United Arab Emirates

Introduction While the UAE has positioned itself as a global arbitration hub, conducting arbitration there can be a minefield, especially for foreign parties unfamiliar with the nuances of its legal landscape. The UAE's arbitration landscape is characterised by several distinct regimes. Arbitrations seated in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are governed by offshore legal regimes. These two special economic zones have their own arbitration laws and regulations, which are largely similar to English common law principles. In contrast, the onshore legal regime applies to arbitrations seated elsewhere in the UAE. Parties unfamiliar with this segmented system often do not fully appreciate the nuances and potential pitfalls associated with each arbitration regime. The offshore regimes are generally perceived as more arbitration-friendly due to their common law heritage and specialised judiciary, and the onshore regime is often viewed as more challenging by international practitioners. While Article 20 of the Dubai Internation Arbitration Centre (DIAC) Rules 2022 and Article 22 provide for the default seat to be in the offshore legal regimes (DIFC and ADGM respectively), many arbitration agreements provide for the seat in the onshore UAE. This publication aims to highlight potential pitfalls of the onshore arbitration regime from the perspective of an international arbitration practitioner or in-house counsel. It may be particularly useful during the early stages of a dispute for forming an initial opinion about potential challenges or when drafting dispute resolution clauses, particularly concerning the selection of the seat of arbitration. The same pitfalls may be relevant when a foreign arbitral award (including one issued in the DIFC or ADGM seated arbitration) needs to be recognised and enforced in onshore UAE. Judicial System, Mindset, and Interpretation The onshore UAE operates under a civil law system, while international commercial arbitration largely stems from common law traditions. This fundamental difference can lead to variations in judicial interpretation, even for laws based on the UNCITRAL Model Law. The absence of binding judicial precedents further contributes to less predictable outcomes compared to common law systems. Many judges and practitioners also retain a traditional civil law view of court supremacy over arbitration, considering arbitration an "exceptional" method of dispute resolution. This often results in a more rigid and less arbitration-friendly interpretation of legal provisions than seen in common law jurisdictions. Collectively, these factors can lead to unexpected annulment decisions or challenges during enforcement. Specific Authority for Arbitration Agreements A significant requirement in onshore UAE arbitration is that an individual entering into an arbitration agreement on behalf of a company must possess specific authority to do so. Typically, this necessitates a shareholders' resolution or an express grant of authority within the articles of association. Concepts of apparent authority and implied authority are generally not recognised in onshore-seated arbitrations, as opposed to offshore-seated arbitrations. The practical implication is that a company may claim an arbitration agreement is not binding if the signatory lacked this specific authority, even if it was a director or top executive who signed it, and the company participated in the arbitration. For example, the Abu Dhabi Court of Cassation recently set aside an award because the agreement containing an arbitration clause was signed by the company CEO, whereas the company articles of association authorised the Chairman of the Board of Directors to enter into arbitration agreements.  The company’s participation in the arbitration and failure to object did not constitute a waiver of its right to invoke invalidity of the arbitration clause (Case No. 902 of 2024). Arbitration Agreement Incorporated by Reference UAE courts typically require that the document containing an arbitration clause be signed by the parties, even though this is not explicitly mandated by law. This requirement can raise questions about the validity of an arbitration agreement when a contract incorporates an arbitration clause by reference to another document, such as terms and conditions. Formalities Non-compliance with formalities can lead to the invalidation of an arbitral award. For example, although Article 41(3) of the UAE Arbitration Law simply states that "the award shall be signed by the arbitrators," UAE courts have interpreted this to mean that the award must be signed by the tribunal on every page containing the reasoning and dispositive section. The best practice, therefore, is to sign every page of the award to ensure compliance and avoid potential disputes. While certain exceptions exist, they have been interpreted very restrictively. A failure to comply with this signature requirement has been deemed a violation of UAE public policy, which is a ground for setting aside an arbitral award under Article 53(2)(b) of the UAE Arbitration Law. Public Order or Morals The extent of judicial scrutiny of arbitral awards in the UAE at the enforcement stage may sometimes be rather wide, occasionally delving into the merits or re-evaluating factual findings of an award. In particular, the concept of public order or morals has been