The Mandatory Arbitration Agreement is a crucial legal document used in the United Arab Emirates to establish arbitration as the exclusive method of dispute resolution between parties. This agreement is particularly relevant in commercial relationships where parties wish to ensure disputes are resolved efficiently outside the court system, while maintaining confidentiality and leveraging industry-specific expertise. The document, governed by UAE Federal Law No. 6 of 2018, typically includes detailed provisions on the arbitration process, selection of arbitrators, applicable rules, and enforcement mechanisms. It is commonly used in commercial contracts, employment agreements, and international business relationships where parties seek to establish a clear, binding framework for dispute resolution that is compliant with UAE law and recognized international arbitration standards.
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1. Parties: Identification of all parties entering into the arbitration agreement, including full legal names, addresses, and registration details
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Key terms used throughout the agreement, including specific legal and technical terms
4. Agreement to Arbitrate: Clear and explicit statement of parties' agreement to submit disputes to binding arbitration
5. Scope of Arbitration: Detailed description of disputes covered by the arbitration agreement
6. Arbitration Rules: Specification of the applicable arbitration rules (e.g., DIAC, ADCCAC, ICC)
7. Seat of Arbitration: Designation of the legal seat of arbitration within the UAE
8. Language of Arbitration: Specification of the language(s) to be used in arbitration proceedings
9. Number and Selection of Arbitrators: Process for appointing arbitrators and size of tribunal
10. Governing Law: Specification of UAE law as governing law and relevant jurisdictional provisions
11. Confidentiality: Obligations regarding confidentiality of arbitration proceedings and materials
12. Costs: Allocation of arbitration costs and legal fees
13. Notices: Procedure for serving notices related to arbitration proceedings
14. Severability: Provision ensuring remainder of agreement survives if any part is found invalid
1. Emergency Arbitrator Provisions: Procedures for seeking emergency relief before tribunal constitution
2. Multi-Party Provisions: Special provisions for arbitrations involving multiple parties
3. Consolidation: Provisions allowing consolidation of related arbitrations
4. Expert Determination: Procedures for referring technical matters to expert determination
5. Mediation-First Requirement: Requirement to attempt mediation before commencing arbitration
6. Document Preservation: Specific obligations regarding preservation of documents and evidence
7. Industry-Specific Provisions: Special provisions relevant to particular industries or sectors
1. Schedule 1: Administrative Details: Contact details for notices and authorized representatives
2. Schedule 2: Fee Schedule: Detailed breakdown of administrative fees and costs
3. Schedule 3: Arbitrator Qualifications: Required qualifications and experience for arbitrators
4. Appendix A: Model Notice of Arbitration: Template for initiating arbitration proceedings
5. Appendix B: Procedural Timetable: Standard timeline for arbitration proceedings
6. Appendix C: Document Production Protocol: Procedures for document disclosure and production
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