The effectiveness of decision enforcement is one of the key criteria when choosing a dispute resolution procedure in the UAE. The recently adopted new law on arbitration in this jurisdiction further simplifies and systematizes this process. The chapter of the Law on the Conduct of Arbitration Proceedings has been significantly expanded and revised. This is a very attractive factor for businessmen who decide to turn to abrité in the Emirates.
Among the world’s top judicial systems
The UAE ranks among the top countries in the world and the first among the Arab countries for the efficiency of the judicial system, according to the World Bank report. The index took into account the assessment of the judicial system, processing speed and high standards, time spent on resolving commercial disputes, the amount of legal costs, the quality of legal procedures, as well as the efficiency of enforcement of decisions.
The arbitration in the Emirates is very popular as a neutral platform for commercial dispute resolution.
Fact: The UAE legal system is a combination of civil law, Sharia and customary law. However, the two free zones – Dubai and Abu Dhabi – handle disputes offline and have their own arbitration systems. Here, the process takes place in English, not Arabic.
If you have decided to initiate proceedings through arbitration in the United Arab Emirates, it is worth noting that arbitration proceedings carried out abroad are legitimate in this jurisdiction.
One can challenge the arbitral decision in local courts. For this, a new proceeding must begin to cancel the decision or in response to the plaintiff's statement on its ratification.
How can you reverse the decision?
The arbitration proceedings cannot be reconsidered on the merits. There must be special grounds for setting aside an award. Among the most common are the so-called procedural grounds. For example, the party was not notified of the appointment of an arbitrator, or the arbitration agreement became invalid, the award was overdue or completely outside the scope of arbitration, or is contrary to the principle of legality and public order.
If you are planning an arbitration in the Emirates, pay attention to this.
If you have a business conflict and intend to resolve a commercial dispute through arbitration in the UAE, then now you can take advantage of the simplified procedure. Instead of filing the main grievance, as you did before, you file a simple set of documents with the Court of Appeal in the relevant emirate and wait two months for an enforcement order. It should be noted that during this time the court has the opportunity to find a legal reason for canceling the decision.
The UAE is part of the New York Convention. Therefore, foreign decisions may well be applicable in the Emirates, provided that these decisions were made in a country that is also part of the Convention.
For entrepreneurs wishing to resolve a business conflict in the UAE, it is useful to know that an application to overturn a decision is submitted to the Court of Appeal, and appeals are considered by the Court of Cassation.
When entrepreneurs submit the resolution of arisen business disputes to arbitration, they encounter a great number of procedural formalities. There is also a possibility of further compulsory execution of the decision if the counterparty is not willing to execute it. Court procedures take a lot of time and are not always understandable to a businessman inexperienced in legal matters.
The new law has amended the arbitration process in the UAE, simplifying it and making it more user-friendly.
If you still need clarification on how arbitration works in the Emirates, we invite you to an individual consultation on the enforcement of arbitral awards in the United Arab Emirates. Please contact the legal professionals of our company by filling out the feedback form on the website or in another way convenient for you.