Introduction

It can be agreed that a contract often involves two parties. However, that is not the case in complex transactions involving multiple parties such as Construction agreements. These are neither bilateral nor tripartite arrangements rather they are multi-faceted. There are multiple service providers working because of the same transaction or series of transactions. A construction project broadly involves contractors, sub-contractors, employers, employees and certifiers etc. Each party has its own role to play in the project, and they work based on the principal and ancillary contracts that are entered into between them.

Often, when a construction dispute arises, each of the parties start to invoke their agreements and respective dispute resolution clauses which often favor arbitration. Consequently, a ripple effect begins to unfold as each party undergoes arbitration separately. Different proceedings regarding the same transaction might result in opposite awards^[1]. To prevent such situations, the UAE arbitration law provides measures for consolidation and joinder, which are discussed below.

Concept of Multi-Party and Consolidated Arbitration

Before going into the legal measures, we need to understand what is multi-party and consolidated arbitration?

In essence, multi-party arbitration allows more than two parties to participate in a single arbitration proceeding. For example, a main contractor may be joined with subcontractors, consultants, and certifiers who are involved in a dispute concerning the same project issue. On the other hand, Consolidation refers to the process of merging two or more separate arbitrations into a single proceeding. This is particularly useful when disputes arise under multiple contracts but share the same legal or factual issues. In construction, these mechanisms are vital because delays, defects, or cost overruns often involve overlapping responsibilities

UAE Arbitration Law (Federal Law No. 6 of 2018, amended 2023)

The Federal Law No. 6 of 2018, further amended in 2023 often known as the UAE Arbitration Law provides the primary rules that underpin the enforceability of arbitral awards. Some of the relevant provisions under the law are discussed below:

1. Article 7^[2] provides that Arbitration Agreements must be in written form. The stress on written form is to ensure that parties have expressly consented to arbitration as their chosen form of dispute resolution along with the stated terms. This is critical because consolidation or joinder requires that all parties involved either have signed arbitration agreements or expressly consent to join.
2. The Tribunal also has the power as part of its jurisdiction to allow for joinder of parties. Alternatively, the parties can also submit a request for joinder of a party in the proceedings as stipulated in Article 22^[3]. However, it must be ensured that such a party to be joined is also a party to the concerned arbitration agreement.
3. The law also provides for a safety mechanism under Article 53^[4]. It provides that awards can be annulled if the tribunal exceeds its jurisdiction such as hearing claims against non-consenting parties. This is significant because consent is the cornerstone of consolidation and joinders. The recent decision of the Dubai Court of Cassation (Case No. 120/2025) reinforced the principle that arbitral awards can only be enforced against those who have signed the arbitration agreements. The act of binding non-signatories with the awards is a violation of the legal provisions. The Court recognized that real-estate transactions involve multiple parties but at the same time it does not imply that the awards extend to all parties automatically even if they are non-signatories.

DIAC Rules 2022

The Dubai International Arbitration Centre Arbitration Rules 2022 and ArbitrateAD Rules 2024 are also some of the key legislations providing framework for active consolidation and joinder of parties. DIAC is one of the leading destinations for regional and domestic construction projects. The key DIAC Rules that deal with multi-party arbitration are as follows:

1. Article 8^[5] expressly recognizes consolidation of two or more arbitrations into a single arbitration either on the request of the parties or as a part of its power to rule on its own jurisdiction. All the concerned parties are given the opportunity to comment before such consolidation happens. In addition to the above requirements, there are certain other conditions as well that must be fulfilled prior to consolidation, such as:
   1. All the parties must expressly agree or give their consent for consolidation;
   2. The arbitration proceedings to be consolidated must involve same or similar parties;
   3. The dispute must arise out of the same legal relationship;The claim must arise out of the same transaction or a series of related transactions; and
   4. The underlying contract shall consist of a principal contract and its ancillary contracts

However, these conditions should be satisfied prior to the appointment of arbitrators.

2. If the above conditions are fulfilled the proceedings are consolidated into the arbitration that commenced first in point of time. Any advance cost of such proceedings is adjusted against the institutional fee recalculated on the basis of total claim amounts across all merged arbitrations^[6].
3. On the other hand, arbitrations that do not qualify for consolidation are continued separately. However, if the situation calls for joining of parties in an arbitration rather than consolidation, then the tribunal may allow the same under Article 9^[7].
4. Some other measures that are particularly beneficial in construction disputes include appointment of experts by the tribunal and permitting expedited proceedings. This is helpful in multi-party context to understand intersection of obligations and settlement of disputes in a timely fashion.
   

