United Arab Emirates

Introduction The stability of a commercial enterprise in the Middle East rests upon the alignment of its internal stakeholders. When this alignment fractures, a shareholder dispute in the UAE typically manifests as a legal disagreement concerning financial, operational, or strategic decisions that potentially violate the rights of the participants. Federal Decree-Law No. 32 of 2021 (the Commercial Companies Law or "CCL") is the main law that protects these rights in the United Arab Emirates. These fights aren't just one-time events; they are the result of a mix of structural problems, changing fiduciary constraints, and the complex ways that human psychology works in the business world. To settle these kinds of problems, one needs to have knowledge about UAE contract law, regional legislative frameworks, and how alternative dispute resolution works.   The Beginning of a Business Partner Dispute in Dubai The genesis of internal conflict often lies in a fundamental breakdown of trust or a divergence in the vision for the enterprise. When owners of closely held corporations often serve as directors and managers, the lines between these roles start to blur. This can cause personal conflict that shows up as corporate deadlock. A primary cause of a business partner dispute in Dubai is the breach of the Shareholder Agreement (SHA), which serves as the foundational contract intended to create and protect specific interests. When these agreements are unclear or don't exist at all, like in many startup or family business settings where partners work on informal "handshake deals" that don't offer much protection when strategic directions diverge, conflicts often happen. Shareholders in the UAE, especially those who don't have a formal shareholders' agreement, may be at risk of "freeze-out" practices, which could mean being left out of decision-making or not being able to get company information. In these situations, statutory remedies under Federal Decree-Law No. 32 of 2021 are very important. Article 166 allows a shareholder to file a direct claim against the firm, its directors, or management if they have personally experienced harm as a result of unlawful behavior, and they may recover their legal fees with court approval. In contrast, Article 167 addresses derivative actions. It enables shareholders with at least 10% of the company's capital to act on behalf of the company against a related party if certain conditions are met, including prior notice to the board. Fiduciary Duties in UAE Companies The relationship between business partners is based on fiduciary principles. These rules say that managers must work to do what is best for the company. Federal Decree-Law No. 32 of 2021 provides a legal framework for these responsibilities. Article 22 sets the general duty of care, which means that directors and managers must act with the same level of care that a reasonable person would and in a way that supports the company's goals. Article 152, which governs transactions between related parties and requires openness when there may be a conflict of interest. As trust diminishes, corporate disputes in the UAE can quickly turn into more serious accusations, like self-dealing, stealing business opportunities, or misappropriation of company funds. In the UAE, these issues are looked at not only through the lens of the Commercial Companies Law's legal duties but also through the lens of the UAE Civil Transactions Law's broader principles. Article 246 says that contracts must be carried out in good faith, and Article 247 empowers a party to withhold performance if the other party fails to fulfill its commitments.  Protection of Shareholder Rights in the UAE The risk of shareholder disputes in the UAE can often be reduced by putting clear agreements in place from the outset. A well-drafted shareholders’ agreement acts as a practical guide for how the company will be run, setting out decision-making processes, shareholder rights, and exit arrangements in a clear and structured way. It should also distinguish between routine decisions and more important matters that require a higher level of approval, such as special resolutions, which typically need the consent of shareholders holding at least 75% of the shares. Transparency is equally crucial. Under the Commercial Companies Law, shareholders have the right to examine company documents and financial information, which allows them to keep informed and decreases disputes caused by a lack of transparency. Equity control mechanisms also play a key role. Provisions such as the Right of First Refusal (ROFR) give existing shareholders the first chance to buy shares from a departing partner, helping maintain control within the current ownership structure and limiting the entry of outside parties. Agreements that are well-written also cover what to do if shareholders can't come to an agreement. Deadlock resolution mechanisms, like "shotgun clauses" or structured buy-out provisions, can be helpful because they let one party start a share transfer at a set price. This helps end deadlocks and keeps the business running smoothly. How to Solve a Dispute When internal negotiations are no longer working, the choice of dispute resolution forum becomes very important for both the speed of the process and how easy it is to enforce