Arbitrations in the UAE are governed by Federal Law 6 of 2018 on Arbitration (the ‘Arbitration Law’) which is based on the UNCITRAL Model Arbitration Law. The Arbitration Law applies to all onshore arbitration proceedings in any Emirate including arbitrations under the rules of the Dubai International Arbitration Centre (the ‘DIAC’) in Dubai – but not to free zone arbitrations such as DIFC and ADGM free zones as these have their own arbitration laws. Parties should also note that certain types of disputes are not arbitrable including labour cases; public policy matters and agency disputes.
DIAC (www.diac.ae) is one of the most prominent arbitral institutions in the UAE. It administers arbitrations under the DIAC Arbitration Rules 2022 (the ‘DIAC Rules’). The local UAE courts exercise a supervisory function over onshore arbitrations including DIAC arbitrations. The UAE court system generally adopts a positive to the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the ‘New York Convention’) and this has been a further support for dispute resolution through arbitration in the region.
Parties to onshore arbitral proceedings including DIAC arbitrations should note that the provisions of the Arbitration Law on the formation of a valid arbitration agreement and the grounds on which a party can apply to invalidate are mandatory. DIAC arbitrations will be governed by the Arbitration Law and although the Arbitration Law broadly follows the UNCITRAL Model Law, there are some key differences that parties should be aware of. A key difference is that the Arbitration Law states that the signatory of the arbitration agreement must be duly authorised. It is worth noting that a general signatory authority has been deemed insufficient in some cases and that there is a significant body of national and federal case law relating to disputes in which the enforceability of arbitral awards was challenged on the basis of alleged flaws in the authority of the signatory to the arbitration agreement itself. A further key consideration for parties – which in this case arises from the Civil Procedure Code rather than the Arbitration Law – is that witnesses must be placed under oath. Again, this requirement is important to avoid potential challenges to the enforceability of an arbitral award.
Bolz Arbitration is able to offer parties independent, professional and tailored arbitration advice and support to individuals and companies involved in arbitrations in Dubai and Abu Dhabi. Bolz Arbitration specialises in the resolution of corporate, commercial, property, real estate and construction disputes through arbitration. Anja Bolz can act either as an arbitrator or can assist parties as their representative in arbitrations in Abu Dhabi and Dubai.
Arbitration parties seeking an experienced representative or wishing to appoint an independent arbitrator are invited to visit www.bolzarbitration.com for more details.