interpreted widely. A UAE court may, on its own initiative, set aside an award on this basis. Unrecoverable Legal Costs Legal costs are largely not recoverable in onshore litigation in the UAE. It seems this practice has influenced the UAE courts in their approach to legal costs in arbitration, even when an arbitral award orders payment of legal costs. For example, the Dubai Court of Cassation confirmed the partial annulment of an ICC award in the part which concerns the allocation of legal costs (Case No 821 and 857 of 2023). The court reasoned that the costs of arbitration, as defined by the UAE Arbitration Law (Federal Law 6/2018), do not include legal costs paid by the parties to their legal representatives. It held that the parties' arbitration agreement did not explicitly include an agreement on holding either party liable for legal expenses or authorising the arbitral tribunal to determine them. Consequently, the relevant part of the award was annulled, and the award debtor was not obligated to pay legal costs of the opponent. This intervention was surprising and unexpected, given that the ICC arbitration rules, which were incorporated into the parties' agreement, expressly defined arbitration costs to include legal and other costs incurred by the parties. On the other hand, the Dubai Court of Cassation held recently that a party may recover the full amount of legal fees in onshore litigation (Judgment No. 503/2025). It remains to be seen whether this judgment has created a uniform general rule on recoverability of legal costs. Confidentiality Established common law arbitration hubs prioritise the preservation of arbitration confidentiality, often through anonymisation, redaction, and private hearings for arbitration-related court matters. In the UAE, while the confidentiality of the arbitration itself is recognised, the default is that any court case pertaining to an arbitral award will be heard publicly, like any other case. The burden rests heavily on the party to persuade the court to grant exceptional privacy measures for related judgments, which are not routinely granted. This implies a higher likelihood of case details becoming public. Interim Measures While the UAE federal arbitration law permits tribunals to issue interim measures and allows for court assistance, the scope and speed of obtaining certain types of injunctive relief from onshore UAE courts can be more limited or slower compared to common law arbitration hubs. For example, relief such as worldwide freezing orders, asset disclosure orders, specific performance orders, pre-action document disclosure orders, perpetuation of evidence orders, and anti-suit injunctions are either not available, difficult to obtain, or limited in scope. Regarding anti-suit injunctions, the Dubai Court of Cassation recently held that an arbitral tribunal possesses the authority to issue such injunctions (Appeal No. 657 of 2025, 3 July 2025); however, the consistent application of this principle by lower courts will need to be observed over time. Arbitrability of Disputes Certain types of disputes are considered non-arbitrable in the onshore UAE due to public policy. The scope and depth of such disputes are generally broader than in common law arbitration hubs. For instance, commercial agency disputes, particularly those registered under the UAE Commercial Agencies Law, have been considered non-arbitrable or subject to specific jurisdictional requirements due to their perceived public policy implications. Further, a wide range of bankruptcy-related issues are non-arbitrable. Unilateral Arbitration Clauses A unilateral (also known as optional or asymmetric) arbitration clause grants one party the right to choose between arbitration and litigation, while confining the other party to a single forum. The Dubai Court of Cassation has held that such clauses do not constitute a binding arbitration agreement under UAE law (Commercial Appeal No. 735 of 2024, 29 October 2024). Less Predictable Court Decisions Although the UAE continues to evolve into a more arbitration-friendly jurisdiction, court decisions often remain less predictable than in more established jurisdictions, especially concerning legal concepts with limited or no prior judgments. For instance, the inconsistent rulings on unilateral arbitration clauses highlight this unpredictability. Shortly before the case on unilateral arbitration clauses mentioned above, the same Dubai Court of Cassation rendered another judgment upholding a unilateral arbitration clause (Dubai Court of Cassation Commercial Appeal No. 1522/2023). Sudden Changes in Law Laws and regulations are frequently enacted without prior public discussion and with little to no advance notice. Furthermore, these laws often lack detailed provisions, making their application difficult, unpredictable, and sometimes impossible. A notable example is Decree 34/2021, issued on 20 September 2021, which abolished the DIFC-LCIA and Emirates Maritime Arbitration Centre (EMAC) with immediate effect, taking all legal community by surprise. Although the Decree provided for the transfer of cases and assets to DIAC, no specific mechanism for this transfer was prescribed, leading to many cases being in limbo for months. Language Barrier and Translation While arbitration proceedings can be conducted in English or any other agreed language, interactions with the onshore UAE courts — such as for