the outcome. In the UAE, people can file claims in the onshore civil courts or in common law jurisdictions like the DIFC Courts and ADGM Courts. These courts use English and follow well-known rules that are often used in international business disputes. Arbitration is also very common, especially when it comes to issues that cross borders. The Dubai International Arbitration Center and other similar organizations have procedures that let related disputes be handled together, which makes the process go more smoothly. Federal Law No. 6 of 2018 sets the rules for arbitration in the UAE. It gives a modern structure for carrying out and enforcing arbitral proceedings. Mediation is a more flexible option, especially if the parties want to keep doing business together. Facilitated discussions help them work toward a solution that everyone agrees on, and once a settlement is reached, the results are put into binding agreements. Operational Fallout: Banking and Liquidity Crises Shareholder disputes in the UAE can have a direct impact on a company's day-to-day financial operations and go beyond internal governance. In real life, banks tend to look more closely at things when they see signs of internal conflict, changes in ownership, or missing compliance paperwork, such as know-your-customer (KYC) requirements. This can cause delays in processing transactions or limits on account activity, especially when there is doubt about who is allowed to sign or who is in charge of the company. Because of this, businesses may have trouble paying their bills, which include paying their employees, suppliers, and creditors. Conclusion In the UAE, conflicts between shareholders and business partners are not usually caused by just one thing. They usually happen when trust breaks down over time, when governance structures aren't clear, or when stakeholders have different expectations. Federal Decree-Law No. 32 of 2021 and its 2025 amendments have made shareholder protections much stronger and corporate governance more up-to-date. However, the truth is that it is always better to prevent problems than to fix them. A well-written Shareholders' Agreement, clear ways for the company to make decisions, and planned exit strategies are all important tools for reducing conflict. At the same time, the UAE has a lot of different ways for businesses to settle disputes, such as arbitration, mediation, and specialized courts. This means that businesses have clear ways to settle disputes when they happen. In the end, the success of any business in the UAE depends on both its external strategy and the strength of its internal legal framework. Companies that put money into governance clarity, compliance, and planning for disputes early on are much better off when it comes to protecting value, keeping operations stable, and handling conflicts without causing long-term harm. Author: Awatif Al Khouri

Introduction The UAE family law system has evolved from a largely sharia-compliant personal status system to a separate system that also accommodates civil family law options for non-Muslims and expatriate residents. Federal Decree-Law No. 41 of 2022 on Civil Personal Status, giving non-Muslims an alternative, and Federal Decree-Law No. 41 of 2024, repealing Federal Law No. 28 of 2005 and modernizing the UAE’s general personal status regimes. It’s an administrative and strategic decision that aligns domestic legal rules with international standards and ensures the UAE is competitive as a global hub for professionals and families. The Pluralistic Legislative Structure The UAE’s family law regime currently operates on the basis of parallel systems that apply according to the religion and nationality of the individuals concerned. For a long time, the law on personal status issues was Federal Law No. 28 of 2005, which combined the principles of Sharia with civil procedural rules. This law was replaced by the Federal Decree-Law No. 41 of 2024 on Personal Status Law, which updates the UAE’s general personal status framework and includes provisions on the documentation and registration of divorce Federal Decree-Law No. 41 of 2022 on Civil Personal Status applies to non-Muslim expatriates and non-Muslim UAE nationals. This law provides for no-fault divorce, joint custody, and equal inheritance. Another important local law is Abu Dhabi Law No. 14 of 2021, which establishes a secular civil family court with English language proceedings for non-Muslims in Abu Dhabi. Thus, it is often required to determine from the outset what legal system and court process applies to divorce proceedings in the UAE. Jurisdictional Gateway and Choice of Law In all divorce proceedings involving families of mixed nationalities, the first question to be asked is whether the UAE courts have jurisdiction to hear the case. Under both the old and new regimes, if the defendant has a domicile, residence, or place of work in the state, the courts of the UAE will have jurisdiction. This jurisdictional reach extends to non-resident defendants, provided the case is related to a marriage entered into in the UAE or a divorce of a marriage, where the wife remains a resident after being abandoned by her husband. One key feature of the UAE personal status law is the “opt-out” feature found in both the 2022 and 2024 laws in Article 1. Non-nationals also