Challenging Arbitration in UAE (Article 216) – Arbitration Award in UAE Courts
The conditions under which the parties to an arbitration award may challenge (make a request to annul) its validity are governed by Article 216 as follows:
a- If the required number of arbitrators to hear the case were not present or where the arbitrators were not legally appointed, qualified or competent.
b- If the arbitration award was reached with reference to inadequate, out of date or non-existent terms of reference.
c- If the award was made based on Terms of Reference in which the specific dispute is not mentioned, or if the arbitrator exceeds the limits of jurisdiction given under those Terms of Reference.
It is becoming increasingly common for the losing party to challenge an arbitration award by filing an annulment case claiming it to be invalid due to the person signing the contract not having official permission although an experienced legal professional in the arbitration field will be aware of this point and be well prepared to effectively deal with it.
There is a possibility that both parties gave up the right to object to an award by virtue of not objecting in the first possible instance. This highlights the importance of having help and guidance from persons who are not only competent in arbitration protocol but also who have experience with the local processes and procedures.