interim measures, arbitrator appointments, or, crucially, for the ratification, annulment, and enforcement of awards — require documents to be translated into Arabic by a sworn legal translator. This not only adds time and cost but also frequently results in inaccurate translations, as some terms may be difficult or nearly impossible to translate correctly due to linguistic differences. This can result in the loss of nuances and misinterpretation, potentially leading to an unexpected or unfavourable court decision. Alternatively, if a translation error is identified by the opposing party, this may serve as grounds for challenges. Conclusion For in-house counsel and international practitioners, understanding these jurisdictional nuances is essential. A strategic choice of seat, robust arbitration clauses, and awareness of procedural quirks can significantly reduce the risk of unenforceability, delay, costs and other issues. Arthur Dedels, Senior Associate, Fichte & Co

How can a family court decision be appealed?  Although it is easy to obtain information regarding family laws in the UAE, people are generally unaware about the procedural aspects of the family court process. In this article, we will look at the court procedures once a decision is issued by the Court of First Instance in the UAE. Hierarchy of Court: The UAE has three levels in its judiciary comprising of the following: The Court of First Instance The Court of Appeal The Court of Cassation The UAE judiciary allows a three-tier litigation system where a judgement can be appealed twice, to ensure that all aspects of an issue are addressed adequately. The Court of First Instance In family cases, a dispute, whether regarding divorce, inheritance or other family matters, is initially brought before the Court of First Instance, commonly known as the Personal Status Court. This Court has the authority to understand the facts and evaluate the documents and evidence presented in the case and to derive what it deems consistent with the reality of the case and its merits without being subject to review by the Court of Cassation, as long as its ruling is based on valid reasons with a foundation in the papers sufficient to support it (as established in Dubai Court of Cassation Appeal No. 104 of 2018 - Personal Status). After the judgement is issued by the Court of First Instance, the case can be appealed before the Court of Appeal. What is the process of appeal in family cases in the UAE? Once a judgement is issued by the Court of First Instance, either party to the case can appeal the judgement if they are dissatisfied with the whole or part of the judgement issued. As per Article 161 of the Federal Decree Law No. 42 of 2022 on the promulgation of the Civil Procedure Law, an appeal to the judgement must be filed within 30 days of the issuance of the judgement. Court of Appeal The Court of Appeal reviews decisions issued by the Court of First Instance. In case both parties have appealed the decision, the two appeals will be combined to hear and issue judgement. Both the Court of First Instance and the Court of Appeal are categorized as trial courts and have the power to examine the facts and evidence of the case. The Court of Appeal can re-examine the facts and evidence on the request of the parties, if the court deems it necessary. It is legally established according to the settled jurisprudence of the Dubai Court of Cassation Appeal No. 104 of 2018 - Personal Status that the Appeal Court is not obligated to respond to every non-legal inference challenged by the parties, nor to follow them in all their lines of defense and various arguments and reasons, nor to respond to each of them or to the documents they submitted independently, as long as the truth it is convinced of and its evidence provide an implicit response negating all that is contrary to it. Furthermore, the Court of Appeal can uphold the appealed decision and this ruling is considered sufficiently reasoned if the court adopts the reasons of the First Instance Court ruling that it upholds, provided that those reasons sufficiently justify the appealed decision. Court of Cassation If either or both parties to the case disagree with the judgement issued by the Court of Appeal, and  if the appeal is based on a violation of the law or an error in its application or interpretation, the parties may appeal the decision before the Court of Cassation. As per Article 9 of the Federal Decree Law No. 41 of 2024 regarding Personal Status Law, such appeal must be filed within 30 days of the issuance of the judgement. An appeal by way of cassation is essentially an objection against the ruling being appealed. Therefore, it is necessary that the arguments against an appealed ruling are directed at a specific defect upon which the appealed ruling is founded. If the appealed ruling lacks such a defect, the arguments posed by the appealing party may not be accepted.  The Court of Cassation does not re-examine factual matters as they fall within the discretionary power of the trial courts and outside the scope of scrutiny of the Court of Cassation. Possible Outcomes of Appeal If a judgment  is appealed, what are the possible outcomes that can be expected? If a court judgement is appealed before the Court of Appeal then the Appeal Court may either completely or partially quash and decide on the merits of the case. It may dismiss the appeal after confirming the decision of the lower court. In some cases it may also return the case to the lower court for retrial. When does a judgement become final? A judgement by the Court of First Instance and the Court of Appeal will become final on the expiry of the time period within which the judgement can be appealed. The judgments of the Court of Cassation are considered final. Author: Dr. Hassan Elhais