ArbitrateAD Rules 2024

The Abu Dhabi International Arbitration Centre (arbitrateAD) introduced its 2024 Rules with a particular focus on mega-projects, including sustainability-focused infrastructure. Its key provisions dealing with multi-party nature of arbitration agreements include:

1. As we have established till now, that construction disputes involve more than two parties therefore, it gives rise to a series of counterclaims. Article 9^[8] of the Rules makes provision for such a situation by allowing any party to assert claims before the constitution of the tribunal. It may be allowed pursuant to tribunal formation as well, if it is deemed appropriate.
2. Article 10^[9] of the Rules takes into consideration the multiparty nature of construction transactions. It allows a party to bring a single arbitration asserting claims arising out of or in connection with:
   1. More than 1 contracts; or
   2. More than 1 arbitration agreements.

Consider an Abu Dhabi airport expansion project. The employer has entered into a main EPC contract with the main contractor. The main contractor, in turn, has subcontracted the steel structure works to subcontractor A and façade works to subcontractor B. During execution, major delays occur due to design changes, and disputes arise simultaneously under the EPC contract and the subcontract agreements. Instead of commencing separate arbitrations, one under the EPC contract, and another under each subcontract, the employer (or even the Contractor) may rely on Article 10 of the 2024 Rules to bring a single consolidated arbitration covering all three contracts. This ensures that issues such as delay responsibility, cost overruns, and liquidated damages are addressed in one coherent proceeding, avoiding contradictory awards.

3. However, it must be prima facie satisfied that the arbitration agreements in question are compatible and the relief that is sought either arises out of the same transaction or a series of transactions.
4. Similar to the DIAC Rules, Article 11^[10] of the ArbitrateAD Rules also allows for joinder of the parties. The request for joinder is filed with the Case Management Office. The joinder may be allowed if the parties agree and the Court is satisfied that the additional party is prima facie subject to the Centre’s jurisdiction.

Conclusion

Therefore, multi-party and consolidated arbitration have become a necessity in UAE construction disputes, given the complexity of modern mega-projects and interlinked contracts. Both DIAC and arbitrateAD provide robust frameworks to manage such disputes efficiently, with procedural rules for consolidation, joinder, expert handling, and expedited proceedings. However, the success of these mechanisms depends on careful contract drafting^[11]. Construction transactions must not be viewed in isolation. There should be consistency in arbitration clauses, consent of the parties and the choice of institution. With these considerations in mind, construction disputes can be effectively resolved through arbitration ensuring fairness and inclusive representation of all concerned parties.

^[1] Subcontracts and multiparty arbitration in construction disputes’ (Global Arbitration Review, 6th edn, The Guide to Construction Arbitration) https://globalarbitrationreview.com/guide/the-guide-construction-arbitration/sixth-edition/article/subcontracts-and-multiparty-arbitration-in-construction-disputes
^[2] UAE Federal Law No. 6 of 2018, Art. 7 (as amended 2023)
^[3] UAE Federal Law No. 6 of 2018, Art. 22 (as amended 2023)
^[4] UAE Federal Law No. 6 of 2018, Art. 53 (as amended 2023)
^[5] DIAC Arbitration Rules 2022, art 8.
^[6] Mohamed S Abdel Wahab, ‘Construction Arbitration in the MENA Region’ (Global Arbitration Review, 12 August 2025) https://globalarbitrationreview.com/guide/the-guide-construction-arbitration/sixth-edition/article/construction-arbitration-in-the-mena-region
^[7] DIAC Arbitration Rules 2022, art 9.
^[8] arbitrateAD Arbitration Rules 2024, art 9.
^[9] arbitrateAD Arbitration Rules 2024, art 10.
^[10] arbitrateAD Arbitration Rules 2024, art 11. ^[11] Grace Goh, ‘2024 Arbitration Year in Review – United Arab Emirates’ (Daily Jus, 13 March 2025) https://dailyjus.com/world/2025/03/2024-arbitration-year-in-review-united-arab-emirates

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