The Department of Economic Development (DED) of Dubai has recently instituted Business Protection Department (BPD) solely for reconciling commercial disputes between businesses and will act as a local commercial dispute-resolution authority.

As opposed to the present scenario, the Commercial Control and Consumer

Protection Department (CCCPD) was responsible for settling consumer disputes. However, the business to business disputes

remained unsettled and undetermined. As an outcome, even trifle matters became

controversial and adversarial thus, the need for a convenient and amicable

means to resolve the dispute raised, hence the establishment of BPD.

The BPD is responsible for providing

a “National Dispute Settlement Service” in the Emirate which

accommodates complaints raised by the parties Licensed in Dubai. Apart from

being an exclusive settlement committee,

the BPD act as an educational authority ensuring the traders in Dubai

understand the rules and regulations to facilitate a healthy business

environment. Organizing workshops,

conventions and distributing books to entities licensed within Dubai to

escalate awareness among the business enterprises. Lawyers in UAE will assist

you in understanding the roles and responsibilities of BPD and their

jurisdiction in corporate matters.

BPD’s Jurisdiction

BPD is an Informal Dispute Resolution

Body with limited jurisdiction and sole

objective of assisting the Dubai Courts. As a sub-department of CCCPD, BPD only

undertakes Business to Business disputes which extend only to businesses

licenses in Dubai with a minimum capital of AED 200,000. However, it is not

mandatory for the parties to present in Dubai at the time of the Mediation Conference.

On the Contrary, BPD is not authorized to act as a mediator for

International traders not having a license

from DED essentially because BPD will not be

considered as a resourceful authority to coerce the other party to

resolve the matter prior to reaching

courts. Likewise, the dispute between the

individuals not licensed with DED is

beyond the jurisdiction of BPD.

BPD is strictly restricted to act as

a mediator or to hold mediation conference in disputes commercial, whereas, dispute about

insurance, banking, real estate, labour does not fall under the jurisdiction of

BPD. It is considered as an alternative to resolve the dispute amicably and does not act as a tribunal.

Procedure for Filing Complaint

Companies or individuals representing

the entities registered with DED can register their complaint either via email

or through telephonic call or manually at DED branch of CCCPD along with the

relevant documents evidencing the claim with a non-refundable fee of AED 2,020.

Upon receiving the complaint, BPD

arbitrators review the case file and comprehend if the matter falls within

their jurisdiction and determine if they are apt for acting as a mediator or

should the matter be referred to another

competent authority. In the event the matter

is accepted by the BPD arbitrators, they contact the respondents for the initial conference either by phone calls or

personal meeting in accordance with the

convenience of the parties. BPD has ensured to resolve the dispute with ten business working days. However, it may extend depending upon the

merits of the case.

Judgments

and Appeals

The dispute resolution mechanism

undertaken by BPD is discretionary and is not binding. The basis of BPD’s

determination is their expertise and familiarity with the dispute. Thus, an ad

hoc approach rather than having formal procedures. The decisions passed by BPD

does not involve precedents although they have successfully resolved numerous

case from the time of establishments.

The decision passed by BPD is a final

decision, and there is no scope to file

an appeal against the same decision. Yet,the parties are not bound by the judgment and will also have an opportunity to

refer the matters before relevant courts. Thus, neither the process nor the

decision of BPD restricts either party to

file the case before an appropriate

judicial authority.

Department of Economic Development is

the principal licensing authority in the Emirate of Dubai for companies

undertaking commercial activities wherein BPD is a sub-department possessing the

authority to block or provisionally

suspend the license of the companies registered with DED. Subsequently, the

authority can impose penalties including fines for instances where either party

fails to attend the hearing when summoned, not adhering to BPD’s decisions post

accepting the mediation process.