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Commercial Disputes: Litigation is Crucial Step While Arbitration Can Be Alternative
In the United Arab Emirates (UAE), resolving commercial disputes typically involves either litigation or arbitration. Although arbitration is increasingly favoured for its efficiency, litigation remains the primary method for resolving disputes in the UAE.
An examination of the essential aspects of commercial litigation in the United Arab Emirates encompasses procedural protocols, evidentiary considerations, and judicial decision-making.
Commercial litigation spans a broad spectrum of conflicts, ranging from corporate disputes and company liquidations to bankruptcy proceedings, insolvency matters pertaining to partnerships, trade disputes, and debt recovery cases.
Litigation
Resolving commercial disputes in the UAE requires navigating a legal system influenced by Shariah and civil law, including litigation.
Parties in dispute can opt for litigation, presenting their case before the courts, particularly the Court of First Instance in the respective emirate.
The UAE follows a civil law system, where cases are adjudicated based on their merits and facts. Court proceedings are conducted in Arabic, necessitating the involvement of a UAE National lawyer. All court submissions must be translated into Arabic, accompanied by legal attestations if required.
Court System Overview
Emirates except Abu Dhabi and Ras Al Khaimah (RAK) are integrated into the Federal Judicial system. These emirates follow a standard structure, consisting of:
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- Court of First Instance
- Court of Appeal
- Court of Cassation (RAK, however, lacks a Court of Cassation, with all appeals directed to the Supreme Court of Abu Dhabi).