have the right to request the application of the law of their home country (nationality) or any other law they have agreed upon, provided that such application does not conflict with the public policy of the UAE. Understanding the mixed-religion divorce in the UAE The UAE Personal Status Law may apply where one or both spouses are Muslim, especially in cases involving UAE citizens or where the choice of another applicable law is not applicable. The Civil Personal Status is applicable to non-Muslims in the UAE, including non-Muslim foreign residents and UAE nationals who are not Muslim. This civil framework is unlike the general UAE Personal Status Law. This law grants a no-fault divorce, meaning that neither spouse has to prove harm or any specific grounds for separation. The right to divorce unilaterally means that either spouse can file a request and get a judgment, usually without having to go through mediation or family guidance committees. Expat Custody Disputes and Child Welfare Child custody is one of the most contentious aspects of a divorce. The UAE has shifted from the traditional gender-based roles to the "best interests of the child" standard, aligning itself with international conventions. The default under the civil system of 2022 is joint custody with the father and mother sharing the responsibility for raising the children until the age of 18 years. Neither parent can relocate the child from the country without the other parent’s consent or a court order under this model. In contrast, the Sharia-based system separated the custodian, who managed the daily responsibilities, and the guardian, who was responsible for legal and financial decisions. Custody was generally given to the mother and guardianship to the father, but the age of custody has been revised to 18 years for both genders in Federal Decree-Law No. 41 of 2024. The extension is a huge development for expat custody disputes in the UAE, as it lessens the risk of sudden changes that could disrupt a child’s education and other factors. Under this framework, children 15 years of age or above may also express a preference as to their residence, which the court takes into account in its welfare analysis. Financial Settlements and Alimony Calculations The financial consequences of divorce are governed by specific criteria that take into account the standard of living maintained during the marriage. Under Article 9 of the Federal Decree-Law No. 41 of 2022, a divorced woman can seek alimony, and the judge considers several statutory factors, including the length of the marriage and the wife’s age, when deciding upon the amount. The court also looks at the financial disparity and the current income and assets of both parties, often by appointing an accounting expert. Financial settlements also include the immediate and deferred portions of the dowry, which is considered an enforceable debt for Muslim and mixed-religion households. In addition, the husband is obliged to provide maintenance during the waiting period and for the basic needs of the children, such as housing, health care, and education. Travel Bans One of the most common concerns in a divorce is whether a parent will try to take a child out of the country without the consent of the other parent. Article 116 of Federal Decree-Law No. 41 of 2024 states that the general principle is that travel with a child in custody outside the UAE requires written approval of the other parent or guardian, unless the court permits travel with approval. A parent may apply for an urgent travel ban where a child is subject to an ongoing custody dispute, as well as where a parent can demonstrate a credible risk that the child will be relocated out of the UAE without the parent’s consent. Once the ban is implemented, the child may not travel without written agreement from the other parent unless the ban is temporarily lifted by the court. The Strategic Importance of Jurisdiction in Expat Divorce In divorce cases with a cross-border element involving expats in the UAE, the chosen jurisdiction can have a huge impact on the process, the law that applies, the language of the proceedings, and the potential financial outcome. Depending on the nature of the case and the parties involved, family matters in the UAE may be heard before different judicial authorities, including federal courts, local emirate courts, and the Abu Dhabi Civil Family Court. It is therefore important for expatriate families to decide early on the right forum. The Abu Dhabi Civil Family Court is often viewed by non-Muslim expatriates seeking an English-language, civil process with a formalized approach to divorce, financial claims, and parental responsibility. Conclusion The UAE has succeeded in building a dual-track family law system that addresses the religious needs of its Muslim population and the secular needs of its international expatriate community. The recent amendments to Federal Decree-Law No. 41 of 2022 and Federal Decree-Law No. 41 of 2024 have brought some clarity and legal protection to the families of mixed nationalities and religions. Where children are involved, the focus should be on stability, consent to travel, and the child’s best interests. With the right plan, proper documentation, and legal advice, families can navigate divorce in the UAE with greater clarity and security. Author: Awatif Al Khouri

