Arbitrating Against UAE Government Entities: Authority to Arbitrate, Approvals, and Enforcing the Award

Article 4 of Federal Law No. 6 of 2018 on Arbitration allows only a person with legal capacity, or an authorised representative of a legal person, to conclude an arbitration agreement. An agreement made otherwise is void. For a government entity, authority depends on its founding law, its internal delegations and the approval rules of the emirate or the federal government. Where those requirements are met, the clause binds the entity in the same way as a private party.

• Authority decides validity. A clause signed by an official without authority to agree to arbitration may be void under Article 4 of the Arbitration Law. That gives the entity a ground to resist the arbitration or the award.
• Dubai restricts the seat. Under Article 36 of Dubai Law No. 6 of 1997, a Dubai government contract may not provide for arbitration outside Dubai, unless the Ruler gives written approval in the public interest.
• Dubai requires a complaint first. Under Dubai Law No. 16 of 2025 on Government Claims, a claimant must submit a statement of complaint before registering a claim against a Dubai government entity, including in arbitration.
• Settlement comes before the claim. The department designated under the law has 60 working days to try to settle the complaint, and limitation periods are suspended while the complaint is pending.
• Government assets cannot be seized. Under Article 15 of the same law, no debt may be recovered from the Dubai Government or its entities by seizure or public auction. Payment of an award follows the procedure the law sets.
• Federal entities follow federal rules. Federal ministries and authorities are subject to Cabinet rules that require approval from the Ministry of Justice before they enter into arbitration agreements.

Who this applies to

This applies to contractors, consultants, suppliers and service providers working for UAE federal ministries, emirate government departments, authorities and government-owned companies. It concerns main contractors and EPC contractors on construction and energy projects, and technology and services companies under government supply contracts.

Our arbitration lawyers in the UAE act for contractors in arbitrations against government entities before DIAC, arbitrateAD and ICC tribunals, and advise on dispute clauses before contracts are signed. This article covers arbitration against government parties. Our article on government tender disputes and bid challenges covers disputes at the procurement stage.

The legal framework

• Federal Law No. 6 of 2018 on Arbitration. The Arbitration Law governs arbitrations seated in the UAE outside the financial free zones, including the capacity to agree to arbitration in Article 4 and the grounds for setting aside an award.
• Dubai Law No. 6 of 1997 on Contracts of Government Departments. The law governs Dubai government contracts, and Article 36 restricts arbitration outside Dubai and the application of laws other than those of the emirate.
• Dubai Law No. 16 of 2025 on Government Claims. The law, issued on 17 November 2025, sets the pre-action complaint, the settlement period and the rules on enforcing judgments and awards against the Dubai Government and its entities.
• Federal Cabinet rules on arbitration by federal entities. They require federal ministries and authorities to obtain approval before agreeing to arbitrate.

The supervising bodies:

• The department designated under the Dubai Government Claims Law. It represents the Government and its entities in claims brought by or against them, receives complaints and attempts settlement.
• The Ministry of Justice. It approves arbitration agreements of federal entities.
• The onshore courts and the DIFC Courts. They ratify, enforce or set aside arbitral awards, depending on the seat.

Who can bind a government entity to arbitration

Article 4 of the Arbitration Law requires that a legal person’s arbitration agreement be signed by a representative authorised to conclude it. For a government entity, that authority comes from the entity’s founding law or decree and from the delegations made under it.

Authority to sign

The official who signs the contract may have authority to award contracts but not to agree to arbitration. A contractor should ask for evidence of the signatory’s authority to agree to arbitration, such as a board resolution, a delegation or a reference to the founding law. A clause signed without that authority may be challenged as void at any stage, including when the contractor applies to ratify the award.

Government-owned companies

Companies owned by a government but incorporated as commercial companies sign through their managers or boards like any private company. Their constitutional documents may still require shareholder approval for arbitration or for particular seats. The contractor should check the articles of association, because the government shareholder’s rules can apply through them.

Ratification and estoppel arguments

A government entity that took part in an arbitration without objecting to the clause may find it harder to challenge the clause later. The contractor should not rely on that argument alone. Confirming authority at signature is cheaper than arguing about it after an award.

Approval and seat rules in Dubai and at federal level

Each emirate and the federal government set their own rules on when a government entity may arbitrate and where. These rules decide whether the clause in the contract will hold.

Dubai

Under Article 36 of Dubai Law No. 6 of 1997, a contract with a Dubai government department may not provide for arbitration outside Dubai, or for disputes about the arbitration to be subject to laws other than those of the emirate. A provision to the contrary is void and non-binding, unless the Ruler approves an exemption in writing where the public interest requires. A clause naming London or Paris as the seat in a Dubai government contract therefore needs that approval to stand.

The Supreme Legislation Committee has also issued a legal opinion that the DIFC Courts may hear claims involving a Dubai government entity where the entity has agreed to their jurisdiction.

