Arbitration practice and procedure has developed rapidly in the UAE, and the courts now take a far more pro-active role in supporting the arbitration process and enforcing arbitral awards. This movement can be seen progressively in Cassation Court judgments over the past ten years and is now recognised in Federal Law No. 6 of 2018 on Arbitration (the “new Arbitration Law”), which repealed and replaced the old arbitration law in Articles 203 to 218 of Federal Law No. 11 of 1992. The old law did not reflect international best practice and left too much scope for the award debtor to avoid making payment

The new Arbitration Law is based on the UNCITRAL Model Law promoted by the United Nations Commission on International Trade Law, which is widely adopted international lyin arbitration law. The new Arbitration Law enhances the powers of arbitral tribunals, it reduces the scope for challenges to the enforcement of arbitral awards, and it enshrines the powers of the courts to act in support of the arbitral process.

Arbitration is confidential and takes place in private and is the preferred method of dispute resolution for technical disputes (such as the construction,engineering and shipping industries) and for international businesses who do not want their dirty laundry washed in public.

Authored by Dr. Daniel Brawn – Senior Counsel