Introduction After a divorce, one of the most fundamental, but also pressing, questions many parents in the UAE have is: When does the child custody end? Wrong information is often the cause of the confusion. Earlier laws set different custody ages for boys and girls, but this no longer applies. The UAE has now introduced a clear, unified rule, and the legal position is far more predictable. Understanding the child custody age in the UAE today requires looking at the updated legal framework and how it is applied in practice. Custody vs. Guardianship: A Key Distinction Before addressing age, it is important to understand how UAE law separates parental roles: Custody: Physical custody and care of the child Guardianship: major decision-making and financial responsibility The day-to-day care is usually the responsibility of the custodian, while the guardian is responsible for financial support, education, and key decisions. These roles continue to exist under the current law, but the duration of custody has now been standardized. The Current Legal Rule: Custody Ends at 18 The decisive provision is Article 123 of Federal Decree-Law No. 41 of 2024. It clearly states that child custody ends when the child reaches 18 Gregorian years, and it is not gender-based under the current law. This replaces the earlier framework (11 for boys and 13 for girls), which is no longer applicable under the current law. However, the law also recognizes that as children grow older, their views become law-binding. In accordance with Article 122 of Federal Decree-Law No. 41 of 2024, when a child is 15 years of age, they have the right to choose with which parent they want to live, if it is not against their best interests. This means that although the custody is legally continued until 18: From age 15 onwards, the child’s preference becomes a relevant legal factor. The court may allow the child to live with a parent of their choice. The welfare of the child is the court's paramount consideration. This selection is not absolute. In practical terms, Article 122 creates a transitional stage from 15 to 18 when custody still exists legally, but the child’s autonomy is gradually recognized. What Happens When the Child Turns 18? When a child reaches 18: Court-imposed custody arrangements come to an end. The child is legally considered capable of choosing where to live. The custodial parent no longer has sole legal control. In practical terms, it means the end of court-regulated custody, not the end of the parent-child relationship. Exceptions – When Custody Can Extend Beyond 18 Art. 123 (2) also recognizes that not all children are independent at 18. Child custody in the UAE may continue if the child Is mentally incapable Has a serious illness or disability Cannot take care of their own affairs In such cases, the court may also extend child custody in the UAE, depending on the state and the needs of the child. Civil Personal Status Law: A Different Structure For non-Muslims, custody may fall under the Federal Decree-Law No. 41 of 2022. Under this law: Joint custody is the default position. Both parents share equally in responsibility for the child. This mutual arrangement is valid until the child reaches the age of 18 years. This framework does not have a single custodial parent in the traditional sense, as the Personal Status Law does. Instead, parents remain actively involved in the child's development. As Mrs. Awatif Al Khouri often points out in practice, this distinction is important for expats, as the applicable law can make a big difference in the custody structure even if the age threshold is the same. Does Financial Support End at 18? Child custody and financial support are legally separate. Even after custody ends: A parent may still be required to support the child financially.  This may include: Education costs Medical expenses Living support if the child remains dependent The continuation of support depends on the child’s circumstances and is assessed by the court. Courts in the UAE continue to prioritize the best interests of the child, especially in disputed cases. Professionals such as Mrs. Awatif Al Khouri frequently deal with situations where the legal rule is clear, but the outcome depends on how the child’s circumstances are presented before the court. Conclusion The UAE has now updated its custody system to set a clear and common age limit of 18. Age alone seldom determines custody. There are practical considerations such as the child’s needs, emotional stability, and long-term welfare. We need to understand how these factors are weighed in court. Experience plays a large role in this context. Mrs. Awatif Al Khouri is experienced in complex custody cases in the UAE, especially during transition periods, such as the child’s right to choose at 15 and the legal position at 18. Her focus is on combining legal strategy with the child’s long-term stability so that the outcome is not only legally sound but also practical and sustainable for the family. Author: Awatif Al Khouri

