Are you facing a business dispute in the UAE and searching for an effective, efficient, and confidential way to resolve it? Arbitration might be the solution you need. In this article, Khairallah Law Firm provides a comprehensive guide to arbitration in the UAE.

Arbitration offers a dispute resolution mechanism that serves as an alternative to court litigation. In this process, the parties involved in the dispute submit their case to an impartial third party or a panel of arbitrators. These arbitrators, who are often experts in the relevant field, then render a binding decision known as an arbitral award, in accordance with UAE arbitration law.

Read More About: Overview of Arbitration and Proceedings in UAE

The Competent Court Under UAE Arbitration Law

The New Arbitration Law highlights a key procedural change by designating the Competent Court, defined as the “Federal or local Court of Appeal agreed upon by the parties or in whose jurisdiction the arbitration is conducted.” Moving forward, we anticipate that, in line with other major global arbitration hubs, a dedicated circuit will handle arbitration matters. This circuit would include specialized, arbitration-focused members of the judiciary to better support and safeguard arbitration in UAE.

Benefits of Arbitration in the UAE

• Privacy: Arbitration proceedings are conducted behind closed doors, unlike public court hearings. This confidentiality will protect sensitive business information. 
• Move Quickly and Efficiently—Arbitration commonly moves faster than litigation in a courtroom, which could take years to complete. By setting a schedule the parties can accelerate this process. 
• Choice of Arbitrators: Parties are able to select their arbitrators, thereby choosing experts in the industry. This one will improve the quality of your decisions. 
• Location, Language, and Rules Flexibility: Arbitration allows parties to choose the place of arbitration, the language in which proceedings will be conducted, and procedural rules. The neutral venue can be used by the parties ensuring a level field. 
• Frankness: Conceptually, arbitral awards are final and binding with the exceptions being limited grounds for appeal. This finality provides the degree of legal certainty that multiple rounds of appeals in a court cannot.

All these benefits align with UAE arbitration law, ensuring that arbitration remains an effective and efficient alternative to traditional litigation.

Learn More About: Resolving Disputes through Settlement during Arbitration in the UAE

Understanding the Arbitration Agreement Under UAE Arbitration Law

The 2023 Arbitration Law introduces a minor amendment by slightly revising Article 23. This revision reaffirms the parties’ right to agree on the procedures the arbitral tribunal will follow during the proceedings. Additionally, it allows the parties to choose to apply the arbitration rules of any arbitral institution, whether in the UAE or abroad, in accordance with the Federal Arbitration Law UAE.

Article 28: Place of Arbitration and Arbitral Proceedings

As per the revised Article 28(1) of the Arbitration Law 2023, parties can now conduct arbitration “through modern means of technology.” Its inclusion in this database is part of the ongoing normalization and proliferation of virtual proceedings which has been further accelerated by the COVID-19 pandemic. These are also provisions that mirror the virtual hearing developments made in many of the updated institutional arbitration rules, such as Article 32(2) of the SCC Arbitration Rules effective from 2023. The amendments are in sync with the UAE arbitration law and Dubai arbitration law for modernizing practices around arbitrations.

Arbitration Jurisdictions in the UAE

Dubai: One of the most common arbitration centers in Dubai is run by the Dubai International Arbitration Centre (DIAC). It provides a large number of guidelines and regulations for both domestic disputes as well as international commercial arbitration under UAE Arbitration law. The same applies to the Abu Dhabi Commercial Conciliation and Arbitration Centre (ADCCAC), located in Abu Dhabi, especially with respect to its proficiency in commercial dispute resolution. It continues to be a popular choice in the resolution of both domestic and international business disputes.

In addition to:& Addition fo the DIFC-LCIA Arbitration Centre, which is a cooperation center between the Dubai International Financial Center (DIFC) and with London Court of Internacional Arbitration for delivery arbitration in Dubai. A Centre only for conducting commercial arbitration and offering an effective resolution in the atmosphere of Arbitration is Sharjah International Commercial Arbitration Center (Tahkeem Shj.) 

Have More insights About: Dubai Courts’ Latest Arbitration Rules under Dubai Arbitration Law

Conclusion

If you face a business dispute in the UAE, arbitration can offer a private, swift, and effective resolution. Under UAE arbitration law, this process involves impartial arbitrators making binding decisions. Recent updates, including virtual proceedings and specialized courts, enhance the efficiency of arbitration. Major centers like DIAC and ADCCAC are key for both local and international disputes. For detailed guidance, see Khairallah Law Firm.

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!