on June 8, 2023, the Dubai Court of Cassation delved into the details of Case No. 1514 of 2022. They were tackling the usual questions that come up in arbitrations happening in the UAE, specifically under the 2018 UAE Federal Arbitration Law (“FAL”). This revisit is a big deal in the world of the Dubai Arbitration Law. Now, this post is all about breaking down three specific issues that popped up from the recent Dubai Court of Cassation ruling. The scoop you’re about to get is super useful for anyone dealing with arbitrations in the UAE. And just so you know, these insights are coming straight from the experienced minds at the Khairallah Law Firm.

Understanding Arbitration Rules in the Context of Dubai Arbitration Law

Arbitration stands out among other dispute resolution processes. Imagine the following scenario: you and the other party decide, “Hey, let’s not head to court,” and instead you present your problems to one or more impartial arbitrators.

They are participants in the game, not just observers, and they are making a decision that everyone must abide by. Why then choose arbitration? Saying, “Let’s handle this privately,” and avoiding the entire court drama is analogous. And what do you know? The Dubai Arbitration Rules are an interesting addition to the proceedings in Dubai.

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What is the process of arbitration in the UAE?

When sorting things out in both onshore and offshore arbitration in UAE, folks have the freedom to pick their arbitrator, but there’s a catch—they need to be independent and impartial. Now, for the onshore arbitration scene in the UAE, there are a few more hoops to jump through according to the UAE Arbitration Law:

 

1. The chosen arbitrator can’t be a minor. 
2. They shouldn’t be under any court interdiction order or stripped of civil rights due to bankruptcy, committing a serious crime, or getting convicted for something shady involving moral turpitude or breach of trust.
   
   
3. Oh, and they need to be totally independent of the institution handling the case.

Now, if there’s a tug of war over picking arbitrators between the parties and the arbitration bigwigs, local courts can jump in to help sort things out. And just so you know, once the court makes a decision in such situations, that’s the final word—it can’t be appealed.

Understanding Dubai Arbitration Law: Exploring the Arbitration Clause in the UAE

when businesses make deals these days, they often throw in what they call a Dubai arbitration clause. It’s like having a game plan for any future disagreements. 

Usually, the folks involved pick one of those standard rulebooks offered by the organization handling the dispute. And in this rulebook, they make sure to jot down all the little details – you know, things like the rules of the arbitration game, which organization will be the referee (if it comes to that), where the arbitration showdown will happen (legally speaking), how many referees there will be, and even the language everyone will be using.

Now, here’s the interesting part: if the clause forgets to mention any of these things, it could make the whole arbitration thing a bit wonky. It might even give the other side a chance to drag things out while they figure out what’s what. 

For example, if the clause doesn’t say how many referees there should be and no one can agree, the organization in charge of the arbitration (or, if there’s no clear organization, the courts in the legal spot where all this is happening) will have to step in and make the call. It’s like making sure everyone’s on the same page before the game even begins!

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Exploring the Various Forms of Arbitration

1- The arbitration clauses: that we explained above 

2-Understanding Submission Agreements and Arbitration Deeds

This document that you have is called a Submission Agreement. It is comparable to an arbitration clause’s underappreciated sibling. Thus, when a minor dispute arises, this Agreement takes effect once the dust has settled. It goes into all the fascinating details, is a little more detailed than its cousin, and essentially says, “Let’s sort this out through arbitration in  UAE.

This Agreement is not a wall of technical terms. It goes into detail about things like the location of the legal showdown and the number of people that will be in the ring. Here’s the thing, though: it could be worthless, and any prizes awarded afterward if it neglects to detail the specifics of the dispute that will be arbitrated in the United Arab Emirates.

3-Incorporating Arbitration Agreements by Reference under Dubai Arbitration Law

If this agreement points directly to another document that does have an arbitration clause, well, guess what? That arbitration part is like a secret agent, sneaking into the main agreement through the back door. Of course, there’s a catch – it has to be super clear, like, smack dab under “Dispute Resolutions and Governing Law,” all thanks to the cool Dubai Arbitration Law. But hey, if the reference is all vague and up for interpretation battles, the national courts might just swoop in and take charge.

Which situations are appropriate for arbitration?

arbitration lawyers in dubai frequently emphasize the significance of Section 8 of this 1996 law. It functions as a kind of guidebook that mandates that the courts honor arbitration agreements and start the process of resolving disputes. 

Now, this statute doesn’t specifically state that arbitration is not permitted for some kinds of disputes. However, there are times when courts will rule in a particular case that arbitration is not appropriate. For example, in India, arbitration cannot resolve matters pertaining to criminal offenses, family matters, and certain other matters.

And, surprise! The question of whether arbitration can be used to resolve disputes pertaining to competition law is up for discussion. It seems like everyone is still getting used to that. In general, arbitration may not be the best course of action when it comes to property or other goods. Arbitration, however, might be effective if it concerns a particular individual.

Dubai now has its own arbitration regulations, and it’s important to understand them, particularly with the assistance of knowledgeable arbitration attorneys in Dubai. Particularly when things get a little complicated, they act as your guides through the legal maze.

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Conclusion 

Contact Khairallah Law Firm if you’re ever confused about arbitration or find yourself in a difficult situation involving it. Our team is focused on ensuring that everything goes smoothly for you and has your back. Indeed, we’re quite pleased with our reputation as Best Lawyers in Dubai . We want you to have peace of mind, so please don’t hesitate to contact us!