What Happens When One Party Refuses to Pay Arbitration Fees in Dubai?

Author : AY Advocates & Legal CRM | Published On : 03 Nov 2026

A contractor files an arbitration claim, but the respondent refuses to contribute towards the required advance on costs. Can the proceedings continue?

Under the Dubai International Arbitration Centre's 2022 Arbitration Rules, parties are generally required to contribute towards the advance on arbitration costs in equal shares.

The rules allow one party to pay the other's outstanding share to enable proceedings to progress.

Where the required payment remains outstanding after the applicable procedure, the relevant claim or counterclaim may be treated as withdrawn.

This does not necessarily mean that the party refusing payment has succeeded on the merits.

The distinction matters because administrative funding requirements and substantive contractual rights are separate issues.

Arbitration lawyers in Dubai can examine the centre's payment notices, deadlines and options available to a party seeking to continue the case.

AY Advocates advises clients on domestic and international commercial arbitration, including procedural and contractual disputes.

Businesses should consider the potential cost of arbitration before selecting it as their dispute resolution mechanism.

An arbitration law firm may also assist in evaluating whether the amount claimed justifies the anticipated expenses.

Failure to budget for the process can create procedural problems before the underlying dispute has been decided.