In 2025, the latest developments in UAE arbitration include significant judicial decisions in Dubai and Abu Dhabi and the clarification of federal procedural rules, which together reinforce the country’s pro-arbitration stance. Landmark rulings have solidified the authority of arbitral tribunals and streamlined award enforcement, while institutional updates continue to improve the dispute resolution landscape.
Landmark judicial decisions in Dubai
Several significant rulings have clarified the powers of arbitral tribunals and the enforceability of awards.
- Arbitral tribunals can issue anti-suit injunctions: In a July 2025 decision, the Dubai Court of Cassation affirmed that arbitrators in UAE-seated arbitrations have the authority to issue interim anti-suit injunctions. This ruling protects the arbitral process from parallel court proceedings and strengthens the tribunal’s autonomy during an arbitration.
- Interim awards are enforceable: The Dubai International Financial Centre (DIFC) Court of Appeal ruled in March 2024 that foreign and domestic interim measures can be enforced as final awards under the DIFC Arbitration Law, aligning with the New York Convention and international best practices.
- Arbitration clauses remain valid despite non-payment of fees: The Dubai Court of Cassation has reversed its previous approach, ruling that an arbitration clause remains enforceable even if the case is closed due to the non-payment of advance costs, provided no final award has been issued.
Unified federal procedures for arbitration awards
The Federal and Local Judicial Principles Unification Authority issued Decision No. 1 of 2025 to create a binding and consistent standard for arbitration award requirements across all UAE courts.
- Single-page signature requirement: The decision, effective August 4, 2025, confirmed that arbitrators need to sign only the final page of an arbitral award for it to be valid.
- Eliminates procedural challenges: This guidance puts an end to conflicting rulings from different emirates and prevents parties from challenging enforcement on the technicality of unsigned pages, promoting efficiency and predictability.
Developments in onshore and offshore centers
Both the onshore Abu Dhabi and the offshore financial free zones, ADGM and DIFC , have seen key arbitration developments.
- New rules for arbitrateAD: The Abu Dhabi International Arbitration Centre (arbitrateAD) introduced new rules on February 1, 2024, aligning with international standards. These rules feature ADGM as the default seat for arbitration, and they incorporate provisions for third-party funding, multi-party claims, and digital technology.
- Clarity on legacy DIFC-LCIA clauses: What happens to arbitration agreements referencing DIFC-LCIA Rules after the institution was abolished?
The recent decisions of the DIFC and Abu Dhabi Courts reaffirm the UAE’s pro-arbitration stance, confirming that DIFC-LCIA arbitration clauses remain valid and enforceable under Decree No. 34 of 2021, with DIAC assuming administrative responsibility pursuant to Article 6. These rulings provide assurance to parties with legacy DIFC-LCIA agreements seated in the UAE that their arbitration clauses will be upheld. However, the international position remains unsettled, as the Decree has no binding effect beyond the UAE. While the recent U.S. Court of Appeals decision suggests that the closure of an arbitral institution does not nullify parties’ intention to arbitrate, it remains prudent for contracting parties to amend existing DIFC-LCIA clauses to expressly refer to DIAC or another arbitral institution, thereby reducing uncertainty and the risk of jurisdictional challenges.
- Enhanced DIFC courts law:The DIFC Courts were revamped under Dubai Law No. 2 of 2025. The new law streamlines jurisdictional rules, enhances procedural transparency, and grants enforceability to mediated settlements.
- Simplified enforcement between ADGM and Dubai: A new Memorandum of Understanding (MoU) signed in January 2025 simplifies the reciprocal enforcement of judgments between the ADGM and Dubai Courts.
DIAC’s continued modernization
As the default arbitration institution in Dubai , DIAC has continued to grow and modernize.
- Record caseload: DIAC’s caseload continues to increase, reflecting greater reliance on the center.
- Focus on diversity and technology: The center is actively promoting diversity, with women making up nearly half of the arbitrator appointments made by the court in 2023. It also continues to invest in technology, including a strategic partnership with Opus 2 to develop a new digital case management platform.
- Educational initiatives: In September 2025, DIAC launched the DIAC Academy and ADR Lab to enhance professional education and innovation in alternative dispute resolution.
Consistency in awarding legal costs
In a notable shift, Dubai courts have aligned their approach to legal costs with international norms.
- Recovery of legal costs affirmed: Following an earlier inconsistent ruling, the Dubai Court of Cassation reversed its position in November 2024, confirming that tribunals in ICC arbitrations have the power to award a successful party its legal costs, even without an express clause in the arbitration agreement.
Interested in learning more about the evolving arbitration landscape in the UAE? Please reach out to the author, Merline Dsouza, at merline@alsuwaidi.ae for deeper insights and practical guidance.