Yes. A court case in Dubai may be dismissed or stayed if the underlying contract contains a valid and enforceable arbitration clause. UAE law recognizes arbitration as an alternative dispute resolution mechanism and requires courts to respect parties’ contractual agreements to arbitrate disputes.
Under the UAE Arbitration Law, when parties agree in writing to resolve disputes through arbitration, ordinary courts do not have jurisdiction to hear the matter, provided the arbitration clause is valid and applicable to the dispute. However, the existence of an arbitration clause alone is not sufficient; it must meet specific legal requirements to be enforced.
For an arbitration clause to be considered valid, it must be in writing and clearly express the parties’ intention to submit disputes to arbitration. The clause must be signed by persons with proper authority to bind the parties. If the signatory lacked authority, the clause may be deemed invalid. Courts also examine whether the arbitration clause covers the type of dispute that has arisen.
Procedurally, the defendant must raise the arbitration objection at the first hearing before addressing the merits of the case. Failure to raise the objection in a timely manner may be considered a waiver of the right to arbitrate, allowing the court to assume jurisdiction.
If the court is satisfied that a valid arbitration agreement exists and that the objection was properly raised, it will typically dismiss the case or stay proceedings and refer the parties to arbitration. The court will not examine the substance of the dispute at this stage; its role is limited to assessing jurisdiction.
Certain matters, such as criminal cases or issues of public order, are not arbitrable under UAE law. Additionally, disputes involving third parties who are not signatories to the arbitration agreement may complicate enforcement.
Poorly drafted arbitration clauses are a common source of jurisdictional disputes. Ambiguities regarding the seat of arbitration, applicable rules, or appointment of arbitrators may lead to delays or challenges.
Because jurisdictional objections can determine the outcome of a dispute at an early stage, legal advice is essential. DY Lawyers and Legal Consultants advises clients on arbitration clause enforcement, jurisdictional challenges, and strategic defense of court claims to ensure disputes are resolved in the correct forum under UAE law.
Disclaimer: The content in this article is provided for informational purposes only and does not constitute legal advice.