The parties’ arbitration agreement confers the power to resolve the dispute on the arbitrators. By virtue of the principle of separability, the arbitration agreement is regarded as separate and distinct from the main contract. This article examines the principle that a valid arbitration agreement is essential for arbitral proceedings. It highlights the functions of an arbitration agreement, and analyses the necessary requirements which must be present for an arbitration agreement to be considered as valid. This analysis is relevant in light of the fact that there is no basis for the conduct of arbitral proceedings with a view to settling the dispute between the parties in the absence of a valid arbitration agreement.