The India-UAE Arbitration Corridor: Opportunities and Ongoing Challenges
TL;DR
- The India-UAE commercial corridor sees major cross-border deal flow, often producing arbitration disputes.
- Dubai Law No. 2 of 2025 clarifies and strengthens local arbitration enforcement through the DIFC Courts.
- Indian parties often underutilize DIFC/ADGM institutions and face enforcement hurdles in India, due to lack of notification under Section 44.
- Indian legal professionals risk missing opportunities by not engaging more actively in UAE-related arbitration cases.
Overview
The India-UAE arbitration corridor plays a vital role given the size and complexity of bilateral commercial relations. Recent legal developments in the UAE-particularly Dubai Law No. 2 of 2025-impact arbitration and enforcement. While the UAE boasts a sophisticated arbitration ecosystem, Indian parties and practitioners often remain underrepresented, facing procedural hurdles-especially regarding enforcement in India due to outdated statutory provisions.
What Happened
Tariq Khan, a lawyer with extensive experience in the UAE, highlighted in an interview that Indian businesses increasingly find themselves in arbitration-related disputes arising from their UAE investments. Despite the advanced capabilities of UAE arbitration forums, particularly the DIFC and ADGM Courts, Indian parties and counsel frequently fail to fully utilize these avenues.
Dubai Law No. 2 of 2025 was enacted to clarify the jurisdiction and enforcement mechanisms of the DIFC Courts, strengthening the ability to execute DIFC judgments in onshore Dubai courts. This reform enhances the predictability and robustness of enforcement for foreign judgments and arbitral awards within Dubai.
A specific problem persists for Indian parties: UAE-seated arbitral awards cannot be directly enforced in India as foreign awards under Part II of the Arbitration and Conciliation Act 1996, owing to India's failure to notify the UAE under Section 44 as a reciprocating territory. This statutory gap forces parties into lengthy and costly enforcement detours.
Real-world cases discussed in the article underscore the UAE courts' willingness to grant urgent relief (such as anti-suit and freezing injunctions) efficiently, providing significant protection for parties that act promptly. However, both Indian parties and counsel often discover these mechanisms too late, losing valuable time and advantage.
Context
The India-UAE economic relationship is among the world's most significant and continues to grow. However, Indian legal practitioners traditionally channel their attention to arbitration hubs like London, Singapore, and Paris, overlooking opportunity in the UAE, despite its internationalized legal community and proven courts. This gap is compounded by India's lack of statutory action regarding the UAE as a reciprocating territory under the New York Convention, hampering direct award enforcement.
Dubai Law No. 2 of 2025 is part of the UAE's ongoing strategy to position itself as a regional and global arbitration center by addressing jurisdictional clarity and enforcement reliability. Meanwhile, India's current approach remains a barrier to smoother dispute resolution in this corridor.
Why It Matters
- Increasing cross-border deals between India and the UAE heighten the relevance of efficient and predictable dispute resolution.
- UAE's legal reforms and court capabilities represent a significant, yet underused, resource for Indian businesses.
- Procedural and legislative inertia in India regarding enforcement of UAE-seated awards creates unnecessary costs and risks for Indian claimants.
- Greater engagement from Indian practitioners could improve outcomes for clients and expand professional opportunities.