Time for reciprocity: Why India should recognise UAE for enforcement of arbitral awards

The formal notification of the UAE as a “reciprocal territory” under Section 44(b) of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) is long overdue. While both India and the UAE are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”), Indian law limits the enforcement of foreign arbitral awards to those from countries that have been designated as “reciprocating territories” in India’s official gazette.

As of now, while the UAE is notified as a reciprocating territory under the Civil Procedure Code, 1908, for execution and enforcement of decrees passed by courts in the UAE, it is not similarly recognised for the enforcement of arbitral awards arising from UAE-seated arbitrations. This gap creates procedural uncertainty for parties looking to enforce arbitral awards from the UAE, despite the UAE’s strong arbitration infrastructure.

India and the UAE signed the Comprehensive Economic Partnership Agreement (CEPA) on February 18, 2022, and it came into force on May 1, 2022. The same was intended to boost bilateral trade between the two countries. As per the statistics published by the Ministry of Commerce and Industry on the completion of three years of CEPA, trade has nearly doubled between the financial years 2021-22 and 2023-24. About 4.3 million Indian nationals reside in the UAE and the Indian community also plays a significant role in the economic development of the UAE.

In order to take the bilateral relations forward, subsequent to the CEPA, India and the UAE also signed the Bilateral Investment Treaty (BIT) on February 13, 2024. The BIT, which came into effect on August 31, 2024, intended to give continuity of investment protection to investors of both countries. Along with promoting bilateral trade, the BIT also provides for resolution of investment state dispute settlement through arbitration.

India and UAE entered into the Agreement on Juridical and Judicial Cooperation in Civil and Commercial Matters for the Service of Summons, Judicial Documents, Commissions, Execution of Judgements and Arbitral Awards on October 25, 1999. The said agreement was designed to facilitate mutual recognition and enforcement of judicial and arbitral decisions between the two countries. However, despite the comprehensive scope of this bilateral agreement, the implementation has been selective.

By a notification dated January 17, 2020 (Notification), the government of India formally declared the UAE as a reciprocating territory under Section 44A of the Code of Civil Procedure, 1908. By means of the said notification, the civil judgments passed by the superior courts of the UAE can be executed directly in India as if they were decrees of an Indian court, without the need to re-litigate the underlying dispute.

While the UAE is a reciprocating territory under the CPC, it has not been notified as a reciprocating country under Section 44 of the Arbitration Act for the enforcement of foreign awards. This omission creates a procedural and substantive anomaly despite both India and the UAE being signatories to the New York Convention. The differential treatment to foreign awards passed in the UAE shows inconsistency and uncertainty in India’s approach to international dispute resolution with one of its most significant trade and investment partners.

The lack of reciprocity under Section 44 of the Arbitration Act undermines the intentions set forth in the 2024 India-UAE BIT. This treaty aims to provide investment protections and intends to facilitate smoother enforcement of arbitral awards by providing that “Each Party shall provide for the enforcement of an award in its Territory in accordance with its Law.”

While it can be said that the BIT provides for enforcement of awards arising out of arbitrations conducted under its framework, there remains uncertainty regarding the enforcement of awards from arbitrations conducted outside the BIT’s purview. Since UAE is not a reciprocating territory under the New York Convention and is not a party to the Geneva Convention on the Execution of Foreign Arbitral Awards, 1927, at present, an award passed in a UAE-seated arbitration is not considered a ‘foreign award’ under the provisions of the Arbitration Act. Thus, such awards cannot be enforced directly. A fresh action has to be brought either in the UAE to seek a decree from the courts in the UAE (which can then be executed in India in terms of the notification) or in India to seek an Indian decree which can be enforced as per the Indian legal provisions.

However, with bilateral trade between India and the UAE exceeding USD 100 billion annually, and the UAE being one of India’s top trading partners, commercial disputes are naturally expected. In this scenario, the inability to enforce UAE arbitral awards in India hampers dispute resolution and complicates commercial relationships.

