Insight • UAE Real Estate & Arbitration
In the UAE’s fast-paced property market, disputes are an inevitable part of commercial growth. From contractual breaches to delays in off-plan developments, real estate disagreements often arise between developers, investors, and purchasers.
To manage these conflicts efficiently, arbitration has become one of the most preferred dispute resolution mechanisms — providing confidentiality, flexibility, and faster results than traditional court litigation. However, while arbitration offers numerous advantages, not every real estate dispute can be resolved through arbitration. This article explores the scope, limitations, and legal framework — and offers professional insight into when and how arbitration should be chosen.
Arbitration allows parties to resolve disputes before a neutral tribunal, often preserving commercial relationships better than adversarial court proceedings. The UAE has built a strong legal foundation through Federal Law No. 6 of 2018 (UAE Arbitration Law), aligning closely with the UNCITRAL Model Law.
UAE Arbitration Law, Art. 53(2): A court may nullify an award if the subject matter is not arbitrable, or the award conflicts with public order or morality.
Matters in these areas are generally non-arbitrable, regardless of contract wording.
While commercial real estate disputes are often suitable for arbitration, certain matters touch public policy—especially those involving off-plan projects and developer-purchaser relationships.
Article 11 regulates developer termination for purchaser default in off-plan sales. Clause (f) makes these procedures part of public order; failure to comply renders termination invalid.
If a developer unilaterally terminates under Article 11, arbitrators lack jurisdiction to validate that termination. Any award on such a matter risks nullification under Arbitration Law Art. 53(2).
Arbitration remains a powerful tool for resolving real estate disputes in the UAE — offering neutrality, speed, and commercial sensibility. Its effectiveness depends on the dispute’s nature and alignment with UAE public policy.
FHS Solutions provides real estate arbitration strategies, contract review, and enforcement guidance across the UAE.
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