case.
• The award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters not submitted to arbitration may be set aside.
• The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, or failing such agreement, was not in accordance with the law of the DIFC or ADGM.

Section 58(2)(b) of the ADGM Arbitration Regulations further sets out two situations in which the ADGM court may (note that there is a difference here with UAE Arbitration Law Art 53(2), which uses the term “shall”) itself determine that an award may not be enforced:

• The subject matter of the dispute is not capable of settlement by arbitration under the laws of the ADGM.
• The recognition or enforcement of the award would be contrary to the public policy of the UAE (note the reference to UAE public policy here, not ADGM public policy).

Article 41(2)(b) of the DIFC Arbitration Law–in addition to the two situations described above–also contains a third one: “The dispute is expressly referred to a different body or tribunal for resolution under this Law or any mandatory provision of DIFC Law.”

e. Timelines to seek setting aside

Please refer to the answer to question II(5)(a) above.

f. Grounds to resist enforcement

• Pursuant to UAE Arbitration Law Art 55(2), enforcement of a domestic award could be resisted on the same grounds on which an award could be annulled. Please refer to the answer to question II(5)(d) above. As for recognition and enforcement of foreign arbitral awards, it could be resisted based on the provisions of Article 5 of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) (New York Convention).
• In the DIFC and ADGM, the grounds for resisting enforcement of an award, whether domestic or foreign, set out in DIFC Arbitration Law Art 44(1) and ADGM Arbitration Regulations s62(1), are identical to the grounds for setting aside an award. The only difference is that under DIFC Arbitration Law there is no longer a reference to the dispute having been expressly referred to a different body or tribunal under a mandatory provision of the DIFC Law. Please refer to the answer to question II(5)(d) above.

g. Which court to go to for setting aside?

Please refer to the answer to question II(5)(a) above.

h. Formal requirements before court can grant setting aside

Please refer to the answer to question II(5)(a) above.

i. Do courts grant stay on enforcement as an interim measure?

• Pursuant to UAE Arbitration Law Art 56, there is no automatic stay of enforcement but the court hearing a set-aside application may stay enforcement of the award upon an application by a party “if the request is based on serious grounds”. A decision on the application for stay must be issued within 15 days of the hearing and if the court orders a stay of enforcement, it may require the applicant to post an appropriate security. Further, in case of a stay of enforcement, the court must determine the set-aside application within three months from the date of the stay.
• In accordance with DIFC Arbitration Law Art 44(2), the DIFC courts may order a stay of recognition and enforcement of an award if an application for the setting aside or suspension of an award has been made to the DIFC courts on the ground that the award has not yet become binding on the parties or has been set aside or suspended by a court at the seat. In such a case, the DIFC courts may also order the party seeking a stay to provide appropriate security. Note that Article 44(2) does not limit the general case power of the DIFC courts to order stay on discretionary grounds.
• In contrast, under ADGM Arbitration Regulations s62(2), the court may order a stay and require appropriate security in case the award is challenged for any reason set out in section 62(1) of those regulations.

j. What is the appellate mechanism against the decision of the court of first instance?

Please refer to the answer to question II(5)(a) above.

Part III: enforcing foreign awards

6. New York Convention applicability

The UAE has been a party to the New York Convention since 2006. Further, the UAE is also party to the Riyadh Arab Agreement for Judicial Co-operation 1983 and the Gulf Cooperation Council (GCC) Convention for the Execution of Judgments, Delegations and Judicial Notifications (1996). These treaties are also applicable in the DIFC and the ADGM.

7. Timelines for enforcement

• There are no time limits for seeking enforcement of foreign awards.
• In accordance with Article 222 of the Civil Procedure Law, an application for recognition and enforcement of a foreign award must be filed with the execution court and determined ex parte within five days of filing. In practice, a decision of the execution judge would normally be issued within two to three weeks of filing. The decision of the execution judge is subject to appeal within 30 days.
• To recognise an award in the DIFC, one should file an arbitration claim form with the DIFC Court of First Instance, either on notice or on an ex parte basis. An order on the ex parte application will typically be made without an oral hearing, and the respondent will have 14 days after service of the order to apply to set it aside. In any case, the recognition procedure in the DIFC Court of First Instance may take up to six months to conclude. The judgment of the DIFC Court of First Instance could then be appealed to the DIFC Court of Appeal.
• If the DIFC Court of First Instance recognises the award, it may also enter judgment in the terms of the award, which could be directly enforced in the DIFC. The judgment could also be enforced in the onshore Dubai courts under a reciprocal enforcement protocol set out in Dubai Law No. 12 of 2004, without any review of the merits of a DIFC court judgment.
• The recognition and enforcement process in the ADGM mirrors the one in the DIFC. Once an award is converted into an ADGM court judgment, it could then be enforced outside the ADGM via Abu Dhabi courts pursuant to Abu Dhabi Law No. 12 of 2020.

