Arbitration And Conciliation Under Uae Law

By Author: Hassan Elhais
Total Articles: 62
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As it is witnessed that UAE is fast becoming an investment hub attracting investors from across the world. As the country continues to diversify its economy, there has been a substantial growth once again. It will continue to attract investment and when it comes to business, there are bound to be disputes happening between the parties for commercial transactions. UAE believes in resolving disputes amicably through arbitration or tahkim. The country's law is in line with international best practice as it is strictly adopted by the ICC and other international institutions. There are both federal and state law in the UAE. The arbitration law is governed by the UAE Civil Procedure Code (CPC), Federal Law no (11) of 1992 consisting of chapters III, IV and V.

It is expected that UAE has acceded to the New York Convention in 2006. Many drafts concerning the most common arbitration law have been released, the latest one being submitted in 2013.

In the UAE, arbitration institutions are “The Dubai International Arbitration Centre (DIAC)” and “The Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC)”. ...
... DIAC resolves disputes by way of arbitration under the UAE law, while ADCCAC settles disputes concerning agreements with Abu Dhabi government entities.

Within Dubai's free zone areas, the Dubai International Financial Centre (DIFC) follows its own DIFC Arbitration Law. Other than this, even Ras Al Khaimah or Sharjah have their own arbitration regulations and centers.

The chapter III of arbitration law in the UAE includes articles 203 to 2018 of which some are mandatory when arbitrating.

According to the law, the number of arbitrators should be odd and the UAE courts have the right to cancel the appeal as per the Article 204(2) CPC if the parties fail to agree on the number or identity of the arbitrators

According to article 208(1) UAE CPC, one setting an appointment for arbitration the law stipulates that initial hearing should happen within 30 days.

The Article 203(3) CPC states that the subject of the arbitration should be mentioned on the arbitration document during the hearing of the lawsuit.

When either of the party decides to present a witness testimony proceedings, they must provide them under oath as per the article 211, UAE CPC.

The arbitration award should be given within six months after the initial hearing. Although, a party may wish to extend the period. One an award has been rendered, either of the parties do not have the right to file a new suit even if the evidences are new.

The language and seat of arbitration is flexible in UAE.
As with evidences, there is no restriction under the UAE law on how to deal with it during proceedings.

It is indicated that UAE is expected to adopt a new arbitration law, which will be in line with the international best practice.

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After qualifying as a lawyer within the fields of Criminal and Public Law, Dr. Hassan Mohsen Elhais has been practicing as a Legal Consultant in Dubai since 2006. Working exclusively with Awatif Mohammad Shoqi Advocates & Legal Consultancy, Dr. Hassan has a strong ethical stance with regards to the place of the law firm, from clarity on the legal process through to the fee system.