The United Arab Emirates has emerged as a multicultural global city with people from various countries, religions and belief systems. The country continuously works towards building a land where these communities can grow and thrive. This is reflected in the legal landscape of the country that has undergone numerous changes in the last few years. What is the law governing family and personal matters in the UAE? The UAE family law comprises personal laws for Muslims and non-Muslim. The personal status Law governing Muslims is stipulated under Federal decree Law No. 41 of 2024(“Personal Status Law”). The law is based on Sharia principles and is applicable to both locals and expatriates in the UAE. The Federal Decree Law No. 41 of 2022 (“Federal Civil Status Law”) governs non-Muslims in the country except in Abu Dhabi where a separate law namely Abu Dhabi Law No. 14 of 2021 (“Abu Dhabi Civil Status Law”) governs the non-Muslims belonging to that jurisdiction. What is the child custody law in the UAE? Personal Status Law Under the Personal Status Law, Child Custody post a divorce involves specific roles for mothers and fathers. Mothers are generally made custodians of the children, until children reach the age of 18. As a custodian, a mother is required to ensure the day-to-day care and wellbeing of the children. Consequently, children at this age live with their mother. On the other hand, fathers are given guardianship over the children. Guardians are to bear the financial responsibilities of the children and help in key decision making. Under the Personal Status Law, children have a right to choose the parent that they want to live with once they reach 15 years, provided that the court does not deem such choice to be against the wellbeing of the children. Civil Status Law The Federal Civil Status Law and the Abu Dhabi Civil Status law both provide for joint custody of children in case of divorce of the parents. Consequently, both parents are given equal rights and duties over their children. Both the father and the mother must contribute to the day-to-day care and wellbeing of the children, as well as their financial responsibilities. Parents may decide on how to bifurcate this responsibility. However, if they are unable to agree to the terms and conditions of joint custody, they may seek the help of the court. The right to joint custody can be waived by one of the parents. Parents may also be disqualified from custody over the child due to various factors as stipulated by law. In such cases, the other parent will have sole custody of the child. Can a custodial parent stop the other parent from visiting the children? Although parents are given distinct roles in the lives of the children, the law is clear that both parents have a right to visit and spend time with the children who do not live with them. This is clearly stipulated under Article 121 of the Personal Status Law. The Article states that if the child is in the custody of one parent, the other parent has the right to visit, spend time with, and take the child along for overnight stays, according to what is mutually agreed between the parents. If the parents are unable to agree upon a visitation schedule, the court will design a schedule as per the best interests of the children. In case the custodian parent does not allow the other parent to visit, the court has the right to implement the decision by force. In case of Civil Status Law, Article 10 clearly states that children have the right to not have either parent solely dominating their raising and seeing, in order to preserve the psychological health of the child in custody and limit the effects of divorce on the children. The Cabinet Decision No. 122/2023 on the Implementing Regulation of Federal Decree-Law No. 41/2022 gives clear guidelines to govern the visitation rights of the non-custodial parent. The UAE laws regarding child custody are based on the principle of ‘best interests of the child.’ This principle is also followed by the court while interpreting the laws and issuing judgments involving children. It is important for both parents to be involved in a child’s life to ensure their holistic development. Therefore, both the law and the court precedents ensure that divorced parents set aside their hostilities and participate in their children’s lives. Author: Dr. Hassan Elhais

