Understanding the 2023 Amendments to the UAE Arbitration Law: What Businesses Need to Know

In a continued effort to align its legal infrastructure with global standards, the United Arab Emirates (UAE) introduced significant reforms to its arbitration framework through Federal Law No. 15 of 2023. This law, which came into force in September 2023, amends key provisions of the existing Federal Law No. 6 of 2018 on arbitration. These changes have a direct impact on how arbitration proceedings are initiated, conducted, and enforced in the UAE, particularly onshore. For businesses engaged in or considering arbitration within the UAE, especially in Dubai, understanding these changes is essential.

This blog provides a comprehensive, accessible breakdown of the 2023 amendments, clarifies their implications, and highlights how companies can adapt to maintain compliance and ensure smooth dispute resolution processes under Dubai Arbitration Law.

A Quick Overview of the Legal Landscape

The 2018 Arbitration Law was a landmark for arbitration in the UAE, setting a modern foundation and drawing inspiration from international practices. However, as arbitration activity grew—particularly in hubs like Dubai—certain limitations and ambiguities began to surface. The 2023 reforms address some of these by revising Articles 10, 23, 28, and 33, and introducing the new Article 10(bis). These amendments mainly focus on:

• Qualifications and independence of arbitrators
• Technological modernization of hearings
• Procedural flexibility
• Institutional governance and oversight

Arbitrator Independence: Stricter and Clearer Standards

One of the most significant changes comes with the revision of Article 10, which outlines the criteria for who may serve as an arbitrator. While the original law already included basic eligibility requirements (such as age and moral conduct), the 2023 version adds a new clause prohibiting any “direct relationship” between the arbitrator and any of the parties that might compromise impartiality.

However, the term “direct relationship” is not clearly defined, leaving room for interpretation and possible future legal challenges. To mitigate uncertainty, many arbitration lawyers in Dubai may refer to the 2014 IBA Guidelines on Conflicts of Interest in International Arbitration, a widely respected resource in global arbitration practice.

Article 10(bis): Conditional Participation of Institutional Members

In a surprising shift, Article 10(bis) allows members of arbitration institutions’ management bodies to be appointed as co-arbitrators under very strict conditions. These include rules around disclosure, limitation on the number of cases, and the arbitrator’s institutional role. Notably, violating any of these conditions may result in the nullification of the arbitral award and potential civil liability.

For arbitration firms in Dubai relies on, these stipulations necessitate robust internal protocols to ensure full compliance. Firms must update their governance structures and training procedures to remain competitive and risk-free under the new law.

Procedural Flexibility: Parties Gain More Control

Under the revised Article 23, parties are now further empowered to choose the procedural rules that govern their arbitration proceedings. Whether opting for DIAC, ICC, or another set of institutional rules, this reinforces party autonomy—a cornerstone of modern arbitration practice.

In particular, businesses seeking Dubai Arbitration Services can now exercise greater control in tailoring procedures to the specific nature of their dispute. This is especially beneficial in cross-border cases where international standards are often preferred.

Embracing Virtual Arbitration

With the revision of Article 28, the UAE officially recognizes the validity of conducting arbitration through “modern means of technology.” This means that virtual hearings—introduced out of necessity during the COVID-19 pandemic—are now a standard, legally backed option.

Arbitral institutions are now required to provide the technological infrastructure necessary for virtual hearings, although the specifics are left undefined. The implications for resource allocation and service delivery are significant, especially for institutions handling high volumes of virtual proceedings under ICC arbitration and other formats.

Article 33: Discretion on Rules of Evidence

Article 33 grants arbitral tribunals more discretion in determining evidentiary procedures. In the absence of explicit law or party agreement, tribunals can choose rules of evidence, as long as they do not conflict with public policy.

This amendment aligns the UAE with jurisdictions that support procedural flexibility, though care must be taken to respect the Dubai Arbitration Law, particularly its stance on evidence admissibility. For example, using illegally obtained evidence would contravene UAE public policy, rendering such evidence inadmissible.

Enforceability Still Demands Precision

Despite the reforms, the UAE’s formal approach to the enforcement of arbitral awards remains intact. Recent rulings from the Dubai Supreme Court have emphasized that arbitrators must sign both the operative and reasoning parts of awards. This strict stance underscores the importance of procedural accuracy in ensuring awards are enforceable within UAE courts.

For any arbitration lawyer operating within the UAE, this serves as a reminder: procedural details are not just bureaucratic—they are pivotal to the success of any arbitration proceeding.

Opportunities and Risks for Businesses

The 2023 amendments offer both opportunities and responsibilities for businesses:

Opportunities:

• Enhanced flexibility in choosing procedures and arbitrators
• Legally sanctioned virtual hearings for greater convenience
• Stronger protections against conflict of interest

Risks:

• Undefined terms like “direct relationship” can cause future disputes
• Procedural mistakes can lead to unenforceable awards
• Arbitral institutions and arbitrators face higher liability exposure

Hence, businesses should engage experienced legal professionals when drafting arbitration clauses or selecting arbitrators. This will ensure that they benefit from the flexibility of the new regime without falling prey to its potential pitfalls.

Why This Matters Now More Than Ever

Dubai and the broader UAE have positioned themselves as global hubs for arbitration. With institutions like the Dubai International Arbitration Centre (DIAC) leading the charge, the region offers international-standard dispute resolution mechanisms. These amendments aim to enhance that reputation by integrating international best practices while retaining a uniquely UAE-centric legal structure.

As more industries rely on arbitration—ranging from real estate and construction to finance, telecom, and IP—it is crucial for companies to understand these new legal nuances.

Partner with the Professionals of International Arbitration

Choose The Law Office of Sean Ekhlas LLC for seamless, efficient, and enforceable dispute resolution through INTERNATIONAL ARBITRATION SERVICES. With over a decade of experience in handling complex arbitration cases, Sean Ekhlas and his team provide personalized legal support, from drafting and reviewing arbitration agreements to genuine representation in commercial, investment, and industry-specific disputes.

Whether you need help with virtual hearings, DIAC procedures, or ensuring compliance with the latest Dubai Arbitration Law, our legal professionals are equipped to guide you toward a legally sound resolution. Let us protect your interests and uphold the integrity of your arbitration journey—every step of the way.