Cost of Arbitration in UAE: Fees, Process, and Key Factors Explained
Arbitration is one of the effective dispute resolution mechanisms in UAE, where third-party arbitrators try to settle conflicts amongst parties without the involvement of a court or legal procedures. It is true that arbitration offers autonomy, confidentiality, and internationally enforceable judgments, but it still demands that you carefully plan the entire process, manage the timelines, and calculate the expenses effectively.
So, if you are experiencing some form of dispute in the UAE and are seeking arbitration as an effective resolution, here’s a total cost breakdown for you to count on. This article will give you clarity on the overall arbitration cost in UAE, alongside various factors that contribute to the total expenses.
Arbitration Institution Fees
If your arbitration in UAE is administered by institutions such as ADCCAC, LCIA, ICC, or DIAC, there will be some fees for case registration and administration. The exact fee will depend on the overall dispute amount and might also include:
- Emergency arbitrator fees, if applicable
- Administrative fees depend on the claim value.
- Filing or registration fees
The arbitration fees in Dubai will be higher if you prefer institutions like LCIA or ICC, as they charge more administrative fees for their detailed case management solutions. The average fee structure for the arbitration institutes in UAE is:
- DIAC arbitration fees include a non-refundable amount of ~AED 11,000 for registration.
- DIFC and LCIA reportedly have a registration fee of around ~AED 9,7500.
- ICC charges AED 18,350 as a filing fee.
- ADCCAC charges AED 1,000 as its processing fee for a claim filing.
Arbitrator’s or Tribunal Fees
Appointing arbitrators contributes immensely to the total cost of arbitration in Dubai. It is one of the major components for you to consider if you are estimating the total expense of arbitration in UAE. These costs might follow:
Ad Valorem or Value of the Dispute
The tribunal fees in DIAC or ICC tend to increase with respect to the size of the claim. For instance, if the dispute value is around USD 2 million, the arbitrator fees might range between AED 102,000 and AED 278,000 for each arbitrator.
Hourly Rates
Institutes like LCIA charge hourly rates, which might be a significant payment approach for appointing arbitrators or a tribunal for complex disputes.
Daily Fee
For in-person dispute resolution proceedings, arbitrators might charge daily hearing fees.
In case of three-member arbitration tribunals, which are common especially for resolving high-value disputes, the fees will increase accordingly, adding up to the total expense.
Legal Costs
When dealing with disputes legally in the UAE, you must partner with an expert lawyer or legal consultant to guide you throughout the process, ensuring your interests or rights are protected. The arbitration lawyer fees in the UAE are considered the most significant component among all, as they will help you across various stages of the entire arbitration process.
Some of the factors that influence the legal costs in arbitration include:
- Volume of evidence and documents involved in the dispute case.
- Number of witnesses or experts you need for the process.
- Total duration of the hearings.
- Organizing specialized legal counsel for addressing complex technical disputes.
For disputes associated with construction, finance, or engineering, an arbitration lawyer in Dubai might charge a slightly higher fee as such cases demand expert supervision and extensive documentation.
RH and HALE is Your One-Stop Law Firm in Dubai Offering Cost-Effective Arbitration Services!
Arbitration in the UAE is a flexible dispute resolution approach, guaranteeing internationally enforceable awards or judgments. However, a lot of individuals or businesses often find themselves in a dilemma of what it costs to avail of this reliable, confidential, and less-strenuous dispute resolution mechanism.
At RH and HALE, we offer a comprehensive suite of arbitration services! Starting from registering the claim and appointing arbitrators to supervising the entire process and protecting your rights or interests, we will be backing your case across all stages of arbitration in the UAE.
We have a reasonable fee structure for legal services associated with arbitration in the UAE, ensuring every individual or business can confidently seek our assistance. Following that, we will also be helping our clients with managing their costs across other expense areas or arbitration stages.
Reach out to us today for more information!
FAQ
What is the average cost of seeking arbitration in the UAE for dispute resolution?
There is no fixed total cost for arbitration in UAE, as that depends on the size of the claim, legal complexity, and the number of arbitrators involved in the case. However, to give you a perspective, simple arbitration cases might cost you less than 5-figures in AED, whereas large & complex commercial disputes will surpass 6-figures or more.
Are the arbitration institutions’ fees in UAE fixed?
The institution fees in UAE are set based on the schedules, but the actual amount will depend on the total dispute value and the case complexity. Please refer to the figures specified in this article for a brief idea on average amount that you might have to pay for registering your case.
Are the legal services negotiable for arbitration in the UAE?
Yes, at RH and HALE, we do assess the complexity of the case, involved documentations, dispute value, and other such factors to find a window of subtle negotiation in legal service fees.
Is arbitration a more expensive dispute resolution process than litigation?
It might not be entirely true, because the arbitration process can have a higher upfront cost, but it delivers quick resolutions and guarantees global enforceability. On the other hand, the litigation process can extend for an indefinite period of time, depending on the severity of the case, which might cost even more in the long run. For litigation cases that settle in a short duration might be less expensive than arbitration!
