Author: Dhilna Dileep

Since the enactment of Federal Law No. 15 of 2023, amending Federal Law No. 6 of 2018 on Arbitration, the United Arab Emirates has continued to refine its arbitration framework to align with global best practice.

These amendments (“Amendment”) represent a significant step in strengthening governance, enabling digital transformation, and enhancing procedural efficiency - all of which reinforce the UAE’s position as one of the region’s most trusted arbitration jurisdictions.

Purpose of the amendment

The Amendment was designed to modernise and streamline arbitration practice in the UAE. Its objectives include:

• Clarifying arbitrator qualifications and appointment rules.
• Providing greater procedural flexibility for tribunals and institutions.
• Enabling digital and hybrid hearings.
• Strengthening governance, transparency, and enforcement mechanisms.

Together, these provisions promote a fair, efficient, and technology-ready dispute resolution system that supports the UAE’s global arbitration ambitions.

Key developments that matter

One of the most notable updates is the introduction of Article 10 bis, which provides detailed guidance on who may serve as an arbitrator. While the 2018 law already required arbitrators to be natural persons with full legal capacity and impartiality, the Amendment clarifies whether individuals affiliated with arbitration institutions may also act as arbitrators.

Parties may now appoint such individuals, provided that:

• Both parties give written consent.
• The arbitration institution grants formal approval.
• Clear governance structures ensure impartiality and separation of duties.
• The arbitrator does not exceed five such appointments per year.
• The arbitrator refrains from participating in any internal discussions or decisions relating to the arbitration.

Institutions must establish reporting mechanisms for breaches. Non-compliance may result in the invalidation of the arbitral award and potential civil liability for both the arbitrator and the institution.

The Amendment also embraces the global transition to digitalisation by expressly permitting hearings to be conducted physically, virtually, or in hybrid formats. It requires arbitration institutions to ensure the availability of suitable technological infrastructure, thereby improving accessibility and efficiency.

Further, the Amendment reinforces tribunal powers regarding evidentiary procedures, confirming that tribunals may apply their own evidentiary rules where the law is silent, provided that public order is maintained. This ensures flexibility and consistency with international standards, particularly in streamlined or lower-value disputes.

Why it matters

For businesses, arbitration institutions, and practitioners, the Amendment provides a more predictable, transparent, and efficient framework. It introduces safeguards that balance flexibility with integrity, while supporting the UAE’s ambition to remain a centre of excellence for international arbitration.

These developments not only modernise arbitration practice but also reflect the UAE’s wider legal reform agenda - one built on fairness, innovation, and global credibility.

Conclusion

Federal Law No. 15 of 2023 marks a mature and forward-looking evolution of the UAE’s arbitration framework. By clarifying governance standards, embracing digital proceedings, and empowering tribunals, the law strengthens the country’s reputation as a sophisticated, modern, and investor-friendly jurisdiction for dispute resolution.

Organisations engaged in arbitration should ensure that their internal protocols and agreements align with the updated framework - turning compliance into a strategic advantage in today’s evolving legal landscape.
 

Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.