Arbitration is best described as a cost-effective alternate
dispute resolution process, which assists in smoother business
relationships without incurring the rigidity of court proceedings.
To address many of the pitfalls of the arbitration process and to
bring the UAE arbitration process in tune with the best
international standards, the UAE enacted Federal Law No. 6 of 2018
on 'Arbitration' and its amendments ("Arbitration
Law").
Article 1 of the Arbitration Law defines 'Arbitration'
as 'a method that is regulated by Law, by which a dispute which
has arisen between two Parties or more is decided by a binding
decision through an Arbitral Tribunal upon the agreement of
Parties. The said article further defines an 'Arbitration
Agreement' as 'An agreement by the Parties to refer to
Arbitration whether such Agreement is made before or after the
dispute has arisen'.