In the UAE, custody of children is governed by the UAE family law, consisting of Federal Decree Law No. 41 of 2024 on the issuance of the Personal Status Law which governs Muslims in the UAE (“Federal Personal Status Law”), Federal Decree Law No. 41 of 2022 on the Civil Personal Status, governing non-Muslims in the UAE, except in the emirate of Abu Dhabi (“Federal Civil Personal Status”) and Abu Dhabi Law No. 14 of 2021 concerning the Personal Status for Non-Muslim Foreigners in the Emirate of Abu Dhabi (“Abu Dhabi Civil Personal Status Law”). Custody of children under Muslim law The Federal Personal Status Law is based on sharia principles. Therefore, after a divorce, as per Article 112 of the law, the father of the children obtains guardianship rights over the children, while the mother of the children is granted custody rights. Custody refers to the day-to-day care and responsibility of the children, including managing their food, clothing, health and wellbeing. Consequently, the custodian obtains physical custody of the children. On the other hand, guardianship refers to the overall supervision of the affairs of the children. In addition to guardianship, the father also obtains the financial responsibility over the children. Under Article 123 of the Federal Personal Status Law, the mother has custody over the children until the children attain the age of 18. However, as per Article 122, children are allowed to choose between the parents when they turn 15, provided that the court deems that their choice is in their best interests. Disqualification of custody rights under Muslim Law A mother, or any other person, may be disqualified from obtaining custody over the children in the following cases: if she suffers from a contagious disease that poses a risk to her children if she does not have the ability to raise children in a good manner, and to oversee their education in case of a woman, if she is married to a man who is not related to her children, unless the court decides that living with the mother is in the best interests of the children if she is convicted of a crime involving turpitude if she is addicted to intoxicants or other psychotropic substances if she does not share the same religion of the child, unless the court decides that living with the mother is in the best interests of the children In certain cases, a mother may obtain custody over her children, but this right may be forfeited. This may occur due to the following reasons: If any of the reason required to obtain custody are not met If the custodian moves to a place, with an intention to live there, against the best interests of the children If she starts to live with a person whose right to custody has been revoked for reasons other than health If the custodian commits reprehensible behavior that affects the child. Can a mother regain custody of children after forfeiture of her right? Article 115(2) of Federal Personal Status Law clearly states that a person can apply to the court to regain their custody right after forfeiture, if the reason for forfeiture has been removed. Moreover, UAE courts prioritizes the best interests of the children while issuing any decisions governing children’s rights. Can a Muslim mother regain custody rights if the rights were rescinded in a divorce settlement agreement? Custody rights may change due to changing circumstances. The father’s right to custody may also be challenged for disqualification due to the reasons provided under articles 113 and 114. Therefore, a mother can claim custody rights over her children based on a change in circumstances. Child custody under non-Muslim Law Federal Civil personal Status Law and the Abu Dhabi Civil personal Status Law allows for joint custody over children, after the divorce of their parents. The Abu Dhabi Civil Personal Status Law under Article 9(1) states that it is the right of the children to be raised and seen by both parents rather than by one of them exclusively, in order to maintain the mental health of the concerned child and to limit the repercussions of Divorce. Consequently, as per Article 16(4), the Abu Dhabi law allows joint custody over the children until the children attain the age of 16. The Federal Civil Personal Status Law, under Article 4(4) allows joint custody until the age of 18. Disqualification of custody under the non-Muslim Law In accordance with Article 33 of Abu Dhabi Decision No. 8/2022 on the Approval of the Regulation of Civil Marriage and Divorce Procedures in the Emirate of Abu Dhabi, an application can be made to the court to disqualify a parent from joint custody in the following cases: if the child is at a risk of exposure of domestic violence or ill-treatment. If a child is subject to inadequate living conditions provided by the joint custodian if a child has specific health needs that the joint custodian is unable to provide. in cases of behavioral, psychological or mental problems of the parent that may harm the Child or expose him to danger or neglect. if the parent fails to devote time to care for the Child if the child does not wish to be under the custody of a parent provided that s/he has reached 12 years of age. in cases of abuse of drugs, alcohol or any psychotropic substances. if the parent suffers from health issues that stops them from carrying out their duties with respect to child care. if the parent remarries Any other reasons determined by the Court. Similar reasons apply for disqualification of custody rights under the Federal Civil Personal Status Law as per Article 18 of Cabinet Decision No. 122/2023 on the Implementing Regulation of Federal Decree-Law No. 41/2022. However, under this law, if a child does not wish to continue living with a parent, an application to that effect may be made if the child has attained 18 years of age. Conclusion Although the family law in the UAE is made up of three different regulations, the children’s welfare and their best interests are always given the most importance while making decisions regarding child custody and child affairs. Dr. Hassan Elhais