Interim Measures in Arbitration Proceedings

Interim measures are a vital component of arbitration, allowing parties to protect their rights and preserve the status quo before a final award is issued. In the UAE, both arbitral tribunals and courts have the authority to order interim measures, ensuring that arbitration remains effective even when urgent action is needed. Through our dedicated Arbitration practice, we assist clients in securing and defending interim relief to safeguard assets, prevent harm, and ensure that arbitration proceedings remain meaningful and enforceable.

What are interim measures in arbitration?

Interim measures, also known as provisional or precautionary measures, are temporary orders intended to preserve rights or assets pending the final resolution of the dispute. They are critical in preventing actions that could undermine the arbitral process, such as dissipation of assets, destruction of evidence, or irreparable harm to commercial interests. In the UAE, interim measures can be granted by:

• Arbitral tribunals once constituted
• Arbitral institutions through emergency arbitrators (e.g., DIAC, ICC)
• UAE courts before or during arbitration proceedings

This dual framework ensures parties always have access to urgent protective relief.

Types of interim measures available in arbitration

Interim relief may take various forms depending on the nature of the dispute, including:

1. Asset preservation orders

These measures prevent a party from dissipating, transferring, or concealing assets that may be needed to satisfy a future award. They are commonly sought in high-value commercial, construction, joint venture, or shareholder disputes.

2. Orders to secure evidence

Tribunals or courts may order parties to preserve documents, data, or physical evidence relevant to the dispute, preventing destruction or tampering.

3. Orders maintaining the status quo

In cases where ongoing contractual obligations or business operations are at stake, interim measures may prevent unilateral actions that could prejudice the dispute, such as terminating a contract or halting a project.

4. Injunctions or prohibitory orders

These measures restrain a party from taking specified actions, such as enforcing a guarantee, calling a performance bond, or issuing public statements that could cause reputational harm.

5. Security for costs

A tribunal may order one party to provide security—usually financial—to protect the other party from the risk of non-payment of costs if the claim fails.

6. Interim payment orders

In limited cases, a tribunal may direct temporary payments where liability is clear or undisputed, pending final determination of the full claim.

Sources of authority for interim measures

In UAE-seated arbitrations, interim measures may arise from several sources:

Arbitration laws

The UAE Arbitration Law recognises interim measures and outlines the tribunal’s powers to order them. The law also allows parties to seek relief from UAE courts when necessary, without waiving the arbitration agreement.

Institutional rules

Institutions such as DIAC, ICC, and LCIA have detailed provisions for interim relief, including:

• Emergency arbitrator procedures for pre-tribunal relief
• Expedited tribunals for urgent matters
• Broad tribunal powers to preserve assets and evidence

The arbitration agreement

Well-drafted arbitration clauses may reinforce tribunal powers or specify the procedures for seeking interim relief.

Emergency arbitrator mechanisms

Emergency arbitrators provide rapid relief before the tribunal is formed, often within days.

When emergency arbitrators are used

Parties typically rely on emergency arbitrators when:

• Assets are at immediate risk of dissipation
• Evidence may be destroyed
• A critical project decision cannot wait for the tribunal
• Contractual performance bonds or guarantees are about to be called

The emergency arbitrator’s order is binding until the main tribunal revisits or replaces it.

Court-ordered interim measures in support of arbitration

UAE courts play a supportive role in granting interim measures to ensure the effectiveness of arbitration proceedings, especially in situations where only courts have the necessary coercive authority.

When courts may intervene

Courts can issue interim orders:

• Before the tribunal is constituted
• During the arbitration, if the tribunal’s powers or jurisdiction are insufficient
• To enforce tribunal-ordered interim measures

Examples of court support

• Freezing bank accounts or seizing property
• Granting travel bans where allowed by law
• Compelling witness testimony or document production
• Preventing unlawful asset transfers

This hybrid model ensures that arbitration remains effective even when urgent relief requires state authority.

Requirements for granting interim measures

Arbitral tribunals and courts typically consider several criteria before granting interim relief:

• Urgency: A real risk that harm will occur before the final award.
• Irreparable harm: Damage that cannot be adequately compensated by monetary relief.
• Plausibility of the claim: The applicant must show a reasonable prospect of success.
• Proportionality: The harm avoided must outweigh the burden imposed by the measure.
• Security: In some cases, the requesting party may be required to provide a security deposit.

Challenging interim measures

Parties may challenge interim measures on grounds such as:

• Lack of jurisdiction of the tribunal
• Improper constitution of the tribunal
• Procedural irregularities
• Breach of due process or insufficient notice
• Overreach or disproportionate harm

Courts may also refuse to enforce interim measures that conflict with UAE public policy.

Enforcement of interim measures

Interim measures issued by tribunals may require court assistance for enforcement, particularly those involving asset seizure or third-party compliance. DIFC and ADGM courts, operating under common-law systems, are especially effective in enforcing interim measures quickly and transparently.

Strategic considerations for parties

Effective use of interim relief often determines the success of arbitration, especially in high-stakes commercial disputes. Parties should:

• Move quickly—delays may undermine claims of urgency.
• Prepare strong evidence showing risk of harm.
• Anticipate the opponent’s counterarguments.
• Ensure the arbitration agreement and rules support interim relief.
• Consider whether court relief is more appropriate than tribunal intervention.

Conclusion

Interim measures are indispensable tools in arbitration, ensuring that rights are protected and that the arbitral process remains effective from the outset. In the UAE, the combined powers of arbitral tribunals, emergency arbitrators, and supportive courts provide a robust framework for securing urgent relief. With deep experience in obtaining, enforcing, and challenging interim measures, Al Kabban & Associates helps clients safeguard their interests at every stage of arbitration—from the moment a dispute arises until the final award is enforced.