The UAE, and especially the cities of Dubai and Abu Dhabi, are a great hub for arbitration, particularly for Indian businesses. There are several key reasons for this:

• The UAE’s proximity, similar time zone, and large Indian diaspora make it a culturally comfortable and logistically viable choice for Indian entities.

• The world class infrastructure, safety-rankings and cosmopolitan appeal of Dubai and Abu Dhabi also make them attractive for Indian entities.

• The Dubai International Arbitration Centre (DIAC) and the Abu Dhabi International Arbitration Centre (Arbitrate AD) offer experienced arbitrators and arbitration rules in line with international best practices.

• Improvements in case management have helped to ensure that disputes are now resolved more swiftly, which is an important factor for businesses seeking to avoid delays.

• As one of the top five procedural seats for arbitration in Africa and the Middle East, as recognised by the annual international arbitration survey (2025) published by Queen Mary, University of London and White & Case LLP, Dubai offers a neutral, impartial environment free from local pressures, which is crucial for inspiring parties’ confidence.

However, despite these advantages, parties face the challenge of procedural uncertainty as arbitral awards rendered in the UAE are not currently enforceable in India in the same way as UAE civil court judgments. This gap creates significant concerns for businesses considering conducting UAE-seated arbitrations.

India should extend reciprocity to the UAE under the Arbitration Act to ensure that arbitral awards from the UAE are enforceable in India. This step would have several benefits:

• Awards rendered in the UAE would be enforceable directly in India under the New York Convention, eliminating time-consuming, duplicative court processes and reducing legal costs for parties on both sides.

• Indian parties would benefit from the UAE’s modern, efficient arbitration framework, making it an attractive venue for arbitration.

• Recognizing UAE arbitral awards would enhance the confidence of both Indian and UAE investors in respect of resolving potential commercial disputes, facilitating deeper economic collaboration and strengthening bilateral trade and investment goals.

• A clear and predictable enforcement regime in India would reduce the scope for challenges to enforcement of arbitral awards and minimize the risk of inconsistent judicial interpretations, enhancing the effectiveness of cross-border dispute resolution.

• The recognition of UAE arbitral awards would help award holders recover debts from defaulting entities having assets in India in a timely manner, thus stabilizing trade and lending relationships between the two countries.

• Ultimately, recognising the UAE as a reciprocal territory for enforcement of foreign arbitral awards will align India’s arbitration policy with global standards.

The process for extending reciprocity is simple. Under Section 44(b) of the Arbitration Act, the Indian government is authorized to recognize foreign countries as “reciprocating territories.” The UAE is already recognized under Section 44A of the Civil Procedure Code, 1908 for execution and enforcement of decrees passed by courts in UAE, a precedent that could and should be mirrored for arbitral awards. India has already notified about 50 countries as reciprocating territories for enforcement of foreign awards, with China and Mauritius being the most recent additions. The long list of reciprocating territories with UAE being an omission calls for an immediate reform. Extending reciprocity under the Arbitration Act to UAE-seated arbitrations would require an executive notification in the official Gazette of India, similar to the approach taken for other signatories of the New York Convention like Singapore, China and Australia.

By recognizing the UAE as a reciprocating territory under the Arbitration Act, India would elevate both countries as leading arbitration-friendly jurisdictions on the global stage. This step would provide businesses with the certainty that arbitral awards, whether rendered in UAE or India, will be enforced efficiently and uniformly across borders. In today’s globalized commercial environment, where trust and legal certainty are paramount, this move is not just a procedural adjustment, it is a transformative step that would enhance cross-border trade and investment between India and the UAE.

In summary, the reciprocal notification would create a seamless dispute resolution process between India and the UAE, making both Dubai and Abu Dhabi truly viable forums for resolving high-value cross-border disputes for Indian entities, giving commercial parties the freedom to choose the best suited arbitration seat for their potential contractual disputes.

About the authors: Divyam Agarwal is a Partner, Aniket Aggarwal is a Senior Associate, and Priya Chauhan is an Associate at JSA Advocates & Solicitors.

Disclaimer: The opinions expressed in this article are those of the author(s). The opinions presented do not necessarily reflect the views of Bar & Bench.

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