On May 3, 2018, the UAE enacted Federal Law No. 6 of 2018 (“the New Law“), published in the Official Gazette No. 630 on May 15, 2018. This legislation replaced key arbitration provisions in the UAE Civil Procedures Law No. 11 of 1992, specifically Articles 203-218. The New Law took effect in mid-June 2018, one month after its publication, marking a new era for arbitration in the UAE.

Khairallah Law Firm emphasizes that introducing this new law demonstrates the UAE’s strong commitment to modernizing its Dubai arbitration law in line with international standards. This article provides an in-depth analysis of the New Law’s key provisions, particularly emphasizing the enforcement of arbitration awards.

Essential Features of the New Legislation

Article 2 clearly defines the scope of Dubai arbitration law. It applies to (i) any arbitration conducted within the UAE unless the parties mutually agree to another governing law; (ii) any international arbitration held outside the UAE, if the parties choose to apply the arbitration law to those proceedings; and (iii) any arbitration arising from a dispute related to a legal relationship governed by UAE law, unless specifically exempted by a special provision.

Article 11 outlines mechanisms for situations where parties cannot agree on the appointment of an arbitrator or tribunal under Dubai arbitration law. Previously, under Article 204 of the former arbitration provisions, parties had to file a court application for direction, essentially initiating full litigation proceedings. In contrast, the New Law streamlines this process by allowing parties to apply directly to the relevant authority—either the arbitral institution authorized to administer the arbitration or the court—without resorting to lengthy litigation.

Article 21— Interim and conservatory measures by the tribunal unless otherwise agreed upon, a party may request that an interim or conservatory measure be ordered subject to such terms as are necessary to preserve the respective rights of either party.

Whereas the old arbitration provisions did not make this or any distinction, Article 28 does distinguish between the “place of arbitration” (the legal seat to which an award will be legally connected) and a separate venue for hearings. Finally, Article 41(6) provides that an award shall be considered as made at the seat of arbitration when under Article 28 regardless of its signature abroad. Hearings and deliberations may also be held by the Court utilizing modern means of communication (Article 28(2)(b)). Likewise, article 35 empowers the tribunal to take evidence from witnesses (it could be expert witnesses as well) through modern modes of telecommunication and video-conferencing. This evolution reflects significant updates in the arbitration law.

Challenging Arbitration Awards: Key Considerations under Dubai Arbitration Law

Article 53 allows any party to the Convention that alleges enforcement of a CEP award pursuant thereto should be refused, and together with Article IV establishes the exclusive grounds therefore these are based upon one or more listed reasons given from Articles 53(1)(a) through. In addition, Article 53(2) mandates that a tribunal should declare the award void either when it is concerned with a non-arbitrable subject matter or where its enforcement would violate public policy.

As well as seeking to have the award set aside under Article 53(1), a party may also challenge an application for ratification of the award during that process by objecting before the court (Article 57). Consequently, there are three possible manners through which a party may challenge the ratification and enforcement of an award :

1- File a case to set aside the award under Article 53(1) before the Court of Appeal. This decision is then subject to appeal before the Court of Cassation under Article 54(1).

2- Present a defense to the Court, objecting to the ratification and enforcement of the award during the ratification process initiated by the award creditor, as outlined in Article 55(1).

3- Submit a grievance against the Court’s decision to grant or deny enforcement.

Enforcing Awards under the New Legislation

Article 52 provides that an award made under the New Law “shall have res judicata effect and may be executed as a judgment of the Court”.

Instead of the old arbitration provisions, Article 55(1) requires a party enforcing an award to file an application with all necessary documents before the Chief Justice of any Curt exercising original civil jurisdiction. ‘Court’ means the Federal Court of Appeal or local Courts of Appeal in the UAE here. Article 55(1) states that the Chief Justice (or any judges designated by him or her for this purpose), shall make an order to confirm as enforceable a foreign award within sixty days of receiving the application unless there are grounds for setting aside under Article 53(1). This process aligns with the Dubai arbitration law.

Contesting Decisions on Award Enforcement under Dubai Arbitration Law

Under Article 57, a party can challenge a court’s decision regarding the ratification of an award by filing a grievance with the court within thirty days. Article 57 states:

The amended Article 57 does not state whether a decision of the ‘competent Court of Appeal’ is conclusive or whether aggrieved parties can appeal to the Cassation court. The New Law likely renders the decision of the ‘competent Court of Appeal’ final with respect to any complaints under Article 57, as an appeal by default lies within a higher appellate court rather than from such a lower court. Otherwise, permitting additional appeals would potentially cause protracted processes and delays in the enforcement of awards that would frustrate the primary aims of the New Law.

Conclusion 

Covered by the UAE’s Federal Law No. 6 of 2018, which enters into force mid-June: This is one law that could really bring Dubai arbitration law entirely up to date as it updates key provisions in a modern and more streamlined process within what essentially was a relatively unfamiliar procedural environment for commercially-minded parties onshore. The New Law will streamline enforcement, and it conforms to global best practices for both the enforcement of awards as well as the proceedings initiated against such foreign awards. This reform, according to Khairallah Law Firm manifests the UAE’s commitment toward incorporating known global arbitration standards.

You can benefit from the free consultation for 30-min, and get the help you need from the best lawyers in Dubai, whether you’re in the region or not!