Can You Challenge an Arbitration Award in UAE?

Yes, you can definitely challenge an arbitration award in UAE, as Article 53 of UAE Arbitration Law has specified dedicated grounds for the same. The only rule is that you must file your challenge within 30 days of being notified about the arbitration award. If you have partnered with a law firm in the UAE, they will be guiding you throughout the process. 

However, the process isn’t as simple as it sounds! Challenging an arbitration award must be based on strong legal evidence and unhindered adherence to the federal laws. You can definitely raise your concern legally to show your disagreement with the arbitration award, but to be sure you are doing it the right way, you will need legal help. 

So, this article intends to help you understand the right approach to challenging an arbitration award in adherence to UAE Arbitration Law Article 53(1). Read along till the end to avoid making expensive mistakes in the process!

Binding Nature and Challenging Grounds of an Arbitration Award in the UAE

Here is a brief understanding of the binding nature and challenging grounds of an arbitration award in the UAE, under the governing law:

Binding Nature:

In adherence to the provisions specified in the UAE Arbitration Law Article 52, an arbitration award must be legally binding to the parties, and must hold emphasis similar to a court’s judgment. However, in order to get the arbitration award enforced, there is a need for a court’s decision that would confirm the same. 

Challenging Grounds:

As per Article 53 of the UAE Arbitration Law, here are the specific grounds on which an arbitration award can be challenged:

• Invalid clauses in the arbitration agreement
• Lack of legal proficiency of one party in entering the arbitration agreement
• Failing to notify the challenging party about the arbitrator selection or the overall proceedings. 
• Violations of the legal arbitration procedure affected the outcome. 
• The award consists of judgments on matters that don’t align with the arbitration terms. 
• The appointment or composition of the arbitration tribunal was not done on mutual agreement of the parties or in accordance with the UAE laws. 

In addition to the above provisions, the courts can set aside an arbitration award in the UAE on these specific grounds:

• Non-arbitrable subject matter, which means the dispute consists of issues that can’t be addressed or resolved through arbitration. 
• Conflict with morality or public order, meaning the arbitral award adversely hurts the morality and public order of the country. 

Step-by-Step Procedure for Challenging an Arbitration Award in the UAE

To ensure a rightful outcome, you ought to follow the steps properly. So, here is a clear elaboration on the detailed process you must adopt for challenging an arbitration award in the UAE:

Step 1 : Review the Award for Errors

Before going ahead and filing a formal challenge to the arbitration award, make sure you get it reviewed thoroughly for potential errors. Take the help of an arbitration lawyer in Dubai to help you in the process and determine any clerical, typographical, or computational errors in the arbitration award, which can then be requested for correction to the tribunal. 

Step 2 : Identify the Annulment Grounds

Now, once the award has been reviewed and the conflicts are beyond rectification, you must then challenge it before the UAE courts. However, your arbitration lawyer will guide you on the specific grounds listed in the UAE Arbitration Law Article 53, based on which the award can be challenged. Once you identify the ground, you can then go ahead with the next step. 

Step 3: Filing the Challenge Before the UAE Court

Your legal consultant in Dubai will then assist you with filing the challenge at a competent UAE court. It is to be ensured that the challenge filing date is within 30 days of receiving the arbitration award. To support the challenge, you must also submit all the required documents, such as an original copy of the arbitration award, the arbitration agreement, and others. 

Step 4 : Send a Legal Notice to the Other Party

Your arbitration lawyer will help you draft a notice informing the other party about the challenge, and specifying the procedural rules that they must abide by in the process. 

Step 5 : Attend the Court Hearing

The UAE court will then be reviewing the procedural approaches of the award, without re-examining the merits or evidence of the dispute case. Your arbitration lawyer in Dubai will be alongside you in the courtroom to supervise the process and guide you throughout. 

Step 6 : Judgement to the Challenge Claim

The court you appealed to will then make the judgment. He/she will either uphold, amend, set aside, or nullify the arbitration award in UAE, depending on the overall assessment. 

Step 7 : Appeal Your Case to the Cassation Court

If the UAE Court of Appeal rejects your challenge or sets aside the arbitration award against your interests, you can then appeal the decision to a Cassation Court. 

How Can RH and HALE Help You with a Challenging Arbitration Award in UAE?

At RH and HALE, we have a team of proficient arbitration lawyers in the UAE to help you with a comprehensive suite of arbitration services, including challenging of awards. Our lawyers are well-versed in the complexities of UAE Arbitration Law and the dedicated grounds specified for challenging the awards. 

Therefore, we help our clients build a strategic plan of approach to guide them through every step of a challenging arbitration award. From initial assessment of the award to filing a formal challenge and beyond, we will be actively assisting you throughout! 

So, if you are also someone willing to challenge an arbitration award in the UAE, RH and HALE are here at your disposal! Reach out to our consultants today!