Parties entering into dispute resolution in the United Arab Emirates may wish to consider the wider legal framework within which their dispute will be determined. This post briefly describes the legal system of the UAE and considers the various forms of dispute resolution common in the UAE.
The federation of the United Arab Emirates comprises the Emirates of Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah. In addition to the national laws enacted by each Emirate,
UAE Federal Law applies in every Emirate.
The Emirates of Abu Dhabi, Dubai and Ras Al Khaimah have their own separate local court systems comprising a Court of First Instance, a Court of Appeal and a Court of Cassation. In these three particular Emirates, the Court of Cassation is the highest appellate court. In the other Emirates, there is both a Court of First Instance and a Court of Appeal with the final appellate court being the Federal Supreme Court.
The legal system of the UAE is based on civil law and proceedings are conducted in Arabic. Accordingly, there is no system of binding judicial precedent. There are also numerous free zones in the UAE which have their own rules and regulations, but which are governed by Federal Law and operate under the jurisdiction of the court system of the Emirate in which they are located. It is worth noting that the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) are essentially legally separate jurisdictions which have enacted laws based on the English common law and in which UAE civil and commercial laws do not apply.
Dispute resolution through the Dubai Court system (outside the DIFC) will take the form of civil proceedings which will be predominantly based on written submissions. Discovery and/or disclosure do not exist under UAE law with the closest equivalent to these common law processes being the investigation of the dispute by a court-appointed expert. Local courts do not hear oral arguments or submissions from lawyers and the oral hearing of witnesses is rare.
Litigation and arbitration remain the main forms of dispute resolution in the UAE although mediation and conciliation are becoming more common.
In the event that contractual parties in a dispute have agreed to resolution through arbitration, parties will need to seek early independent advice on their arbitration agreement; choice of law; arbitral seat as well as guidance on the implications of any institutional rules they may have selected to govern the process of theirdispute.
Parties entereing into dispute resolution are invited to contact Bolz Arbitration for an initial free consultation.
Bolz Arbitration is able to offer parties independent, professional and tailored arbitration advice and support to individuals and companies involved in arbitrations.
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.
