When a legal dispute arises between two parties, one of the first decisions that must be made is how to resolve the dispute. The two most common options are arbitration and litigation. This article will explore the key differences between arbitration and litigation and how to choose the right path for your dispute. Find here the best arbitration law firms in Dubai.


Arbitration is a form of alternative dispute resolution in which a neutral third party, called an arbitrator, is appointed to hear the dispute and decide. The arbitrator’s decision is usually binding and cannot be appealed except in very limited circumstances. Unlike litigation, which takes place in court, arbitration is a private process outside the court system.

Advantages of arbitration:

One of the primary advantages of arbitration is its speed. Because arbitration is a private process, it can often be completed more quickly than litigation. This can be particularly important for businesses that want to resolve disputes quickly and efficiently.

Another advantage of arbitration is its flexibility. Parties can choose the arbitrator, the time and place of the arbitration, and the rules governing the process. This can allow parties to tailor the process to their specific needs and preferences.

Disadvantages of arbitration:

One of the key disadvantages of arbitration is the limited ability to appeal the arbitrator’s decision. This means that if the arbitrator makes an error of law or fact, there may be no way to correct that error.

Another disadvantage of arbitration is the lack of public records. Because arbitration is a private process, there is often no public record of the proceedings or the arbitrator’s decision. This can be problematic for businesses that want to establish a legal precedent or make a public statement.


Litigation is the process of resolving a legal dispute in court. The parties present their case to a judge or jury, and the judge or jury decides. The decision is usually appealable to a higher court.

Advantages of litigation:

One of the primary advantages of litigation is the ability to establish a legal precedent. Because court decisions are public records, they can be used as legal precedents in future cases.

Disadvantages of litigation:

One of the key disadvantages of litigation is its expense. Litigation can be very costly, especially if the case is complex or the parties engage in protracted litigation.