Arbitration Advantages and Disadvantages

March 4, 2021

How can we explain or define the Arbitration or Arbitration Process? Let’s try to figure it out today. It’s a process but outside the Court called as an alternative of dispute resolution. Please do not mix it with an amicable process conducted by the lawyers of both sides. It’s outside the court but it’s in proper arbitration centres, designated by the government where the qualified and certified arbitrators have to be appointed. There is a fee of the arbitrator which needs to be paid. Both parties have to follow the decision made by the Arbitrator. Either party can’t refuse or back out once the arbitrators are appointed, the process of arbitration is started and the decision is made. The decisions can be taken to Courts where the court judgement comes quite earlier as compared to a normal court verdict due to arbitration activity performed before the court process. The Verdict from Fist Court, after the arbitration, can also be appealed like a normal court case, but as stated before all it brings quick judgement. What have we learnt until now; 

  • The Court judgements after the arbitration get a quick judgement.
  • The appeal can also be filled.  
  • The Arbitrators are paid as they have the Fee. 
  • If Arbitration is mentioned in the agreement then courts can not be approached directly. 

Mostly the Real Estate and Business Disputes are resolved in arbitration. It is seen mostly in Real Estate Companies Agreements that it is mentioned that disputes will be resolved through Arbitration. The Law Firms expert in Arbitration is also called Arbitration Law Firms in Dubai, UAE(For Dubai). Once again such Law Firms are those which are Emirati Lawyers owned, having a well-experienced team of Emirati Advocates, Legal Consultants in Dubai, Emirati management, and a high sense of responsibility for clients. Obviously, this is possible by a local lawyer who knows the importance of reputation, respect, image and intangible assets. These Lawyers make a difference by creating value. The Federal Law No. 6/2018 on Arbitration Law, is the first law on arbitration by the UAE Government. The Arbitral institutions in the United Arab Emirates are as follows; 

  • ADCCAC is also known as Abu Dhabi Conciliation and Arbitration Centre 
  • ADCCAC is also known as Abu Dhabi Conciliation and Arbitration Centre
  • DIAS is also known as the Dubai International Arbitration Centre 
  • (DIFC-LCIA) London Court of International Arbitration Centre
  • Sharjah International Commercial Arbitration Centre 
  • Ras Al-Khaimah Centre for Reconciliation and Commercial Arbitration


The latest research is also telling us that this is not just up to real estate or business sectors, more. Many other businesses and service sectors are also adding arbitration in agreements, mutually. Arbitration is mostly required when both parties want to keep the proceedings secret. Language is another advantage. It can be conducted in English. Let’s assume if both parties are British and they prefer the English language which can’t be in Court then both parties can choose arbitration first. Oral Evidence is also allowed in Arbitration. 


  • Costly 
  • Extra Cost before Court 
  • Time Consuming 
  • Arbitration Law Firms/Lawyers might not be available easily, though this does not apply in Dubai or UAE
  • It’s not a final judgement. Arbitration Decisions can be taken to Court.

Get Legal Advice:

We have given this advice several times before. Please book a consultation, with the lawyers and check with them the advantages and disadvantages of arbitration. Proceed but first check with the lawyers. This legal counselling will provide you with the exact details you need indeed.