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The federation of the United Arab Emirates comprises the Emirates of Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah. In addition to the national laws enacted by each Emirate, UAE Federal Law applies in every Emirate.

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A legal background and professional expertise are two key factors to consider in selecting an arbitrator. In addition, the arbitrator’s availability, communicative style, managerial skills, and ethical conduct should also be considered.

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DIAC ARBITRATION DUBAI

Arbitrations in the UAE are governed by Federal Law 6 of 2018 on Arbitration (the ‘Arbitration Law’) which is based on the UNCITRAL Model Arbitration Law. The Arbitration Law applies to all onshore arbitration proceedings in any Emirate including arbitrations under the rules of the Dubai International Arbitration Centre (the ‘DIAC’) in Dubai - but not to free zone arbitrations such as DIFC and ADGM free zones as these have their own arbitration laws. Parties should also note that certain types of disputes are not arbitrable including labour cases; public policy matters and agency disputes.

  DIAC (www.diac.ae) is one of the most prominent arbitral institutions in the UAE. It administers arbitrations under the DIAC Arbitration Rules 2007 (the ‘DIAC Rules’). The local UAE courts exercise a supervisory function over onshore arbitrations including DIAC arbitrations. The UAE court system generally adopts a positive to the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the ‘New York Convention’) and this has been a further support for dispute resolution through arbitration in the region.

Parties to onshore arbitral proceedings including DIAC arbitrations should note that the provisions of the Arbitration Law on the formation of a valid arbitration agreement and the grounds on which a party can apply to invalidate are mandatory.  DIAC arbitrations will be governed by the Arbitration Law and although the Arbitration Law broadly follows the UNCITRAL Model Law, there are some key differences that parties should be aware of. A key difference is that the Arbitration Law states that the signatory of the arbitration agreement must be duly authorised. It is worth noting that a general signatory authority has been deemed insufficient in some cases and that there is a significant body of national and federal case law relating to disputes in which the enforceability of arbitral awards was challenged on the basis of alleged flaws in the authority of the signatory to the arbitration agreement itself.

  A further key consideration for parties – which in this case arises from the Civil Procedure Code rather than the Arbitration Law - is that witnesses must be placed under oath. Again, this requirement is important to avoid potential challenges to the enforceability of an arbitral award.

  In summary, parties entering into arbitration in the United Arab Emirates will usually agree to follow the rules either of an onshore arbitral institution such as the DIAC; the Abu Dhabi Conciliation and Arbitration Centre (ADCCAC) www.abudhabichamber.ae; the Sharjah International Commercial Arbitration Centre (Tahkeem) and the Ras Al-Khaimah Centre for Reconciliation and Commercial Arbitration to which the Arbitration Law will apply. Alternatively, they may follow the rules of an offshore institute such as the DIFC London Court of International Arbitration (DIFC-LCIA) Centre www.difcarbitration.com. In any event, parties are advised to seek early expert guidance on regional and local aspects of the procedural rules applicable to their case as well as on the substantive law relevant to their dispute.

Bolz Arbitration is able to offer parties independent, professional and tailored arbitration advice and support to individuals and companies involved in arbitrations in Dubai and Abu Dhabi. Bolz Arbitration specialises in the resolution of corporate, commercial, property, real estate and construction disputes through arbitration. Anja Bolz can act either as an arbitrator or can assist parties as their representative in arbitrations in Abu Dhabi and Dubai.

Arbitration parties seeking an experienced representative or wishing to appoint an independent arbitrator are invited to visit www.bolzarbitration.com for more details.

[bolzarbitration]

Arbitration parties seeking an experienced representative or wishing to appoint an independent arbitrator are invited to visit www.bolzarbitration.com for more details.

[bolzarbitration]

Visitors to the region will find that the tribal tradition of consensus governance through shura and the forum of the majlis is still echoed in modern Arabic homes which will usually have a prime room designated as the extended family and friends majalis (which is akin to but more than a salon).

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Bolz Arbitration is therefore able to offer independent, professional and tailored arbitration advice and support to individuals and companies involved in arbitrations in Dubai and Abu Dhabi. Bolz Arbitration specialises in the resolution of corporate, commercial, property, real estate and construction disputes through arbitration and Anja Bolz can act either as an arbitrator or can assist parties as their representative in arbitrations in Abu Dhabi and Dubai.

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The New Rules entered into force on 1 January 2021 with new provisions aimed at streamline proceedings and facilitating case management. The New Rules govern the use of technology and electronic communication in arbitrations and permit video conferencing and hearing.

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Other developments that have supported the growth of arbitration in Dubai include the introduction in the DIFC-LCIA Rules 2016 of the possibility of multi-party disputes as well as the consolidation of multiple proceedings as well as other procedural innovations by other arbitration institutions.

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UAE businesses are advised to review the dispute resolution provisions governing their commercial contracts and to consider whether arbitration may in some cases be a more appropriate method of determining future disputes than the traditional route of litigation through the Courts.