Arbitration Clauses in UAE Insurance

Analysis

Arbitration is becoming an increasingly popular way to resolve insurance disputes around the world. A number of international policy wordings used in the UAE look to include an arbitration clause, but what are the requirements for a valid arbitration agreement under UAE law, and can a UAE insurance policy include an arbitration clause?

Why the concern about formalities?

The general law governing arbitration is presently to be found in Articles 213 to 218 of the UAE Civil Procedure Code (Federal Law No. 11/1992).  The provisions set out in the Code are relatively rudimentary and do not provide a great deal of detail.  A draft Arbitration Law has been issued and, when issued, will provide more detailed provisions than currently set out in the Civil Procedure Code.