The Dubai Court of Cassation (DCC) has ruled that unilateral arbitration clauses, which grant one party exclusive discretion to choose arbitration as a dispute resolution mechanism, are unenforceable under UAE law. This decision emphasizes the importance of mutual consent and clarity in arbitration agreements, highlighting the need for fair and balanced drafting to ensure enforceability.

Challenging jurisdiction is a critical defense strategy that lawyers often evaluate at the outset of a case. This article explores the jurisdictional scope of the UAE's Insurance Dispute Resolution Committees (IDRC) in light of Federal Decree by Law No. (42) of 2022 and the IA Board of Directors Decision No. (33) of 2019. It addresses whether IDRC branches in specific Emirates, such as Dubai, are territorially restricted or have nationwide competence. Drawing on recent case law, including Dubai Court of Cassation Case No. 96 of 2024, the analysis concludes that all IDRC branches operate with federal jurisdiction across the UAE, irrespective of their physical location.

The Dubai Court of Cassation (DCC) has ruled that unilateral arbitration clauses, which grant one party exclusive discretion to choose arbitration as a dispute resolution mechanism, are unenforceable under UAE law. This decision emphasizes the importance of mutual consent and clarity in arbitration agreements, highlighting the need for fair and balanced drafting to ensure enforceability.