Federal Decree-Law No. 15 of 2023 · UAE Federal
Replaces Articles 10, 23, 28 and 33 of the Arbitration Law and adds Article 10 bis: arbitrators must be independent and disclose conflicts, may not sit on the administering institution's governing bodies except under conditions, parties may adopt institutional rules, hearings may be held virtually and proceedings are confidential; effective the day after Gazette publication.
Federal Decree-Law No. 15 of 2023 amends the Federal Arbitration Law, Federal Law No. 6 of 2018, in four places and adds one new article. It was issued on 4 September 2023 and, by its Article Four, takes effect the day after publication in the Official Gazette. The official text is in Arabic only. Article Three repeals any conflicting provision.
Article One replaces Articles 10, 23, 28 and 33 of the 2018 law. The new Article 10 sets the conditions for an arbitrator: a natural person with capacity, not deprived of civil rights through bankruptcy unless rehabilitated, and not convicted of a felony or misdemeanour involving honour or trust; not a member of the board of trustees, executive management or administrative apparatus of the arbitral institution administering the case in the State; and without a direct relationship with any party that touches impartiality or independence. No particular gender or nationality is required unless the parties agree or the law provides otherwise. A nominated arbitrator must disclose in writing anything that may raise doubts about impartiality or independence and must notify the parties and co-arbitrators without delay if such a circumstance arises during the proceedings.
The new Article 23 lets the parties agree the procedure, including by adopting the rules of any arbitral organisation or institution inside or outside the State; absent agreement the tribunal sets it, subject to the law, the fundamental principles of litigation and the State's international conventions. The new Article 28 allows the parties to agree that the arbitration is conducted, and its seat fixed, physically or virtually through modern technology; the tribunal decides where there is no agreement and the arbitration centre must provide the technology to the standards in force in the State. The new Article 33 makes proceedings and hearings confidential unless the parties agree otherwise, lets the tribunal choose between oral hearings and a documents-only procedure, requires sufficient notice of hearings and a summary record of each, allows experts and legal representatives at the parties' cost, and gives the tribunal discretion over evidence rules where the applicable law is silent, within public order.
Article Two adds Article 10 bis, which allows the parties, as an exception to Article 10(1)(b), to appoint a member of an institution's board, board of trustees or supervisory bodies as arbitrator if seven conditions are met, including that the institution's rules allow it and it has a governance system preventing conflicts, the arbitrator is neither sole arbitrator nor chair, the parties acknowledge the membership in writing, the arbitrator sits in no more than 5 cases a year and gives a written undertaking not to exploit the position. Breach makes the award void and exposes the institution and the arbitrator to civil compensation claims.
Status: in force; it amends, and must be read with, Federal Law No. 6 of 2018.
Parties to arbitrations seated in the UAE outside the DIFC and ADGM, or conducted under the federal law by agreement, their arbitrators and legal representatives, and the arbitral institutions administering those cases, in particular where an arbitrator is drawn from an institution's board or supervisory bodies.
| Article 10 | Replaced: an arbitrator must be a natural person with full capacity and no conviction for an offence involving honour or trust, must not sit in the governing or administrative bodies of the administering institution, must have no direct relationship with a party, and must disclose in writing anything raising doubts about impartiality or independence. |
| Article 10 bis | Added: a member of the administering institution's board or supervisory bodies may be appointed if the institution's rules allow it, a governance system separates functions, the arbitrator is neither sole arbitrator nor chair, the parties consent in writing, the arbitrator sits in no more than 5 cases a year and gives a written undertaking; breach voids the award and allows civil compensation claims. |
| Article 23 | Replaced: the parties may agree the procedure, including adopting the rules of any arbitral organisation or institution inside or outside the State; otherwise the tribunal decides, subject to the law, fundamental litigation principles and the State's international conventions. |
| Article 28 | Replaced: the parties may agree to conduct the arbitration and fix its seat physically or virtually through modern technology; the tribunal decides absent agreement and the arbitration centre must provide the technology to the State's technical standards. |
| Article 33 | Replaced: proceedings and hearings are confidential unless agreed otherwise; the tribunal chooses between oral hearings and documents only, gives sufficient notice, records each hearing, hears witnesses under the legislation in force and sets evidence rules where the applicable law is silent. |
| Article Three | Repeals any provision that conflicts with the Decree-Law. |
| Article Four | Published in the Official Gazette and in force from the day following publication. |
No fines. The sanction for breaching the Article 10 bis conditions is that the award is void, and the parties may claim civil compensation from the institution and the arbitrator under the legislation in force.
The amendment changes two things in the arbitration clauses we draft for our clients' shareholder agreements, service contracts and joint ventures. First, we can now provide expressly for virtual hearings and for the seat to be fixed in the UAE while the hearing is held remotely, which suits clients with directors in several countries. Second, confidentiality of the proceedings is now the statutory default, so we no longer need a separate confidentiality clause for the arbitration itself, though we keep one for the underlying dispute. When a client is offered an arbitrator who sits on the board of the administering centre, we check the seven Article 10 bis conditions before consenting in writing, because a defect there makes the award void. We also use the clearer Article 23 to adopt institutional rules by reference without listing procedural steps in the contract.
| Amends | Federal Law No. 6 of 2018 |
“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.
Federal Arbitration Law
A UNCITRAL-style arbitration statute of 61 articles applying to arbitrations seated in the UAE and to international commercial arbitrations the parties subject to it: wri…
DIFC Arbitration Law
UNCITRAL Model Law based statute governing arbitrations seated in the DIFC and the recognition and enforcement of arbitral awards by the DIFC Courts, as amended in 2013 t…
Civil Procedure Code
Governs civil and commercial litigation before the onshore federal and local courts: jurisdiction, service of process including electronic service, pleadings and hearings…
Evidence Law
Sets the rules of proof in civil and commercial disputes: official and customary written instruments, electronic records and signatures, witness testimony, oaths, expert …
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