The legal landscape of the United Arab Emirates has undergone a paradigm shift in its approach to international and domestic arbitration over the past two decades. This evolution is driven by a strategic national aspiration to position the state as a leading global center for the resolution of commercial conflicts, enabled by a dual system of courts to facilitate the existence of civil law and common law pathways to enforcement. The state’s enforcement of arbitral awards is governed by a sophisticated hierarchy of federal statutes, local decrees, and international treaties, ensuring the state’s compliance with its obligations as a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The Modern Onshore Arbitration Regime: Federal Law No. 6 of 2018 The main law governing arbitration in the state’s onshore jurisdictions is Federal Law No. 6 of 2018 on Arbitration, as amended by Federal Decree-Law No. 15/2023. The enactment was an important leap forward in the UAE’s arbitration regime as it adopted key principles of the UNCITRAL Model Law, thereby bringing the domestic framework closer to international standards, particularly with regard to procedural efficiency and limitation of judicial intervention. The scope of Federal Law No. 6 of 2018 on Arbitration is broad. Article 2 applies to all arbitrations held in the State, unless the parties specifically agree to apply another legislation, as long as it does not violate public order or morals. Furthermore, the law may apply to international business arbitrations held overseas in which the parties have expressly chosen the law of the state to control the proceedings. According to Article 6 of Federal Law No. 6 of 2018, the arbitration agreement exists independently of the underlying contract. Therefore, the nullity, rescission, or termination of the contract does not affect the arbitration agreement if it is valid in itself, except in circumstances of the parties' incapacity. The challenge to the contract's validity doesn't stop the proceedings; the arbitral tribunal may decide whether the contract is valid. Capacity and Written Conditions An arbitration agreement must be made by a person with legal capacity or by a duly authorized representative, and shall be null and void if not made in such a manner. It also limits arbitration to arbitrable disputes, permits the delegation of procedural decisions to a third party or institution, and affirms that the agreement is binding on legal successors as per Article 4. Article 7 of the law requires an arbitration agreement to be in writing; failing to which it is invalid. This can include signed documents, emails or messages, references to contracts with arbitration clauses, agreements made in court, or even written statements where one party proposes arbitration and the other does not object. Enforcement Mechanism Under Articles 52 And 55 The true value of an arbitral award lies in its enforceability. The legal effect of an award in principle is established by Article 52 of Federal Law No. 6 of 2018, which provides that an arbitral award made in accordance with the law shall have the same force as a judgment of a court. In order to be granted this status, an award must be formally recognized by the competent court in a recognition procedure. Application for enforcement (Article 55) Article 55 provides for the procedure to be followed for recognition and enforcement. A party seeking to enforce an award shall make a written application to the president of the competent Court of Appeal. The application should include: ● The original arbitral award or a duly certified copy. ● A copy of the arbitration agreement. ● A certified Arabic translation of the award and the agreement, provided by an accredited body if the documents were issued in a foreign language. ● A copy of the minutes of the deposit of the award in court. The president of the court, or a delegated judge, is mandated to issue an order for the recognition and enforcement of the award within 60 days of the application, unless a ground for nullity under Article 53 is established. Article 53 Grounds for annulment and challenges to enforcement Article 53 provides a limited and exhaustive list of grounds on which a court may set aside an award or refuse to enforce it. These are mainly procedural and jurisdictional grounds that are intended to protect the integrity of the arbitral process. Procedural and Jurisdictional Grounds The court may set aside an award if the applicant proves any of the following: ● There was no valid arbitration agreement, or it was void or forfeited pursuant to the Law. ● A party lacked legal capacity. ● A party was not properly notified or could not present its case. ● The tribunal has not applied the law agreed by the Parties to cover the subject matter of the dispute. ● The composition of the arbitral tribunal or the appointment of the arbitrators was contrary to the law or the parties' agreement. ● There were serious procedural errors affecting the award. ● The award exceeded the scope of the arbitration agreement. Public Policy and Arbitrability, Article 53 (2) ● The court can also annul the award on its own if: ● That the subject matter of the dispute is not capable of settlement by arbitration. ● The award violates public order or morality. Limitation Periods for Challenges (Article 54) A nullity action must be filed within 30 days of notification of the award. The court’s decision is final, subject only to cassation. If annulled, the award is invalid in whole or in part, while the arbitration agreement generally remains valid unless it is itself defective. The court