8. Which court to go to? Relation with location of assets?

A party should generally decide on the appropriate forum for recognition of the award based on the location of assets of the award debtor. However, the DIFC courts are commonly used as a “conduit jurisdiction” to recognise awards even when the award debtor has no assets in, or connection with, the DIFC.

9. Can non-parties resist enforcement?

No, only parties to the arbitration or their successors (including via assignment) can resist enforcement.

10. Compelling disclosure of local assets? How to identify assets available for enforcement?

It is very common to instruct specialised asset tracers to procure information on the debtor’s assets as very little information is readily available in public registers. Further, once enforcement proceedings are afoot, the execution court will send enquiries to various authorities requesting them to provide information on the debtor’s assets within the UAE and seize them.

11. Are third-party funded awards enforceable?

Yes, third-party funded awards are enforceable.

12. What interim reliefs are available pending enforcement of awards? Which of those reliefs are granted ex parte?

• The most common types of interim measures ordered by onshore UAE courts are attachments and seizures of various types of assets and travel bans (orders prohibiting the debtor from entering or leaving the UAE). Onshore UAE courts typically grant interim relief on an ex parte basis.
• The DIFC and ADGM courts have an open list of the interim relief they can grant, which includes interim injunctions; interim declarations; orders for the detention of, inspection of, taking a sample of, or payment of income from a relevant property; freezing orders; search orders etc. An application for interim relief can be made on notice on the ex parte basis where there are good reasons for not giving notice. However, in the latter case, the applicant would need to comply with the duty to make full and frank disclosure of material adverse facts.
• Note that in a recent decision, Sandra Holdings v Al Saleh, the DIFC Court of Appeal seems to have put an end to the practice of the DIFC courts having a free-standing jurisdiction to grant an injunction against a party in support of foreign proceedings whether or not they had any connection with the DIFC.

13. Formal requirements for enforcement application: what documents need to be filed in court?

• In the onshore UAE, the following documents would need to accompany an application for recognition of an award: the original award (or a certified true copy of the award) and a copy of the arbitration agreement. All documents would need to be translated into Arabic by a certified translator (see, by analogy, UAE Arbitration Law Art 55).
• Pursuant to DIFC Arbitration Law Art 42(2) and ADGM Arbitration Regulations s61(2), an arbitration claim form must be accompanied by the original award (or a duly certified copy) and a copy of the arbitration agreement. If the award or the agreement is not made in English, a party should provide a certified English translation.

14. Enforcing awards that have been annulled/set aside at other courts. Enforcing when an annulment application is pending at a foreign court

• It is highly unlikely that onshore UAE courts will enforce an award that has been set aside because Article 223 of the Civil Procedure Law requires a foreign award to be “enforceable in the country in which it was issued”. If a foreign award is subject to set-aside proceedings, the UAE courts are likely to order a stay of enforcement.
• It is unlikely that the DIFC and ADGM courts will enforce an award that has been set aside at the seat of arbitration. However, the DIFC and ADGM courts, unlike onshore UAE courts, retain discretion on whether to refuse recognition and enforcement based on that ground, and it is conceivable that in some situations (eg, where the set-aside proceedings at the seat of arbitration have been tainted by fraud or corruption) there may be good reasons to allow enforcement of such an award anyway. If set-aside proceedings are pending at the time of enforcement, it is likely that the recognition and enforcement proceedings will be stayed (see the answer to question II(5)(i) above for further information).

15. Once application for enforcement is allowed, how does the actual enforcement against assets work? What are the remedies available for tracing assets during enforcement proceedings including for assets disposed of by fraud?

• In the onshore UAE, once a case is opened with the execution court, the court will serve a notice on the award debtor requiring it to pay the amount owed within 15 days. If the award debtor fails to pay, the award creditor may apply to the execution court requesting, inter alia, that it attaches and sells (in case of non-cash assets) the debtor’s assets in the UAE and sells any assets that have already been attached (ie, under a precautionary attachment order). The execution court will send enquiries to various authorities requesting them to provide information on the debtor’s assets within the UAE and seize them for subsequent transfer to the creditor (in case of cash) or sale and payment of proceeds (in case of non-cash assets).
• In the DIFC and ADGM, the award creditor may enforce the award by obtaining a charge over property, attachment of assets (whether present or future), execution against assets, or the appointment of a receiver.
• In certain circumstances, the DIFC and ADGM courts may make an order of committal for contempt of court against the award debtor, eg, if the latter disregards a court order. As the DIFC and ADGM courts do not have criminal jurisdiction, matters of contempt would be referred to the UAE public prosecutor for investigation and prosecution.
• In the case of assets disposed of by fraud, the award creditor may attempt to claw them back via a mixture of criminal proceedings in the onshore UAE (the DIFC and ADGM are both subject to UAE criminal law) and civil proceedings in the onshore UAE courts and DIFC or ADGM courts.