Federal entities

Federal ministries and authorities need the approval of the Ministry of Justice before entering into an arbitration agreement, under Cabinet rules that have applied since 2003. A contractor dealing with a federal entity should ask for evidence of that approval before signing.

Other emirates

Abu Dhabi, Sharjah and the other emirates set their own requirements for their government entities, including standard contract forms and approvals for particular seats. The contractor should identify the entity’s emirate and its governing legislation before accepting the dispute clause. Our arbitration clause checklist covers DIAC and arbitrateAD wording.

Before filing against a Dubai government entity

Dubai Law No. 16 of 2025 on Government Claims, published on 26 November 2025, applies to claims before courts and before conciliation and arbitration bodies, inside or outside the UAE. It sets a mandatory pre-action procedure.

The statement of complaint

Under Article 5, a claimant must submit a statement of complaint to the designated department before registering a claim against the Government or a government entity. Under Article 26, a claim that does not follow the law’s procedures is not admissible. A request for arbitration filed without the complaint therefore exposes the claimant to an admissibility objection.

The settlement period

Under Article 7, the department tries to settle the complaint within 60 working days. Once that period ends, the claimant may go to court or to arbitration. Limitation periods are suspended while the complaint is pending, so the claimant does not lose time by following the procedure.

Interaction with contractual steps

Government contracts may also require notice to the engineer, a claim to the employer’s representative or a period of negotiation before arbitration. The contractor should complete both the contractual steps and the statutory complaint, and keep records of each.

Enforcing an award against a government entity

An arbitral award against a government entity is ratified in the same way as any award, but recovery follows different rules. The contractor wins the right to be paid, and the law then controls how payment is made.

Ratification

A UAE-seated award is ratified by the competent court under the Arbitration Law, and the government entity may apply to set it aside on the statutory grounds. Lack of authority to agree to arbitration is one of those grounds, which is why the authority question decides so much. Our article on enforcing arbitral awards in the UAE covers ratification, and our article on setting aside an award covers the grounds.

No seizure of government assets in Dubai

Under Article 15 of Dubai Law No. 16 of 2025, no debt may be recovered from the Government or government entities by possession, seizure or sale at public auction. Under Article 16, execution circuits may not register execution processes of that kind. Article 17 sets the route for enforcing judgments and awards through the Government’s own procedure.

Immunity arguments abroad

Where the contractor seeks to enforce outside the UAE, the government entity may raise state immunity. DIFC Court decisions have rejected immunity where the entity waived it or the transaction was commercial, but each enforcement country applies its own rules. An express waiver of immunity from suit and from execution in the contract strengthens the contractor’s position.

Common mistakes when contracting with government entities

Accepting a foreign seat without approval. A Dubai government contract that names a seat outside Dubai without the Ruler’s written approval contains a void provision under Article 36 of Law No. 6 of 1997.

Not checking the signatory’s authority. A clause signed by an official without authority to agree to arbitration gives the entity a ground to resist the award.

Filing without the statutory complaint. A claim against a Dubai government entity registered without the statement of complaint is not admissible under the 2025 Government Claims Law.

Planning to seize assets. Government assets in Dubai cannot be seized to satisfy a debt, so a recovery plan built on attachment will fail.

Treating a government-owned company as a government department. Commercial companies owned by a government may follow ordinary company rules, and the contractor should identify which regime applies before it chooses its strategy.

What contractors should do next

• Identify the entity’s legal status. Confirm whether the counterparty is a federal entity, an emirate department or a government-owned company, because the rules differ.
• Ask for evidence of authority and approvals. Obtain the delegation for the signatory and any approval needed for arbitration or for the chosen seat.
• Check the seat against the emirate’s rules. Confirm that the seat is permitted or that the required approval has been given in writing.
• Seek a waiver of immunity. Include an express waiver of immunity from suit and execution where the entity will agree to it.
• File the statutory complaint first. For Dubai government entities, submit the statement of complaint and wait for the 60 working day settlement period before filing.
• Plan recovery from the start. Build the recovery strategy around the payment procedure the law sets, rather than around attachment of assets.

How do contractors arbitrate and recover against UAE government entities?

Contractors arbitrate against UAE government entities in the same tribunals as private parties. The clause must be signed with authority and the required approvals, and the claim must follow the statutory pre-action steps. In Dubai that means a statement of complaint and a 60 working day settlement period before filing.

The main risk is a clause that fails on authority or seat. A government entity that can show the clause was void under Article 4 of the Arbitration Law or Article 36 of Dubai Law No. 6 of 1997 can resist the arbitration and the award.

The commercial consequence is time. A contractor that confirms authority at signature, files the complaint on time and plans recovery through the government’s payment procedure can be paid. A contractor that does not may hold an award it cannot collect.

For contractors in dispute with government employers, our arbitration team advises on dispute clauses in government contracts, pre-action complaints and arbitration and recovery against government entities.

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