may, upon the request of a party, stay the nullity proceedings for up to 60 days in order to allow the arbitral tribunal to correct procedural or formal defects in the award, provided that such corrections do not affect the substance of the decision. The Role of Civil Procedure Law 2022 in Execution After the arbitral award is confirmed by the competent court pursuant to the Arbitration Law, the execution stage commences and is governed by Federal Decree-Law No. 42 of 2022 on Civil Procedure. The enforcement process is subject to the enforcement framework provided in Section 3, Chapter 4 of the Civil Procedure Law (Articles 206-338). The execution judge supervises the procedure, including the notification of the debtor so that he complies with the period established and, in case of non-compliance, the judicial order for the compulsory execution of measures like attachments of bank accounts, real estate, vehicles, and other assets. The court may also order the relevant authorities to disclose the debtor’s assets and, where appropriate, impose coercive measures such as travel bans or detention to ensure compliance. DIFC Enforcement: The Approach of Common Law DIFC Arbitration Law No. 1 of 2008 provides a distinct common law regime for the recognition of arbitral awards and their enforcement in the Dubai International Financial Center. Articles 42 and 43 allow an arbitral award to be recognized as binding in the DIFC, regardless of the jurisdiction in which it was made, upon written application to the DIFC Court. The applicant is asked to present the original award (or a certified copy), the arbitration agreement, and, if applicable, a certified translation. If the formal conditions are met, the DIFC Court will issue an order acknowledging the award. Recognition or enforcement may be denied only on the grounds specified in Article 44 of the DIFC Arbitration Law No. 1 of 2008, which include a party's incapacity, the invalidity of the arbitration agreement, a lack of proper notice or inability to present a case, where the award exceeds the scope of the arbitration, or where the composition of the tribunal or the procedure was not in accordance with the parties' agreement or the law of the seat. Enforcement may also be refused where the award is not yet binding or has been set aside. The Court may further refuse enforcement on its own motion if the subject matter is not capable of arbitration or if enforcement would be contrary to UAE public policy. Importantly, awards recognized by the DIFC Court can be executed outside of the DIFC in accordance with the Judicial Authority Law, and such recognition is viewed as ratification for the purposes of enforcement under Article 42(4). This allows the DIFC to function as an effective enforcement in offshore as well as onshore jurisdictions. Enforcement of Foreign Awards: The New York Convention Most clearly, the UAE’s commitment to the enforcement of foreign awards is embodied in its accession to the New York Convention in 2006. This international treaty allows awards made in over 150 countries to be recognized and enforced in the state with limited judicial interference. Conditions for Foreign Award Enforcement (Article 222) In the absence of an applicable treaty, Article 222 of Federal Decree-Law No. 42 of 2022 on Civil Procedure sets out the framework for the enforcement of foreign judgments and orders in the UAE . Enforcement is initiated by a petition to the execution judge, who must be satisfied of the following conditions: ● The UAE courts do not have exclusive jurisdiction, and the foreign court had proper jurisdiction under its own law. ● The judgment was issued in accordance with the law of the country of origin and duly ratified. ● The parties were properly notified and represented. ● The award must have the force of res judicata (final and binding) and not be subject to further ordinary appeal. ● The award must not conflict with a prior judgment or order from a court in the state and must not violate public policy. Regional Treaties The UAE has signed regional treaties such as the Riyadh Arab Convention for Judicial Cooperation and the Gulf Cooperation Council Convention for the Execution of Judgments, Delegations, and Judicial Notifications, which encourage member states to recognize and enforce each other's judgments and arbitral awards. While such frameworks may facilitate regional enforcement, they are still dependent on domestic processes and do not allow for automatic enforcement across many jurisdictions. Conclusion. The recognition and enforcement of arbitral awards in the United Arab Emirates (UAE) involves a complex, multi-layered framework comprising federal laws, regional treaties, and international obligations. Federal Law No. 6 of 2018 on Arbitration and Federal Decree-Law No. 42 of 2022 on Civil Procedure have added procedural clarity, which strengthens enforcement of awards without affecting fundamental safeguards for due process and public policy. Enforcement is, in fact, a law and a strategy. Parties must choose the correct jurisdiction, follow procedural procedures, and act quickly when needed to protect assets. And the process, whether through onshore courts or the DIFC, is ultimately aimed at ensuring the finality of arbitral awards and the integrity of the legal system. Author: Awatif Al Khouri