Cover Letter for Costs Submissions

Drafting notes

The following is a sample text that can be adapted when making a submission on costs at the close of an international arbitration seated in the UAE.

By way of background, international arbitrations seated in the UAE are governed by Federal Law No. 6/2018 On Arbitration. Under article 46 of Federal Law No. 6/2018, an arbitral tribunal has the discretion to award a party: ‘the costs of arbitration which shall include the fees and expenses incurred by any member of the Arbitral Tribunal in the exercise of their duties and the costs for experts appointed by the Arbitral Tribunal (emphasis added).'

Interestingly, article 46 of Federal Law No. 6/2018 does not make express reference to the parties' legal fees and expenses. Whether an arbitral tribunal has the authority to award such fees and expenses, absent an express agreement by the parties, has been the subject of debate before the UAE courts. The legal position in the UAE now seems to be that an arbitral tribunal cannot award a party its legal fees and costs unless such power is provided by:

  • the arbitration agreement;

  • the terms of reference; and/or

  • the institutional rules governing the arbitration.