16. What is the procedure for repatriation of sums awarded after obtaining an order for enforcement?

Please refer to the answer to question III(15) above.

17. Do courts grant orders for security for costs?

Onshore UAE courts do not grant security for costs, and litigation costs in general are not recoverable in UAE court proceedings, save for nominal amounts.

The DIFC and ADGM courts may grant an order for security for costs on general grounds, ie, where it is just to do so.

18. Exchange control regulations: do they affect payments to foreign award holders?

At present, there are no foreign exchange control restrictions in the UAE that may affect payments to foreign award holders.

19. Enforcing awards from non-New York Convention places

In the onshore UAE, in accordance with Article 222 of the Civil Procedure Law, where no treaty applies, a foreign award may be executed under the same conditions as exist in the law of the seat of arbitration. Further, an execution judge must establish the following (note that this provision is written for judgments, not awards, and is applicable to awards by analogy pursuant to Article 223 of the Civil Procedure Law):

• The UAE courts do not have exclusive jurisdiction over the dispute in which the award was issued.
• The arbitral tribunal was competent to issue the award in accordance with the arbitration agreement and law of the seat.
• The arbitral award complies with the requirements of the law of the seat.
• The parties to the arbitration were duly notified of the proceedings and were represented.
• The award has acquired the force of res judicata (please refer to the answer to question I(3)(b) above).
• The award does not conflict with a judgment or order issued by a UAE court.
• The award does not contain anything contrary to public order or morals.

Article 223 of the Civil Procedure Law further requires that awards “shall be issued in a matter in respect of which arbitration is admissible pursuant to the law of the UAE and enforceable in the country in which it was issued”.

In the DIFC and ADGM, pursuant to DIFC Arbitration Law Art 42(1) and ADGM Arbitration Regulations s60(1)(c), the same procedure applies to the recognition and enforcement of both New York Convention and non-New York Convention awards.

20. Enforcing against sovereigns

• There are few specific rules that govern the recognition and enforcement of awards against foreign states. In particular, Article 242(1) and (10) of the Civil Procedure Law prohibits attachment of public funds of the UAE or its emirates (including waqf funds, ie, funds held as an inalienable charitable endowment), as well as of funds of foreign embassies and diplomatic bodies enjoying diplomatic immunity under the condition of reciprocity.
• DIFC and ADGM are silent on the issue of state immunity. However, in Pearl Petroleum Company Limited & Others v The Kurdistan Regional Government of Iraq, the DIFC courts upheld an explicit waiver of sovereign immunity from suit and execution by the defendant.

21. Appellate mechanism available?

Please refer to the answer to question III(7) above.

Part IV: enforcing domestic awards

22. Timelines for enforcement

• In accordance with UAE Arbitration Law Art 55(2), the Court of Appeal must decide on the recognition and enforcement of an award within 60 days. The application is determined ex parte, and the respondent may challenge the Court of Appeal’s decision by way of a grievance to that court within 30 days of service of the decision pursuant to UAE Arbitration Law Art 57. A further appeal to the Court of Cassation can be made within 60 days of the decision on the grievance. The entire process could take up to six months. Once the award is recognised, one would need to apply to the execution court for enforcement.
• For the timelines of enforcement of awards in the DIFC and ADGM courts, please refer to the answer to question III(7) above.

23. Which court to go to? Relation with location of assets?

Please refer to the answer to question III(8) above.

24. Compelling disclosure of local assets? How to identify assets available for enforcement?

Please refer to the answer to question III(10) above.

25. Are third-party funded awards enforceable?

Please refer to the answer to question III(11) above. Further, ADGM Arbitration Regulations s37 explicitly requires a party to disclose the existence of any third-party funding arrangement.

26. What interim reliefs are available pending enforcement of awards? Which of those reliefs are granted ex parte?

Please refer to the answer to question III(12) above.

27. Formal requirements for enforcement application: what documents need to be filed in court?

Please refer to the answer to question III(13) above.

28. Filing for enforcement when application for annulment is pending

It is possible to apply for recognition and enforcement of a domestic award while set-aside proceedings are still pending in onshore UAE courts, as well as DIFC and ADGM courts. However, the other party will likely apply for a stay of recognition and enforcement proceedings in such a case. Please refer to the answer to question II(5)(i) for further information.

29. Once application for enforcement is allowed, how does the actual enforcement against assets work? What are the remedies available for tracing assets during enforcement proceedings including for assets disposed of by fraud?

Please refer to the answer to question III(15) above.

30. Do courts grant orders for security for costs?

Please refer to the answer to question III(17) above.

31. Appellate mechanism available?

Please refer to the answer to question IV(22) above.